Document:

Unassociated Document

    

    

      Form
        of Pooling and Servicing Agreement

    

    

     

    
      

      

    

    

     

    THORNBURG
      MORTGAGE SECURITIES CORPORATION,

    Depositor

    

    THORNBURG
      MORTGAGE HOME LOANS, INC.,

    Seller

    

    [      ],

    Master
      Servicer and

    Securities
      Administrator

    

    and

    

    [      ],

    Trustee
      and Custodian

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of [      ] [    ],
      [     ]

     

    __________________________________

     

    Thornburg
      Mortgage Securities Trust [      ]

     

    Mortgage
      Loan Pass-Through Certificates, Series
      [      ]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of Contents

    Page

     

    
      	
              ARTICLE
                I DEFINITIONS; DECLARATION OF TRUST

            	
              2

            
	 	 
	
              SECTION
                1.01. Defined Terms.

            	
              2

            
	
              SECTION
                1.02. Accounting.

            	
              37

            
	 	 
	
              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                CERTIFICATES

            	
              37

            
	 	 
	
              SECTION
                2.01. Conveyance of Mortgage Loans.

            	
              37

            
	
              SECTION
                2.02. Acceptance by Trustee.

            	
              41

            
	
              SECTION
                2.03. Repurchase or Substitution of Mortgage Loans by the
                Seller.

            	
              43

            
	
              SECTION
                2.04. Representations and Warranties of the Seller with Respect to
                the
                Mortgage Loans.

            	
              46

            
	
              SECTION
                2.05. [Reserved].

            	
              47

            
	
              SECTION
                2.06. Representations and Warranties of the Depositor.

            	
              47

            
	
              SECTION
                2.07. Issuance of Certificates.

            	
              48

            
	
              SECTION
                2.08. Representations and Warranties of the Seller.

            	
              48

            
	
              SECTION
                2.09. Covenants of the Seller.

            	
              50

            
	 	 
	
              ARTICLE
                III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

            	
              50

            
	 	 
	
              SECTION
                3.01. Master Servicer to Service and Administer the Mortgage
                Loans.

            	
              50

            
	
              [SECTION
                3.02. REMIC-Related Covenants.

            	
              51]

            
	
              SECTION
                3.03. Monitoring of Servicers.

            	
              52

            
	
              SECTION
                3.04. Fidelity Bond.

            	
              53

            
	
              SECTION
                3.05. Power to Act; Procedures.

            	
              54

            
	
              SECTION
                3.06. Due-on-Sale Clauses; Assumption Agreements.

            	
              55

            
	
              SECTION
                3.07. Release of Mortgage Files.

            	
              55

            
	
              SECTION
                3.08. Documents, Records and Funds in Possession of Master Servicer
                To Be
                Held for Trust.

            	
              56

            
	
              SECTION
                3.09. Standard Hazard Insurance and Flood Insurance
                Policies.

            	
              57

            
	
              SECTION
                3.10. Presentment of Claims and Collection of Proceeds.

            	
              57

            
	
              SECTION
                3.11. Maintenance of the Primary Insurance Policies.

            	
              57

            
	
              SECTION
                3.12. Trustee to Retain Possession of Certain Insurance Policies
                and
                Documents.

            	
              58

            
	
              SECTION
                3.13. Realization Upon Defaulted Mortgage Loans.

            	
              58

            
	
              SECTION
                3.14. Additional Compensation to the Master Servicer.

            	
              58

            
	
              SECTION
                3.15. REO Property.

            	
              59

            
	
              SECTION
                3.16. Assessments of Compliance and Attestation Reports.

            	
              59

            
	
              SECTION
                3.17. Annual Compliance Statement.

            	
              62

            
	
              SECTION
                3.18. Sarbanes-Oxley Certification.

            	
              63

            
	
              SECTION
                3.19. Reports Filed with Securities and Exchange
                Commission.

            	
              63

            
	
              SECTION
                3.20. Additional Information.

            	
              69

            
	
              SECTION
                3.21. Intention of the Parties and Interpretation.

            	
              69

            
	
              SECTION
                3.22. Indemnification.

            	
              70

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                3.23. Amendments to Master Servicing Guide and Correspondent Sellers
                Guide.

            	
              70

            
	
              SECTION
                3.24. UCC.

            	
              71

            
	
              SECTION
                3.25. Optional and Required Purchases of Certain Mortgage
                Loans.

            	
              72

            
	
              SECTION
                3.26. Realization upon Troubled Mortgage Loans.

            	
              73

            
	
              SECTION
                3.27. Closing Certificate and Opinion.

            	
              73

            
	
              SECTION
                3.28. Liabilities of the Master Servicer.

            	
              73

            
	
              SECTION
                3.29. Merger or Consolidation of the Master Servicer.

            	
              73

            
	
              SECTION
                3.30. Indemnification of the Trustee, the Seller, the Master Servicer
                and
                the Securities Administrator.

            	
              74

            
	
              SECTION
                3.31. Limitations on Liability of the Master Servicer and Others;
                Indemnification of Trustee and Others.

            	
              74

            
	
              SECTION
                3.32. Master Servicer Not to Resign.

            	
              76

            
	
              SECTION
                3.33. Successor Master Servicer.

            	
              76

            
	
              SECTION
                3.34. Sale and Assignment of Master Servicing.

            	
              76

            
	
              SECTION
                3.35. Reporting Requirements of the Commission.

            	
              77

            
	 	 
	
              ARTICLE
                IV ACCOUNTS

            	
              77

            
	 	 
	
              SECTION
                4.01. Servicing Accounts.

            	
              77

            
	
              SECTION
                4.02. Distribution Account.

            	
              78

            
	
              SECTION
                4.03. Permitted Withdrawals and Transfers from the Distribution
                Account.

            	
              81

            
	 	 
	
              ARTICLE
                V FLOW OF FUNDS

            	
              83

            
	 	 
	
              SECTION
                5.01. Distributions.

            	
              83

            
	
              SECTION
                5.02. [RESERVED]

            	
              87

            
	
              SECTION
                5.03. Allocation of [Net Deferred Interest] and Realized
                Losses.

            	
              87

            
	
              SECTION
                5.04. Statements.

            	
              88

            
	
              SECTION
                5.05. Remittance Reports; Advances.

            	
              91

            
	
              SECTION
                5.06. Compensating Interest Payments.

            	
              92

            
	
              SECTION
                5.07. [Reserved].

            	
              92

            
	
              SECTION
                5.08. [Reserved].

            	
              92

            
	
              SECTION
                5.09. [Reserved].

            	
              92

            
	
              SECTION
                5.10. Recoveries.

            	
              92

            
	 	 
	
              ARTICLE
                VI THE CERTIFICATES

            	
              93

            
	 	 
	
              SECTION
                6.01. The Certificates.

            	
              93

            
	
              SECTION
                6.02. Registration of Transfer and Exchange of
                Certificates.

            	
              94

            
	
              SECTION
                6.03. Mutilated, Destroyed, Lost or Stolen Certificates.

            	
              99

            
	
              SECTION
                6.04. Persons Deemed Owners.

            	
              100

            
	
              SECTION
                6.05. Appointment of Paying Agent.

            	
              100

            
	 	 
	
              ARTICLE
                VII DEFAULT

            	
              101

            
	 	 
	
              SECTION
                7.01. Event of Default.

            	
              101

            
	
              SECTION
                7.02. Trustee to Act.

            	
              103

            
	
              SECTION
                7.03. Waiver of Event of Default.

            	
              104

            
	
              SECTION
                7.04. Notification to Certificateholders.

            	
              104

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	 	 
	
              ARTICLE
                VIII THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            	
              105

            
	 	 
	
              SECTION
                8.01. Duties of Trustee and Securities Administrator.

            	
              105

            
	
              SECTION
                8.02. Certain Matters Affecting the Trustee and the Securities
                Administrator.

            	
              106

            
	
              SECTION
                8.03. Trustee and the Securities Administrator Not Liable for
                Certificates, Mortgage Loans or Additional Collateral.

            	
              108

            
	
              SECTION
                8.04. Trustee, Custodian, Master Servicer and Securities Administrator
                May
                Own Certificates.

            	
              109

            
	
              SECTION
                8.05. Trustee’s and Securities Administrator’s Fees and
                Expenses.

            	
              109

            
	
              SECTION
                8.06. Eligibility Requirements for Trustee and Securities
                Administrator.

            	
              110

            
	
              SECTION
                8.07. Resignation or Removal of Trustee and Securities
                Administrator.

            	
              110

            
	
              SECTION
                8.08. Successor Trustee and Successor Securities
                Administrator.

            	
              111

            
	
              SECTION
                8.09. Merger or Consolidation of Trustee or Securities
                Administrator.

            	
              112

            
	
              SECTION
                8.10. Appointment of Co-Trustee or Separate Trustee.

            	
              112

            
	
              SECTION
                8.11. Limitation of Liability.

            	
              113

            
	
              SECTION
                8.12. Trustee May Enforce Claims Without Possession of
                Certificates.

            	
              113

            
	
              SECTION
                8.13. Suits for Enforcement.

            	
              114

            
	
              SECTION
                8.14. Waiver of Bond Requirement.

            	
              114

            
	
              SECTION
                8.15. Waiver of Inventory, Accounting and Appraisal
                Requirement.

            	
              115

            
	
              SECTION
                8.16. Appointment of Custodians.

            	
              115

            
	 	 
	
              ARTICLE
                IX [REMIC ADMINISTRATION] [TAX STATUS AND REPORTING]

            	
              115

            
	 	 
	
              SECTION
                9.01. [REMIC Administration] [Tax Status and Reporting].

            	
              115

            
	
              [SECTION
                9.02. Prohibited Transactions and Activities.

            	
              117

            
	
              SECTION
                9.03. [Tax Treatment of the Class ES Certificates]].

            	
              117

            
	 	 
	
              ARTICLE
                X TERMINATION

            	
              118

            
	 	 
	
              SECTION
                10.01. Termination.

            	
              118

            
	
              SECTION
                10.02. Additional Termination Requirements.

            	
              120

            
	 	 
	
              ARTICLE
                XI DISPOSITION OF TRUST ASSETS

            	
              120

            
	 	 
	
              SECTION
                11.01. Disposition of Trust Assets.

            	
              120

            
	 	 
	
              ARTICLE
                XII MISCELLANEOUS PROVISIONS

            	
              120

            
	 	 
	
              SECTION
                12.01. Amendment.

            	
              120

            
	
              SECTION
                12.02. Recordation of Agreement; Counterparts.

            	
              122

            
	
              SECTION
                12.03. Limitation on Rights of Certificateholders.

            	
              122

            
	
              SECTION
                12.04. Governing Law; Jurisdiction.

            	
              123

            
	
              SECTION
                12.05. Notices.

            	
              123

            
	
              SECTION
                12.06. Severability of Provisions.

            	
              124

            
	
              SECTION
                12.07. Article and Section References.

            	
              124

            
	
              SECTION
                12.08. Notice to the Rating Agencies.

            	
              124

            
	
              SECTION
                12.09. Further Assurances.

            	
              125

            
	
              SECTION
                12.10. Benefits of Agreement.

            	
              125

            
	
              SECTION
                12.11. Acts of Certificateholders.

            	
              125

            
	
              SECTION
                12.12. Successors and Assigns.

            	
              126

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                12.13. Derivatives Transactions.

            	
              126

            

    

    

    EXHIBITS
      AND SCHEDULES:

     

    
      	
              
                Exhibit
                  A-1

              

            	
              Form
                of Senior Certificate (Other than Senior Interest-Only
                Certificate)

            	
              A-1

            
	
              Exhibit
                A-2

            	
              Form
                of Senior Interest-Only Certificate

            	
              A-1

            
	
              Exhibit
                B

            	
              [Reserved]

            	
              B-1

            
	
              Exhibit
                C

            	
              Form
                of Class A-R Certificate

            	
              C-1

            
	
              Exhibit
                D-1

            	
              Form
                of Subordinate Certificate

            	
              D-1-1

            
	
              Exhibit
                D-2

            	
              Form
                of Class ES Certificate

            	
              D-2-1

            
	
              Exhibit
                E

            	
              Form
                of Reverse of the Certificates

            	
              E-1

            
	
              Exhibit
                F

            	
              Request
                for Release

            	
              F-1

            
	
              Exhibit
                G-1

            	
              Form
                of Receipt of Mortgage Note

            	
              G-1-1

            
	
              Exhibit
                G-2

            	
              Form
                of Interim Certificate of Trustee

            	
              G-2-1

            
	
              Exhibit
                G-3

            	
              Form
                of Final Certification of Trustee

            	
              G-3-1

            
	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            	
              H-1

            
	
              Exhibit
                I

            	
              Form
                of ERISA Representation

            	
              I-1

            
	
              Exhibit
                J-1

            	
              Form
                of Investment Letter [Non-Rule 144A]

            	
              J-1-1

            
	
              Exhibit
                J-2

            	
              Form
                of Rule 144A Investment Letter

            	
              J-2-1

            
	
              Exhibit
                K

            	
              Form
                of Transferor Certificate

            	
              K-1

            
	
              Exhibit
                L

            	
              Transfer
                Affidavit for Class A-R Certificates Pursuant

            	 
	 	
              to
                Section 6.02(e)

            	
              L-1

            
	
              Exhibit
                M

            	
              [Reserved]

            	
              M-1

            
	
              Exhibit
                N

            	
              List
                of Servicers and Servicing Agreements

            	
              N-1

            
	
              Exhibit
                O

            	
              [Reserved]

            	
              O-1

            
	
              Exhibit
                P

            	
              [Reserved]

            	
              P-1

            
	
              Exhibit
                Q

            	
              Servicing
                Criteria

            	
              Q-1

            
	
              Exhibit
                R

            	
              Additional
                Form 10-D Disclosure

            	
              R-1

            
	
              Exhibit
                S

            	
              Additional
                Form 10-K Disclosure

            	
              S-1

            
	
              Exhibit
                T

            	
              Form
                8-K Disclosure Information

            	
              T-1

            
	
              Exhibit
                U

            	
              Form
                of Additional Disclosure Notification

            	
              U-1

            
	 	 	 
	
              Schedule
                I

            	
              Aggregate
                Mortgage Loan Schedule

            	 
	
              Schedule
                II

            	
              Group
                [   ] Mortgage Loan Schedule

            	 
	
              Schedule
                III

            	
              Group
                [   ] Mortgage Loan Schedule

            	 
	
              Schedule
                IV

            	
              Group
                [   ] Mortgage Loan Schedule

            	 

    

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    This
      Pooling and Servicing Agreement is dated as of
      [      ] (the “Agreement”),
      among
      THORNBURG MORTGAGE SECURITIES CORPORATION, a Delaware limited liability company,
      as depositor (the “Depositor”),
      THORNBURG MORTGAGE HOME LOANS, INC., a Delaware corporation, as seller (the
      “Seller”),
      [      ], as master servicer (in such capacity,
      the “Master
      Servicer”)
      and as
      securities administrator (in such capacity, the “Securities
      Administrator”)
      and
      [      ], a national banking association, as
      trustee (in such capacity, the “Trustee”)
      and
      custodian (in such capacity, the “Custodian”).

     

    PRELIMINARY
      STATEMENT:

     

    Pursuant
      to this Agreement, the Depositor intends to cause the issuance and sale of
      the
      Trust’s Mortgage Pass-Through Certificates, Series
      [      ] (the “Certificates”)
      representing in the aggregate the entire beneficial ownership of the Trust,
      the
      primary assets of which are the Mortgage Loans (as defined below).

     

    On
      or
      prior to the Closing Date, the Depositor acquired the Mortgage Loans from the
      Seller pursuant to the Mortgage Loan Purchase Agreement (as defined below).
      On
      the Closing Date, the Depositor will sell the Mortgage Loans and certain other
      property to the Trust and receive in consideration therefor the Certificates
      evidencing the entire beneficial ownership of the Trust.

     

    The
      Depositor intends to sell and deliver to the Seller or its designee the
      Certificates, to be issued hereunder in multiple classes, which in the aggregate
      will evidence the entire beneficial ownership interest in the Trust. The
      Certificates will consist of [   ] classes of certificates,
      designated as [      ] Certificates.

     

    [REMIC
      TAX ANALYSIS TO BE PROVIDED FOR EACH TRANSACTION, AS
      APPLICABLE]

     

    The
      following table sets forth (or describes) the class designation, Certificate
      Interest Rate, initial Class Principal Amount or Class Notional Amount and
      minimum denomination for each Class of Certificates issued pursuant to this
      Agreement:

     

    
      	
               

               

               

              Class

              Designation

            	 	
               

               

               

              Certificate
                Interest Rate

            	 	
               

              Initial

              Class
                Principal Amount or Class Notional Amount

            	 	
               

               

               

              Minimum

              Denominations

            
	
              Class
                [     ]

            	 	
              (1)

            	 	
              $[     ]

            	 	
              $[     ]

            
	
              Class
                [     ]

            	 	
              (1)

            	 	
              $[     ]

            	 	
              $[     ]

            
	
              Class
                [     ]

            	 	
              (1)

            	 	
              $[     ]

            	 	
              $[     ]

            

    

    _______________

    
      	
              (1)

            	
              Calculated
                pursuant to the definition of “Pass-Through
                Rate.”

            

    

     

    

    

    [Structure
      will vary in accordance with each specific transaction.]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I

     

    DEFINITIONS;
      DECLARATION OF TRUST

     

     

    SECTION
      1.01. Defined
      Terms.

     

    Whenever
      used in this Agreement or in the Preliminary Statement, the following words
      and
      phrases, unless the context otherwise requires, shall have the meanings
      specified in this Article. All calculations of interest described herein shall
      be made on the basis of an assumed 360-day year consisting of twelve 30-day
      months unless otherwise indicated in this Agreement.

     

    “Accepted
      Master Servicing Practices”:
      With
      respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
      servicing practices of prudent mortgage servicing institutions that master
      service mortgage loans of the same type and quality as such Mortgage Loan in
      the
      jurisdiction where the related Mortgaged Property is located, to the extent
      applicable to the Trustee (as successor Master Servicer) or the Master Servicer
      (except in its capacity as successor to a Servicer), or (y) as provided in
      the
      applicable Servicing Agreement, to the extent applicable to any Servicer, but
      in
      no event below the standard set forth in clause (x).

     

    “Account”:
      The
      Distribution Account and each Servicing Account, as the context
      requires.

     

    “Accrual
      Period”:
      With
      respect to each Distribution Date and any Class of Certificates, the calendar
      month prior to the month of such Distribution Date. Interest will be calculated
      based upon a [   ]-day year consisting of twelve
      [   ]-day months in each Accrual Period.

     

    “Accrued
      Interest Amount”:
      For
      any Distribution Date and for any Undercollateralized Groups [in the case of
      the
      Group [   ] Certificates] (other than any Interest Only
      Certificate), an amount equal to one month’s interest on the applicable
      Principal Deficiency Amount at the Net WAC of the applicable Loan Group,
plus
      any
      interest accrued on such Undercollateralized Group remaining unpaid from prior
      Distribution Dates.

     

    “Additional
      Collateral”:
      With
      respect to any Additional Collateral Mortgage Loan, the marketable securities
      or
      other assets subject to a security interest pursuant to the related pledge
      agreement.

     

    “Additional
      Collateral Mortgage Loan”:
      Each
      Mortgage Loan identified as such in the Mortgage Loan Schedule and as to which
      Additional Collateral is then required to be provided as security
      therefor.

     

    “Additional
      Disclosure Notification”:
      As
      defined in Section 3.19(a).

     

    “Additional
      Form 10-D Disclosure”:
      As
      defined in Section 3.19(a).

     

    “Additional
      Form 10-K Disclosure”:
      As
      defined in Section 3.19(b).

     

    “Adjustable
      Rate Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule I
      hereto.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    [“Adjusted
      Pass-Through Rate”:
      For any
      Distribution Date and any Class of Group [   ] Certificates, the
      excess of (i) the applicable Pass-Through Rate for such Class for such
      Distribution Date over (ii) the quotient of (a) the product of (I) the Net
      Deferred Interest, if any, for such Distribution Date multiplied by (II) 12,
      divided by (b) the Group [   ] Balance for such Distribution
      Date.]

     

    “Adjustment
      Date”:
      With
      respect to each Mortgage Loan, each adjustment date on which the related Loan
      Rate changes pursuant to the related Mortgage Note. The first Adjustment Date
      following the Cut-Off Date as to each Mortgage Loan is set forth in the Mortgage
      Loan Schedule.

     

    “Advance”:
      As to
      any Mortgage Loan or REO Property, any advance made by the Master Servicer
      (including the Trustee in its capacity as successor Master Servicer) in respect
      of any Distribution Date pursuant to Section 5.05.

     

    [“Adverse
      REMIC Event”:
      Either
      (i)
      the loss of status as a REMIC, within the meaning of Section 860D of the Code,
      for any group of assets identified as a REMIC in the Preliminary Statement
      to
      this Agreement, or (ii) the imposition of any tax, including the tax imposed
      under Section 860F(a)(1) on prohibited transactions and the tax imposed under
      Section 860G(d) on certain contributions to a REMIC, on any REMIC created
      hereunder to the extent such tax would be payable from assets held as part
      of
      the Trust Fund. ]

     

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

     

    “Aggregate
      Subordinate Percentage”:
      As to
      any Distribution Date, the percentage equivalent of a fraction, the numerator
      of
      which is the aggregate of the Class Certificate Principal Balances of the
      Subordinate Certificates and the denominator of which is the Group
      [   ] Balance for such Distribution Date.

     

    “Agreement”:
      This
      Pooling and Servicing Agreement, dated as of
      [      ], as amended, supplemented and otherwise
      modified from time to time.

     

    “Applicable
      Credit Support Percentage”:
      With
      respect to the Subordinate Certificates, as defined in Section
      5.01(e).

     

    “Apportioned
      Principal Balance”:
      As to
      any Class of Subordinate Certificates and any Distribution Date, the Class
      Certificate Principal Balance of such Class immediately prior to such
      Distribution Date multiplied by a fraction, the numerator of which is the
      Subordinate Component for the related Loan Group for such date and the
      denominator of which is the sum of the Subordinate Components (in the
      aggregate).

     

    “Assignment”:
      As to
      any Mortgage, an assignment of mortgage, notice of transfer or equivalent
      instrument, in recordable form, which is sufficient, under the laws of the
      jurisdiction in which the related Mortgaged Property is located, to reflect
      or
      record the sale of such Mortgage.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Available
      Funds”:
      As to
      any Distribution Date and the Mortgage Loans, and [any Loan Group] [in Loan
      Group [   ]] an amount equal to (i) the sum, without
      duplication, of (a) the aggregate of the related Monthly Payments received
      on or prior to the related Determination Date (excluding Monthly Payments due
      in
      future Due Periods but received by the related Determination Date) in respect
      of
      the Mortgage Loans in that Loan Group, (b) Net Liquidation Proceeds,
      Insurance Proceeds, Principal Prepayments (but not including Prepayment Penalty
      Amounts), Recoveries and other unscheduled recoveries of principal and interest
      in respect of the Mortgage Loans in that Loan Group received during the related
      Prepayment Period, (c) the aggregate of any amounts received in respect of
      related REO Properties for such Distribution Date, (d) the aggregate of any
      amounts of Interest Shortfalls (excluding for such purpose all shortfalls as
      a
      result of Relief Act Reductions) paid by the Servicers pursuant to the related
      Servicing Agreements and Compensating Interest Payments deposited in the
      Distribution Account for such Distribution Date in respect of the Mortgage
      Loans
      in that Loan Group, (e) the aggregate of the Purchase Prices, Substitution
      Adjustments and amounts collected for purchases pursuant to Sections 2.03 or
      3.25 deposited in the Distribution Account during the related Prepayment Period
      in respect of the Mortgage Loans in that Loan Group, (f) the aggregate of
      any Advances made by the Servicers and the Master Servicer for such Distribution
      Date in respect of the Mortgage Loans in that Loan Group, (g) the aggregate
      of any Advances made by the Trustee (as successor Master Servicer) for such
      Distribution Date pursuant to Section 7.02 hereof in respect of the Mortgage
      Loans in that Loan Group and (h) the Termination Price allocated to such
      Loan Group on the Distribution Date on which the Trust is terminated;
minus
      (ii) the sum of (w) the Expense Fees for such Distribution Date in
      respect of the Mortgage Loans in that Loan Group, (x) amounts in reimbursement
      for Advances previously made in respect of the Mortgage Loans in that Loan
      Group
      and other amounts as to which the Servicers, the Trustee, the Securities
      Administrator and the Master Servicer are entitled to be reimbursed pursuant
      to
      Section 4.03, (y) the amount payable from funds of the Trust to the Trustee,
      the
      Master Servicer, the Custodian or the Securities Administrator pursuant to
      Section 8.05, Section 3.30 and Section 3.31(c) in respect of Mortgage Loans
      in
      that Loan Group or if not related to a Mortgage Loan, allocated to each Loan
      Group on a pro
      rata
      basis
      and (z) amounts deposited in the Distribution Account in error, in respect
      of
      Mortgage Loans in that Loan Group, in each case without
      duplication.

     

    “Bankruptcy
      Code”:
      The
      Bankruptcy Reform Act of 1978 (Title 11 of the United States Code), as
      amended.

     

    “Base
      Value”:
      With
      respect to any Mortgage Loan for which Additional Collateral has been pledged,
      the value of the Additional Collateral as determined with respect to that
      Mortgage Loan in accordance with the applicable underwriting
      guidelines.

     

    “Book-Entry
      Certificates”:
      Any of
      the Certificates that shall be registered in the name of the Depository or
      its
      nominee, the ownership of which is reflected on the books of the Depository
      or
      on the books of a Person maintaining an account with the Depository (directly,
      as a “Depository Participant”, or indirectly, as an indirect participant in
      accordance with the rules of the Depository and as described in Section 6.02
      hereof). On the Closing Date, all Classes of the Certificates other than the
      Physical Certificates shall be Book-Entry Certificates.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Business
      Day”:
      Any
      day other than a Saturday, a Sunday or a day on which banking or savings
      institutions in the State of [     ] or in the city in
      which the Corporate Trust Office of the Trustee is located are authorized or
      obligated by law or executive order to be closed.

     

    [“Cenlar”:
      Cenlar
      FSB in its capacity as Sub-Servicer of the Mortgage Loans.] 

     

    “Certificate”:
      Any
      Regular Certificate, Residual Certificate [or Class ES
      Certificate].

     

    “Certificate
      Group”:
      Any of
      Certificate Group [   ], as the context requires.

     

    “Certificate
      Group [   ]”:
      At any
      time, the Group [   ] Certificates.

     

    “Certificate
      Notional Balance”:
      With
      respect to each Certificate of a given Class of Interest-Only Certificates
      and
      any date of determination, the product of (i) the Class Certificate Notional
      Balance of such Class and (ii) the applicable Percentage Interest of such
      Certificate.

     

    “Certificate
      Owner”:
      With
      respect to each Book-Entry Certificate, any beneficial owner thereof and with
      respect to each Physical Certificate, the Certificateholder
      thereof.

     

    “Certificate
      Principal Balance”:
      With
      respect to each Certificate of a given Class (other than Interest-Only
      Certificates) and any date of determination, the product of (i) the Class
      Certificate Principal Balance of such Class and (ii) the applicable Percentage
      Interest of such Certificate.

     

    “Certificate
      Register”
and
      “Certificate
      Registrar”:
      The
      register maintained and registrar appointed pursuant to Section 6.02
      hereof.

     

    “Certificateholder”
or
      “Holder”:
      The
      Person in whose name a Certificate is registered in the Certificate Register,
      except that a Disqualified Organization or non-U.S. Person shall not be a Holder
      of a Residual Certificate for any purpose hereof.

     

    “Certification
      Parties”:
      As
      defined in Section 3.18.

     

    “Certifying
      Person”:
      As
      defined in Section 3.18.

     

    “Class”:
      Collectively, Certificates that have the same priority of payment and bear
      the
      same class designation and the form of which is identical except for variation
      in the Percentage Interest evidenced thereby.

     

    “Class
      [   ] Certificate”:
      Any of
      the Class [   ] Certificates as designated on the face thereof,
      executed by the Securities Administrator and authenticated and delivered by
      the
      Certificate Registrar, substantially in the form annexed hereto as Exhibit
      [   ], [evidencing the ownership of a “regular interest” in
      [   ] REMIC [   ] created hereunder] and
      representing the right to distributions as set forth herein and
      therein.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Class
      Certificate Notional Balance”:
      With
      respect to the Class [   ] Certificate and any Distribution Date
      up to and including the Distribution Date in
      [      ], the Class Certificate Principal Balance
      of the Class [   ] Certificates before such Distribution Date;
      for any Distribution Date thereafter, zero. 

     

    “Class
      Certificate Principal Balance”:
      As to
      any Distribution Date, with respect to any Class of Certificates (other than
      the
      Interest-Only Certificates), the Original Class Certificate Principal Balance
      as
      reduced by the sum of (x) all amounts actually distributed in respect of
      principal of that Class on all prior Distribution Dates, (y) all Realized
      Losses, if any, actually allocated to that Class on all prior Distribution
      Dates
      and (z) in the case of the Subordinate Certificates, any applicable Writedown
      Amount; provided,
      however,
      that
      [(i) pursuant to Section 5.02([  ]), the Class Principal Balance of
      any Class of Certificates shall be increased by the amount of Net Deferred
      Interest allocated to such Class of Certificates on such Distribution Date
      and
      (ii]) pursuant to Section 5.10, the Class Certificate Principal Balance of
      a
      Class of Certificates may be increased up to the amount of Realized Losses
      previously allocated to such Class, in the event that there is a Recovery on
      a
      Mortgage Loan, and the Certificate Principal Balance of any individual
      Certificate of such Class shall be increased by its pro
      rata
      share of
      the increase to such Class.

     

    “Class
      [   ] Interest”:
      As
      described in the Preliminary Statement.

     

    [“Class
      ES Certificate”:
      Any of
      the Class ES Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed as Exhibit D-2, evidencing an
      interest in the Trust Fund but not in any REMIC created thereby.]

     

    [“Class
      ES Distributable Amount”:
      With
      respect to each Distribution Date and each Mortgage Loan serviced by [Thornburg]
      and sub-serviced by [      ], an amount equal to
      one month’s interest at the Excess Servicing Fee Rate on the Stated Principal
      Balance of such Mortgage Loan as of the Due Date in the month of such
      Distribution Date (prior to giving effect to any scheduled payments due on
      such
      Mortgage Loan on such Due Date).]

     

    “Class
      Subordination Percentage”:
      With
      respect to each Class of Subordinate Certificates and any Distribution Date,
      the
      percentage equivalent of a fraction the numerator of which is the Class
      Certificate Principal Balance of such Class immediately before such Distribution
      Date and the denominator of which is the aggregate of the Class Certificate
      Principal Balances of [all Class of Certificates] [all Classes of Group
      [   ] Certificates and Subordinate Certificates] immediately
      before such Distribution Date.

     

    “Close
      of Business”:
      As
      used herein, with respect to any Business Day and location, 5:00 p.m. at such
      location.

     

    “Closing
      Date”:
      [      ].

     

    “Code”:
      The
      Internal Revenue Code of 1986, as amended.

     

    “Commission”:
      U.S.
      Securities and Exchange Commission.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Compensating
      Interest Payment”:
      With
      respect to any Distribution Date, an
      amount equal to the amount, if any, by which (x) the aggregate
      amount of any Interest Shortfalls (excluding for such purpose all shortfalls
      as
      a result of Relief Act Reductions) required to be paid by the Servicers pursuant
      to the related Servicing Agreement with respect to such Distribution Date,
      exceeds (y) the aggregate amount actually paid by the Servicers in respect
      of
      such shortfalls; provided,
      that
      such amount, to the extent payable by the Master Servicer, shall not exceed
      the
      aggregate Master Servicing Fee that would be payable to the Master Servicer
      in
      respect of such Distribution Date without giving effect to any Compensating
      Interest Payment.
      

     

    “Converted
      Mortgage Loan”:
      Any
      Mortgage Loan as to which the Mortgagor thereunder has exercised its right
      under
      the related Mortgage Note to convert the adjustable Loan Rate thereon to a
      fixed
      Loan Rate. 

     

    “Cooperative
      Corporation”:
      The
      entity that holds title (fee or an acceptable leasehold estate) to the real
      property and improvements constituting the Cooperative Property and which
      governs the Cooperative Property, which Cooperative Corporation must qualify
      as
      a Cooperative Housing Corporation under Section 216 of the Code.

     

    “Cooperative
      Loan”:
      Any
      Mortgage Loan secured by Cooperative Shares and a Proprietary
      Lease.

     

    “Cooperative
      Loan Documents”:
      As to
      any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
      in
      blank; (ii) the original or a copy of the executed Security Agreement and the
      assignment of the Security Agreement in blank; (iii) the original or a copy
      of
      the executed Proprietary Lease and the original assignment of the Proprietary
      Lease endorsed in blank; (iv) the original, if available, or a copy of the
      executed Recognition Agreement and, if available, the original assignment of
      the
      Recognition Agreement (or a blanket assignment of all Recognition Agreements)
      endorsed in blank; (v) the UCC-1 financing statement with evidence of recording
      thereon, which has been filed in all places required to perfect the security
      interest in the Cooperative Shares and the Proprietary Lease; and (vi) UCC
      Amendments (or copies thereof) or other appropriate UCC financing statements
      required by state law, evidencing a complete and unbroken line from the
      mortgagee to the Trustee with evidence of recording thereon (or in a form
      suitable for recordation).

     

    “Cooperative
      Property”:
      The
      real property and improvements owned by the Cooperative Corporation, that
      includes the allocation of individual dwelling units to the holders of the
      Cooperative Shares of the Cooperative Corporation.

     

    “Cooperative
      Shares”:
      Shares
      issued by a Cooperative Corporation.

     

    “Cooperative
      Unit”:
      A
      single family dwelling located in a Cooperative Property.

     

    “Corporate
      Trust Office”:
      With
      respect to the Trustee, the principal corporate trust office of the Trustee
      at
      which at any particular time its corporate trust business in connection with
      this Agreement shall be administered, which office at the date of the execution
      of this instrument is located at [   ], Attention:
      [   ], or at such other address as the Trustee may designate from
      time to time by notice to the Certificateholders, the Depositor and the Seller.
      With respect to the Securities Administrator and the Certificate Registrar
      and
      (i) presentment of Certificates for registration of transfer, exchange or final
      payment, [   ], Attention: [   ].

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Correspondent
      Sellers Guide”:
      [     ].

     

    “Custodian”:
      [   ], and its successors acting as custodian of the Mortgage
      Files.

     

    “Cut-Off
      Date”:
      With
      respect to any Mortgage Loan other than a Qualified Substitute Mortgage Loan,
      the Close of Business in New York City on [   ]. With respect to
      any Qualified Substitute Mortgage Loan, the date designated as such on the
      Mortgage Loan Schedule (as amended).

     

    “Cut-Off
      Date Aggregate Principal Balance”:
      The
      aggregate of the Cut-Off Date Principal Balances of the Mortgage Loans in each
      Loan Group.

     

    “Cut-Off
      Date Principal Balance”:
      With
      respect to any Mortgage Loan, the principal balance thereof remaining to be
      paid, after application of all scheduled principal payments due on or before
      the
      Cut-Off Date whether or not received as of the Cut-Off Date (or as of the
      applicable date of substitution with respect to a Qualified Substitute Mortgage
      Loan).

     

    “Debt
      Service Reduction”:
      With
      respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment
      for
      that Mortgage Loan by a court of competent jurisdiction in a proceeding under
      the Bankruptcy Code.

     

    “Deferred
      Interest”:
      With
      respect to any Negative Amortization Loan and each related Due Date, the excess,
      if any, of the amount of interest accrued on such Mortgage Loan from the
      preceding Due Date to such Due Date over the portion of the Monthly Payment
      allocated to interest for such Due Date.

     

    “Definitive
      Certificates”:
      Any
      Certificate evidenced by a Physical Certificate and any Certificate issued
      in
      lieu of a Book-Entry Certificate pursuant to Section 6.02(c) or Section 6.02(d)
      hereof.

     

    “Deleted
      Mortgage Loan”:
      A
      Mortgage Loan replaced or to be replaced by one or more Qualified Substitute
      Mortgage Loans.

     

    “Delinquent”:
      Any
      Mortgage Loan with respect to which the Monthly Payment due on a Due Date is
      not
      made by the succeeding Due Date.

     

    “Depositor”:
      Thornburg Mortgage Securities Corporation, a Delaware corporation, or any
      successor in interest.

     

    “Depository”:
      The
      initial Depository shall be The Depository Trust Company, whose nominee is
      Cede
& Co., or any other organization registered as a “clearing agency” pursuant
      to Section 17A of the Exchange Act. The Depository shall initially be the
      registered Holder of the Book-Entry Certificates. The Depository shall at all
      times be a “clearing corporation” as defined in Section 8-102(3) of the Uniform
      Commercial Code of the State of New York.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Depository
      Participant”:
      A
      broker, dealer, bank or other financial institution or other person for whom
      from time to time a Depository effects book-entry transfers and pledges of
      securities deposited with the Depository.

     

    “Determination
      Date”:
      For
      any Distribution Date and each Mortgage Loan, the date each month, as set forth
      in the related Servicing Agreement, on which the related Servicer determines
      the
      amount of all funds required to be remitted to the Master Servicer on the
      Servicer Remittance Date with respect to the Mortgage Loans it is servicing.
      

     

    “Disqualified
      Organization”:
      A
“disqualified organization” defined in Section 860E(e)(5) of the
      Code.

     

    “Distribution
      Account”:
      The
      trust account or accounts created and maintained by the Securities Administrator
      pursuant to Section 4.02 hereof which shall be entitled “[   ]”
and which must be an Eligible Account.

     

    “Distribution
      Account Income”:
      As to
      any Distribution Date, any interest or other investment income earned on funds
      deposited in the Distribution Account during the month of such Distribution
      Date.

     

    “Distribution
      Date”:
      The
      [   ] day of the month, or, if such day is not a Business Day,
      the next Business Day commencing in [   ].

     

    “Distribution
      Date Statement”:
      As
      defined in Section 5.04(a) hereof.

     

    “Due
      Date”:
      With
      respect to each Mortgage Loan and any Distribution Date, the first day of the
      calendar month in which such Distribution Date occurs on which the Monthly
      Payment for such Mortgage Loan was due, exclusive of any days of
      grace.

     

    “Due
      Period”:
      With
      respect to any Distribution Date, the period commencing on the second day of
      the
      month preceding the month in which such Distribution Date occurs and ending
      on
      the first day of the month in which such Distribution Date occurs.

     

    “Eligible
      Account”:
      Any of

     

    (i) an
      account or accounts maintained with a federal or state chartered depository
      institution or trust company the short-term unsecured debt obligations of which
      (or, in the case of a depository institution or trust company that is the
      principal subsidiary of a holding company, the short-term unsecured debt
      obligations of such holding company) are rated in the highest short term rating
      category of each Rating Agency at the time any amounts are held on deposit
      therein;

     

    (ii) an
      account or accounts maintained with the trust department of a federal or state
      chartered depository institution, national banking association or trust company
      acting in its fiduciary capacity; or 

     

    (iii) an
      account otherwise acceptable to each Rating Agency without reduction or
      withdrawal of its then current ratings of the Certificates as evidenced by
      a
      letter from such Rating Agency to the Securities Administrator and the Trustee.
      Eligible Accounts may bear interest.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Employee
      Loan”:
      Any
      Mortgage Loan identified as such in the Mortgage Loan Schedule and which was
      originated by the Seller, which provides for an increase in the Loan Rate
      thereof in the event of the change of employment of the Mortgagor
      thereunder.

     

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

     

    “ERISA-Qualifying
      Underwriting”:
      A best
      efforts or firm commitment underwriting or private placement that meets the
      requirements of the Underwriter’s Exemption.

     

    “ERISA-Restricted
      Certificates”:
      (i)
      Any Residual Certificate, (ii) [   ] and (iii) any Certificate
      that does not satisfy the applicable rating requirement under the Underwriter’s
      Exemption.

     

    “Escrow
      Payments”:
      The
      amounts constituting ground rents, taxes, assessments, water rates, fire and
      hazard insurance premiums and other payments required to be escrowed by the
      Mortgagor with the mortgagee pursuant to any Mortgage Loan.

     

    “Event
      of Default”:
      In
      respect of the Master Servicer, one or more of the events (howsoever described)
      set forth in Section 7.01 hereof as an event or events upon the occurrence
      and
      continuation of which the Master Servicer may be terminated.

     

    [“Excess
      Servicing Fee Rate”:
      With
      respect to any Mortgage Loan serviced by [   ], the excess, if
      any, of the applicable Servicing Fee Rate over the Sub-Servicing Fee
      Rate.]

     

    “Exchange
      Act”:
      The
      Securities Exchange Act of 1934, as amended.

     

    “Expense
      Fee”:
      With
      respect to any Mortgage Loan, the sum of (w) the Retained Interest, if any,
      (x)
      the Master Servicing Fee and (y) the related Servicing Fee with respect to
      the
      related Servicer.

     

    “Expense
      Fee Rate”:
      With
      respect to any Mortgage Loan, the per annum rate at which the Expense Fee
      accrues for such Mortgage Loan as set forth in the Mortgage Loan
      Schedule.

     

    “Fannie
      Mae”:
      The
      Federal National Mortgage Association or any successor thereto.

     

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

     

    “Final
      Recovery Determination”:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Seller pursuant to or
      contemplated by Section 2.03, 3.25 and 10.01), a determination made by the
      related Servicer that all Insurance Proceeds, Liquidation Proceeds and other
      payments or recoveries which it expects to be finally recoverable in respect
      thereof have been so recovered. 

     

    Final
      Scheduled Distribution Date”:
      As
      indicated on the face of each Certificate,
      [      ].

     

    “Fitch”:
      Fitch,
      Inc.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    [“Five-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule II
      hereto.]

     

    “Form
      8-K Disclosure Information”:
      As
      defined in Section 3.19(c).

     

    “Freddie
      Mac”:
      The
      Federal Home Loan Mortgage Corporation or any successor thereto.

     

    “Gross
      Margin”:
      With
      respect to each Mortgage Loan, the fixed percentage set forth in the related
      Mortgage Note that is added to the applicable Index on each Adjustment Date
      in
      accordance with the terms of the related Mortgage Note used to determine the
      Loan Rate for such Mortgage Loan.

     

    “Group
      [   ] Certificates”:
      Collectively, the Class [    ] Certificates,.

     

    “Group
      [   ] Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Indemnified
      Persons”:
      The
      Trustee (individually in its corporate capacity and in all capacities
      hereunder), the Master Servicer, the Seller, the Depositor and the Securities
      Administrator (in all capacities hereunder) and their officers, directors,
      agents and employees and, with respect to the Trustee, any separate co-trustee
      and its officers, directors, agents and employees.

     

    “Independent”:
      When
      used with respect to any accountants, a Person who is “independent” within the
      meaning of Rule 2-01 of the Securities and Exchange Commission’ Regulation S-X.
      When used with respect to any other specified Person, any such Person who (a)
      is
      in fact independent of the Depositor and its Affiliates, (b) does not have
      any
      direct financial interest in or any material indirect financial interest in
      the
      Depositor or any Affiliate thereof, (c) is not connected with the Depositor
      or
      any Affiliate thereof as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions and (d) is not a member
      of the immediate family of a Person defined in clause (b) or (c)
      above.

     

    “Index”:
      With
      respect to each Mortgage Loan and each Adjustment Date, the index specified
      in
      the related Mortgage Note.

     

    “Initial
      Certificate Notional Balance”:
      With
      respect to any Interest-Only Certificates, the amount designated “Initial
      Certificates Notional Balance” on the face thereof.

     

    “Initial
      Certificate Principal Balance”:
      With
      respect to any Certificate other than the Interest-Only Certificates, the amount
      designated “Initial Certificate Principal Balance” on the face
      thereof.

     

    “Initial
      Loan Group [   ] Balance”:
      $[      ].

    

    “Initial
      Purchaser”:
      [      ].

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    “Insurance
      Proceeds”:
      With
      respect to any Mortgage Loan, proceeds of any title policy, hazard policy or
      other insurance policy covering a Mortgage Loan, to the extent such proceeds
      are
      not to be applied to the restoration of the related Mortgaged Property or
      released to the related Mortgagor in accordance with the related Servicing
      Agreement.

     

    “Interest
      Distributable Amount”:
      With
      respect to any Distribution Date and each Class of Certificates, the sum of
      (i) the Monthly Interest Distributable Amount for that Class and
      (ii) the Unpaid Interest Shortfall Amount for that Class.

     

    “Interest-Only
      Certificates”:
      Any of
      the Class [      ] Certificates.

     

    “Interest
      Shortfall”:
      With
      respect to any Distribution Date and each Mortgage Loan that during the related
      Prepayment Period was the subject of a Principal Prepayment or a reduction
      of
      its Monthly Payment under the Relief Act, an amount determined as
      follows:

     

    (a) Principal
      Prepayments in part received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the amount of such prepayment and (ii) the amount of interest for the calendar
      month of such prepayment (adjusted to the applicable Net Loan Rate) received
      at
      the time of such prepayment; and

     

    (b) Principal
      Prepayments in full received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the Stated Principal Balance of such Mortgage Loan immediately prior to such
      prepayment and (ii) the amount of interest for the calendar month of such
      prepayment (adjusted to the applicable Net Loan Rate) received at the time
      of
      such prepayment; and

     

    (c) any
      Relief Act Reductions for such Distribution Date.

     

    “Item
      1122 Responsible Party”:
      As
      defined in Section 3.22.

     

    Latest
      Possible Maturity Date”:
      As
      determined as of the Cut-Off Date, the Distribution Date following the fifth
      anniversary of the scheduled maturity date of the Mortgage Loan having the
      latest scheduled maturity date as of the Cut-Off Date.

     

    “Liquidated
      Mortgage Loan”:
      As to
      any Distribution Date, any Mortgage Loan in respect of which the related
      Servicer or the Master Servicer has determined, in accordance with the servicing
      procedures specified herein, as of the end of the related Prepayment Period,
      that all Liquidation Proceeds that it expects to recover with respect to the
      liquidation of such Mortgage Loan or disposition of the related REO Property
      have been recovered.

     

    “Liquidation
      Event”:
      With
      respect to any Mortgage Loan, any of the following events: (i) such Mortgage
      Loan is paid in full; (ii) a Final Recovery Determination is made as to such
      Mortgage Loan; or (iii) such Mortgage Loan is removed from the Trust Fund by
      reason of its being purchased, sold or replaced pursuant to or as contemplated
      hereunder. With respect to any REO Property, either of the following events:
      (i)
      a Final Recovery Determination is made as to such REO Property; or (ii) such
      REO
      Property is removed from the Trust Fund by reason of its being sold or purchased
      pursuant to Section 10.01 hereof or the applicable provisions of the related
      Servicing Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Liquidation
      Expenses”:
      With
      respect to a Mortgage Loan in liquidation, unreimbursed expenses paid or
      incurred by or for the account of the Master Servicer or the related Servicers,
      such expenses including (a) property protection expenses, (b) property sales
      expenses, (c) foreclosure and sale costs, including court costs and reasonable
      attorneys’ fees, and (d) similar expenses reasonably paid or incurred in
      connection with liquidation. 

     

    “Liquidation
      Proceeds”:
      With
      respect to any Mortgage Loan, the amount (other than amounts received in respect
      of the rental of any REO Property prior to REO Disposition) received by the
      related Servicer as proceeds from the liquidation of such Mortgage Loan, as
      determined in accordance with the applicable provisions of the related Servicing
      Agreement, other than Recoveries; provided
      that (i)
      with respect to any Mortgage Loan or REO Property repurchased, substituted
      or
      sold pursuant to or as contemplated hereunder, or pursuant to the applicable
      provisions of the related Servicing Agreement, “Liquidation Proceeds” shall also
      include amounts realized in connection with such repurchase, substitution or
      sale and (ii) with respect to a defaulted Additional Collateral Mortgage Loan,
      “Liquidation Proceeds” shall also include the amount realized on the related
      Additional Collateral.

     

    “Loan
      Group”:
      Any of
      Loan Group [   ], as the context requires.

     

    “Loan
      Group Balance”:
      As to
      each Loan Group and any Distribution Date, the aggregate of the Stated Principal
      Balances, as of the Close of Business on the first day of the month preceding
      the month in which such Distribution Date occurs, of the Mortgage Loans in
      such
      Loan Group that were Outstanding Mortgage Loans on such date.

     

    “Loan
      Group [   ]”:
      At any
      time, the Group [   ] Mortgage Loans in the aggregate and any REO
      Properties acquired in respect thereof.

     

    “Loan
      Rate”:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note.

     

    “Loan-to-Collateral
      Value Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination less the Base Value of any
      related Additional Collateral and the denominator of which is the Value of
      the
      related Mortgaged Property.

     

    “Loan-to-Value
      Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination and the denominator of which
      is
      the Value of the related Mortgaged Property.

     

    “Lost
      Note Affidavit”:
      With
      respect to any Mortgage Loan as to which the original Mortgage Note has been
      lost or destroyed and has not been replaced, an affidavit from the Seller
      certifying that the original Mortgage Note has been lost, misplaced or destroyed
      (together with a copy of the related Mortgage Note and indemnifying the Trust
      against any loss, cost or liability resulting from the failure to deliver the
      original Mortgage Note) in the form of Exhibit H hereto.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Majority
      Certificateholders”:
      The
      Holders of Certificates evidencing at least 51% of the Voting
      Rights.

     

    “Master
      Servicer”:
      [      ], or any successor Master Servicer
      appointed as herein provided.

     

    “Master
      Servicing Fee”:
      As to
      any Distribution Date and each related Mortgage Loan, an amount equal to the
      product of the applicable Master Servicing Fee Rate and the outstanding
      Principal Balance of such Mortgage Loan as of the first day of the related
      Due
      Period. The Master Servicing Fee for any Mortgage Loan shall be payable in
      respect of any Distribution Date solely from the interest portion of the Monthly
      Payment or other payment or recovery with respect to such Mortgage
      Loan.

     

    “Master
      Servicing Fee Rate”:
      [      ]% per annum.

     

    “Master
      Servicing Guide”:
      [      ]. 

     

    “Maximum
      Loan Rate”:
      With
      respect to each Mortgage Loan, the percentage set forth in the related Mortgage
      Note as the maximum Loan Rate thereunder.

     

    “MERS”:
      Mortgage Electronic Registration Systems, Inc., a corporation organized and
      existing under the laws of the State of Delaware, or any successor
      thereto.

     

    “MERS
      Mortgage Loan”:
      Any
      Mortgage Loan registered with MERS on the MERS System.

     

    “MERS® System”:
      The
      system of recording transfers of mortgages electronically maintained by
      MERS.

     

    “MIN”:
      The
      Mortgage Identification Number for any MERS Mortgage Loan.

     

    “Modifiable
      Mortgage Loan”:
      Any
      Mortgage Loan which, at the option of the Mortgagor and in accordance with
      the
      terms of the related Mortgage Note, may have the related Mortgage Rate modified
      to any adjustable rate or hybrid product offered at the time by the related
      originator.

     

    “MOM
      Loan”:
      Any
      Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee for
      the
      originator of such Mortgage Loan and its successors and assigns.

     

    “Monthly
      Interest Distributable Amount”:
      With
      respect to each Class of Certificates [(other than the Class [ES] Certificates)]
      and any Distribution Date, the amount of interest accrued during the related
      Accrual Period at the related Pass-Through Rate on the Class Certificate
      Principal Balance or Class Certificate Notional Balance, as applicable, of
      that
      Class immediately prior to such Distribution Date. 

     

    “Monthly
      Payment”:
      With
      respect to any Mortgage Loan, the scheduled monthly payment of principal and/or
      interest on such Mortgage Loan that is payable by the related Mortgagor from
      time to time under the related Mortgage Note, determined, for the purposes
      of
      this Agreement: (a) after giving effect to (i) any Debt Service Reduction and
      (ii) any reduction in the amount of interest collectible from the related
      Mortgagor pursuant to the Relief Act; (b) without giving effect to any extension
      granted or agreed to by the related Servicer pursuant to the applicable
      provisions of the related Servicing Agreement; and (c) on the assumption that
      all other amounts, if any, due under such Mortgage Loan are paid when
      due.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    [“Moody’s”:
      Moody’s Investors Service, Inc., or any successor thereto.] 

     

    “Mortgage”:
      The
      mortgage, deed of trust or other instrument creating a first lien on, or first
      priority security interest in, a Mortgaged Property securing a Mortgage
      Note.

     

    “Mortgage
      File”:
      The
      mortgage documents listed in Section 2.01 hereof pertaining to a particular
      Mortgage Loan and any additional documents required to be added to the Mortgage
      File pursuant to this Agreement.

     

    “Mortgage
      Loan”:
      Each
      mortgage loan (including Cooperative Loans) transferred and assigned to the
      Trustee pursuant to Section 2.01 or Section 2.03(d) hereof as from time to
      time
      held as a part of the Trust Fund, the Mortgage Loans so held being identified
      in
      the Mortgage Loan Schedule.

     

    “Mortgage
      Loan Purchase Agreement”:
      The
      Mortgage Loan Purchase Agreement between the Seller and the Depositor, dated
      as
      of [      ], regarding the transfer of the
      Mortgage Loans by the Seller to or at the direction of the
      Depositor.

     

    “Mortgage
      Loan Schedule”:
      As of
      any date, the list of Mortgage Loans included in the Trust Fund on such date,
      attached hereto as Schedule I. The Mortgage Loan Schedule shall be prepared
      by
      the Seller and shall set forth the following information with respect to each
      Mortgage Loan:

     

    
      	 	
              (i)

            	
              the
                Mortgage Loan identifying number;

            

    

     

    
      	 	
              (ii)

            	
              the
                Mortgagor’s name;

            

    

     

    
      	 	
              (iii)

            	
              the
                street address of the Mortgaged Property including the state and
                five-digit ZIP code;

            

    

     

    
      	 	
              (iv)

            	
              a
                code indicating whether the Mortgaged Property was represented by
                the
                borrower, at the time of origination, as being
                owner-occupied;

            

    

     

    
      	 	
              (v)

            	
              a
                code indicating whether the Residential Dwelling constituting the
                Mortgaged Property is (a) a detached single family dwelling, (b)
                a
                dwelling in a planned unit development, (c) a condominium unit, (d)
                a two-
                to four-unit residential property, (e) a townhouse, (f) a cooperative
                or
                (g) other type of Residential
                Dwelling;

            

    

     

    
      	 	
              (vi)

            	
              if
                the related Mortgage Note permits the borrower to make Monthly Payments
                of
                interest-only for a specified period of time, (a) the original number
                of
                such specified Monthly Payments and (b) the remaining number of such
                Monthly Payments as of the Cut-Off
                Date;

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	 	
              (vii)

            	
              the
                original months to maturity;

            

    

     

    
      	 	
              (viii)

            	
              the
                stated remaining months to maturity from the Cut-Off Date based on
                the
                original amortization schedule;

            

    

     

    
      	 	
              (ix)

            	
              the
                Loan-to-Value Ratio at origination;

            

    

     

    
      	 	
              (x)

            	
              the
                value of any Additional Collateral at
                origination;

            

    

     

    
      	 	
              (xi)

            	
              the
                Loan-to-Collateral Value Ratio at
                origination;

            

    

     

    
      	 	
              (xii)

            	
              the
                Loan Rate in effect immediately following the Cut-Off
                Date;

            

    

     

    
      	 	
              (xiii)

            	
              the
                date on which the first Monthly Payment is or was due on the Mortgage
                Loan;

            

    

     

    
      	 	
              (xiv)

            	
              the
                stated maturity date;

            

    

     

    
      	 	
              (xv)

            	
              the
                Master Servicing Fee Rate and the Servicing Fee Rate, if
                any;

            

    

     

    
      	 	
              (xvi)

            	
              whether
                such loan is an Additional Collateral Mortgage Loan or an Employee
                Loan;

            

    

     

    
      	 	
              (xvii)

            	
              the
                last Due Date on which a Monthly Payment was actually applied to
                the
                unpaid Stated Principal Balance;

            

    

     

    
      	 	
              (xviii)

            	
              the
                original principal balance of the Mortgage
                Loan;

            

    

     

    
      	 	
              (xix)

            	
              the
                Stated Principal Balance of the Mortgage Loan on the Cut-Off Date
                and a
                code indicating the purpose of the Mortgage Loan (i.e.,
                purchase
                financing, rate/term refinancing, cash-out
                refinancing);

            

    

     

    
      	 	
              (xx)

            	
              the
                Index and Gross Margin specified in related Mortgage
                Note;

            

    

     

    
      	 	
              (xxi)

            	
              the
                next Adjustment Date, if
                applicable;

            

    

     

    
      	 	
              (xxii)

            	
              the
                Maximum Loan Rate, if applicable;

            

    

     

    
      	 	
              (xxiii)

            	
              the
                Value of the Mortgaged Property;

            

    

     

    
      	 	
              (xxiv)

            	
              the
                sale price of the Mortgaged Property, if
                applicable;

            

    

     

    
      	 	
              (xxv)

            	
              the
                product code;

            

    

     

    
      	 	
              (xxvi)

            	
              Expense
                Fee Rate therefor;

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	 	
              (xxvii)

            	
              the
                Servicer that is servicing such Mortgage Loan and the originator
                of such
                Mortgage Loan; 

            

    

     

    
      	 	
              (xxviii)

            	
              [whether
                such Mortgage Loan is a Negative Amortization
                Loan;]

            

    

     

    
      	 	
              (xxix)

            	
              whether
                the Mortgage Loan is subject to a prepayment penalty, the prepayment
                penalty term and the method of calculation of the penalty amount;
                and

            

    

     

    
      	 	
              (xxx)

            	
              the
                respective Loan Group.

            

    

     

    Information
      set forth in clauses (ii) and (iii) above regarding each Mortgagor and the
      related Mortgaged Property shall be confidential and the Trustee (or Master
      Servicer) shall not disclose such information except to the extent disclosure
      may be required by any law or regulatory or administrative authority;
provided,
      however,
      that the
      Trustee may disclose on a confidential basis any such information to its agents,
      attorneys and any auditors in connection with the performance of its
      responsibilities hereunder.

    

    The
      Mortgage Loan Schedule, as in effect from time to time, shall also set forth
      the
      following information with respect to the Mortgage Loans in the aggregate and
      by
      Loan Group as of the Cut-Off Date: (1) the number of Mortgage Loans;
      (2) the current Principal Balance of the Mortgage Loans; (3) the
      weighted average Loan Rate of the Mortgage Loans; and (4) the weighted
      average remaining months to maturity of the Mortgage Loans. The Mortgage Loan
      Schedule shall be amended from time to time by the Seller in accordance with
      the
      provisions of this Agreement.

     

    “Mortgage
      Note”:
      The
      original executed note or other evidence of indebtedness evidencing the
      indebtedness of a Mortgagor under a Mortgage Loan.

     

    “Mortgaged
      Property”:
      Either
      of (x) the fee simple or leasehold interest in real property, together with
      improvements thereto including any exterior improvements to be completed within
      120 days of disbursement of the related Mortgage Loan proceeds, or (y) in the
      case of a Cooperative Loan, the related Cooperative Shares and Proprietary
      Lease, securing the indebtedness of the Mortgagor under the related Mortgage
      Loan.

     

    “Mortgagor”:
      The
      obligor on a Mortgage Note.

     

    [“Negative
      Amortization”:
      With
      respect to a Group [   ] Mortgage Loan, that portion of interest
      accrued at the Loan Rate with respect to any month which exceeds the amount
      of
      interest paid on the related Mortgage Loan for such month and which, pursuant
      to
      the terms of the related Mortgage Note, is added to the principal balance of
      the
      Mortgage Loan.]

     

    [“Negative
      Amortization Loan”:
      Each
      Mortgage Loan in Loan Group [   ] that is identified on the
      Mortgage Loan Schedule (attached as Schedule I) as a Mortgage Loan that is
      subject to Negative Amortization.]

     

    [“Net
      Deferred Interest”:
      With
      respect to any Distribution Date and the Negative Amortization Loans, the (i)
      excess, if any, of the aggregate Deferred Interest on such Negative Amortization
      Loans for the related Due Date over (ii) the aggregate amount of any principal
      prepayments in part or in full received during the related Prepayment Period
      on
      such Negative Amortization Loans.]

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    “Net
      Interest Shortfall”:
      With
      respect to any Distribution Date, the excess of the Interest Shortfall, if
      any,
      for such Distribution Date over the sum of (i) Interest Shortfalls paid by
      the
      Servicers under the related Servicing Agreements with respect to such
      Distribution Date and (ii) Compensating Interest Payments made with respect
      to
      such Distribution Date.

     

    “Net
      Liquidation Proceeds”:
      With
      respect to any Liquidated Mortgage Loan or any other disposition of related
      Mortgaged Property (including REO Property) the related Liquidation Proceeds
      net
      of Advances, related Servicing Advances, Master Servicing Fee, related Servicing
      Fees and any other accrued and unpaid servicing fees received and retained
      in
      connection with the liquidation of such Mortgage Loan or Mortgaged Property,
      and
      any related Retained Interest.

     

    “Net
      Loan Rate”:
      With
      respect to any Mortgage Loan (or the related REO Property), as of any date
      of
      determination, a per annum rate of interest equal to the then applicable Loan
      Rate for such Mortgage Loan minus
      the
      related Servicing Fee Rate, Master Servicing Fee Rate and Retained Rate, if
      any.

     

    “Net
      Realized Losses”:
      For
      any Class of Certificates (other than any Class of Interest-Only Certificates
      and the Class [   ] Certificates) and any Distribution Date, the
      excess of (i) the amount of Realized Losses previously allocated to that Class
      over (ii) the amount of any increases to the Class Certificate Principal Balance
      of that Class pursuant to Section 5.10 due to Recoveries.

     

    “Net
      WAC”:
      With
      respect to each Loan Group and any Distribution Date, the weighted average
      of
      the Net Loan Rates of the Mortgage Loans in that Loan Group, as of the first
      day
      of the related Due Period (or, in the case of the first Distribution Date,
      as of
      the Cut-Off Date), weighted on the basis of their related Stated Principal
      Balances as of the first day of the related Due Period (or, in the case of
      the
      first Distribution Date, as of the Cut-off Date).

     

    “Non-Offered
      Certificates”:
      The
      Class [   ] Certificates

     

    “Nonrecoverable”:
      The
      determination by the Master Servicer or the related Servicer in respect of
      a
      delinquent Mortgage Loan that if it were to make an Advance in respect of
      thereof, such amount would not be recoverable from any collections or other
      recoveries (including Liquidation Proceeds) on such Mortgage Loan.

     

    “Notional
      Certificate”:
      Any
      Class of Interest-Only Certificates.

     

    “Officers’
      Certificate”:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      the President or a vice president (however denominated), or by the Treasurer,
      the Secretary, or one of the assistant treasurers or assistant secretaries
      of
      the Seller, the Master Servicer or the Depositor, as applicable.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    [“One-Month
      LIBOR”:
      The
      average of interbank offered rates for one month U.S. dollar deposits in the
      London market based on quotations of major banks.

     

    “One-Month
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Month LIBOR index.

     

    “One-Year
      CMT”:
      The
      weekly average yield on United States Treasury securities adjusted to a constant
      maturity of one year as published by the Federal Reserve Board in Statistical
      Release H.15(519).

     

    “One-Year
      CMT Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Year CMT Index. 

     

    “One-Year
      LIBOR”:
      The
      average of interbank offered rates for one-year U.S. dollar deposits in the
      London market based on quotations of major banks.

     

    “One-Year
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Year LIBOR index.

     

    “One-Year MTA”:
      The
      twelve-month average yields on United States Treasury securities adjusted to
      a
      constant maturity of one year as published by the Federal Reserve Board in
      Statistical Release H.15(519).

     

    “One-Year MTA
      Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Year MTA index.]

     

    “Opinion
      of Counsel”:
      A
      written opinion of counsel, who may, without limitation, be a salaried counsel
      for the Depositor or the Seller, acceptable to the Trustee or the Securities
      Administrator, as applicable[, except that any opinion of counsel relating
      to
      (a) the qualification of any REMIC created hereunder as a REMIC or (b)
      compliance with the REMIC Provisions must be an opinion of Independent
      counsel.]

     

    “Original
      Applicable Credit Support Percentage”:
      With
      respect to each Class of Subordinate Certificates, the corresponding percentage
      set forth below opposite its Class designation:

     

    
      	
              Class
                [   ]

            	
              [   ]%

            

    

     

    “Original
      Class Certificate Notional Balance”:
      With
      respect to each Class of Interest-Only Certificates, the corresponding Class
      Certificate Notional Balance set forth opposite the Class designation in the
      Preliminary Statement. 

     

    “Original
      Class Certificate Principal Balance”:
      With
      respect to each Class of Certificates (other than the Interest-Only [and Class
      ES Certificates]), the corresponding Class Certificate Principal Balance set
      forth opposite the Class designation of such Class in the Preliminary Statement.
      

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    “Original
      Subordinated Principal Balance”:
      The
      aggregate of the Original Class Certificate Principal Balances of the Classes
      of
      Subordinate Certificates.

     

    “OTS”:
      The
      Office of Thrift Supervision.

     

    “Outstanding
      Mortgage Loan”:
      As of
      any Due Date, a Mortgage Loan with a Stated Principal Balance greater than
      zero,
      that was not the subject of a prepayment in full prior to such Due Date and
      that
      did not become a Liquidated Mortgage Loan prior to such Due Date.

     

    “Ownership
      Interest”:
      As to
      any Certificate, any ownership or security interest in such Certificate,
      including any interest in such Certificate as the Holder thereof and any other
      interest therein, whether direct or indirect, legal or beneficial, as owner
      or
      as pledgee.

     

    “Pass-Through
      Rate”:
      With
      respect to each Class of Certificates and any Distribution Date, the rate set
      forth below:

     

    [      ]

     

    “Paying
      Agent”:
      Any
      paying agent appointed pursuant to Section 6.05 hereof.

     

    “PCAOB”:
      The
      Public Company Accounting Oversight Board.

     

    “Percentage
      Interest”:
      With
      respect to any Certificate other than a Residual Certificate, a fraction,
      expressed as a percentage, the numerator of which is the Initial Certificate
      Principal Balance or Initial Certificate Notional Balance, as applicable,
      represented by such Certificate and the denominator of which is the Original
      Class Certificate Principal Balance or Original Class Certificate Notional
      Balance, as applicable, of the related Class. With respect to any Residual
      Certificate, 100%.

     

    “Permitted
      Investments”:
      Any
      one or more of the following obligations or securities acquired at a purchase
      price of not greater than par, regardless of whether issued or managed by the
      Depositor, the Master Servicer, the Trustee or any of their respective
      Affiliates or for which an Affiliate of the Trustee serves as an
      advisor:

     

    (i) direct
      obligations of, or obligations fully guaranteed as to timely payment of
      principal and interest by, the United States or any agency or instrumentality
      thereof, provided such obligations are backed by the full faith and credit
      of
      the United States; 

     

    (ii) (A)
      demand and time deposits in, certificates of deposit of, bankers’ acceptances
      issued by or federal funds sold by any depository institution or trust company
      (including the Trustee or the Master Servicer or their agents acting in their
      respective commercial capacities) incorporated under the laws of the United
      States of America or any state thereof and subject to supervision and
      examination by federal and/or state authorities, so long as, at the time of
      such
      investment or contractual commitment providing for such investment, such
      depository institution or trust company or its ultimate parent has a short-term
      uninsured debt rating in one of the two highest available rating categories
      of
      each Rating Agency and (B) any other demand or time deposit or deposit which
      is
      fully insured by the FDIC;

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (iii) repurchase
      obligations with respect to any security described in clause (i) above and
      entered into with a depository institution or trust company (acting as
      principal) rated A or higher by the Rating Agencies;

     

    (iv) securities
      bearing interest or sold at a discount that are issued by any corporation
      incorporated under the laws of the United States of America, the District of
      Columbia or any State thereof and that are rated by each Rating Agency in its
      highest long-term unsecured rating categories at the time of such investment
      or
      contractual commitment providing for such investment;

     

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations) that is rated by each Rating Agency in its highest
      short-term unsecured debt rating available at the time of such
      investment;

     

    (vi) units
      of
      money market funds (which may be 12b-1 funds, as contemplated by the Commission
      under the Investment Company Act of 1940) registered under the Investment
      Company Act of 1940 including funds managed or advised by the Trustee, the
      Master Servicer or an affiliate thereof having the highest applicable rating
      from each Rating Agency; and

     

    (vii) if
      previously confirmed in writing to the Securities Administrator, any other
      demand, money market or time deposit, or any other obligation, security or
      investment, as may be acceptable to each Rating Agency in writing as a permitted
      investment of funds backing securities having ratings equivalent to its highest
      initial rating of the Senior Certificates;

     

    provided,
      however,
      that no
      instrument described hereunder shall evidence either the right to receive (a)
      only interest with respect to the obligations underlying such instrument or
      (b)
      both principal and interest payments derived from obligations underlying such
      instrument and the interest and principal payments with respect to such
      instrument provide a yield to maturity at par greater than 120% of the yield
      to
      maturity at par of the underlying obligations.

     

    “Permitted
      Transferee”:
      Any
      Transferee of a Residual Certificate other than a Disqualified Organization
      or a
      non-U.S. Person.

     

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

     

    “Physical
      Certificates”:
      The
      Residual Certificates.

     

    “Prepayment
      Penalty Amount”:
      With
      respect to any Mortgage Loan and each Distribution Date, all premiums or
      charges, if any, paid by Mortgagors under the related Mortgage Notes as a result
      of full or partial Principal Prepayments collected by the applicable Servicer
      during the immediately preceding Prepayment Period, but only to the extent
      required to be remitted to the Master Servicer on the applicable Servicer
      Remittance Date under the terms of the related Servicing Agreement and as
      provided on the Mortgage Loan Schedule.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    “Prepayment
      Period”:
      With
      respect to any Distribution Date, the calendar month preceding the month in
      which such Distribution Date occurs.

     

    “Primary
      Insurance Policy”:
      Mortgage guaranty insurance, if any, on an individual Mortgage Loan, as
      evidenced by a policy or certificate.

     

    “Principal
      Balance”:
      As to
      any Mortgage Loan, other than a Liquidated Mortgage Loan, and any day, the
      related Cut-Off Date Principal Balance, minus
      all
      collections credited against the Principal Balance of such Mortgage Loan after
      the Cut-Off Date [as increased in the case of any Mortgage Loans which are
      Negative Amortization Loans by the amount of any Deferred Interest added to
      the
      outstanding Principal Balance of such Mortgage Loan pursuant to the terms of
      the
      related Mortgage Note]. For purposes of this definition, a Liquidated Mortgage
      Loan shall be deemed to have a Principal Balance equal to the Principal Balance
      of the related Mortgage Loan as of the final recovery of related Liquidation
      Proceeds and a Principal Balance of zero thereafter. As to any REO Property
      and
      any day, the Principal Balance of the related Mortgage Loan immediately prior
      to
      such Mortgage Loan becoming REO Property.

     

    “Principal
      Deficiency Amount”:
      For
      any Distribution Date and for any Undercollateralized Group, the excess, if
      any,
      of the aggregate Class Certificate Principal Balance of such Undercollateralized
      Group immediately prior to such Distribution Date over the sum of the Principal
      Balances of the Mortgage Loans in the related Loan Group immediately prior
      to
      such Distribution Date.

     

    “Principal
      Distribution Amount”:
      With
      respect to each Loan Group, and any Distribution Date, the sum of (a) each
      scheduled payment of principal collected or advanced on the related Mortgage
      Loans by the related Servicer or the Master Servicer in respect of the related
      Due Period, (b) that portion of the Purchase Price, representing principal
      of any repurchased or purchased Mortgage Loan in that Loan Group, deposited
      to
      the Distribution Account during the related Prepayment Period, (c) the
      principal portion of any related Substitution Adjustments with respect to that
      Loan Group deposited in the Distribution Account during the related Prepayment
      Period, (d) the principal portion of all Insurance Proceeds received during
      the related Prepayment Period with respect to Mortgage Loans in that Loan Group
      that are not yet Liquidated Mortgage Loans, (e) the principal portion of
      all Net Liquidation Proceeds received during the related Prepayment Period
      with
      respect to Liquidated Mortgage Loans in that Loan Group (other than Recoveries),
      (f) all Principal Prepayments [(net of Deferred Interest)] in part or in
      full on Mortgage Loans in that Loan Group applied by the Servicers or the Master
      Servicer during the related Prepayment Period, (g) all Recoveries received
      during the related Prepayment Period and (h) on the Distribution Date on
      which the Trust is to be terminated pursuant to Section 10.01 hereof, that
      portion of the Termination Price in respect of principal for that Loan
      Group.

     

    “Principal
      Prepayment”:
      Any
      payment of principal made by the Mortgagor on a Mortgage Loan that is received
      in advance of its scheduled Due Date and that is not accompanied by an amount
      of
      interest representing the full amount of scheduled interest due on any Due
      Date
      in any month or months subsequent to the month of prepayment.

     

    
      
        
        

      

      
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    “Private
      Certificates”:
      Collectively, the Class [   ] Certificates [and the Class ES
      Certificates].

     

    “Private
      Placement Memoranda”:
      The
      Private Placement Memorandum, dated [   ], relating to the class
      [   ] Certificates.

     

    “Pro
      Rata
      Share”:
      As to
      any Distribution Date and any Class of Subordinate Certificates, the portion
      of
      the Subordinate Principal Distribution Amount allocable to such Class, equal
      to
      the product of the (a) Subordinate Principal Distribution Amount on such date
      and (b) a fraction, the numerator of which is the related Class Certificate
      Principal Balance of that Class and the denominator of which is the aggregate
      of
      the Class Certificate Principal Balances of all the Classes of Subordinate
      Certificates.

     

    “Proprietary
      Lease”:
      With
      respect to any Cooperative Unit, a lease or occupancy agreement between a
      Cooperative Corporation and a holder of related Cooperative Shares.

     

    “Prospectus”:
      The
      Prospectus Supplement, together with the accompanying prospectus, dated
      [   ], relating to the Class [   ]
      Certificates.

     

    “Prospectus
      Supplement”:
      That
      certain Prospectus Supplement, dated [      ],
      relating to the initial offering and sale of the Class [   ]
      Certificates by the Underwriters.

     

    “Purchase
      Price”:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section 2.03, Section 3.25 or Section 10.01 hereof, and as
      confirmed by an Officers’ Certificate from the Seller to the Trustee, an amount
      equal to the sum of (i) 100% of the Principal Balance thereof as of the
      date of purchase (or such other price as is provided in Section 10.01),
plus
      (ii) in the case of (x) a Mortgage Loan, accrued interest on such
      Principal Balance at the applicable Loan Rate from the Due Date as to which
      interest was last covered by a payment by the Mortgagor or an Advance by a
      Servicer or Master Servicer through the end of the calendar month in which
      the
      purchase is to be effected, and (y) an REO Property, the sum of
      (1) accrued interest on such Principal Balance at the applicable Loan Rate
      from the Due Date as to which interest was last covered by a payment by the
      Mortgagor or an Advance by a Servicer or Master Servicer plus
      (2) REO
      Imputed Interest for such REO Property for each calendar month commencing with
      the calendar month in which such REO Property was acquired and ending with
      the
      calendar month in which such purchase is to be effected, net of the total of
      all
      net rental income, Insurance Proceeds, Liquidation Proceeds and Advances that
      as
      of the date of purchase had been distributed as or to cover REO Imputed
      Interest, plus
      (iii) any unreimbursed Servicing Advances and any unpaid Expense Fees
      allocable to such Mortgage Loan or REO Property, plus
      (iv) in the case of a Mortgage Loan required to be purchased pursuant to
      Section 2.03 hereof, any costs and damages incurred by the Trust in connection
      with any violation by such Mortgage Loan of any predatory- or abusive-lending
      laws.

     

    “Qualified
      Insurer”:
      A
      mortgage guaranty insurance company duly qualified as such under the laws of
      the
      state of its principal place of business and each state having jurisdiction
      over
      such insurer in connection with the insurance policy issued by such insurer,
      duly authorized and licensed in such states to transact a mortgage guaranty
      insurance business in such states and to write the insurance provided by the
      insurance policy issued by it, so long as the claims paying ability of which
      is
      acceptable to each Rating Agency for pass-through certificates having the same
      ratings as the Certificates rated by each Rating Agency as of the Closing Date.
      Any replacement insurer with respect to a Mortgage Loan must have at least
      as
      high a claims paying ability rating as the insurer it replaces had on the
      Closing Date.

     

    
      
        
        

      

      
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    “Qualified
      Substitute Mortgage Loan”:
      A
      mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
      of
      this Agreement which must, on the date of such substitution, (i) have an
      outstanding principal balance, after application of all scheduled payments
      of
      principal and interest due during or prior to the month of substitution, not
      in
      excess of, and not more than [   ]% less than, the Principal
      Balance of the Deleted Mortgage Loan as of the Due Date in the calendar month
      during which the substitution occurs, (ii) have a maximum loan rate not
      less than the Maximum Loan Rate of the Deleted Mortgage Loan, (iii)  have a
      gross margin equal to or greater than the Gross Margin of the Deleted Mortgage
      Loan, (iv) have the same Index as the Deleted Mortgage Loan, (v) have its next
      adjustment date not more than two months after the next Adjustment Date of
      the
      Deleted Mortgage Loan, (vi) have a remaining term to maturity not greater than
      (and not more than one year less than) that of the Deleted Mortgage Loan,
      (vii) be current as of the date of substitution, (viii) have a
      Loan-to-Value Ratio and a Loan-to-Collateral Value Ratio as of the date of
      substitution equal to or lower than the Loan-to-Value Ratio and the
      Loan-to-Collateral Value Ratio, respectively, of the Deleted Mortgage Loan
      as of
      such date, (ix) have been underwritten or re-underwritten in accordance
      with the same or substantially similar underwriting criteria and guidelines
      as
      the Deleted Mortgage Loan, (x) is of the same or better credit quality as the
      Deleted Mortgage Loan and (xi) conform to each representation and warranty
      set forth in Section 2.04 hereof applicable to the Deleted Mortgage Loan. In
      the
      event that one or more mortgage loans are substituted for one or more Deleted
      Mortgage Loans, the amounts described in clause (i) hereof shall be determined
      on the basis of aggregate principal balances, the terms described in clause
      (vi) hereof shall be determined on the basis of weighted average remaining
      term to maturity, the Loan-to-Value Ratio and Loan-to-Collateral Value Ratio
      described in clause (viii) hereof shall be satisfied as to each such
      mortgage loan and, except to the extent otherwise provided in this sentence,
      the
      representations and warranties described in clause (x) hereof must be
      satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate,
      as
      the case may be.

     

    “Rating
      Agency”:
      Each
      of [      ] and any respective successors thereto.
      If [      ] or their respective successors shall
      no longer be in existence, “Rating Agency” shall include such nationally
      recognized statistical rating agency or agencies, or other comparable Person
      or
      Persons, as shall have been designated by the Depositor, notice of which
      designation shall be given to the Trustee and the Master Servicer.

     

    “Realized
      Loss”:
      With
      respect to any Liquidated Mortgage Loan, the amount of loss realized equal
      to
      the portion of the Principal Balance remaining unpaid after application of
      all
      Net Liquidation Proceeds in respect of such Liquidated Mortgage
      Loan.

     

    “Recognition
      Agreement”:
      With
      respect to any Cooperative Loan, an agreement between the related Cooperative
      Corporation and the originator of such Mortgage Loan to establish the rights
      of
      such originator in the related Cooperative Property.

     

    
      
        
        

      

      
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    “Record
      Date”:
      With
      respect to each Distribution Date and all Classes of Certificates, the last
      Business Day of the calendar month preceding the month in which such
      Distribution Date occurs.

     

    “Recovery”:
      With
      respect to any Distribution Date and a Mortgage Loan that became a Liquidated
      Mortgage Loan in a month preceding the related Prepayment Period to such
      Distribution Date and with respect to which the related Realized Loss was
      allocated to one or more Classes of Certificates, an amount received in respect
      of such Liquidated Mortgage Loan during the related Prepayment Period, net
      of
      any reimbursable expenses.

     

    “Refinancing
      Mortgage Loan”:
      Any
      Mortgage Loan originated in connection with the refinancing of an existing
      mortgage loan.

     

    “Regular
      Certificate”:
      Any
      Class [   ], the Interest-Only Certificates and the Subordinate
      Certificates.

     

    “Regulation
      AB”:
      Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarifications and interpretations as have been provided by the Commission
      in the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time.

     

    “Relevant
      Servicing Criteria”:
      The
      Servicing Criteria applicable to each party, as set forth on Exhibit Q attached
      hereto and any similar exhibit set forth in each Servicing Agreement in respect
      of each Servicer. Multiple parties can have responsibility for the same Relevant
      Servicing Criteria. With respect to a Servicing Function Participant engaged
      by
      the Master Servicer, the Securities Administrator, the Trustee (in its capacity
      as Custodian) or each Servicer, the term “Relevant Servicing Criteria” may refer
      to a portion of the Relevant Servicing Criteria applicable to such
      parties.

     

    “Relief
      Act”:
      The
      Servicemembers Civil Relief Act or similar state or local law.

     

    “Relief
      Act Reductions”:
      With
      respect to any Distribution Date and any Mortgage Loan as to which there has
      been a reduction in the amount of interest collectible thereon for the most
      recently ended Due Period as a result of the application of the Relief Act,
      the
      amount, if any, by which (i) interest collectible on that Mortgage Loan during
      such Due Period is less than (ii) one month’s interest on the Stated Principal
      Balance of such Mortgage Loan at the Loan Rate for such Mortgage Loan before
      giving effect to the application of the Relief Act.

     

    [“REMIC”:
      A
“real estate mortgage investment conduit” within the meaning of Section 860D of
      the Code.]

     

    [“REMIC
      Opinion”:
      An
      Independent Opinion of Counsel, to the effect that the proposed action described
      therein would not cause an Adverse REMIC Event.]

     

    [“REMIC
      Provisions”:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits which appear at Section 860A through 860G of Subchapter
      M of
      Chapter 1 of the Code, and related provisions, and regulations and rulings
      promulgated thereunder, as the foregoing may be in effect from time to
      time.]

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    “Remittance
      Report”:
      The
      Master Servicer’s Remittance Report to the Securities Administrator providing
      information with respect to each Mortgage Loan which is provided no later than
      the second Business Day following each Determination Date and which shall
      contain such information as may be agreed upon by the Master Servicer and the
      Securities Administrator and which shall be sufficient to enable the Securities
      Administrator to prepare the related Distribution Date Statement.

     

    “Rents
      from Real Property”:
      With
      respect to any REO Property, gross income of the character described in Section
      856(d) of the Code.

     

    “REO
      Account”:
      The
      account or accounts maintained by a Servicer in respect of an REO Property
      pursuant to the related Servicing Agreement.

     

    “REO
      Disposition”:
      The
      sale or other disposition of an REO Property on behalf of the
      Trust.

     

    “REO
      Imputed Interest”:
      As to
      any REO Property, for any calendar month during which such REO Property was
      at
      any time part of the Trust Fund, one month’s interest at the applicable Net Loan
      Rate on the Principal Balance of such REO Property (or, in the case of the
      first
      such calendar month, of the related Mortgage Loan if appropriate) as of the
      Close of Business on the Due Date in such calendar month.

     

    “REO
      Principal Amortization”:
      With
      respect to any REO Property, for any calendar month, the excess, if any, of
      (a)
      the aggregate of all amounts received in respect of such REO Property during
      such calendar month, whether in the form of rental income, sale proceeds
      (including, without limitation, that portion of the Termination Price paid
      in
      connection with a purchase of all of the Mortgage Loans and REO Properties
      pursuant to Section 10.01 hereof that is allocable to such REO Property) or
      otherwise, net of any portion of such amounts (i) payable pursuant to the
      applicable provisions of the related Servicing Agreement in respect of the
      proper operation, management and maintenance of such REO Property or (ii)
      payable or reimbursable to the applicable Servicer pursuant to the applicable
      provisions of the related Servicing Agreement for unpaid Master Servicing Fees
      and Servicing Fees in respect of the related Mortgage Loan and unreimbursed
      Servicing Advances and Advances in respect of such REO Property or the related
      Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO
      Property for such calendar month.

     

    “REO
      Property”:
      A
      Mortgaged Property acquired by the applicable Servicer on behalf of the Trust
      through foreclosure or deed-in-lieu of foreclosure in accordance with the
      applicable provisions of the related Servicing Agreement.

     

    “Reportable
      Event”:
      As
      defined in Section 3.19(c).

     

    “Reporting
      Servicer”: As
      defined in Section 3.19(b).

     

    
      
        
        

      

      
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    “Request
      for Release”:
      A
      release signed by a Servicing Officer, in the form of Exhibit F attached
      hereto.

     

    “Residential
      Dwelling”:
      Any
      one of the following: (i) attached or detached one-family dwelling,
      (ii) a detached two- to four-family dwelling, (iii) a one-family
      dwelling unit in a condominium project, (iv) a manufactured home, (v) a
      cooperative unit or (vi) an attached or detached one-family dwelling in a
      planned unit development, none of which is a mobile home.

     

    “Residual
      Certificate”:
      Any
      Class [   ] Certificate.

     

    “Responsible
      Officer”:
      When
      used with respect to the Trustee or the Securities Administrator, any director,
      any vice president, any assistant vice president, any associate assigned to
      the
      Corporate Trust Office (or similar group) or any other officer of the Trustee
      customarily performing functions similar to those performed by any of the above
      designated officers and, with respect to a particular matter, to whom such
      matter is referred because of such officer’s knowledge of and familiarity with
      the particular subject.

     

    “Restricted
      Classes”:
      As
      defined in Section 5.01(e).

     

    “Restricted
      Global Security”:
      As
      defined in Section 6.01.

     

    “Retained
      Interest”:
      As to
      any Employee Loans originated by [Thornburg] and each Distribution Date,
      interest accrued on the Principal Balance thereof at the Retained
      Rate.

     

    “Retained
      Interest Holder”:
      With
      respect to each Employee Loan, the Seller or any successor in interest by
      assignment or otherwise.

     

    “Retained
      Rate”:
      As of
      the Cut-off Date, and for each Due Period thereafter, [   ]% per
      annum; provided,
      however,
      if the
      related Mortgagor of the Employee Loan ceases to be an employee or a director
      of
      [Thornburg] or its Affiliates, the amount of the increase in the per annum
      rate
      set forth in the related Mortgage Note.

     

    [“S&P”:
      Standard & Poor’s Rating Services (a division of The McGraw-Hill Companies,
      Inc.).]

     

    “Sarbanes
      Oxley Act”:
      The
      Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
      promulgated thereunder (including any interpretations thereof by the
      Commission’s staff).

     

    “Sarbanes-Oxley
      Certification”:
      A
      written certification covering the activities of all Servicing Function
      Participants (excluding the Custodian) and the Servicers and signed by an
      officer of the Master Servicer that complies with (i) the Sarbanes-Oxley Act
      of
      2002, as amended from time to time, and (ii) Exchange Act Rules 13a-14(d) and
      15d-14(d), as in effect from time to time; provided that if, after the Closing
      Date (a) the Sarbanes-Oxley Act of 2002 is amended, (b) the Rules referred
      to in
      clause (ii) are modified or superseded by any subsequent statement, rule or
      regulation of the Commission or any statement of a division thereof, or (c)
      any
      future releases, rules and regulations are published by the Securities and
      Exchange Commission from time to time pursuant to the Sarbanes-Oxley Act of
      2002, which in any such case affects the form or substance of the required
      certification and results in the required certification being, in the reasonable
      judgment of the Master Servicer, materially more onerous than the form of the
      required certification as of the Closing Date, the Sarbanes-Oxley Certification
      shall be as agreed to by the Master Servicer, the Depositor and the Seller
      following a negotiation in good faith to determine how to comply with any such
      new requirements.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    “Securities
      Act”:
      The
      Securities Act of 1933, as amended and the rules and regulations
      thereunder.

     

    “Securities
      Administrator”:
      [      ], or its successor in interest, or any
      successor securities administrator appointed as herein provided.

     

    “Security
      Agreement”:
      With
      respect to any Cooperative Loan, the agreement between the owner of the related
      Cooperative Shares and the originator of the related Mortgage Note that defines
      the terms of the security interest in such Cooperative Shares and the related
      Proprietary Lease.

     

    “Seller”:
      [Thornburg], in its capacity as seller under this Agreement.

     

    “Senior
      Certificate”:
      One of
      the Class [   ] Certificates.

     

    “Senior
      Certificate Group”:
      Any of
      (a) the Class [   ], with respect to Loan Group
      [   ].

     

    “Senior
      Certificateholder”:
      Any
      Holder of a Senior Certificate.

     

    “Senior
      Credit Support Depletion Date”:
      The
      date on which the Class Certificate Principal Balance of each Class of
      Subordinate Certificates has been reduced to zero.

     

    “Senior
      Percentage”:
      With
      respect to each Loan Group and any Distribution Date, the percentage equivalent
      of a fraction the numerator of which is the aggregate of the Class Certificate
      Principal Balances of the Senior Certificate Group relating to that Loan Group
      immediately prior to such Distribution Date and the denominator of which is
      the
      Loan Group Balance of the related Loan Group for such Distribution Date;
provided,
      however,
      that on
      any Distribution Date after a Senior Termination Date has occurred with respect
      to a Loan Group, the Senior Percentage for that Loan Group will be equal to
      0%
      and; provided,
      further, that
      on
      any Distribution Date after a Senior Termination Date has occurred with respect
      to two Loan Groups, the Senior Percentage of the remaining Senior Certificates
      is the percentage equivalent of a fraction, the numerator of which is the
      aggregate of the Certificate Principal Balances of remaining Classes of Senior
      Certificates relating to Loan Group [   ] immediately prior to
      such date and the denominator of which is the aggregate of the Certificate
      Principal Balances of all Classes of Certificates relating to Loan Group
      [   ], immediately prior to such date. 

     

    “Senior
      Prepayment Percentage”:
      With
      respect to each Loan Group and any Distribution Date before
      [   ], 100%. Except as provided herein, the Senior Prepayment
      Percentage for each Loan Group for any Distribution Date occurring on or after
      [      ] will be as follows: (i) from
      [   ] through [   ], the related Senior Percentage
plus
      [   ]% of the related Subordinate Percentage for such
      Distribution Date; (ii) from [   ] through
      [   ], the related Senior Percentage plus
      [   ]% of the related Subordinate Percentage for such
      Distribution Date; (iii) from [   ] through
      [   ], the related Senior Percentage plus
      [   ]% of the related Subordinate Percentage for such
      Distribution Date; (iv) from [   ] through
      [   ], the related Senior Percentage plus
      [   ]% of the related Subordinate Percentage for such
      Distribution Date; and (v) from and after [   ], the related
      Senior Percentage for such Distribution Date; provided,
      however, that
      there shall be no reduction in the Senior Prepayment Percentage for any such
      Loan Group on a Distribution Date, unless the Step Down Conditions are satisfied
      with respect to such Distribution Date; and provided,
      further,
      that if
      on any Distribution Date occurring on or after the Distribution Date in
      [   ], the Senior Percentage for any Loan Group exceeds the
      initial Senior Percentage for such Loan Group, the related Senior Prepayment
      Percentage for such Distribution Date will again equal 100%.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the above, (i) if on any Distribution Date prior to [   ] the Two
      Times Test is satisfied, the Senior Prepayment Percentage for each Loan Group
      will equal the related Senior Percentage for such Distribution Date plus
      [   ]% of an amount equal to 100% minus
      the
      related Senior Percentage for such Distribution Date and (ii) if
      on any
      Distribution Date in or after [   ] the Two Times Test is
      satisfied, the Senior Prepayment Percentage for each Loan Group
      [   ] will equal the related Senior Percentage for such
      Distribution Date.

     

    “Senior
      Principal Distribution Amount”:
      With
      respect to each Loan Group and any Distribution Date, the sum of: 

     

    (1) the
      related Senior Percentage of all amounts described in clauses (a) through (d)
      of
      the definition of “Principal Distribution Amount” for such Distribution
      Date;

     

    (2) with
      respect to each Mortgage Loan in that Loan Group which became a Liquidated
      Mortgage Loan during the related Prepayment Period, the lesser of

     

    
      	 	
              (x)

            	
              the
                related Senior Percentage of the Stated Principal Balance of that
                Mortgage
                Loan; and

            

    

     

    
      	 	
              (y)

            	
              the
                related Senior Prepayment Percentage of the amount of the Net Liquidation
                Proceeds allocable to principal received with respect to that Mortgage
                Loan; and

            

    

     

    (3) the
      related Senior Prepayment Percentage of the amounts described in clause (f)
      of
      the definition of “Principal Distribution Amount;”

     

    provided,
      however,
      that on
      any Distribution Date after a Senior Termination Date has occurred with respect
      to two Loan Groups, the Senior Principal Distribution Amount for the remaining
      Senior Certificate Group will be calculated pursuant to the above formula based
      on all the Mortgage Loans rather than the Mortgage Loans in the related Loan
      Group only.

     

    “Senior
      Termination Date”:
      For
      each Loan Group, the Distribution Date on which the aggregate of the Class
      Certificate Principal Balances of the Senior Certificate Group relating to
      that
      Loan Group is reduced to zero.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    “Servicer”:
      Each
      of the several primary servicers of the Mortgage Loans as set forth and as
      individually defined in Exhibit N hereto and any successors thereto or
      replacement therefor. 

     

    “Servicer
      Remittance Date”:
      With
      respect to each Mortgage Loan, the [   ] day of each month, or
      the next Business Day if such [   ] day is not a Business Day or
      if provided in the related Servicing Agreement, the preceding Business Day
      if
      such [   ] day is not a Business Day.

     

    “Service(s)(ing)”:
      In
      accordance with Regulation AB, the act of servicing and administering the
      Mortgage Loans or any other assets of the Trust by an entity that meets the
      definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
      to the disclosure requirements set forth in 1108 of Regulation AB. Any
      uncapitalized occurrence of this term shall have the meaning commonly understood
      by participants in the residential mortgage-backed securitization
      market.

     

    “Servicing
      Account”:
      Any
      account established and maintained for the benefit of the Master Servicer or
      the
      Trust by a Servicer with respect to the related Mortgage Loans and any REO
      Property, pursuant to the terms of the respective Servicing
      Agreement.

     

    “Servicing
      Advances”:
      With
      respect to any Servicer or the Master Servicer (including the Trustee in its
      capacity as successor Master Servicer), all customary, reasonable and necessary
      “out of pocket” costs and expenses (including reasonable attorneys’ fees and
      expenses) incurred by any Servicer or the Master Servicer in the performance
      of
      its servicing obligations hereunder, including, but not limited to, the cost
      of
      (i) the preservation, restoration, inspection and protection of the Mortgaged
      Property, (ii) any enforcement or judicial proceedings, including foreclosures,
      (iii) the management and liquidation of the REO Property and (iv) compliance
      with the obligations under Article III hereof or the related Servicing
      Agreements.

     

    “Servicing
      Agreement”:
      The
      servicing agreements relating to the Mortgage Loans as set forth in Exhibit
      N
      hereto, servicing arrangements for any Mortgage Loans under the Seller’s
      Correspondent Sellers Guide, and any other servicing agreement entered into
      between a successor servicer and the Seller or the Trustee on behalf of the
      Trust pursuant to the terms hereof.

     

    “Servicing
      Criteria”:
      The
      criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such
      may
      be amended from time to time.

     

    “Servicing
      Fee”:
      With
      respect to each Servicer and each Mortgage Loan serviced by such Servicer and
      for any calendar month, the fee payable to such Servicer determined pursuant
      to
      the related Servicing Agreement.

     

    “Servicing
      Fee Rate”:
      With
      respect to each Mortgage Loan, the per annum servicing fee rate set forth on
      the
      Mortgage Loan Schedule.

     

    “Servicing
      Function Participant”:
      Any
      Sub-Servicer or Subcontractor, other than each Servicer, the Master Servicer,
      the Trustee, the Custodian and the Securities Administrator, in each case that
      is participating in the servicing function within the meaning of Regulation
      AB.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    “Servicing
      Officer”: Any
      officer of a Master Servicer or Servicer involved in, or responsible for, the
      administration and servicing of Mortgage Loans, whose name and specimen
      signature appear on a list of servicing officers furnished by the Master
      Servicer to the Trustee and the Depositor on the Closing Date, as such list
      may
      from time to time be amended.

     

    [“Seven-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans set forth on Schedule III hereto.]

     

    “Significant
      Modification”:
      As
      defined in Section 3.25.

     

    “Significant
      Modification Loan”:
      As
      defined in Section 3.25.

     

    “Significant
      Modification Loan Schedule”:
      With
      respect to each Distribution Date, a schedule prepared by the Seller pursuant
      to
      Section 3.25 listing each Modifiable Mortgage Loan that has become a Significant
      Modification Loan during the immediately preceding Due Period, and the Purchase
      Price for each such Significant Modification Mortgage Loan.

     

    [“Six-Month
      LIBOR”:
      The
      average of interbank offered rates for six-month U.S. dollar deposits in the
      London market based on quotations of major banks.

     

    “Six-Month
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the Six-Month LIBOR index.]

     

    “Startup
      Day”:
      As
      defined in Section 9.01(b) hereof.

     

    “Stated
      Principal Balance”:
      With
      respect to any Mortgage Loan: (a) as of the Distribution Date in
      [   ], the Cut-Off Date Principal Balance of such Mortgage
      Loan,  (b) thereafter as of any date of determination up to and including
      the Distribution Date on which the proceeds, if any, of a Liquidation Event
      with
      respect to such Mortgage Loan would be distributed, the outstanding principal
      balance of such Mortgage Loan as of the Cut-Off Date, as shown in the Mortgage
      Loan Schedule, minus,
      in the
      case of each Mortgage Loan, the sum of (i) the principal portion of each
      Monthly Payment due on a Due Date subsequent to the Cut-Off Date, whether or
      not
      received, (ii) all Principal Prepayments received after the Cut-Off Date,
      to the extent distributed pursuant to Section 5.01 before such date of
      determination and (iii) all Liquidation Proceeds and Insurance Proceeds
      applied by the applicable Servicer as recoveries of principal in accordance
      with
      the applicable provisions of the related Servicing Agreement, to the extent
      distributed pursuant to Section 5.01 before such date of determination; and
      (c) as of any date of determination subsequent to the Distribution Date on
      which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
      Loan would be distributed, zero; [provided
      that,
      such
      Stated Principal Balance shall be increased by the amount of any Deferred
      Interest added to the outstanding Principal Balance of such Mortgage Loan
      pursuant to the terms of the related Mortgage Note before such date of
      determination.] With respect to any REO Property: (x) as of any date of
      determination up to and including the Distribution Date on which the proceeds,
      if any, of a Liquidation Event with respect to such REO Property would be
      distributed, an amount (not less than zero) equal to the Stated Principal
      Balance of the related Mortgage Loan as of the date on which such REO Property
      was acquired on behalf of the Trust, minus
      the
      aggregate amount of REO Principal Amortization in respect of such REO Property
      for all previously ended calendar months, to the extent distributed pursuant
      to
      Section 5.01 before such date of determination; and (y) as of any date
      of determination subsequent to the Distribution Date on which the proceeds,
      if
      any, of a Liquidation Event with respect to such REO Property would be
      distributed, zero.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    “Step
      Down Conditions”:
      As of
      any Distribution Date on which any decrease in any Senior Prepayment Percentage
      may apply, (i) the outstanding Principal Balance of all Mortgage that are 60
      days or more Delinquent [(including for this purpose Group [   ]
      Mortgage Loans in foreclosure, any related REO Property and any Group
      [   ] Mortgage Loan which has been subject to a modification of
      terms made between Cenlar and the Mortgagor in connection with a loss mitigation
      strategy in the last twelve months)], averaged over the preceding six month
      period, as a percentage of the aggregate of the Class Certificate Principal
      Balances of the Classes of Subordinate Certificates on such Distribution Date,
      does not equal or exceed [   ]% and (ii) cumulative Realized
      Losses [(including for this purpose the amount of principal or interest which
      has been forgiven in connection with a modification of terms of a Group
      [   ] Mortgage Loan made between Cenlar and the Mortgagor as part
      of a loss mitigation strategy in the related Due Period)] with respect to all
      of
      the Mortgage Loans do not exceed:

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after [the seventh anniversary until
                the
                eighth anniversary] of the first Distribution Date, [   ]%
                of the aggregate Class Certificate Principal Balance of the Subordinate
                Certificates as of the Closing
                Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after [the eighth anniversary until the
                ninth
                anniversary] of the first Distribution Date, [   ]% of the
                aggregate Class Certificate Principal Balance of the Subordinate
                Certificates as of the Closing
                Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after [the ninth anniversary until the
                tenth
                anniversary] of the first Distribution Date, [   ]% of the
                aggregate Class Certificate Principal Balance of the Subordinate
                Certificates as of the Closing
                Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after [the tenth anniversary until the
                eleventh anniversary] of the first Distribution Date,
                [   ]% of the aggregate Class Certificate Principal Balance
                of the Subordinate Certificates as of the Closing Date,
                and

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after [the eleventh anniversary] of the
                first
                Distribution Date, [   ]% of the aggregate Class
                Certificate Principal Balance of the Subordinate Certificates as
                of the
                Closing Date.

            

    

     

    “Subcontractor”:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing of Mortgage Loans but performs one or more discrete functions
      identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
      under
      the direction or authority of any Servicer (or a Sub-Servicer of any Servicer),
      the Master Servicer, the Trustee or the Securities Administrator.

     

    “Subordinate
      Certificate”:
      Any
      one of the Class [B- [   ]] Certificates.

     

    “Subordinate
      Certificate Pass-Through Rate”:
      With
      respect to each Class of Subordinate Certificates and any Distribution Date,
      the
      per annum rate equal to the weighted average (weighted on the basis of the
      related Subordinate Component) of the Net WACs for Loan Group
      [   ].

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    “Subordinate
      Component”:
      With
      respect to each Loan Group and any Distribution Date, the excess of the related
      Loan Group Balance for such Distribution Date over the aggregate Class
      Certificate Principal Balance of the related Senior Certificate Group
      immediately preceding such Distribution Date. The designation
“[   ],” appearing after the corresponding Loan Group designation
      is used to indicate a Subordinate Component allocable to Loan Group
      [   ], respectively.

     

    “Subordinate
      Percentage”:
      With
      respect to each Loan Group and any Distribution Date, the difference between
      100% and the related Senior Percentage for such Loan Group and Distribution
      Date; provided,
      however,
      that on
      any Distribution Date occurring after a Senior Termination Date has occurred
      with respect to [   ] Loan Groups, the Subordinate Percentage
      will represent the entire interest of the Subordinate Certificates in the
      Mortgage Loans and will equal the difference between 100% and the related Senior
      Percentage for such Distribution Date.

     

    “Subordinate
      Prepayment Percentage”:
      With
      respect to each Loan Group and any Distribution Date, the difference between
      100% and the related Senior Prepayment Percentage for such Distribution
      Date.

     

    “Subordinate
      Principal Distribution Amount”:
      With
      respect to each Loan Group and any Distribution Date, an amount equal to the
      sum
      of:

     

    (1) the
      related Subordinate Percentage of all amounts described in clauses (a) through
      (d) of the definition of “Principal Distribution Amount” for such Loan Group and
      Distribution Date;

     

    (2) with
      respect to each Mortgage Loan in such Loan Group that became a Liquidated
      Mortgage Loan during the related Prepayment Period, the amount of the Net
      Liquidation Proceeds allocated to principal received with respect thereto
      remaining after application thereof pursuant to clause (2) of the definition
      of
“Senior Principal Distribution Amount” for such Loan Group and Distribution
      Date, up to the related Subordinate Percentage of the Stated Principal Balance
      of such Mortgage Loan; and

     

    (3) the
      related Subordinated Prepayment Percentage of all amounts described in clause
      (f) of the definition of “Principal Distribution Amount” for such Loan Group and
      Distribution Date;

     

    provided,
      however,
      that on
      any Distribution Date occurring after a Senior Termination Date has occurred
      with respect to two Loan Groups, the Subordinate Principal Distribution Amount
      will not be calculated by Loan Group but will equal the amount calculated
      pursuant to the formula set forth above based on the applicable Subordinate
      Percentage or Subordinate Prepayment Percentage, as applicable, for such
      Distribution Date with respect to all the Mortgage Loans rather than the
      Mortgage Loans in the related Loan Group only.

     

    “Sub-Servicer”:
      Any
      Person[, including without limitation, Cenlar,] that (i) services Mortgage
      Loans
      on behalf of any Servicer, the Master Servicer, the Securities Administrator,
      the Trustee or the Custodian and (ii) is responsible for the performance
      (whether directly or through sub-servicers or Subcontractors) of Servicing
      functions required to be performed under this Agreement, any related Servicing
      Agreement or any sub-servicing agreement that are identified in Item 1122(d)
      of
      Regulation AB.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    “Sub-Servicing
      Fee”:
      With
      respect to each Mortgage Loan sub-serviced by
      [      ], an amount equal to one-twelfth the
      product of (i) the Sub-Servicing Fee Rate and (ii) the Stated Principal Balance
      of such Mortgage Loan as of the first day of the related month

     

    “Sub-Servicing
      Fee Rate”:
      With
      respect to any Mortgage Loan, sub-serviced by
      [      ] and serviced by [Thornburg] on behalf of
      the Trust Fund, the “[      ] Subservicing Fee
      Rate” as defined in [      ] Agreement dated as of
      [      ] between
      [      ].

     

    “Substitution
      Adjustment”:
      As
      defined in Section 2.03(d) hereof.

     

    [“Tax
      Returns”:
      The
      federal income tax return on Internal Revenue Service Form 1066, U.S. Real
      Estate Mortgage Investment Conduit Income Tax Return, including Schedule Q
      thereto, Quarterly Notice to Residual Interest Holders of the REMIC Taxable
      Income or Net Loss Allocation, or any successor forms, to be filed on behalf
      of
      each of the REMICs created hereunder under the REMIC Provisions, together with
      any and all other information reports or returns that may be required to be
      furnished to the Certificateholders or filed with the Internal Revenue Service
      or any other governmental taxing authority under any applicable provisions
      of
      federal, state or local tax laws.]

     

    “10-K
      Filing Deadline”:
      As
      defined in Section 3.19(b).

     

    [“Ten-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans set forth on Schedule IV hereto.]

     

    “Termination
      Price”:
      As
      defined in Section 10.01(c) hereof.

     

    [“Thornburg”:
      Thornburg Mortgage Home Loans, Inc., a Delaware corporation, and its successors
      and assigns.]

     

    [“Three-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule II
      hereto.]

     

    “Transfer”:
      Any
      direct or indirect transfer or sale of any Ownership Interest in a Residual
      Certificate.

     

    “Transfer
      Affidavit”:
      As
      defined in Section 6.02(e)(ii) hereof.

     

    “Transferee”:
      Any
      Person who is acquiring by Transfer any Ownership Interest in a
      Certificate.

     

    “Trust”:
      Thornburg Mortgage Securities Trust [      ], a
      common law trust created under the Agreement and governed under New York State
      law. 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    “Trust
      Fund”:
      The
      segregated pool of assets subject hereto, constituting the primary trust created
      hereby and to be administered hereunder[, with respect to which a REMIC election
      is to be made,] such Trust Fund consisting of: (i) such Mortgage Loans as from
      time to time are subject to this Agreement, together with the Mortgage Files
      relating thereto, and together with all collections thereon and proceeds thereof
      (but not including any Prepayment Penalty Amounts), (ii) any REO Property,
      together with all collections thereon and proceeds thereof, (iii) the Trustee’s
      rights with respect to the Mortgage Loans under all insurance policies required
      to be maintained pursuant to this Agreement and any proceeds thereof, (iv)
      the
      Depositor’s rights under the Mortgage Loan Purchase Agreement (including any
      security interest created thereby); (v) the Depositor's security interest in
      the
      Additional Collateral, (vi) the Distribution Account (subject to the last
      sentence of this definition), any REO Account and such assets that are deposited
      therein from time to time and any investments thereof, together with any and
      all
      income, proceeds and payments with respect thereto, (vii) all right, title
      and
      interest of the Depositor in and to each security or pledge agreement in respect
      of Additional Collateral and (viii) all right, title and interest of the
      Seller in and to each of the Servicing Agreements. Notwithstanding the
      foregoing, however, the Trust Fund specifically excludes (1) all payments and
      other collections of interest and principal due on the Mortgage Loans on or
      before the Cut-Off Date and principal received before the Cut-Off Date (except
      any principal collected as part of a payment due after the Cut-Off Date), (2)
      all income and gain realized from Permitted Investments of funds on deposit
      in
      the Distribution Account, (3) any Prepayment Penalty Amounts and (4) any
      Retained Interest.

     

    “Trustee”:
      [      ], a national banking association, not in
      its individual capacity but solely as trustee, its successors or assigns, or
      any
      successor trustee appointed as herein provided.

     

    “Trustee
      Fee”:
      The
      annual on-going fee payable by the Master Servicer on behalf of the Trust to
      the
      Trustee from the Master Servicer Fee pursuant to the terms of the separate
      fee
      letter agreement between the Trustee and the Master Servicer relating to the
      Thornburg Mortgage Securities Trust
      [      ].

     

    “Two
      Times Test”:
      As to
      any Distribution Date, (i) the Aggregate Subordinate Percentage is at least
      two
      times the Aggregate Subordinate Percentage as of the Closing Date; (ii) the
      aggregate of the Principal Balances of all Mortgage Loans in Loan Group
      [   ] that are Delinquent 60 days or more (including for this
      purpose any such Mortgage Loans in foreclosure, any related REO Property and
      any
      Mortgage Loans which have been subject to modification of their terms made
      between Cenlar and the Mortgagor in connection with a loss mitigation strategy
      in the last twelve months), averaged over the preceding six-month period, as
      a
      percentage of the aggregate of the Class Certificate Principal Balances of
      the
      Subordinate Certificates, does not equal or exceed [   ]%; and
      (iii) on or after the Distribution Date in [   ], cumulative
      Realized Losses (including for this purpose any amounts of principal and
      interest which has been forgiven in connection with a modification of terms
      of a
      Mortgage Loan in Loan Group [   ] made between
      [   ] and the Mortgagor as part of a loss mitigation strategy in
      the related Due Period) do not exceed [   ]% of the Original
      Subordinated Principal Balance, or prior to the Distribution Date in
      [   ], cumulative Realized Losses do not exceed
      [   ]% of the Original Subordinated Principal
      Balance.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    “Undercollateralized
      Group”:
      With
      respect to any Distribution Date, any Group [   ] Certificates as
      to which the aggregate Class Certificate Principal Balance thereof, after giving
      effect to distributions pursuant to Section 5.01(a) on such date, is greater
      than the Loan Group Balance of the related Loan Group for such Distribution
      Date. 

     

    “Underwriter”:
      [   ].

     

    “Underwriter’s
      Exemption”:
      Prohibited Transaction Exemption 90-59 (Exemption Application No. D-8374),
      as
      amended by PTE 97-34 (Exemption Application No. D-10245 and D-10246) and by
      PTE
      2000-58 (Exemption Application No. D-10829) and PTE 2002-41 (Exemption
      Application No. D-11077), as amended (or any successor thereto), or any
      substantially similar administrative exemption granted by the U.S. Department
      of
      Labor. 

     

    “Uninsured
      Cause”:
      Any
      cause of damage to a Mortgaged Property such that the complete restoration
      of
      such property is not fully reimbursable by the hazard insurance policies
      required to be maintained on such Mortgaged Property.

     

    “United
      States Person”
or
      “U.S.
      Person”:
      A
      citizen or resident of the United States, a corporation, partnership or other
      entity treated as a corporation or partnership for federal income tax purposes
      (other than a partnership that is not treated as a U.S. Person pursuant to
      any
      applicable Treasury regulations) created or organized in, or under the laws
      of,
      the United States, any state thereof or the District of Columbia, or an estate
      the income of which from sources without the United States is includible in
      gross income for United States federal income tax purposes regardless of its
      connection with the conduct of a trade or business within the United States,
      or
      a trust if a court within the United States is able to exercise primary
      supervision over the administration of the trust and one or more United States
      persons have authority to control all substantial decisions of the trust. The
      term “United States” shall have the meaning set forth in Section 7701 of
      the Code or successor provisions.

     

    “Unpaid
      Interest Shortfall Amount”:
      With
      respect to each Class of Certificates and (i) the first Distribution Date,
      zero, and (ii) any Distribution Date after the first Distribution Date, the
      amount, if any, by which (1)(a) the Monthly Interest Distributable Amount for
      that Class for the immediately preceding Distribution Date exceeds (b) the
      aggregate amount distributed on that Class in respect of such Monthly Interest
      Distributable Amount on the preceding Distribution Date plus
      (2) any
      such shortfalls remaining unpaid from prior Distribution Dates.

     

    “Value”:
      With
      respect to any Mortgage Loan and the related Mortgaged Property, the lesser
      of:

     

    (i) the
      value
      of such Mortgaged Property as determined by an appraisal made for the originator
      of the Mortgage Loan at the time of origination of the Mortgage Loan by an
      appraiser who met the minimum requirements of Fannie Mae and Freddie Mac; and
      

     

    (ii) the
      purchase price paid for the related Mortgaged Property by the Mortgagor with
      the
      proceeds of the Mortgage Loan; 

     

    provided,
      however,
      that in
      the case of a Refinancing Mortgage Loan, such value of the Mortgaged Property
      is
      based solely upon the value determined by an appraisal made for the originator
      of such Refinancing Mortgage Loan at the time of origination by an appraiser
      who
      met the minimum requirements of Fannie Mae and Freddie Mac.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    “Voting
      Rights”:
      The
      portion of the voting rights of all of the Certificates which is allocated
      to
      any Certificate. [   ]% of the voting rights shall be allocated
      among the Classes of Certificates (other than the Class [   ]
      Certificates and Class [   ] Certificates), pro
      rata,
      based
      on a fraction, expressed as a percentage, the numerator of which is the Class
      Certificate Principal Balance of such Class and the denominator of which is
      the
      aggregate of the Class Certificate Principal Balances then outstanding and
      1%
      voting rights shall be assigned to the Holders of each of the Class
      [   ] Certificate and Class [   ] Certificates;
provided,
      further,
      that
      when the Class Certificate Notional Balance of any Class of Interest-Only
      Certificate has been reduced to zero, the voting rights allocated to such Class
      shall be allocated pro
      rata
      to the
      Holders of the other Regular Certificates; provided,
      further,
      when
      none of the Regular Certificates are outstanding, 100% of the voting rights
      shall be allocated pro
      rata
      to the
      Holders of the Residual Certificates. The voting rights allocated to a Class
      of
      Certificates shall be allocated among all Holders of such Class, pro
      rata,
      based
      on a fraction the numerator of which is the Certificate Principal Balance or
      Certificate Notional Balance of each Certificate of such Class and the
      denominator of which is the Class Certificate Principal Balance or Class
      Certificate Notional Balance of such Class; provided,
      however,
      that any
      Certificate registered in the name of the Master Servicer, the Securities
      Administrator, the Trustee or any of their respective affiliates shall not
      be
      included in the calculation of Voting Rights; [provided,
      further,
      the
      Class ES Certificates shall have no voting rights.]

     

    “Writedown
      Amount”:
      The
      reduction described in Section 5.03(c).

     

     

    SECTION
      1.02. Accounting.

     

    Unless
      otherwise specified herein, for the purpose of any definition or calculation,
      whenever amounts are required to be netted, subtracted or added or any
      distributions are taken into account such definition or calculation and any
      related definitions or calculations shall be determined without duplication
      of
      such functions.

     

     

    ARTICLE
      II

     

    CONVEYANCE
      OF MORTGAGE LOANS;

    ORIGINAL
      ISSUANCE OF CERTIFICATES

     

    SECTION
      2.01. Conveyance
      of Mortgage Loans.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee without recourse
      for the benefit of the Certificateholders all the right, title and interest
      of
      the Depositor, including any security interest therein for the benefit of the
      Depositor, in and to (i) each Mortgage Loan (other than the right to receive
      any
      Retained Interest or any Prepayment Penalty Amounts) identified on the Mortgage
      Loan Schedule, including the related Cut-Off Date Principal Balance, all
      interest due thereon after the Cut-Off Date and all collections in respect
      of
      interest and principal due after the Cut-Off Date; (ii) all the Depositor’s
      right, title and interest in and to the Distribution Account and all amounts
      from time to time credited to and to the proceeds of the Distribution Account;
      (iii) any real property that secured each such Mortgage Loan and that has been
      acquired by foreclosure or deed in lieu of foreclosure; (iv) the Depositor’s
      interest in any insurance policies in respect of the Mortgage Loans; (v) the
      Depositor’s security interest in the Additional Collateral; (vi) all proceeds of
      any of the foregoing; and (vii) all other assets included or to be included
      in
      the Trust Fund. Such assignment includes all interest and principal due to
      the
      Depositor or the Master Servicer after the Cut-Off Date with respect to the
      Mortgage Loans.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Mortgage Loan
      Purchase Agreement, including all rights of the Seller under the Servicing
      Agreements to the extent assigned in the Mortgage Loan Purchase Agreement.
      The
      Trustee hereby accepts such assignment, and shall be entitled to exercise all
      rights of the Depositor under the Mortgage Loan Purchase Agreement and all
      rights of the Seller under the Servicing Agreements as if, for such purpose,
      it
      were the Depositor or the Seller, as applicable, including the Seller’s right to
      enforce remedies for breaches of representations and warranties and delivery
      of
      the Mortgage Loan Documents. The foregoing sale, transfer, assignment, set-over,
      deposit and conveyance does not and is not intended to result in creation or
      assumption by the Trustee of any obligation of the Depositor, the Seller or
      any
      other Person in connection with the Mortgage Loans or any other agreement or
      instrument relating thereto except as specifically set forth
      herein.

     

    In
      addition, with respect to any Additional Collateral Mortgage Loan, the Depositor
      does hereby transfer, assign, set-over and otherwise convey to the Trustee
      without recourse (except as provided herein) (i) its rights as assignee under
      any security agreements, pledge agreements or guarantees relating to the
      Additional Collateral supporting any Additional Collateral Mortgage Loan, (ii)
      its security interest in and to any Additional Collateral and (iii) its right
      to
      receive payments in respect of any Additional Collateral Mortgage Loan pursuant
      to the related Servicing Agreement.

     

    It
      is
      agreed and understood by the Depositor and the Trustee that it is not intended
      that any Mortgage Loan to be included in the Trust Fund be a (i) “High-Cost Home
      Loan” as defined in the New Jersey Home Ownership Act effective November 27,
      2003; (ii) “High-Cost Home Loan” as defined in the New Mexico Home Loan
      Protection Act effective January 1, 2004; (iii) “High-Cost Home Mortgage Loan”
as defined in the Massachusetts Predatory Home Loan Practices Act effective
      November 7, 2004 or (iv) “High Cost Home Loan” as defined in the Indiana Home
      Loan Practices Act effective January 1, 2005.

     

    In
      connection with such transfer and assignment, the Seller, on behalf of the
      Depositor, does hereby deliver on the Closing Date, unless otherwise specified
      in this Section 2.01, to, and deposit with the Trustee, or the Custodian as
      its
      designated agent, the following documents or instruments with respect to each
      Mortgage Loan (a “Mortgage
      File”)
      so
      transferred and assigned:

     

    
      	 	
              (i)

            	
              the
                original Mortgage Note, endorsed either on its face or by allonge
                attached
                thereto in blank or in the following form: “Pay to the order of
                [   ], as Trustee for Thornburg Mortgage Securities Trust
                [   ], without recourse”, or with respect to any lost
                Mortgage Note, an original Lost Note Affidavit stating that the original
                mortgage note was lost, misplaced or destroyed, together with a copy
                of
                the related mortgage note; provided,
                however,
                that such substitutions of Lost Note Affidavits for original Mortgage
                Notes may occur only with respect to Mortgage Loans the aggregate
                Cut-Off
                Date Principal Balance of which is less than or equal to 2% of the
                Cut-Off
                Date Aggregate Principal Balance;

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              originals
                or copies of any guarantee, security agreement or pledge agreement
                relating to any Additional Collateral, if applicable, and executed
                in
                connection with the Mortgage Note, assigned to the Trustee on behalf
                of
                the Trust;

            

    

     

    
      	 	
              (iii)

            	
              except
                as provided below, for each Mortgage Loan that is not a MERS Mortgage
                Loan, the original Mortgage, or a copy thereof certified by the public
                recording office in which such Mortgage has been recorded, and in
                the case
                of each MERS Mortgage Loan, the original Mortgage, noting the presence
                of
                the MIN for that Mortgage Loan and either language indicating that
                the
                Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, or
                if such
                Mortgage Loan was not a MOM Loan at origination, the original Mortgage
                and
                the assignment to MERS, in each case with evidence of recording thereon,
                and the original recorded power of attorney, if the Mortgage was
                executed
                pursuant to a power of attorney, with evidence of recording thereon
                or, if
                such Mortgage or power of attorney has been submitted for recording
                but
                has not been returned from the applicable public recording office,
                has
                been lost or is not otherwise available, a certified copy of such
                Mortgage
                or power of attorney, as the case may be, and that the original of
                such
                Mortgage has been forwarded to the public recording office, or, in
                the
                case of a Mortgage that has been lost, a copy thereof (certified
                as
                provided for under the laws of the appropriate jurisdiction) and
                a written
                Opinion of Counsel (delivered at the Seller’s expense) acceptable to the
                Trustee and the Depositor that an original recorded Mortgage is not
                required to enforce the Trustee’s interest in the Mortgage
                Loan;

            

    

     

    
      	 	
              (iv)

            	
              the
                original or a copy of each assumption, modification or substitution
                agreement, if any, relating to the Mortgage Loans, or, as to any
                assumption, modification or substitution agreement which cannot be
                delivered on or prior to the Closing Date because of a delay caused
                by the
                public recording office where such assumption, modification or
                substitution agreement has been delivered for recordation, a photocopy
                of
                such assumption, modification or substitution agreement, pending
                delivery
                of the original thereof, together with an Officer’s Certificate of the
                Seller certifying that the copy of such assumption, modification
                or
                substitution agreement delivered to the Trustee (or its custodian)
                on
                behalf of the Trust is a true copy and that the original of such
                agreement
                has been forwarded to the public recording
                office;

            

    

     

    
      
        
        

      

      
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              (v)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                an
                original Assignment of Mortgage, in form and substance acceptable
                for
                recording. The Mortgage shall be assigned to
                “[      ], as Trustee for Thornburg Mortgage
                Securities Trust [      ], without recourse”
                or in blank;

            

    

     

    
      	 	
              (vi)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                an
                original copy of any intervening Assignment of Mortgage showing a
                complete
                chain of assignments, or, in the case of an intervening Assignment
                of
                Mortgage that has been lost, a written Opinion of Counsel (delivered
                at
                the Seller’s expense) acceptable to the Trustee that such original
                intervening Assignment of Mortgage is not required to enforce the
                Trustee’s interest in the Mortgage
                Loans;

            

    

     

    
      	 	
              (vii)

            	
              the
                original or a copy of lender’s title insurance policy;
                and

            

    

     

    
      	 	
              (viii)

            	
              with
                respect to any Cooperative Loan, the Cooperative Loan
                Documents.

            

    

    

    In
      connection with the assignment of any MERS Mortgage Loan, the Seller agrees
      that
      it will take (or shall cause the applicable Servicer to take), at the expense
      of
      the Seller (with the cooperation of the Depositor, the Trustee and the Master
      Servicer), such actions as are necessary to cause the MERS® System to indicate
      that such Mortgage Loans have been assigned by the Seller to the Trustee in
      accordance with this Agreement for the benefit of the Certificateholders by
      including (or deleting, in the case of Mortgage Loans that are repurchased
      in
      accordance with this Agreement) in such computer files the information required
      by the MERS® System to identify the series of the Certificates issued in
      connection with the transfer of such Mortgage Loans to the Thornburg Mortgage
      Securities Trust [      ].

     

    With
      respect to each Cooperative Loan the Seller, on behalf of the Depositor does
      hereby deliver to the Trustee (or Custodian) the related Cooperative Loan
      Documents and the Seller will take (or shall cause the applicable Servicer
      to
      take), at the expense of the Seller (with the cooperation of the Depositor,
      the
      Trustee and the Master Servicer) such actions as are necessary under applicable
      law (including but not limited to the relevant UCC) in order to perfect the
      interest of the Trustee in the related Mortgaged Property.

     

    Assignments
      of each Mortgage with respect to each Mortgage Loan that is not a MERS Mortgage
      Loan (other than a Cooperative Loan) shall be recorded; provided,
      however,
      that
      such assignments need not be recorded if, in the Opinion of Counsel (which
      must
      be from Independent Counsel and not at the expense of the Trust or the Trustee)
      acceptable to the Trustee, each Rating Agency and the Master Servicer, recording
      in such states is not required to protect the Trust’s interest in the related
      Mortgage Loans; provided,
      however,
      notwithstanding the delivery of any Opinion of Counsel, each assignment of
      Mortgage shall be submitted for recording by the Seller (or the Seller will
      cause the applicable Servicer to submit each such assignment for recording),
      at
      the cost and expense of the Seller, in the manner described above, at no expense
      to the Trust or Trustee, upon the earliest to occur of (1) reasonable direction
      by the Majority Certificateholders, (2) the occurrence of a bankruptcy or
      insolvency relating to the Seller or the Depositor, or (3) with respect to
      any
      one Assignment of Mortgage, the occurrence of a bankruptcy, insolvency or
      foreclosure relating to the Mortgagor under the related Mortgage. Subject to
      the
      preceding sentence, as soon as practicable after the Closing Date (but in no
      event more than three months thereafter except to the extent delays are caused
      by the applicable recording office), the Seller shall properly record (or the
      Seller will cause the applicable Servicer to properly record), at the expense
      of
      the Seller (with the cooperation of the Depositor, the Trustee and the Master
      Servicer), in each public recording office where the related Mortgages are
      recorded, each assignment referred to in Section 2.01(v) above with respect
      to a
      Mortgage Loan that is not a MERS Mortgage Loan.

     

    
      
        
        

      

      
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    The
      Trustee agrees to execute and deliver to the Depositor on or prior to the
      Closing Date an acknowledgment of receipt of the original Mortgage Note (with
      any exceptions noted), substantially in the form attached as Exhibit G-1
      hereto.

     

    If
      the
      original lender’s title insurance policy, or a copy thereof, was required to be
      but was not delivered pursuant to Section 2.01(vii) above, the Seller shall
      deliver or cause to be delivered to the Trustee the original or a copy of a
      written commitment or interim binder or preliminary report of title issued
      by
      the title insurance or escrow company, with the original or a copy thereof
      to be
      delivered to the Trustee, promptly upon receipt thereof, but in any case within
      175 days of the Closing Date. The Seller shall deliver or cause to be delivered
      to the Trustee, promptly upon receipt thereof, any other documents constituting
      a part of a Mortgage File received with respect to any Mortgage Loan sold to
      the
      Depositor by the Seller and required to be delivered to the Trustee, including,
      but not limited to, any original documents evidencing an assumption or
      modification of any Mortgage Loan. 

     

    For
      Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
      and prior to the Closing Date, the Seller, in lieu of delivering the above
      documents, herewith delivers to the Trustee, or to the Custodian on behalf
      of
      the Trustee, an Officer’s Certificate which shall include a statement to the
      effect that all amounts received in connection with such prepayment that are
      required to be deposited in the Distribution Account have been so deposited.
      All
      original documents that are not delivered to the Trustee on behalf of the Trust
      shall be held by the Master Servicer or the applicable Servicer in trust for
      the
      Trustee, for the benefit of the Trust and the Certificateholders.

     

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File, the Seller shall have 90 days
      to
      cure such defect or deliver such missing document to the Trustee. If the Seller
      does not cure such defect or deliver such missing document within such time
      period, the Seller shall either repurchase or substitute for such Mortgage
      Loan
      in accordance with Section 2.03 hereof.

     

    The
      Depositor herewith delivers to the Trustee an executed copy of the Mortgage
      Loan
      Purchase Agreement.

     

    SECTION
      2.02. Acceptance
      by Trustee.

     

    The
      Trustee hereby accepts its appointment as Custodian hereunder and acknowledges
      the receipt, subject to the provisions of Section 2.01 and subject to the review
      described below and any exceptions noted on the exception report described
      in
      the next paragraph below, of the documents referred to in Section 2.01 above
      and
      all other assets included in the definition of “Trust Fund” and declares that,
      in its capacity as Custodian, it holds and will hold such documents and the
      other documents delivered to it constituting a Mortgage File, and that it holds
      or will hold all such assets and such other assets included in the definition
      of
“Trust Fund” in trust for the exclusive use and benefit of all present and
      future Certificateholders.

     

    
      
        
        

      

      
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    The
      Trustee further agrees, for the benefit of the Certificateholders, to review
      each Mortgage File delivered to it and to certify and deliver to the Depositor,
      the Seller and each Rating Agency an interim certification in substantially
      the
      form attached hereto as Exhibit G-2, within 90 days after the Closing Date
      (or,
      with respect to any document delivered after the Startup Day, within 45 days
      of
      receipt and with respect to any Qualified Substitute Mortgage, within five
      Business Days after the assignment thereof) that, as to each Mortgage Loan
      listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
      full
      or any Mortgage Loan specifically identified in the exception report annexed
      thereto as not being covered by such certification), (i) all documents
      required to be delivered to it pursuant Section 2.01 of this Agreement are
      in its possession, (ii) such documents have been reviewed by it and have
      not been mutilated, damaged or torn and relate to such Mortgage Loan and
      (iii) based on its examination and only as to the foregoing, the
      information set forth in the Mortgage Loan Schedule that corresponds to items
      (i), (ii), (iii), (xiii), (xiv) and (xviii) of the Mortgage Loan Schedule (to
      the extent such items are required to be delivered to it as part of the Mortgage
      Files pursuant to Section 2.01) accurately reflects information set forth in
      the
      Mortgage File. It is herein acknowledged that, in conducting such review, the
      Trustee is under no duty or obligation to inspect, review or examine any such
      documents, instruments, certificates or other papers to determine that they
      are
      genuine, enforceable, or appropriate for the represented purpose or that they
      have actually been recorded or that they are other than what they purport to
      be
      on their face.

     

    No
      later
      than 180 days after the Closing Date, the Trustee shall deliver to the Depositor
      and the Seller a final certification in the form annexed hereto as Exhibit
      G-3
      evidencing the completeness of the Mortgage Files, with any applicable
      exceptions noted thereon.

     

    If,
      in
      the process of reviewing the Mortgage Files and making or preparing, as the
      case
      may be, the certifications referred to above, the Trustee finds any document
      or
      documents constituting a part of a Mortgage File to be missing or not conforming
      to the requirements set forth herein, at the conclusion of its review the
      Trustee (or the Custodian as its designated agent) shall promptly notify the
      Seller, the Depositor and the Master Servicer. In addition, upon the discovery
      by the Seller or the Depositor (or upon receipt by the Trustee of written
      notification of such breach) of a breach of any of the representations and
      warranties made by the Seller in the Mortgage Loan Purchase Agreement in respect
      of any Mortgage Loan that materially adversely affects such Mortgage Loan or
      the
      interests of the related Certificateholders in such Mortgage Loan, the party
      discovering such breach shall give prompt written notice to the other parties
      to
      this Agreement.

     

    The
      Depositor and the Trustee intend that the assignment and transfer herein
      contemplated constitute a sale of the Mortgage Loans, the related Mortgage
      Notes
      and the related documents, conveying good title thereto free and clear of any
      liens and encumbrances, from the Depositor to the Trustee in trust for the
      benefit of the Certificateholders and that such property not be part of the
      Depositor’s estate or property of the Depositor in the event of any insolvency
      by the Depositor. In the event that such conveyance is deemed to be, or to
      be
      made as security for, a loan, the parties intend that the Depositor shall be
      deemed to have granted and does hereby grant to the Trustee a first priority
      perfected security interest in all of the Depositor’s right, title and interest
      in and to the Mortgage Loans, the related Mortgage Notes and the related
      documents, and that this Agreement shall constitute a security agreement under
      applicable law.

     

    
      
        
        

      

      
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    SECTION
      2.03. Repurchase
      or Substitution of Mortgage Loans by the Seller.

     

    (a) Upon
      discovery or receipt of written notice that a document does not comply with
      the
      requirements of Section 2.01 hereof, or that a document is missing from, a
      Mortgage File or of the breach by the Seller of any representation, warranty
      or
      covenant under the Mortgage Loan Purchase Agreement or in Section 2.04 or
      Section 2.08 hereof in respect of any Mortgage Loan which materially adversely
      affects the value of that Mortgage Loan or the interest therein of the
      Certificateholders, the Trustee (or the Custodian as its designated agent)
      shall
      promptly notify the Seller of such noncompliance, missing document or breach
      and
      request that the Seller deliver such missing document or cure such noncompliance
      or breach within 90 days from the date that the Seller was notified of such
      missing document, noncompliance or breach, and if the Seller does not deliver
      such missing document or cure such noncompliance or breach in all material
      respects during such period, the Trustee shall enforce the Seller’s obligation
      under the Mortgage Loan Purchase Agreement and cause the Seller to repurchase
      that Mortgage Loan from the Trust Fund at the Purchase Price on or prior to
      the
      Determination Date following the expiration of such 90 day period (subject
      to
      Section 2.03(e) below); provided,
      however,
      that, in
      connection with any such breach that could not reasonably have been cured within
      such 90 day period, if the Seller shall have commenced to cure such breach
      within such 90 day period, the Seller shall be permitted to proceed thereafter
      diligently and expeditiously to cure the same within the additional period
      provided under the Mortgage Loan Purchase Agreement; and, provided
      further,
      that,
      in the case of the breach of any representation, warranty or covenant made
      by
      the Seller in Schedule III to the Mortgage Loan Purchase Agreement, the Seller
      shall be obligated to cure such breach or purchase the affected Mortgage Loans
      for the Purchase Price or, if the Mortgage Loan or the related Mortgaged
      Property acquired with respect thereto has been sold, then the Seller shall
      pay,
      in lieu of the Purchase Price, any excess of the Purchase Price over the Net
      Liquidation Proceeds received upon such sale. The Purchase Price for the
      repurchased Mortgage Loan or such other amount due shall be deposited in the
      Distribution Account on or prior to the next Determination Date after the
      Seller’s obligation to repurchase such Mortgage Loan arises. The Trustee, upon
      receipt of written certification from the Securities Administrator of the
      related deposit in the Distribution Account, shall release to the Seller the
      related Mortgage File and shall execute and deliver such instruments of transfer
      or assignment, in each case without recourse, as the Seller shall furnish to
      it
      and as shall be necessary to vest in the Seller any Mortgage Loan released
      pursuant hereto and the Trustee shall have no further responsibility with regard
      to such Mortgage File (it being understood that the Trustee shall have no
      responsibility for determining the sufficiency of such assignment for its
      intended purpose). In lieu of repurchasing any such Mortgage Loan as provided
      above, the Seller may cause such Mortgage Loan to be removed from the Trust
      Fund
      (in which case it shall become a Deleted Mortgage Loan) and substitute one
      or
      more Qualified Substitute Mortgage Loans in the manner and subject to the
      limitations set forth in Section 2.03(d) below. It is understood and agreed
      that
      the obligation of the Seller to cure or to repurchase (or to substitute for)
      any
      Mortgage Loan as to which a document is missing, a material defect in a
      constituent document exists or as to which such a breach has occurred and is
      continuing shall constitute the sole remedy against the Seller respecting such
      omission, defect or breach available to the Trustee on behalf of the
      Certificateholders.

     

    
      
        
        

      

      
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    The
      Trustee shall enforce the obligations of the Seller under the Mortgage Loan
      Purchase Agreement including, without limitation, any obligation of the Seller
      to purchase a Mortgage Loan on account of missing or defective documentation
      or
      on account of a breach of a representation, warranty or covenant as described
      in
      this Section 2.03(a).

     

    Any
      costs
      and expenses incurred by the Trustee enforcing the obligations of the Seller
      under this Section 2.03(a) shall be reimbursable to the Trustee from amounts
      on
      deposit in the Distribution Account.

     

    (b) If
      pursuant to the provisions of Section 2.03(a), the Seller repurchases or
      otherwise removes from the Trust Fund a Mortgage Loan that is a MERS Mortgage
      Loan, the Seller will take (or shall cause the applicable Servicer to take),
      at
      the expense of the Seller (with the cooperation of the Depositor, the Trustee
      and the Master Servicer), such actions as are necessary either (i) cause MERS
      to
      execute and deliver an Assignment of Mortgage in recordable form to transfer
      the
      Mortgage from MERS to the Seller and shall cause such Mortgage to be removed
      from registration on the MERS® System in accordance with MERS’ rules and
      regulations or (ii) cause MERS to designate on the MERS® System the Seller or
      its designee as the beneficial holder of such Mortgage Loan.

     

    (c) [Reserved].

     

    (d) Any
      substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans
      made pursuant to Section 2.03(a) above must be effected prior to the last
      Business Day that is within two years after the Closing Date. As to any Deleted
      Mortgage Loan for which the Seller substitutes a Qualified Substitute Mortgage
      Loan or Mortgage Loans, such substitution shall be effected by the Seller
      delivering to the Trustee, for such Qualified Substitute Mortgage Loan or
      Mortgage Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee,
      and such other documents and agreements, with all necessary endorsements
      thereon, as are required by Section 2.01 hereof (subject to the exceptions
      provided therein), together with an Officers’ Certificate stating that each such
      Qualified Substitute Mortgage Loan satisfies the definition thereof and
      specifying the Substitution Adjustment (as described below), if any, in
      connection with such substitution; provided,
      however,
      that, in
      the case of any Qualified Substitute Mortgage Loan that is a MERS Mortgage
      Loan,
      the Seller shall provide such documents and take such other action with respect
      to such Qualified Substitute Mortgage Loans as are required pursuant to Section
      2.01 hereof. The Trustee shall acknowledge receipt for such Qualified Substitute
      Mortgage Loan or Loans and, within five Business Days thereafter, shall review
      such documents as specified in Section 2.02 hereof and deliver to the related
      Servicer, with respect to such Qualified Substitute Mortgage Loan or Loans,
      a
      certification substantially in the form attached hereto as Exhibit G-2, with
      any
      exceptions noted thereon. Within 180 days of the date of substitution, the
      Trustee shall deliver to the Seller and the Master Servicer a certification
      substantially in the form of Exhibit G-3 hereto with respect to such Qualified
      Substitute Mortgage Loan or Loans, with any exceptions noted thereon. Monthly
      Payments due with respect to Qualified Substitute Mortgage Loans in the month
      of
      substitution are not part of the Trust Fund and will be retained by the Seller.
      For the month of substitution, distributions to Certificateholders will reflect
      the collections and recoveries in respect of such Deleted Mortgage Loan in
      the
      Due Period preceding the month of substitution and the Depositor or the Seller,
      as the case may be, shall thereafter be entitled to retain all amounts
      subsequently received in respect of such Deleted Mortgage Loan. The Seller
      shall
      give or cause to be given written notice to the Certificateholders that such
      substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
      the removal of such Deleted Mortgage Loan from the terms of this Agreement
      and
      the substitution of the Qualified Substitute Mortgage Loan or Loans and shall
      deliver a copy of such amended Mortgage Loan Schedule to the Trustee. Upon
      such
      substitution, such Qualified Substitute Mortgage Loan or Loans shall constitute
      part of the Trust Fund and shall be subject in all respects to the terms of
      this
      Agreement and, in the case of a substitution effected by the Seller, the
      Mortgage Loan Purchase Agreement, including, in the case of a substitution
      effected by the Seller all representations and warranties thereof included
      in
      the Mortgage Loan Purchase Agreement and all representations and warranties
      thereof set forth in Section 2.04 hereof, in each case as of the date of
      substitution.

     

    
      
        
        

      

      
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    For
      any
      month in which the Seller substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the Seller shall determine, and
      provide written certification to the Trustee and the Seller as to, the amount
      (each, a “Substitution
      Adjustment”),
      if
      any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
      exceeds the aggregate, as to each such Qualified Substitute Mortgage Loan,
      of
      the principal balance thereof as of the date of substitution, together with
      one
      month’s interest on such principal balance at the applicable Net Loan Rate. On
      or prior to the next Determination Date after the Seller’s obligation to
      repurchase the related Deleted Mortgage Loan arises, the Seller will deliver
      or
      cause to be delivered to the Securities Administrator for deposit in the
      Distribution Account an amount equal to the related Substitution Adjustment,
      if
      any, and the Trustee, upon receipt of the related Qualified Substitute Mortgage
      Loan or Loans and an acknowledgment from the Securities Administrator of its
      receipt of the deposit to the Distribution Account, shall release to the Seller
      the related Mortgage File or Files and shall execute and deliver such
      instruments of transfer or assignment, in each case without recourse, as the
      Seller shall deliver to it and as shall be necessary to vest therein any Deleted
      Mortgage Loan released pursuant hereto.

     

    In
      addition, the Seller shall obtain at its own expense and deliver to the Trustee
      an Opinion of Counsel to the effect that such substitution (either specifically
      or as a class of transactions) will not cause (a) any federal tax to be imposed
      on the Trust Fund, including without limitation, any federal tax imposed on
      “prohibited transactions” under Section 860F(a)(l) of the Code or on
“contributions after the startup date” under Section 860G(d)(l) of the Code, or
      [(b) any REMIC created hereunder to fail to qualify as a REMIC at any time
      that
      any Certificate is outstanding]. If such Opinion of Counsel cannot be delivered,
      then such substitution may only be effected at such time as the required Opinion
      of Counsel can be given.

     

    (e) Upon
      discovery by the Seller, the Master Servicer, a Servicer or the Trustee that
      any
      Mortgage Loan does not constitute a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code, the party discovering such fact shall within
      two
      Business Days give written notice thereof to the other parties. In connection
      therewith, the Seller shall repurchase or, subject to the limitations set forth
      in Section 2.03(d), substitute one or more Qualified Substitute Mortgage Loans
      for the affected Mortgage Loan within 90 days of the earlier of discovery or
      receipt of such notice with respect to such affected Mortgage Loan. Any such
      repurchase or substitution shall be made in the same manner as set forth in
      Section 2.03(a) above, if made by the Seller. The Trustee shall reconvey to
      the
      Seller the Mortgage Loan to be released pursuant hereto in the same manner,
      and
      on the same terms and conditions, as it would a Mortgage Loan repurchased for
      breach of a representation or warranty.

     

    
      
        
        

      

      
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    SECTION
      2.04. Representations
      and Warranties of the Seller with Respect to the Mortgage
      Loans.

     

    The
      Seller hereby represents and warrants to the Trustee for the benefit of the
      Certificateholders that the representations and warranties made by the Seller
      pursuant to Schedule III to the Mortgage Loan Purchase Agreement are hereby
      being made to the Trustee and are true and correct as of the Closing
      Date.

     

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

     

    Within
      90
      days of its discovery or its receipt of notice of any such missing or materially
      defective documentation or any such breach of a representation or warranty,
      the
      Seller shall promptly deliver such missing document or cure such defect or
      breach in all material respects or, in the event such defect or breach cannot
      be
      cured, the Seller shall repurchase the affected Mortgage Loan or cause the
      removal of such Mortgage Loan from the Trust Fund and substitute for it one
      or
      more Qualified Substitute Mortgage Loans, in either case, in accordance with
      Section 2.03 hereof.

     

    It
      is
      understood and agreed that the representations and warranties incorporated
      in
      this Section 2.04 shall survive delivery of the Mortgage Files to the Trustee
      and shall inure to the benefit of the Certificateholders notwithstanding any
      restrictive or qualified endorsement or assignment. Upon discovery by any of
      the
      Depositor, the Seller, the Master Servicer or the Trustee of a breach of any
      of
      the foregoing representations and warranties which materially and adversely
      affects the value of any Mortgage Loan or the interests therein of the
      Certificateholders, the party discovering such breach shall give prompt written
      notice to the other parties, and in no event later than two Business Days from
      the date of such discovery. It is understood and agreed that the obligations
      of
      the Seller set forth in Section 2.03(a) hereof to cure, substitute for or
      repurchase a related Mortgage Loan pursuant to the Mortgage Loan Purchase
      Agreement constitute the sole remedies available to the Certificateholders
      or to
      the Trustee on their behalf respecting a breach of the representations and
      warranties incorporated in this Section 2.04.

     

    
      
        
        

      

      
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    SECTION
      2.05. [Reserved].

     

    SECTION
      2.06. Representations
      and Warranties of the Depositor.

     

    The
      Depositor represents and warrants to the Trust and the Trustee on behalf of
      the
      Certificateholders as follows:

     

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

     

    (ii) immediately
      prior to the sale and assignment by the Depositor to the Trustee on behalf
      of
      the Trust of each Mortgage Loan, the Depositor had good and marketable title
      to
      each Mortgage Loan (insofar as such title was conveyed to it by the Seller)
      subject to no prior lien, claim, participation interest, mortgage, security
      interest, pledge, charge or other encumbrance or other interest of any
      nature;

     

    (iii) as
      of the
      Closing Date, the Depositor has transferred all right, title and interest in
      the
      Mortgage Loans to the Trustee on behalf of the Trust;

     

    (iv) the
      Depositor has not transferred the Mortgage Loans to the Trustee on behalf of
      the
      Trust with any intent to hinder, delay or defraud any of its creditors;

     

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

     

    (vi) the
      Depositor is not in violation of its certificate of incorporation or by-laws
      or
      in default in the performance or observance of any material obligation,
      agreement, covenant or condition contained in any contract, indenture, mortgage,
      loan agreement, note, lease or other instrument to which the Depositor is a
      party or by which it or its properties may be bound, which default might result
      in any material adverse changes in the financial condition, earnings, affairs
      or
      business of the Depositor or which might materially and adversely affect the
      properties or assets, taken as a whole, of the Depositor;

     

    (vii) the
      execution, delivery and performance of this Agreement by the Depositor, and
      the
      consummation of the transactions contemplated hereby, do not and will not result
      in a material breach or violation of any of the terms or provisions of, or,
      to
      the knowledge of the Depositor, constitute a default under, any indenture,
      mortgage, deed of trust, loan agreement or other agreement or instrument to
      which the Depositor is a party or by which the Depositor is bound or to which
      any of the property or assets of the Depositor is subject, nor will such actions
      result in any violation of the provisions of the certificate of incorporation
      or
      by-laws of the Depositor or, to the best of the Depositor’s knowledge without
      independent investigation, any statute or any order, rule or regulation of
      any
      court or governmental agency or body having jurisdiction over the Depositor
      or
      any of its properties or assets (except for such conflicts, breaches, violations
      and defaults as would not have a material adverse effect on the ability of
      the
      Depositor to perform its obligations under this Agreement);

     

    
      
        
        

      

      
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    (viii) to
      the
      best of the Depositor’s knowledge without any independent investigation, no
      consent, approval, authorization, order, registration or qualification of or
      with any court or governmental agency or body of the United States or any other
      jurisdiction is required for the issuance of the Certificates, or the
      consummation by the Depositor of the other transactions contemplated by this
      Agreement, except such consents, approvals, authorizations, registrations or
      qualifications as (a) may be required under State securities or “blue sky” laws,
      (b) have been previously obtained or (c) the failure of which to obtain would
      not have a material adverse effect on the performance by the Depositor of its
      obligations under, or the validity or enforceability of, this Agreement;
      and

     

    (ix) there
      are
      no actions, proceedings or investigations pending before or, to the Depositor’s
      knowledge, threatened by any court, administrative agency or other tribunal
      to
      which the Depositor is a party or of which any of its properties is the subject:
      (a) which if determined adversely to the Depositor would have a material adverse
      effect on the business, results of operations or financial condition of the
      Depositor; (b) asserting the invalidity of this Agreement or the Certificates;
      (c) seeking to prevent the issuance of the Certificates or the consummation
      by
      the Depositor of any of the transactions contemplated by this Agreement, as
      the
      case may be; or (d) which might materially and adversely affect the performance
      by the Depositor of its obligations under, or the validity or enforceability
      of,
      this Agreement.

     

    SECTION
      2.07. Issuance
      of Certificates.

     

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to it of the Mortgage Files, subject to the provisions of Sections 2.01 and
      2.02 hereof, together with the assignment to it of all other assets included
      in
      the Trust Fund, receipt of which is hereby acknowledged. Concurrently with
      such
      assignment and delivery and in exchange therefor, the Securities Administrator,
      pursuant to the written request of the Depositor executed by an officer of
      the
      Depositor, has executed, authenticated and delivered to or upon the order of
      the
      Depositor, the Certificates in authorized denominations. The interests evidenced
      by the Certificates constitute the entire beneficial ownership interest in
      the
      Trust Fund.

     

    SECTION
      2.08. Representations
      and Warranties of the Seller.

     

    The
      Seller hereby represents and warrants to the Trust and the Trustee on behalf
      of
      the Certificateholders that, as of the Closing Date or as of such date
      specifically provided herein:

     

    (i) the
      Seller is duly organized, validly existing and in good standing as a
      [     ] under the laws of the State of
      [     ] and is and will remain in compliance with the
      laws of each state in which any Mortgaged Property is located to the extent
      necessary to fulfill its obligations hereunder;

     

    (ii) the
      Seller has the power and authority to hold each Mortgage Loan, to sell each
      Mortgage Loan, to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. The Seller has
      duly
      authorized the execution, delivery and performance of this Agreement, has duly
      executed and delivered this Agreement and this Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      legal, valid and binding obligation of the Seller, enforceable against it in
      accordance with its terms except as the enforceability thereof may be limited
      by
      bankruptcy, insolvency or reorganization or other similar laws in relation
      to
      the rights of creditors generally;

     

    
      
        
        

      

      
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    (iii) the
      execution and delivery of this Agreement by the Seller and the performance
      of
      and compliance with the terms of this Agreement will not violate the Seller’s
      articles of incorporation or by-laws or constitute a default under or result
      in
      a material breach or acceleration of, any material contract, agreement or other
      instrument to which the Seller is a party or which may be applicable to the
      Seller or its assets;

     

    (iv) the
      Seller is not in violation of, and the execution and delivery of this Agreement
      by the Seller and its performance and compliance with the terms of this
      Agreement will not constitute a violation with respect to, any order or decree
      of any court or any order or regulation of any federal, state, municipal or
      governmental agency having jurisdiction over the Seller or its assets, which
      violation might have consequences that would materially and adversely affect
      the
      condition (financial or otherwise) or the operation of the Seller or its assets
      or might have consequences that would materially and adversely affect the
      performance of its obligations and duties hereunder;

     

    (v) the
      Seller does not believe, nor does it have any reason or cause to believe, that
      it cannot perform each and every covenant contained in this
      Agreement;

     

    (vi) the
      Seller has good, marketable and indefeasible title to the Mortgage Loans, free
      and clear of any and all liens, pledges, charges or security interests of any
      nature encumbering the Mortgage Loans and upon the payment of the purchase
      price
      under the Mortgage Loan Purchase Agreement by the Depositor, the Depositor
      will
      have good and marketable title to the Mortgage Notes and Mortgage Loans, free
      and clear of all liens or encumbrances;

     

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

     

    (viii) there
      are
      no actions or proceedings against, or investigations known to it of, the Seller
      before any court, administrative or other tribunal (A) that might prohibit
      its
      entering into this Agreement, (B) seeking to prevent the sale of the Mortgage
      Loans or the consummation of the transactions contemplated by this Agreement
      or
      (C) that might prohibit or materially and adversely affect the performance
      by
      the Seller of its obligations under, or validity or enforceability of, this
      Agreement;

     

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

     

    
      
        
        

      

      
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    (x) the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to
      the
      Mortgage Loan Purchase Agreement are not subject to the bulk transfer or any
      similar statutory provisions.

     

    SECTION
      2.09. Covenants
      of the Seller.  

     

    The
      Seller hereby covenants that, except for the transfer hereunder, the Seller
      will
      not sell, pledge, assign or transfer to any other Person, or grant, create,
      incur, assume or suffer to exist any lien on any Mortgage Loan, or any interest
      therein; the Seller will notify the Trustee, as assignee of the Depositor,
      and
      the Master Servicer of the existence of any lien on any Mortgage Loan
      immediately upon discovery thereof, and the Seller will defend the right, title
      and interest of the Trust, as assignee of the Depositor, in, to and under the
      Mortgage Loans, against all claims of third parties claiming through or under
      the Seller; provided,
      however,
      that
      nothing in this Section 2.09 shall prevent or be deemed to prohibit the Seller
      from suffering to exist upon any of the Mortgage Loans any liens for municipal
      or other local taxes and other governmental charges if such taxes or
      governmental charges shall not at the time be due and payable or if the Seller
      shall currently be contesting the validity thereof in good faith by appropriate
      proceedings and shall have set aside on its books adequate reserves with respect
      thereto.

     

     

    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING

    OF
      THE MORTGAGE LOANS

     

    SECTION
      3.01. Master
      Servicer to Service and Administer the Mortgage Loans. 

     

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicers to service and administer their respective Mortgage Loans in
      accordance with the terms of the applicable Servicing Agreement and, where
      applicable, the Correspondent Sellers Guide and the Master Servicing Guide,
      and
      shall have full power and authority to do any and all things which it may deem
      necessary or desirable in connection with such master servicing and
      administration. In performing its obligations hereunder, the Master Servicer
      shall act in a manner consistent with Accepted Master Servicing Practices and,
      where applicable, the Master Servicing Guide. Furthermore, the Master Servicer
      shall oversee and consult with each Servicer as necessary from time-to-time
      to
      carry out the Master Servicer’s obligations hereunder, shall receive, review and
      evaluate all reports, information and other data provided to the Master Servicer
      by each Servicer and shall cause each Servicer to perform and observe the
      covenants, obligations and conditions to be performed or observed by such
      Servicer under the applicable Servicing Agreement. The Master Servicer shall
      independently and separately monitor each Servicer’s servicing activities with
      respect to each related Mortgage Loan, reconcile the results of such monitoring
      with such information provided in the previous sentence on a monthly basis
      and
      coordinate corrective adjustments to the Servicers’ and Master Servicer’s
      records, and based on such reconciled and corrected information, prepare the
      statements specified in Section 5.04 and any other information and statements
      required hereunder. The Master Servicer shall reconcile the results of its
      Mortgage Loan monitoring with the actual remittances of the Servicers to the
      related Servicing Accounts pursuant to the applicable Servicing
      Agreements.

     

    
      
        
        

      

      
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    The
      Trustee shall furnish the Servicers and the Master Servicer with any limited
      powers of attorney and other documents in form acceptable to the Trustee,
      necessary or appropriate to enable the Servicers and the Master Servicer to
      service and administer the related Mortgage Loans and REO Property, which
      limited powers of attorney shall provide that the Trustee will not be liable
      for
      the actions or omissions of the Servicers or Master Servicer in exercising
      such
      powers. 

     

    The
      Master Servicer shall not without the Trustee’s written consent (i) initiate any
      action, suit or proceeding solely under the Trustee’s name without indicating
      the Master Servicer’s representative capacity or (ii) take any action with the
      intent to cause, and which actually does cause, the Trustee to be registered
      to
      do business in any state. The Master Servicer shall indemnify the Trustee for
      any and all costs, liabilities and expenses incurred by the Trustee in
      connection with the negligent or willful misuse of such powers of attorney
      by
      the Master Servicer.

     

    The
      Trustee shall provide access to the records and documentation in possession
      of
      the Trustee (including in its capacity as Custodian hereunder) regarding the
      related Mortgage Loans and REO Property and the servicing thereof to the
      Certificateholders, the FDIC, and the supervisory agents and examiners of the
      FDIC, such access being afforded only upon reasonable prior written request
      and
      during normal business hours at the office of the Trustee; provided,
      however,
      that,
      unless otherwise required by law, the Trustee shall not be required to provide
      access to such records and documentation if the provision thereof would violate
      the legal right to privacy of any Mortgagor. The Trustee shall allow
      representatives of the above entities to photocopy any of the records and
      documentation and shall provide equipment for that purpose at a charge that
      covers the Trustee’s actual costs.

     

    The
      Trustee, upon the written request of the Master Servicer, shall execute and
      deliver to the related Servicer and the Master Servicer any court pleadings,
      requests for trustee’s sale or other documents necessary or desirable to (i) the
      foreclosure or trustee’s sale with respect to a Mortgaged Property; (ii) any
      legal action brought to obtain judgment against any Mortgagor on the Mortgage
      Note or Mortgage; (iii) obtain a deficiency judgment against the Mortgagor;
      or
      (iv) enforce any other rights or remedies provided by the Mortgage Note or
      Mortgage or otherwise available at law or equity.

     

    SECTION
      3.02. [REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC created hereunder shall exist, the Trustee and the Securities
      Administrator shall act in accordance herewith to treat each such REMIC as
      a
      REMIC, and the Trustee and the Securities Administrator shall comply with any
      directions of the Depositor, the related Servicer or the Master Servicer to
      assure such continuing treatment. In particular, the Trustee, the Securities
      Administrator and the Master Servicer shall not (a) sell or knowingly permit
      the
      sale of all or any portion of the Mortgage Loans or of any investment of
      deposits in an Account unless such sale is as a result of a repurchase of the
      Mortgage Loans or is otherwise permitted pursuant to this Agreement or the
      Trustee has received a REMIC Opinion prepared at the expense of the Trust;
      and
      (b) other than with respect to a substitution pursuant to the Mortgage Loan
      Purchase Agreement or Section 2.03 or 2.04 of this Agreement or as otherwise
      provided in this Agreement, as applicable, accept any contribution to any REMIC
      after the Startup Day without receipt of a REMIC Opinion.]

     

    
      
        
        

      

      
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    SECTION
      3.03. Monitoring
      of Servicers.

     

    (a) The
      Master Servicer shall be responsible for reporting to the Trustee (on behalf
      of
      the Trust) and the Depositor the compliance by each Servicer with its duties
      under the related Servicing Agreement. In the review of each Servicer’s
      activities, the Master Servicer may rely upon an officer’s certificate of the
      Servicer with regard to such Servicer’s compliance with the terms of its
      Servicing Agreement. In the event that the Master Servicer, in its judgment,
      determines that a Servicer should be terminated in accordance with its Servicing
      Agreement, or that a notice should be sent pursuant to such Servicing Agreement
      with respect to the occurrence of an event that, unless cured, would constitute
      grounds for such termination, the Master Servicer shall notify the Depositor
      and
      the Trustee thereof and the Master Servicer shall issue such notice or take
      such
      other action as it deems appropriate.

     

    (b) The
      Master Servicer, for the benefit of the Trust and the Certificateholders, shall
      (acting as agent of the Trust when enforcing the Trust’s rights under each
      Servicing Agreement) (i) enforce the obligations of each Servicer under the
      related Servicing Agreement, and (ii) in the event that a Servicer fails to
      perform its obligations in accordance with the related Servicing Agreement,
      subject to the preceding paragraph, terminate the rights and obligations of
      such
      Servicer thereunder and act as servicer of the related Mortgage Loans or enter
      into a new Servicing Agreement with a successor Servicer selected by the Master
      Servicer which the Master Servicer shall cause the Trustee to acknowledge;
      provided,
      however,
      it is
      understood and acknowledged by the parties hereto that there will be a period
      of
      transition (not to exceed 90 days) before the actual servicing functions can
      be
      fully transferred to such successor Servicer. Such enforcement, including,
      without limitation, the legal prosecution of claims, termination of Servicing
      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 Master Servicer,
      in
      its good faith business judgment, would require were it the owner of the related
      Mortgage Loans. The Master Servicer shall pay the costs of such enforcement
      at
      its own expense except as provided in paragraph (c) below, provided that the
      Master Servicer shall not be required to prosecute or defend any legal action
      except to the extent that the Master Servicer shall have received reasonable
      indemnity for its costs and expenses in pursuing such action.

     

    (c) To
      the
      extent that the costs and expenses of the Master Servicer related to any
      termination of a Servicer, appointment of a successor Servicer or the transfer
      and assumption of servicing by the Master Servicer with respect to any Servicing
      Agreement (including, without limitation, (i) all legal costs and expenses
      and
      all due diligence costs and expenses associated with an evaluation of the
      potential termination of the Servicer as a result of an event of default by
      such
      Servicer and (ii) all costs and expenses associated with the complete transfer
      of servicing, including all servicing files and all servicing data and the
      completion, correction or manipulation of such servicing data as may be required
      by the successor servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor servicer to service the
      Mortgage Loans in accordance with the related Servicing Agreement) are not
      fully
      and timely reimbursed by the terminated Servicer, the Master Servicer shall
      be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account.

     

    
      
        
        

      

      
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    (d) The
      Master Servicer shall require each Servicer to comply with the remittance
      requirements and other obligations set forth in the related Servicing
      Agreement.

     

    (e) If
      the
      Master Servicer acts as Servicer, it will not assume liability for the
      representations and warranties of the Servicer, if any, that it
      replaces.

     

    (f) With
      respect to Additional Collateral Mortgage Loans, the Master Servicer shall
      have
      no duty or obligation to supervise, monitor or oversee the activities of each
      Servicer under its Servicing Agreement with respect to Additional Collateral,
      except (a) with respect to any instances where a Servicer, in the course of
      fulfilling its obligations under the related Servicing Agreement seeks
      directions, instructions, consents or waivers from the Master Servicer with
      respect to any item of Additional Collateral, or (b) upon the occurrence of
      the
      following events (i) in the case of a final liquidation of any Mortgaged
      Property secured by Additional Collateral, the Master Servicer shall enforce
      the
      obligation of the Servicer under the related Servicing Agreement to liquidate
      such Additional Collateral as required by such Servicing Agreement, and (ii)
      if
      the Master Servicer assumes the obligations of such Servicer as successor
      Servicer under the related Servicing Agreement pursuant to this Section 3.03,
      as
      successor Servicer, it shall be bound to service and administer the Additional
      Collateral in accordance with the provisions of such Servicing
      Agreement.

     

    (g) If
      a
      Servicing Agreement requires the approval of the Master Servicer for a
      modification to a Mortgage Loan, the Master Servicer shall approve such
      modification if, based upon its receipt of written notification from the related
      Servicer outlining the terms of such modification and appropriate supporting
      documentation, the Master Servicer determines that the modification is permitted
      under the terms of the related Servicing Agreement and that any conditions
      to
      such modification set forth in related Servicing Agreement have been satisfied.
      If a Servicing Agreement requires approval or consent of the Trustee for a
      modification, the Trustee shall approve or consent to such modification if
      the
      Master Servicer makes such a determination and in reliance thereon.

     

    (h) If
      a
      Servicing Agreement requires the oversight and monitoring of loss mitigation
      measures with respect to the related Mortgage Loans, the Master Servicer will
      monitor any loss mitigation procedure or recovery action related to a defaulted
      Mortgage Loan (to the extent it receives notice of such from the related
      Servicer) and confirm that such loss mitigation procedure or recovery action
      is
      initiated, conducted and concluded in accordance with any timeframes and any
      other requirements set forth in the related Servicing Agreement, and the Master
      Servicer shall notify the Depositor in any case in which the Master Servicer
      believes that the related Servicer is not complying with such timeframes and/or
      other requirements.

     

    SECTION
      3.04. Fidelity
      Bond.

     

    The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy, affording coverage with
      respect to all directors, officers, employees and other Persons acting on such
      Master Servicer’s behalf, and covering errors and omissions in the performance
      of the Master Servicer’s obligations hereunder. The errors and omissions
      insurance policy and the fidelity bond shall be in such form and amount
      generally acceptable for entities serving as master servicers or
      trustees.

     

    
      
        
        

      

      
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    SECTION
      3.05. Power
      to Act; Procedures.

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority[, subject to the REMIC Provisions and the provisions of
      Article X hereof,] to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (i) to
      execute and deliver, on behalf of the Certificateholders, the Trust and the
      Trustee, customary consents or waivers and other instruments and documents,
      (ii)
      to consent to transfers of any Mortgaged Property and assumptions of the
      Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds,
      Liquidation Proceeds and Recoveries and (iv) to effectuate, in its own name,
      on
      behalf the Trust, or in the name of the Trust, foreclosure or other conversion
      of the ownership of the Mortgaged Property securing any Mortgage Loan, in each
      case, in accordance with the provisions of this Agreement and the related
      Servicing Agreement, as applicable[; provided,
      however,
      that the
      Master Servicer shall not (and, consistent with its responsibilities under
      Section 3.03, shall not permit any Servicer to) knowingly or intentionally
      take
      any action, or fail to take (or fail to cause to be taken) any action reasonably
      within its control and the scope of duties more specifically set forth herein,
      that, under the REMIC Provisions, if taken or not taken, as the case may be,
      would result in an Adverse REMIC Event unless the Master Servicer has received
      an Opinion of Counsel (but not at the expense of the Master Servicer) to the
      effect that the contemplated action will not result in an Adverse REMIC Event].
      The Trustee shall furnish the Master Servicer, upon written request from a
      Servicing Officer, with any limited powers of attorney empowering the Master
      Servicer or any Servicer to execute and deliver instruments of satisfaction
      or
      cancellation, or of partial or full release or discharge, and to foreclose
      upon
      or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend
      in
      any court action relating to the Mortgage Loans or the Mortgaged Property,
      in
      accordance with the applicable Servicing Agreement and this Agreement, and
      the
      Trustee shall execute and deliver such other documents, as the Master Servicer
      may request, to enable the Master Servicer to master service and administer
      the
      Mortgage Loans and carry out its duties hereunder, in each case in accordance
      with Accepted Master Servicing Practices (and the Trustee shall have no
      liability for misuse of any such powers of attorney by the Master Servicer
      or
      any Servicer). In instituting foreclosures or similar proceedings, the Master
      Servicer shall institute such proceedings either in its own name on behalf
      of
      the Trust or in the name of the Trust (or cause the related Servicer, pursuant
      to the related Servicing Agreement, to institute such proceedings either in
      the
      name of such Servicer on behalf of the Trust or in the name of the Trust),
      unless otherwise required by law or otherwise appropriate. If the Master
      Servicer or the Trustee has been advised that it is likely that the laws of
      the
      state in which action is to be taken prohibit such action if taken in the name
      of the Trust or the Trustee on its behalf or that the Trust or the Trustee,
      as
      applicable, would be adversely affected under the “doing business” or tax laws
      of such state if such action is taken in its name, the Master Servicer shall
      join with the Trustee, on behalf of the Trust, in the appointment of a
      co-trustee pursuant to Section 8.10 hereof. In the performance of its duties
      hereunder, the Master Servicer shall be an independent contractor and shall
      not,
      except in those instances where it is taking action in the name of the Trustee,
      be deemed to be the agent of the Trustee on behalf of the Trust.

     

    
      
        
        

      

      
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    SECTION
      3.06. Due-on-Sale
      Clauses; Assumption Agreements.

     

    To
      the
      extent provided in the applicable Servicing Agreement and to the extent Mortgage
      Loans contain enforceable due-on-sale clauses, the Master Servicer shall cause
      the Servicers to enforce such clauses in accordance with the applicable
      Servicing Agreement. If applicable law prohibits the enforcement of a
      due-on-sale clause or such clause is otherwise not enforced in accordance with
      the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan
      is
      assumed, the original Mortgagor may be released from liability in accordance
      with the applicable Servicing Agreement.

     

    SECTION
      3.07. Release
      of Mortgage Files.

     

    (a) Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      any Servicer of a notification that payment in full has been escrowed in a
      manner customary for such purposes for payment to Certificateholders on the
      next
      Distribution Date, the Servicer will, if required under the applicable Servicing
      Agreement, promptly furnish to the Custodian, on behalf of the Trustee, two
      copies of a certification substantially in the form of Exhibit F hereto signed
      by a Servicing Officer or in a mutually agreeable electronic format which will,
      in lieu of a signature on its face, originate from a Servicing Officer (which
      certification shall include a statement to the effect that all amounts received
      in connection with such payment that are required to be deposited in the related
      Servicing Account maintained by the applicable Servicer pursuant to Section
      4.01
      or by the applicable Servicer pursuant to its Servicing Agreement have been
      or
      will be so deposited) and shall request that the Trustee (or the Custodian,
      on
      behalf of the Trustee) deliver to the applicable Servicer the related Mortgage
      File. Upon receipt of such certification and request, the Trustee (or the
      Custodian, on behalf of the Trustee), shall promptly release the related
      Mortgage File to the applicable Servicer and the Trustee (and the Custodian,
      if
      applicable) shall have no further responsibility with regard to such Mortgage
      File. Upon any such payment in full, each Servicer is authorized, to give,
      as
      agent for the Trustee, as the mortgagee under the Mortgage that secured the
      Mortgage Loan, an instrument of satisfaction (or assignment of mortgage without
      recourse) regarding the Mortgaged Property subject to the Mortgage, which
      instrument of satisfaction or assignment, as the case may be, shall be delivered
      to the Person or Persons entitled thereto against receipt therefor of such
      payment, it being understood and agreed that no expenses incurred in connection
      with such instrument of satisfaction or assignment, as the case may be, shall
      be
      chargeable to the related Servicing Account.

     

    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with the applicable Servicing Agreement, the Trustee shall
      execute such documents as shall be prepared and furnished to the Trustee by
      a
      Servicer or the Master Servicer (in form reasonably acceptable to the Trustee)
      and as are necessary to the prosecution of any such proceedings. The Trustee
      (or
      the Custodian, on behalf of the Trustee), shall, upon the request of a Servicer
      or the Master Servicer, and delivery to the Trustee (the Custodian, on behalf
      of
      the Trustee), of two copies of a request for release signed by a Servicing
      Officer substantially in the form of Exhibit F (or in a mutually agreeable
      electronic format which will, in lieu of a signature on its face, originate
      from
      a Servicing Officer), release the related Mortgage File held in its possession
      or control to the Servicer or the Master Servicer, as applicable. Such trust
      receipt shall obligate the Servicer or the Master Servicer to return the
      Mortgage File to the Trustee (or the Custodian on behalf of the Trustee) when
      the need therefor by the Servicer or the Master 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
      Mortgage File shall be released by the Trustee (or the Custodian on behalf
      of
      the Trustee), to the Servicer or the Master Servicer.

     

    
      
        
        

      

      
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    SECTION
      3.08. Documents,
      Records and Funds in Possession of Master Servicer To Be Held for
      Trust.

     

    (a) The
      Master Servicer shall transmit and each Servicer (to the extent required by
      the
      related Servicing Agreement) shall transmit to the Trustee (or Custodian) such
      documents and instruments coming into the possession of the Master Servicer
      or
      such Servicer from time to time as are required by the terms hereof, or in
      the
      case of the Servicers, the applicable Servicing Agreement, to be delivered
      to
      the Trustee (or Custodian). Any funds received by the Master Servicer or by
      a
      Servicer in respect of any Mortgage Loan or which otherwise are collected by
      the
      Master Servicer or by a Servicer as Liquidation Proceeds, Insurance Proceeds
      or
      Recoveries in respect of any Mortgage Loan shall be held for the benefit of
      the
      Trust and the Certificateholders subject to the Master Servicer’s right to
      retain or withdraw from the Distribution Account the Master Servicing Fee,
      any
      additional compensation pursuant to Section 3.14 and any other amounts provided
      in this Agreement, and to the right of each Servicer to retain its Servicing
      Fee
      and any other amounts as provided in the applicable Servicing Agreement. The
      Master Servicer shall, and (to the extent provided in the applicable Servicing
      Agreement) shall cause each Servicer to, provide access to information and
      documentation regarding the Mortgage Loans to the Trustee, its agents and
      accountants at any time upon reasonable request and during normal business
      hours, and to Certificateholders that are savings and loan associations, banks
      or insurance companies, the Office of Thrift Supervision, the FDIC and the
      supervisory agents and examiners of such Office and Corporation or examiners
      of
      any other federal or state banking or insurance regulatory authority if so
      required by applicable regulations of the Office of Thrift Supervision or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds, Insurance
      Proceeds or Recoveries, shall be held by the Master Servicer for and on behalf
      of the Trust and the Certificateholders and shall be and remain the sole and
      exclusive property of the Trust; provided,
      however,
      that the
      Master Servicer and each Servicer shall be entitled to setoff against, and
      deduct from, any such funds any amounts that are properly due and payable to
      the
      Master Servicer or such Servicer under this Agreement or the applicable
      Servicing Agreement.

     

    
      
        
        

      

      
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    SECTION
      3.09. Standard
      Hazard Insurance and Flood Insurance Policies.

     

    (a) For
      each
      Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall enforce
      any obligation of the Servicers under the related Servicing Agreements to
      maintain or cause to be maintained standard fire and casualty insurance and,
      where applicable, flood insurance, all in accordance with the provisions of
      the
      related Servicing Agreements. It is understood and agreed that such insurance
      shall be with insurers meeting the eligibility requirements set forth in the
      applicable Servicing Agreement and that no earthquake or other additional
      insurance is to be required of any Mortgagor or to be maintained on property
      acquired in respect of a defaulted 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.

     

    (b) Pursuant
      to Section 4.01 and 4.02, any amounts collected by the Servicers or the Master
      Servicer, or by any Servicer, under any insurance policies (other than amounts
      to be applied to the restoration or repair of the property subject to the
      related Mortgage or released to the Mortgagor in accordance with the applicable
      Servicing Agreement) shall be deposited into the Distribution Account, subject
      to withdrawal pursuant to Section 4.02 and 4.03. Any cost incurred by the Master
      Servicer or any Servicer in maintaining any such insurance if the Mortgagor
      defaults in its obligation to do so shall be added to the amount owing under
      the
      Mortgage Loan where the terms of the Mortgage Loan so permit; provided,
      however,
      that the
      addition of any such cost shall not be taken into account for purposes of
      calculating the distributions to be made to Certificateholders and shall be
      recoverable by the Master Servicer or such Servicer pursuant to Section 4.02
      and
      4.03.

     

    SECTION
      3.10. Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall (to the extent provided in the applicable Servicing
      Agreement) cause the related Servicer to, prepare and present on behalf of
      the
      Trustee, the Trust and the Certificateholders all claims under the Insurance
      Policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to a Servicer and remitted to the Master Servicer) in
      respect of such policies, bonds or contracts shall be promptly deposited in
      the
      Distribution Account upon receipt, except that any amounts realized that are
      to
      be applied to the repair or restoration of the related Mortgaged Property as
      a
      condition precedent to the presentation of claims on the related Mortgage Loan
      to the insurer under any applicable Insurance Policy need not be so deposited
      (or remitted).

     

    SECTION
      3.11. Maintenance
      of the Primary Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or permit any Servicer (to the extent such
      action is prohibited under the applicable Servicing Agreement) to take, any
      action that would result in noncoverage under any applicable Primary Insurance
      Policy of any loss which, but for the actions of such Master Servicer or
      Servicer, would have been covered thereunder. The Master Servicer shall use
      its
      best reasonable efforts to cause each Servicer (to the extent required under
      the
      related Servicing Agreement) to keep in force and effect (to the extent that
      the
      Mortgage Loan requires the Mortgagor to maintain such insurance), primary
      mortgage insurance applicable to each Mortgage Loan (including any lender-paid
      Primary Insurance Policy) in accordance with the provisions of this Agreement
      and the related Servicing Agreement, as applicable. The Master Servicer shall
      not, and shall not permit any Servicer (to the extent required under the related
      Servicing Agreement) to, cancel or refuse to renew any such Primary Insurance
      Policy that is in effect at the date of the initial issuance of the Mortgage
      Note and is required to be kept in force hereunder except in accordance with
      the
      provisions of this Agreement and the related Servicing Agreement, as
      applicable.

     

    
      
        
        

      

      
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    (b) The
      Master Servicer agrees to cause each Servicer (to the extent required under
      the
      related Servicing Agreement) to present, on behalf of the Trustee, the Trust
      and
      the Certificateholders, claims to the insurer under any Primary Insurance
      Policies and, in this regard, to take such reasonable action as shall be
      necessary to permit recovery under any Primary Insurance Policies respecting
      defaulted Mortgage Loans. Pursuant to Section 4.01 and 4.02, any amounts
      collected by the Servicer under any Primary Insurance Policies shall be
      deposited in the Distribution Account, subject to withdrawal pursuant to Section
      4.03.

     

    SECTION
      3.12. Trustee
      to Retain Possession of Certain Insurance Policies and
      Documents.

     

    The
      Trustee (or the Custodian, as directed by the Trustee), shall retain possession
      and custody of the originals (to the extent available and delivered) of any
      Primary Insurance Policies, or certificate of insurance if applicable and
      available, and any certificates of renewal as to the foregoing as may be issued
      from time to time as contemplated by this Agreement and which come into its
      possession. Until all amounts distributable in respect of the Certificates
      have
      been distributed in full and the Master Servicer otherwise has fulfilled its
      obligations under this Agreement, the Trustee (or its Custodian, if any, as
      directed by the Trustee) shall also retain possession and custody of each
      Mortgage File in accordance with and subject to the terms and conditions of
      this
      Agreement. The Master Servicer shall promptly deliver or cause to be delivered
      to the Trustee (or the Custodian, as directed by the Trustee), upon the
      execution or receipt thereof the originals of any Primary Insurance Policies,
      any certificates of renewal, and such other documents or instruments that
      constitute portions of the Mortgage File that come into the possession of the
      Master Servicer from time to time.

     

    SECTION
      3.13. Realization
      Upon Defaulted Mortgage Loans.

     

    The
      Master Servicer shall cause each Servicer (to the extent required under the
      related Servicing Agreement) to foreclose upon, repossess or otherwise
      comparably convert the ownership of Mortgaged Properties securing such of the
      Mortgage Loans as come into and continue in default and as to which no
      satisfactory arrangements can be made for collection of delinquent payments,
      all
      in accordance with the applicable Servicing Agreement.

     

    SECTION
      3.14. Additional
      Compensation to the Master Servicer. 

     

    Pursuant
      to Section 4.02(c), certain income and gain realized from any investment of
      funds in the Distribution Account shall be for the benefit of the Master
      Servicer as additional compensation. Servicing compensation in the form of
      assumption fees, if any, late payment charges, as collected, if any, or
      otherwise (but, unless otherwise specifically permitted in a Servicing
      Agreement, not including any Prepayment Penalty Amounts) shall be retained
      by
      the applicable Servicer, or the Master Servicer, and shall not be deposited
      in
      the related Servicing Account or Distribution Account. The
      Master Servicer shall be required to pay all expenses incurred by it in
      connection with its activities hereunder and shall not be entitled to
      reimbursement therefor except as provided in this Agreement. The amount of
      the
      aggregate compensation payable as set forth in this Section 3.14 plus
      the
      Master Servicing Fee due to the Master Servicer in respect of any Distribution
      Date shall be reduced in accordance with Section 5.06.

     

    
      
        
        

      

      
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    SECTION
      3.15. REO
      Property.

     

    (a) In
      the
      event the Trust (or the Trustee on its behalf) acquires ownership of any REO
      Property in respect of any related Mortgage Loan, the deed or certificate of
      sale shall be issued to the Trust, or if required under applicable law, to
      the
      Trustee, or to its nominee, on behalf of the Trust. The Master Servicer shall,
      to the extent provided in the applicable Servicing Agreement, cause the
      applicable Servicer to sell, any REO Property as expeditiously as possible
      (and
      in no event later than three years after acquisition) and in accordance with
      the
      provisions of this Agreement and the related Servicing Agreement, as applicable.
      Pursuant to its efforts to sell such REO Property, the Master Servicer shall
      cause the applicable Servicer to protect and conserve, such REO Property in
      the
      manner and to the extent required by the applicable Servicing Agreement[, in
      accordance with the REMIC Provisions] and in a manner that does not result
      in a
      tax on “net income from foreclosure property” or cause such REO Property to fail
      to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of
      the Code.

     

    (b) The
      Master Servicer shall, to the extent required by the related Servicing
      Agreement, cause the applicable Servicer to deposit all funds collected and
      received in connection with the operation of any REO Property in the related
      Servicing Account.

     

    (c) The
      Master Servicer and the applicable Servicer, upon the final disposition of
      any
      REO Property, shall be entitled to reimbursement for any related unreimbursed
      Advances and other unreimbursed advances as well as any unpaid Servicing Fees
      from Liquidation Proceeds received in connection with the final disposition
      of
      such REO Property; provided, that any such unreimbursed Advances as well as
      any
      unpaid Servicing Fees may be reimbursed or paid, as the case may be, prior
      to
      final disposition, out of any net rental income or other net amounts derived
      from such REO Property.

     

    (d) To
      the
      extent provided in the related Servicing Agreement, the Liquidation Proceeds
      from the final disposition of the REO Property, net of any payment to the Master
      Servicer and the applicable Servicer as provided above shall be deposited in
      the
      related Servicing Account on or prior to the applicable Determination Date
      in
      the month following receipt thereof and be remitted by wire transfer in
      immediately available funds to the Master Servicer for deposit into the related
      Distribution Account on the next succeeding Servicer Remittance
      Date.

     

    SECTION
      3.16. Assessments
      of Compliance and Attestation Reports.

     

    (a) Assessments
      of Compliance.

     

    
      
        
        

      

      
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    (i) By
      March
      10 (with a 5 calendar day cure period) of each year (subject to the later date
      referred to in Section 3.16(a)(iii)), commencing in
      [      ], the Master Servicer, the Securities
      Administrator and the Custodian, each at its own expense, shall furnish, and
      each such party shall cause any Servicing Function Participant engaged by it
      (unless such party has elected to take responsibility for assessing compliance
      with the Relevant Servicing Criteria and providing the related attestation
      for
      any such Subcontractor engaged by it in accordance with Regulation AB Telephone
      Interpretation 17.06) to furnish, each at its own expense, to the Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria that contains (A) a statement by such party
      of
      its responsibility for assessing compliance with the Relevant Servicing
      Criteria, (B) a statement that such party used the Servicing Criteria to assess
      compliance with the Relevant Servicing Criteria, (C) such party’s assessment of
      compliance with the Relevant Servicing Criteria as of and for the fiscal year
      covered by the Form 10-K required to be filed pursuant to Section 3.19(b) and
      for each fiscal year thereafter, whether or not a Form 10-K is required to
      be
      filed, including, if there has been any material instance of noncompliance
      with
      the Relevant Servicing Criteria, a discussion of each such failure and the
      nature and status thereof, and (D) a statement that a registered public
      accounting firm has issued an attestation report on such party’s assessment of
      compliance with the Relevant Servicing Criteria as of and for such period.
      

    

    (ii) No
      later
      than the end of each fiscal year for the Trust for which a 10-K is required
      to
      be filed, the Master Servicer and the Custodian, shall each forward to the
      Securities Administrator and the Depositor the name of each Servicing Function
      Participant engaged by it and what Relevant Servicing Criteria will be addressed
      in the report on assessment of compliance prepared by such Servicing Function
      Participant (provided,
      however,
      that the
      Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Administrator
      are the same Person). When the Master Servicer, the Custodian, and the
      Securities Administrator submit their assessments to the Securities
      Administrator, such parties will also at such time include the assessment (and
      attestation pursuant to subsection (b) of this Section 3.16) of each Servicing
      Function Participant engaged by it.

    

    (iii) Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and each comparable report submitted by a Servicer
      and, if applicable, consult with the Master Servicer, the Securities
      Administrator, the Custodian, the Servicers and any Servicing Function
      Participant engaged by such parties as to the nature of any material instance
      of
      noncompliance with the Relevant Servicing Criteria by each such party, and
      (ii)
      the Securities Administrator shall confirm that the assessments, taken as a
      whole, address all of the Servicing Criteria and taken individually address
      the
      Relevant Servicing Criteria for each party as set forth on Exhibit Q and on
      any
      similar exhibit set forth in each Servicing Agreement in respect of each
      Servicer and notify the Depositor of any exceptions. None of such parties shall
      be required to deliver any such assessments until March 30 in any given year
      so
      long as it has received written confirmation from the Depositor that a Form
      10-K
      is not required to be filed in respect of the Trust for the preceding calendar
      year which, if the circumstances apply, the Depositor agrees to provide prior
      to
      March 1 of the applicable year; provided that the Custodian shall only be
      required to deliver such an assessment of compliance with respect to any fiscal
      year for which a Form 10-K is required to be filed in respect of the Trust.
      The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it with its own assessment of compliance to be submitted to the
      Securities Administrator pursuant to this Section.

    
      
        
        

      

      
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    In
      the
      event the Master Servicer, the Securities Administrator, the Custodian, any
      Servicer or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of this Agreement, or any applicable custodial agreement, Servicing
      Agreement or sub-servicing agreement, as the case may be, such party (in the
      case of a Servicer, to the extent required under the applicable Servicing
      Agreement) shall provide or shall cause such Servicing Function Participant
      to
      provide for the applicable period preceding such assignment and termination
      a
      report on assessment of compliance pursuant to this Section 3.16(a) or to such
      other applicable agreement, notwithstanding any such termination, assignment
      or
      resignation.

    

    (b) Attestation
      Reports.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year (subject to the later date
      referred to in Section 3.16(b)(ii)), commencing in March
      [      ], the Master Servicer, the Securities
      Administrator, the Custodian, each at its own expense, shall cause, and each
      such party shall cause any Servicing Function Participant engaged by it to
      cause
      (unless such party has elected to take responsibility for assessing compliance
      with the Relevant Servicing Criteria and providing the related attestation
      with
      respect to such Relevant Servicing Criteria for any such Subcontractor engaged
      by it in accordance with Regulation AB Telephone Interpretation 17.06), each
      at
      its own expense, a registered public accounting firm (which may also render
      other services to the Master Servicer, the Trustee, in its capacity as
      Custodian, the Securities Administrator, or such other Servicing Function
      Participants, as the case may be) and that is a member of the American Institute
      of Certified Public Accountants to furnish a report to the Securities
      Administrator and the Depositor, to the effect that (i) it has obtained a
      representation regarding certain matters from the management of such party,
      which includes an assertion that such party has complied with the Relevant
      Servicing Criteria, and (ii) on the basis of an examination conducted by such
      firm in accordance with standards for attestation engagements issued or adopted
      by the PCAOB, it is expressing an opinion as to whether such party’s compliance
      with the Relevant Servicing Criteria was fairly stated in all material respects,
      or it cannot express an overall opinion regarding such party’s assessment of
      compliance with the Relevant Servicing Criteria. In the event that an overall
      opinion cannot be expressed, such registered public accounting firm shall state
      in such report why it was unable to express such an opinion. Such report must
      be
      available for general use and not contain restricted use language. 

    

    (ii) Promptly
      after receipt of such report from the Master Servicer, the Trustee, in its
      capacity as Custodian, the Securities Administrator, a Servicer or any Servicing
      Function Participant engaged by such parties, (i) the Depositor shall review
      the
      report and, if applicable, consult with such parties as to the nature of any
      defaults by such parties, in the fulfillment of any of each such party’s
      obligations hereunder or under any other applicable agreement, and (ii) the
      Securities Administrator shall confirm that each assessment submitted pursuant
      to subsection (a) of this Section 3.16 is coupled with an attestation meeting
      the requirements of this Section and notify the Depositor of any exceptions.
      None of the Master Servicer, the Securities Administrator, the Custodian or
      any
      Servicing Function Participant engaged by such parties shall be required to
      deliver or cause the delivery of such reports until March 30 in any given year
      for so long as it has received written confirmation from the Depositor that
      a
      Form 10-K is not required to be filed in respect of the Trust for preceding
      calendar or fiscal year which, if the circumstances apply, the Depositor agrees
      to provide prior to March 1 of the applicable year; provided that the Custodian
      shall only be required to deliver or cause to be delivered such report with
      respect to any fiscal year for which a Form 10-K is required to be filed by
      the
      Trust. The Master Servicer shall include each such attestation furnished to
      it
      with its own attestation to be submitted to the Securities Administrator
      pursuant to this Section.

    

    
      
        
        

      

      
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    In
      the
      event the Master Servicer, the Securities Administrator, the Custodian, any
      Servicer or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and duties under, or resigns pursuant to the
      terms of this Agreement, or any applicable custodial agreement, Servicing
      Agreement or sub-servicing agreement, as the case may be, such party (in the
      case of a Servicer, to the extent required under the applicable Servicing
      Agreement) shall cause a registered public accounting firm to provide an
      attestation pursuant to this Section 3.16(b) or to such other applicable
      agreement, for the applicable period immediately preceding such termination,
      assignment or resignation, notwithstanding any such termination, assignment
      or
      resignation.

     

    SECTION
      3.17. Annual
      Compliance Statement.

     

    The
      Master Servicer and the Securities Administrator shall deliver (and the Master
      Servicer and Securities Administrator shall cause any Servicing Function
      Participant engaged by it to deliver) to the Depositor and the Securities
      Administrator on or before March 10 (with a 5 calendar day cure period) of
      each
      year, commencing in [      ], an Officer’s
      Certificate stating, as to the signer thereof, that (A) a review of such party’s
      activities during the preceding calendar year or portion thereof and of such
      party’s performance under this Agreement, or such other applicable agreement in
      the case of any Servicing Function Participant, has been made under such
      officer’s supervision and (B) to the best of such officer’s knowledge, based on
      such review, such party has fulfilled all its obligations under this Agreement,
      or such other applicable agreement in the case of any Servicing Function
      Participant, in all material respects throughout such year or portion thereof,
      or, if there has been a failure to fulfill any such obligation in any material
      respect, specifying each such failure known to such officer and the nature
      and
      status thereof. Promptly after receipt of each such Officer’s Certificate, the
      Depositor shall review such Officer’s Certificate and, if applicable, consult
      with each such party, as applicable, as to the nature of any failures by such
      party, in the fulfillment of any of such party’s obligations hereunder or, in
      the case of any Servicing Function Participant, under such other applicable
      agreement. The Master Servicer shall include all annual statements of compliance
      received by it from each Servicer with its own annual statement of compliance
      to
      be submitted to the Securities Administrator pursuant to this Section. In the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by any such party is terminated or resigns pursuant
      to the terms of this Agreement, or any applicable agreement in the case of
      a
      Servicing Function Participant, as the case may be, such party shall provide
      an
      Officer’s Certificate pursuant to this Section 3.17 or to such applicable
      agreement, as the case may be, notwithstanding any such termination, assignment
      or resignation.

     

    
      
        
        

      

      
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    SECTION
      3.18. Sarbanes-Oxley
      Certification.

     

    Each
      Form
      10-K shall include a Sarbanes-Oxley Certification, required to be included
      therewith pursuant to the Sarbanes-Oxley Act. The Master Servicer and the
      Securities Administrator shall provide, and each such party shall cause any
      Servicing Function Participant engaged by it to provide, to the Person who
      signs
      the Sarbanes-Oxley Certification (the “Certifying
      Person”),
      by
      March 1 (with a ten-calendar day cure period), (or by such other date and cure
      period specified in the applicable Servicing Agreement), of each year in which
      the Trust is subject to the reporting requirements of the Exchange Act and
      otherwise within a reasonable period of time upon request, a certification,
      if
      applicable in the form provided by the related Servicing Agreement (each, a
      “Back-Up
      Certification”),
      upon
      which the Certifying Person, the entity for which the Certifying Person acts
      as
      an officer, and such entity’s officers, directors and Affiliates (collectively
      with the Certifying Person, “Certification
      Parties”)
      can
      reasonably rely. The senior officer of the Master Servicer in charge of the
      master servicing function shall serve as the Certifying Person on behalf of
      the
      Trust. Such officer of the Certifying Person can be contacted by e-mail at
      [      ]
      or by
      facsimile at [      ]. In the event any such party
      or any Servicing Function Participant engaged by such party is terminated or
      resigns pursuant to the terms of this Agreement, or any applicable sub-servicing
      agreement, as the case may be, such party shall provide a Back-Up Certification
      to the Certifying Person pursuant to this Section 3.18 with respect to the
      period of time it was subject to this Agreement or any applicable sub-servicing
      agreement, as the case may be. Notwithstanding the foregoing, (i) the Master
      Servicer and the Securities Administrator shall not be required to deliver
      a
      Back-Up Certification to each other if both are the same Person and the Master
      Servicer is the Certifying Person and (ii) the Master Servicer shall not be
      obligated to sign the Sarbanes-Oxley Certification in the event that it does
      not
      receive any Back-Up Certification required to be furnished to it pursuant to
      this section or any Servicing Agreement or custodial agreement.

     

    SECTION
      3.19. Reports
      Filed with Securities and Exchange Commission.

     

    (a) Reports
      Filed on Form 10-D. 

     

    (i) Within
      15
      days after each Distribution Date (subject to permitted extensions under the
      Exchange Act), the Securities Administrator shall prepare and file on behalf
      of
      the Trust any Form 10-D required by the Exchange Act, in form and substance
      as
      required by the Exchange Act. The Securities Administrator shall file each
      Form
      10-D with a copy of the related Distribution Date Statement attached thereto.
      Any disclosure in addition to the Distribution Date Statement that is required
      to be included on Form 10-D (“Additional
      Form 10-D Disclosure”)
      shall
      be reported by the parties set forth on Exhibit R to the Depositor and the
      Securities Administrator and directed and approved by the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Additional
      Form
      10-D Disclosure, except as set forth in the next two paragraphs.

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit R hereto, within 5 calendar days after the related Distribution
      Date, (i) the parties to the Thornburg Mortgage Securities Trust
      [      ] transaction shall be required to provide
      to the Securities Administrator and the Depositor, to the extent known by a
      responsible officer thereof, in EDGAR-compatible form (which may be Word or
      Excel documents easily convertible to EDGAR format), or in such other form
      as
      otherwise agreed upon by the Securities Administrator and such party, the form
      and substance of any Additional Form 10-D Disclosure, if applicable, together
      with an Additional Disclosure Notification in the form of Exhibit U hereto
      (an
“Additional
      Disclosure Notification”),
      and
      the Depositor will approve, as to form and substance, or disapprove, as the
      case
      may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.
      The
      Seller will be responsible for any reasonable fees and expenses assessed or
      incurred by the Securities Administrator in connection with including any
      Additional Form 10-D Disclosure in Form 10-D pursuant to this paragraph;
      provided that if the Additional Form 10-D Disclosure relates solely to the
      Depositor, such fees and expenses shall be paid by the Depositor.

    

    (iii) After
      preparing the Form 10-D, the Securities Administrator shall forward upon request
      electronically a copy of the Form 10-D to the Depositor (provided that such
      Form
      10-D includes any Additional Form 10-D Disclosure). Within two Business Days
      after receipt of such copy, but no later than the 12th
      calendar
      day after the Distribution Date, the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval, or if the Depositor does not request a copy of a Form
      10-D,
      the Securities Administrator shall be entitled to assume that such Form 10-D
      is
      in final form and the Securities Administrator may proceed with the execution
      and filing of the Form 10-D. A duly authorized representative of the Master
      Servicer shall sign each Form 10-D. If a Form 10-D cannot be filed on time
      or if
      a previously filed Form 10-D needs to be amended, the Securities Administrator
      will follow the procedures set forth in subsection (d)(ii) of this Section
      3.19.
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-D filed by the Securities Administrator. Each
      party to this Agreement acknowledges that the performance by the Master Servicer
      and the Securities Administrator of their respective duties under this Section
      3.19(a) related to the timely preparation, execution and filing of Form 10-D
      is
      contingent upon such parties strictly observing all applicable deadlines in
      the
      performance of their duties under this Section 3.19(a). Neither the Master
      Servicer nor the Securities Administrator shall have any liability for any
      loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare, execute and/or timely file such Form 10-D, where such failure results
      from the Securities Administrator’s inability or failure to obtain or receive,
      on a timely basis, any information from any other party hereto needed to
      prepare, arrange for execution or file such Form 10-D, not resulting from its
      own negligence, bad faith or willful misconduct.

    
      
        
        

      

      
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    (iv) Form
      10-D
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D if the answer to the questions should be “no.” The Securities Administrator
      shall be entitled to rely on such representations in preparing, executing and/or
      filing any such report

    

    (b) Reports
      Filed on Form 10-K.

     

    (i) On
      or
      prior to the 90th
      day
      after the end of each fiscal year of the Trust in which a Form 10-K is required
      to be filed or such earlier date as may be required by the Exchange Act (the
      “10-K
      Filing Deadline”)
      (it
      being understood that the fiscal year for the Trust ends on December
      31st
      of each
      year), commencing in March [    ], the Securities
      Administrator shall prepare and file on behalf of the Trust a Form 10-K, in
      form
      and substance as required by the Exchange Act. Each such Form 10-K shall include
      the following items, in each case to the extent they have been delivered to
      the
      Securities Administrator within the applicable time frames set forth in this
      Agreement and the related Servicing Agreement, (i) an annual compliance
      statement for each Servicer, the Master Servicer, the Securities Administrator
      and any Servicing Function Participant engaged by such parties (each, a
“Reporting
      Servicer”)
      as
      described under Section 3.17, (ii)(A) the annual reports on assessment of
      compliance with servicing criteria for each Reporting Servicer, as described
      under Section 3.16(a), and (B) if each Reporting Servicer’s report on assessment
      of compliance with servicing criteria described under Section 3.16(a) identifies
      any material instance of noncompliance, disclosure identifying such instance
      of
      noncompliance, or if each Reporting Servicer’s report on assessment of
      compliance with servicing criteria described under Section 3.16(a) is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for each Reporting
      Servicer, as described under Section 3.16(b), and (B) if any registered public
      accounting firm attestation report described under Section 3.16(b) identifies
      any material instance of noncompliance, disclosure identifying such instance
      of
      noncompliance, or if any such registered public accounting firm attestation
      report is not included as an exhibit to such Form 10-K, disclosure that such
      report is not included and an explanation why such report is not included,
      and
      (iv) a Sarbanes-Oxley Certification as described in Section 3.18 (provided,
      however,
      that the
      Securities Administrator, at its discretion, may omit from the Form 10-K any
      annual compliance statement, assessment of compliance or attestation report
      that
      is not required to be filed with such Form 10-K pursuant to Regulation AB).
      Any
      disclosure or information in addition to (i) through (iv) above that is required
      to be included on Form 10-K (“Additional
      Form 10-K Disclosure”)
      shall
      be determined and prepared by and at the direction of the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Additional
      Form
      10-K Disclosure, except as set forth in the next two paragraphs.

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit S hereto, no later than March 10 (with a 5 calendar day cure
      period) of each year that the Trust is subject to the Exchange Act reporting
      requirements, commencing in [   ], (i) the parties to the
      Thornburg Mortgage Securities Trust [   ] transaction shall be
      required to provide to the Securities Administrator and the Depositor, to the
      extent known by a responsible officer thereof, in EDGAR-compatible form (which
      may be Word or Excel documents easily convertible to EDGAR format), or in such
      other form as otherwise agreed upon by the Securities Administrator and such
      party, the form and substance of any Additional Form 10-K Disclosure, if
      applicable, together with an Additional Disclosure Notification and (ii) the
      Depositor will approve, as to form and substance, or disapprove, as the case
      may
      be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K. The
      Seller will be responsible for any reasonable fees and expenses assessed or
      incurred by the Securities Administrator in connection with including any
      Additional Form 10-K Disclosure in Form 10-K pursuant to this paragraph;
      provided that if the Additional Form 10-K Disclosure relates solely to the
      Depositor, such fees and expenses shall be paid by the Depositor.

    

    (iii) After
      preparing the Form 10-K, the Securities Administrator shall forward upon request
      electronically a copy of the Form 10-K to the Depositor. Within three Business
      Days after receipt of such copy, but no later than March 25th, the Depositor
      shall notify the Securities Administrator in writing (which may be furnished
      electronically) of any changes to or approval of such Form 10-K. In the absence
      of receipt of any written changes or approval, or if the Depositor does not
      request a copy of a Form 10-K, the Securities Administrator shall be entitled
      to
      assume that such Form 10-K is in final form and the Securities Administrator
      may
      proceed with the execution and filing of the Form 10-K. A senior officer of
      the
      Master Servicer in charge of the master servicing function shall sign the Form
      10-K. If a Form 10-K cannot be filed on time or if a previously filed Form
      10-K
      needs to be amended, the Securities Administrator will follow the procedures
      set
      forth in subsection (d) of this Section 3.19. Promptly (but no later than 1
      Business Day) after filing with the Commission, the Securities Administrator
      will make available on its internet website a final executed copy of each Form
      10-K. The parties to this Agreement acknowledge that the performance by the
      Master Servicer and the Securities Administrator of its duties under this
      Section 3.19(b) related to the timely preparation, execution and filing of
      Form
      10-K is contingent upon such parties (the Custodian and any Servicing Function
      Participant) strictly observing all applicable deadlines in the performance
      of
      their duties under this Section 3.19(b), Section 3.18, Section 3.17, Section
      3.16(a) and Section 3.16(b). Neither the Master Servicer nor the Securities
      Administrator shall have any liability for any loss, expense, damage or claim
      arising out of or with respect to any failure to properly prepare, execute
      and/or timely file such Form 10-K, where such failure results from the
      Securities Administrator’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto needed to prepare,
      arrange for execution or file such Form 10-K, not resulting from its own
      negligence, bad faith or willful misconduct.

    
      
        
        

      

      
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    (iv) Form
      10-K
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than March 15th with respect
      to
      the filing of a report on Form 10-K, if the answer to the questions should
      be
“no.” The Securities Administrator shall be entitled to rely on such
      representations in preparing, executing and/or filing any such
      report.

    

    (c) Reports
      Filed on Form 8-K.

     

    (i) Within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable
      Event”),
      and
      if requested by the Depositor, the Securities Administrator shall prepare and
      file on behalf of the Trust a Form 8-K, as required by the Exchange Act,
provided
      that the
      Depositor shall file the initial Form 8-K in connection with the issuance of
      the
      Certificates. Any disclosure or information related to a Reportable Event or
      that is otherwise required to be included in Form 8-K (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit T to the Depositor and the
      Securities Administrator and directed and approved by the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Form 8-K
      Disclosure Information or any Form 8-K, except as set forth in the next two
      paragraphs. 

    

    (ii) As
      set
      forth on Exhibit T hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than close of business (New York City
      time)
      on the 2nd Business Day after the occurrence of a Reportable Event (i) the
      parties to the Thornburg Mortgage Securities Trust [   ]
      transaction shall be required to provide to the Securities Administrator and
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form (which may be Word or Excel documents easily convertible
      to EDGAR format), or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any Form
      8-K
      Disclosure Information, if applicable, together with an Additional Disclosure
      Notification and (ii) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
      Information. The Seller will be responsible for any reasonable fees and expenses
      assessed or incurred by the Securities Administrator in connection with
      including any Form 8-K Disclosure Information in Form 8-K pursuant to this
      paragraph; provided that if the Additional Form 8-K Disclosure Information
      relates solely to the Depositor, such fees and expenses shall be paid by the
      Depositor. 

    
      
        
        

      

      
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    (iii) After
      preparing the Form 8-K, the Securities Administrator shall forward upon request
      electronically a copy of the Form 8-K to the Depositor. Promptly, but no later
      than the close of business on the third Business Day after the Reportable Event,
      the Depositor shall notify the Securities Administrator in writing (which may
      be
      furnished electronically) of any changes to or approval of such Form 8-K. In
      the
      absence of receipt of any written changes or approval, or if the Depositor
      does
      not request a copy of a Form 8-K, the Securities Administrator shall be entitled
      to assume that such Form 8-K is in final form and the Securities Administrator
      may proceed with the execution and filing of the Form 8-K. A duly authorized
      representative of the Master Servicer shall sign each Form 8-K filed by the
      Securities Administrator. If a Form 8-K cannot be filed on time or if a
      previously filed Form 8-K needs to be amended, the Securities Administrator
      will
      follow the procedures set forth in subsection (d) of this Section 3.19. Promptly
      (but no later than 1 Business Day) after filing with the Commission, the
      Securities Administrator will, make available on its internet website a final
      executed copy of each Form 8-K filed by the Securities Administrator or filed
      by
      the Depositor and provided to the Securities Administrator for that purpose.
      The
      parties to this Agreement acknowledge that the performance by the Master
      Servicer and the Securities Administrator of their respective duties under
      this
      Section 3.19(c) related to the timely preparation, execution and filing of
      Form
      8-K is contingent upon such parties strictly observing all applicable deadlines
      in the performance of their duties under this Section 3.19(c). Neither the
      Securities Administrator nor the Master Servicer shall have any liability for
      any loss, expense, damage, claim arising out of or with respect to any failure
      to properly prepare, execute and/or timely file such Form 8-K, where such
      failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 8-K, not
      resulting from its own negligence, bad faith or willful misconduct.

    

    (d) Delisting;
      Amendments; Late Filings.

     

    (i) On
      or
      prior to January 30 of the first year in which the Securities Administrator
      is
      able to do so under applicable law, unless otherwise directed by the Depositor,
      the Securities Administrator shall prepare and file a Form 15 relating to the
      automatic suspension of reporting in respect of the Trust under the Exchange
      Act. 

     

    (ii) In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly notify electronically the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement and each Servicer will cooperate to prepare and
      file a Form 12b-25 and a 10-D/A and 10-K/A, as applicable, pursuant to Rule
      12b-25 of the Exchange Act. In the case of Form 8-K, the Securities
      Administrator will, upon receipt of all required Form 8-K Disclosure Information
      and upon the approval and direction of the Depositor, include such disclosure
      information on the next Form 10-D. In the event that any previously filed Form
      8-K, 10-D or 10-K needs to be amended, and such amendment includes any
      Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure or any
      Form
      8-K Disclosure Information or any amendment to such disclosure, the Securities
      Administrator will promptly notify electronically the Depositor and such parties
      will cooperate to prepare any necessary 8-KA, 10-D/A or 10-K/A. Any Form 15,
      Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a
      duly
      authorized representative or a senior officer in charge of master servicing,
      as
      applicable, of the Master Servicer. The parties to this Agreement acknowledge
      that the performance by the Master Servicer and the Securities Administrator
      of
      their respective duties under this Section 3.19(d) related to the timely
      preparation, execution and filing of Form 15, a Form 12b-25 or any amendment
      to
      Form 8-K, 10-D or 10-K is contingent upon each such party performing its duties
      under this Section. Neither the Master Servicer nor the Securities Administrator
      shall have any liability for any loss, expense, damage, claim arising out of
      or
      with respect to any failure to properly prepare, execute and/or timely file
      any
      such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where
      such failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 15, Form
      12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its
      own
      negligence, bad faith or willful misconduct.

    
      
        
        

      

      
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    SECTION
      3.20. Additional
      Information.

     

    Each
      of
      the parties agrees to provide to the Securities Administrator such additional
      information related to such party as the Securities Administrator may reasonably
      request, including evidence of the authorization of the person signing any
      certification or statement, financial information and reports, and such other
      information related to such party or its performance hereunder. 

     

    SECTION
      3.21. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Section 3.16 through
      Section 3.20 of this Agreement is to facilitate compliance by the Securities
      Administrator and the Depositor with the provisions of Regulation AB promulgated
      by the Commission under the Exchange Act (17 C.F.R. §§ 229.1100 -
      229.1123), as such may be amended from time to time and subject to such
      clarification and interpretive advice as may be issued by the staff of the
      Commission 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 the reasonable requests made by the Securities Administrator
      or the Depositor for delivery of such additional or different information as
      the
      Securities Administrator or the Depositor may determine in good faith is
      necessary to comply with the provisions of Regulation AB, which information
      is
      available to such party without unreasonable effort or expense and within such
      timeframe as may be reasonably requested, 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.

     

    
      
        
        

      

      
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    SECTION
      3.22. Indemnification.
      

     

    Each
      party required to deliver an assessment of compliance and attestation report
      pursuant to Section 3.16 (each, an “Item
      1122 Responsible Party”)
      shall
      indemnify and hold harmless the Securities Administrator, the Master Servicer,
      the Depositor and the Seller and each of their directors, officers, employees,
      agents, and affiliates from and against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon (a) any
      breach by such Item 1122 Responsible Party of any of its obligations hereunder
      relating to its obligations as an Item 1122 Responsible Party, including
      particularly its obligations to provide any assessment of compliance,
      attestation report or compliance statement required under Section 3.16(a),
      3.16(b) or 3.17, respectively, or any information, data or materials required
      to
      be included in any Exchange Act report, (b) any material misstatement or
      material omission in any information, data or materials provided by such Item
      1122 Responsible Party (or,
      in the case of the Securities Administrator or Master Servicer, any material
      misstatement or material omission in (x) any compliance certificate delivered
      by
      it, or by any Servicing Function Participant engaged by it, pursuant to this
      Agreement, (y) any assessment or attestation delivered by or on behalf of it,
      or
      by any Servicing Function Participant engaged by it, pursuant to this Agreement,
      or (z) any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
      or
      Form 8-K Disclosure Information concerning the Securities Administrator or
      the
      Master Servicer and provided by either of them),
      or (c)
      the negligence, bad faith or willful misconduct of such Item 1122 Responsible
      Party in connection with its performance hereunder relating to its obligations
      as an Item 1122 Responsible Party. If the indemnification provided for herein
      is
      unavailable or insufficient to hold harmless the Securities Administrator,
      the
      Depositor or the Seller, then each Item 1122 Responsible Party agrees that
      it
      shall contribute to the amount paid or payable by the Securities Administrator,
      the Master Servicer, the Depositor and the Seller as a result of any claims,
      losses, damages or liabilities incurred by the Securities Administrator, the
      Master Servicer, the Depositor or the Seller in such proportion as is
      appropriate to reflect the relative fault of the Securities Administrator,
      the
      Master Servicer, the Depositor or the Seller on the one hand and such Item
      1122
      Responsible Party on the other. This indemnification shall survive the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    SECTION
      3.23. Amendments
      to Master Servicing Guide and Correspondent Sellers Guide. 

     

    The
      Seller and the Master Servicer hereby agree not to amend the Master Servicing
      Guide or the Correspondent Sellers Guide with respect to the Mortgage Loans
      (which are Securitized Loans (as defined therein)) which amendment would (i)
      change the Servicer Remittance Date or date for remittance of any servicer
      reports or monthly remittance advices, (ii) change the manner in which any
      Servicer makes Advances, servicing advances or amounts to compensate for
      Interest Shortfalls (iii) without prior written notice to the Rating Agencies
      (unless such amendment corresponds to reporting criteria specified by any Rating
      Agency), change the provisions relating to the modification of Mortgage Loans
      by
      a Servicer (including the reporting of data relating thereto by a Servicer
      to
      the Master Servicer in servicing reports and monthly remittance advices) in
      connection with a loss mitigation strategy or (iv) otherwise have a material
      adverse effect on the Trust or the Certificateholders, unless the party making
      such amendment notifies the other party in writing of such amendment and, in
      the
      case of an amendment of the type described in clause (iv) such changes are
      made
      pursuant to the provisions of Section 12.01 hereof. 

     

    
      
        
        

      

      
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    SECTION
      3.24. UCC.

     

    The
      Securities Administrator agrees to file continuation statements for any Uniform
      Commercial Code financing statements identifying the Trust as debtor which
      the
      Depositor has informed the Securities Administrator in writing were filed on
      the
      Closing Date in connection with the Trust, provided that the Securities
      Administrator receives the related filing information on a timely basis. The
      Depositor shall file any financing statements or amendments thereto required
      by
      any change in the Uniform Commercial Code.

     

    
      
        
        

      

      
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    SECTION
      3.25. Optional
      and Required Purchases of Certain Mortgage Loans.

     

    (a) [Thornburg],
      in its capacity as a Servicer of a portion of the Mortgage Loans, shall have
      the
      right to purchase from the Trust any Mortgage Loan which as of the first day
      of
      a calendar quarter is delinquent in payment by 90 days or more or is an REO
      Property, at a price equal to the Purchase Price; provided however (i) that
      such
      Mortgage Loan is still 90 days or more delinquent or is an REO Property as
      of
      the date of such purchase and (ii) this purchase option, if not theretofore
      exercised, shall terminate on the date prior to the last day of the related
      calendar quarter. This purchase option, if not exercised, shall not be
      thereafter reinstated unless the delinquency is cured and the Mortgage Loan
      thereafter again becomes 90 days or more delinquent or becomes an REO Property,
      in which case the option shall again become exercisable as of the first day
      of
      the related calendar quarter. 

     

    (b) In
      addition, [Thornburg], in its capacity as the Seller, may, but is not required
      to, repurchase any Mortgage Loan as to which the Mortgagor has requested a
      Significant Modification that is not then permitted under the related Mortgage
      Note if such Mortgagor has a satisfactory payment history under such Mortgage
      Loan and meets the credit standards of the Seller for the loan program selected
      (a “Significant
      Modification Loan”).
      A
“Significant
      Modification”
shall
      mean any modification to the interest rate of the greater of (i) 0.25% added
      or
      subtracted from the existing rate and (ii) a change equal to the product of
      (a)
      5% and (b) the annual existing interest rate thereon, which is not provided
      for
      in the related Mortgage Note. The purchase price for any repurchase pursuant
      to
      this Section 3.25(b) shall be the applicable Purchase Price. In order to
      exercise its repurchase rights hereunder, the Seller shall deliver to the Master
      Servicer and the Trustee an Officer’s Certificate identifying the Mortgage Loan
      to be repurchased and certifying that (i) such Mortgage Loan is a Significant
      Modification Loan, and (ii) that the Significant Modification Loan will be
      entered into on the date of such repurchase. In connection with any repurchase
      pursuant to this Section 3.25(b), the Seller shall pay to the Trust the amount
      of any tax imposed on the Trust [or any REMIC created hereby] as a result of
      such repurchase.

     

    (c) If
      [Thornburg] chooses to exercise its option to repurchase any Mortgage Loan
      pursuant to Section 3.25(b) hereof, then no later than the fourth Business
      Day
      prior to each Distribution Date, [Thornburg] will provide to the Master Servicer
      a list identifying all Mortgage Loans that became Significant Modification
      Loans
      during the related Due Period for which [Thornburg] chooses to exercise its
      option to repurchase. On the third Business Day prior to each Distribution
      Date,
      provided that it has received such list from [Thornburg], the Master Servicer
      shall notify [Thornburg] of the current outstanding principal balance and
      accrued interest for each such Mortgage Loan. No later than 1:00 PM Eastern
      Time
      on the second Business Day prior to each Distribution Date, [Thornburg] shall
      purchase each such Significant Modification Loan, at the applicable Purchase
      Price and shall remit such Purchase Price to the Master Servicer for deposit
      in
      the Distribution Account. If at any time [Thornburg] remits to the Master
      Servicer a payment for deposit in the Distribution Account covering the amount
      of the Purchase Price for a Mortgage Loan of the type set forth in clause (b)
      above, and [Thornburg] provides to the Trustee a certification signed by a
      Servicing Officer stating that the amount of such payment has been deposited
      in
      the Distribution Account, then the Trustee shall execute the assignment of
      such
      Mortgage Loan at the request of [Thornburg] without recourse to [Thornburg]
      which shall succeed to all the Trust’s and/or the Trustee’s right, title and
      interest in and to such Mortgage Loan, and all security and documents relative
      thereto. Such assignment shall be an assignment outright and not for security.
      [Thornburg] will thereupon own such Mortgage Loan, and all such security and
      documents, free of any further obligation to the Trust, the Trustee or the
      Certificateholders with respect thereto.

     

    
      
        
        

      

      
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    SECTION
      3.26. Realization
      upon Troubled Mortgage Loans.

     

    The
      Master Servicer shall have the right to cause a Servicer to sell or work out
      any
      Mortgage Loan as to which the Master Servicer reasonably believes that default
      in payment is likely, provided,
      however,
      that,
      with respect to any such sale of a Mortgage Loan by a Servicer, the related
      sale
      price shall be no less than the Stated Principal Balance of such Mortgage Loan
      as of the last day of the Due Period immediately preceding the date of such
      sale
plus
      accrued
      interest thereon through such sale date. Any and all proceeds from such a sale
      shall be deemed to be Liquidation Proceeds hereunder and any such Mortgage
      Loan
      which has been sold shall be deemed a Liquidated Mortgage Loan
      hereunder.

     

    SECTION
      3.27. Closing
      Certificate and Opinion.

     

    On
      or
      before the Closing Date, the Master Servicer shall cause to be delivered to
      the
      Depositor, the Seller, the Trustee, and [      ]
      an Opinion of Counsel, dated the Closing Date, in form and substance reasonably
      satisfactory to the Depositor, [      ], and the
      Seller as to the due authorization, execution and delivery of this Agreement
      by
      the Master Servicer and the enforceability thereof. 

     

    SECTION
      3.28. Liabilities
      of the Master Servicer.

     

    The
      Master Servicer shall be liable in accordance herewith only to the extent of
      the
      obligations specifically imposed upon and undertaken by it herein.

     

    SECTION
      3.29. Merger
      or Consolidation of the Master Servicer.

     

    (a) The
      Master Servicer will keep in full force and effect its existence, rights and
      franchises as a corporation under the laws of the state of its incorporation,
      and will obtain and preserve its qualification to do business as a foreign
      corporation in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Agreement, the
      Certificates or any of the Mortgage Loans and to perform its duties under this
      Agreement.

     

    (b) Any
      Person into which the Master Servicer may be merged or consolidated, or any
      corporation resulting from any merger or consolidation to which the Master
      Servicer shall be a party, or any Person succeeding to the business of the
      Master Servicer, shall be the successor of the Master Servicer hereunder,
      without the execution or filing of any paper or further act on the part of
      any
      of the parties hereto, anything herein to the contrary
      notwithstanding.

     

    
      
        
        

      

      
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    SECTION
      3.30. Indemnification
      of the Trustee, the Seller, the Master Servicer and the Securities
      Administrator.

     

    (a) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the Master
      Servicer agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (except as otherwise provided
      herein with respect to expenses) (including reasonable legal fees and
      disbursements of counsel) incurred on their part that may be sustained in
      connection with, arising out of, or relating to this Agreement or the
      Certificates (i) related to the Master Servicer’s failure to perform its duties
      in compliance with this Agreement (except as any such loss, liability or expense
      shall be otherwise reimbursable pursuant to this Agreement) or (ii) incurred
      by
      reason of the Master Servicer’s willful misfeasance, bad faith or gross
      negligence in the performance of duties hereunder or by reason of reckless
      disregard of obligations and duties hereunder, provided, in each case, that
      with
      respect to any such claim or legal action (or pending or threatened claim or
      legal action), an Indemnified Person shall have given the Master Servicer and
      the Depositor written notice thereof promptly after such Indemnified Person
      shall have with respect to such claim or legal action knowledge thereof. The
      Indemnified Person’s failure to give such notice shall not affect the
      Indemnified Person’s right to indemnification hereunder. This indemnity shall
      survive the resignation or removal of the Trustee, the Master Servicer or the
      Securities Administrator and the termination of this Agreement.

     

    (b) The
      Trust
      will indemnify any Indemnified Person for any loss, liability or expense of
      any
      Indemnified Person not otherwise indemnified by the Master Servicer as referred
      to in Subsection (a) above.

     

    (c) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the
      Securities Administrator agrees to indemnify the Indemnified Persons (other
      than
      the Securities Administrator) for, and to hold them harmless against, any loss,
      liability or expense (except as otherwise provided herein with respect to
      expenses) (including reasonable legal fees and disbursements of counsel)
      incurred on their part (i) in connection with, arising out of, or relating
      to
      the Securities Administrator’s failure to file any Exchange Act report which the
      Securities Administrator is responsible for filing in accordance with Section
      3.19, (ii) by reason of the Securities Administrator’s negligence or willful
      misconduct in the performance of such obligations pursuant to Section 3.19
      or
      (iii) by reason of the Securities Administrator’s reckless disregard of such
      obligations pursuant to Section 3.19, provided, in each case, that with respect
      to any such claim or legal action (or pending or threatened claim or legal
      action), an Indemnified Person shall have given the Securities Administrator
      written notice thereof promptly after such Indemnified Person shall have with
      respect to such claim or legal action knowledge thereof. The Indemnified
      Person’s failure to give such notice shall not affect the Indemnified Person’s
      right to indemnification hereunder. This indemnity shall survive the resignation
      or removal of the Trustee, the Master Servicer or the Securities Administrator
      and the termination of this Agreement.

     

    SECTION
      3.31. Limitations
      on Liability of the Master Servicer and Others; Indemnification of Trustee
      and
      Others.

     

    Subject
      to the obligation of the Master Servicer to indemnify the Indemnified Persons
      pursuant to Section 3.30:

     

    
      
        
        

      

      
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    (a) Neither
      the Master Servicer nor any of the directors, officers, employees or agents
      of
      the Master Servicer shall be under any liability to the Indemnified Persons,
      the
      Depositor, the Trust or the Certificateholders for taking any action or for
      refraining from taking any action in good faith pursuant to this Agreement,
      or
      for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Master Servicer or any such Person against
      any breach of warranties or representations made herein or any liability which
      would otherwise be imposed by reason of such Person’s willful misfeasance, bad
      faith or gross negligence in the performance of duties or by reason of reckless
      disregard of obligations and duties hereunder.

     

    (b) The
      Master Servicer and any director, officer, employee or agent of the Master
      Servicer may rely in good faith on any document of any kind prima
      facie
      properly
      executed and submitted by any Person respecting any matters arising
      hereunder.

     

    (c) The
      Master Servicer, the Trustee (in its individual corporate capacity and as
      Trustee), the Custodian (including for such purpose, the Trustee acting in
      its
      capacity as Custodian) and any director, officer, employee or agent of the
      Master Servicer, the Trustee or the Custodian shall be indemnified by the Trust
      and held harmless thereby against any loss, liability or expense (except as
      otherwise provided herein with respect to expenses) (including reasonable legal
      fees and disbursements of counsel) incurred on their part that may be sustained
      in connection with, arising out of, or relating to, this Agreement, the
      Certificates or any Servicing Agreement or the transactions contemplated hereby
      or thereby (except, with respect to the Master Servicer, to the extent that
      the
      Master Servicer is indemnified by the Servicer thereunder), other than (i)
      with
      respect to the Master Servicer only, any such loss, liability or expense related
      to the Master Servicer’s failure to perform its duties in compliance with this
      Agreement or (ii) with respect to the Master Servicer or Custodian only, any
      such loss, liability or expense incurred by reason of the Master Servicer’s or
      the Custodian’s willful misfeasance, bad faith or gross negligence in the
      performance of its own duties hereunder or by reason of reckless disregard
      of
      its own obligations and duties hereunder or under a custodial
      agreement.

     

    (d) The
      Master Servicer shall not be under any obligation to appear in, prosecute or
      defend any legal action that is not incidental to its duties under this
      Agreement and that in its opinion may involve it in any expense or liability;
      provided,
      however,
      the
      Master Servicer may in its discretion, undertake any such action which it may
      deem necessary or desirable with respect to this Agreement and the rights and
      duties of the parties hereto and the interests of the Trust and the
      Certificateholders hereunder. In such event, the legal expenses and costs of
      such action and any liability resulting therefrom shall be expenses, costs
      and
      liabilities of the Trust, and the Master Servicer shall be entitled to be
      reimbursed therefor out of the Distribution Account as provided by Section
      4.03.
      Nothing in this Subsection 3.31(d) shall affect the Master Servicer’s obligation
      to supervise, or to take such actions as are necessary to ensure, the servicing
      and administration of the Mortgage Loans pursuant to Subsection
      3.01(a).

     

    (e) In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Master Servicer
      shall not be required to investigate or make recommendations concerning
      potential liabilities which the Trust might incur as a result of such course
      of
      action by reason of the condition of the Mortgaged Properties but shall give
      notice to the Trustee if it has notice of such potential
      liabilities.

     

    
      
        
        

      

      
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    (f) The
      Master Servicer shall not be liable for any acts or omissions of any Servicer,
      except as otherwise expressly provided herein.

     

    SECTION
      3.32. Master
      Servicer Not to Resign. 

     

    Except
      as
      provided in Section 3.34, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except upon a determination that
      any
      such duties hereunder are no longer permissible under applicable law and such
      impermissibility cannot be cured. Any such determination permitting the
      resignation of the Master Servicer shall be evidenced by an Independent Opinion
      of Counsel (delivered at the expense of the Master Servicer) to such effect
      delivered to the Trustee. No such resignation by the Master Servicer shall
      become effective until the Trustee or a successor to the Master Servicer
      reasonably satisfactory to the Trustee shall have assumed the responsibilities
      and obligations of the Master Servicer in accordance with Section 7.02 hereof.
      The Trustee shall notify each Rating Agency of the resignation of the Master
      Servicer.

     

    SECTION
      3.33. Successor
      Master Servicer.

     

    In
      connection with the appointment of any successor master servicer or the
      assumption of the duties of the Master Servicer, the Trustee may make such
      arrangements for the compensation of such successor master servicer out of
      payments on the Mortgage Loans as the Trustee and such successor master servicer
      shall agree which in no case shall exceed the Master Servicing Fee, plus
      the
      portion of investment income on amounts on deposit in the Distribution Account
      to which the Master Servicer is entitled hereunder. If the successor master
      servicer does not agree that the proposed compensation is fair, such successor
      master servicer shall obtain two quotations of market compensation from third
      parties actively engaged in the servicing of single-family mortgage loans;
      provided,
      however,
      that
      [Thornburg], as a Servicer of a substantial portion of the Mortgage Loans,
      shall
      have the right, but not the obligation, to be appointed successor master
      servicer in the event that the Trustee, in its sole discretion, decides not
      to
      assume the duties of the Master Servicer itself; and provided,
      further,
      that
      each Rating Agency shall confirm in writing that any appointment of a successor
      Master Servicer (other than the Trustee) will not result in a downgrade in
      the
      then current rating of any Class of Certificates. 

     

    SECTION
      3.34. Sale
      and Assignment of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in their entirety as Master Servicer under this Agreement, with
      the
      written consent of [Thornburg] in its capacity as a Servicer of a substantial
      portion of the Mortgage Loans, to be given in its sole discretion, and provided
      further that: (i) the purchaser or transferee accepting such assignment and
      delegation (a) shall be a Person which shall be qualified to service mortgage
      loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less
      than
      $10,000,000 (unless otherwise approved by each Rating Agency pursuant to clause
      (ii) below); (c) shall be reasonably satisfactory to [Thornburg] and the Trustee
      (as evidenced in writing signed by [Thornburg] and the Trustee); and (d) shall
      execute and deliver to the Trustee an agreement, in form and substance
      reasonably satisfactory to the Trustee, 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 it as master servicer under this
      Agreement, any custodial agreement from and after the effective date of such
      agreement; (ii) each Rating Agency shall be given prior written notice of the
      identity of the proposed successor to the Master Servicer and each Rating
      Agency’s ratings of the Certificates in effect immediately prior to such
      assignment, sale and delegation will not be downgraded, qualified or withdrawn
      as a result of such assignment, sale and delegation, as evidenced by a letter
      to
      such effect delivered to the Master Servicer and the Trustee; and (iii) the
      Master Servicer assigning and selling the master servicing shall deliver to
      the
      Trustee an Officer’s Certificate and an Independent Opinion of Counsel,
      (delivered at the Master Servicer’s expense) each stating that all conditions
      precedent to such action under this Agreement have been completed and such
      action is permitted by and complies with the terms of this Agreement. No such
      assignment or delegation shall affect any liability of the Master Servicer
      arising prior to the effective date thereof.

     

    
      
        
        

      

      
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    SECTION
      3.35. Reporting
      Requirements of the Commission.

     

    To
      the
      extent that, following the Closing Date, the content of Forms 8-K, 10-D, 10-K,
      15 or other Forms required by the Exchange Act and the Rules and Regulations
      of
      the Commission and the time by which such Forms are required to be filed,
      differs from the provisions of this Agreement, the Master Servicer and the
      Securities Administrator hereby agree that each shall reasonably cooperate
      to
      amend the provisions of this Agreement (in accordance with Section 12.01) in
      order to comply with such amended reporting requirements and such amendment
      of
      this Agreement. Notwithstanding the foregoing, neither the Master Servicer
      nor
      the Securities Administrator shall be obligated to enter into any amendment
      pursuant to this Section that adversely affects its obligations or immunities
      under this Agreement.

     

     

    ARTICLE
      IV

     

    ACCOUNTS

     

    SECTION
      4.01. Servicing
      Accounts.

     

    (a) The
      Master Servicer shall enforce the obligation of each Servicer to establish
      and
      maintain one or more custodial accounts (the “Servicing
      Accounts”)
      in
      accordance with the applicable Servicing Agreement, with records to be kept
      with
      respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts
      shall be deposited within 48 hours (or as of such other time specified in the
      related Servicing Agreement) of receipt all collections of principal and
      interest on any Mortgage Loan and with respect to any REO Property received
      by a
      Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds and advances made from the Servicer’s own funds (less, in the case of
      each Servicer, the applicable servicing compensation, in whatever form and
      amounts as permitted by the applicable Servicing Agreement) and all other
      amounts to be deposited in each such Servicing Account. The Servicer is hereby
      authorized to make withdrawals from and deposits to the related Servicing
      Account for purposes required or permitted by this Agreement and the applicable
      Servicing Agreement. For the purposes of this Agreement, Servicing Accounts
      shall also include such other accounts as the Servicer maintains for the escrow
      of certain payments, such as taxes and insurance, with respect to certain
      Mortgaged Properties. Each Servicing Agreement sets forth the criteria for
      the
      segregation, maintenance and investment of each related Servicing Account,
      the
      contents of which are acceptable to the parties hereto as of the date hereof
      and
      changes to which shall not be made unless such changes are made in accordance
      with the provisions of Section 12.01 hereof. 

     

    
      
        
        

      

      
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    (b) [Reserved];

     

    (c) To
      the
      extent provided in the related Servicing Agreement and subject to this Article
      IV, on or before each Servicer Remittance Date, each Servicer shall withdraw
      or
      shall cause to be withdrawn from the related Servicing Accounts and shall
      immediately deposit or cause to be deposited in the Distribution Account amounts
      representing the following collections and payments (other than with respect
      to
      principal of or interest on the Mortgage Loans due on or before the Cut-off
      Date) with respect to each of the Mortgage Loans it is servicing:

     

    (i) Monthly
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Servicers pursuant to the Servicing Agreements which were due on or
      before the related Due Date but net of the amount thereof comprising the
      Servicing Fees;

     

    (ii) Principal
      Prepayments in full and any Liquidation Proceeds received by the Servicers
      with
      respect to such Mortgage Loans in the related Prepayment Period, with interest
      to the date of prepayment or liquidation, net of the amount thereof comprising
      the Servicing Fees and any Recoveries received in the related Prepayment
      Period;

     

    (iii) Principal
      Prepayments in part received by the Servicers for such Mortgage Loans in the
      related Prepayment Period; 

     

    (iv) Prepayment
      Penalty Amounts, if any, and only if required under the related Servicing
      Agreement; and

    

    (v) any
      amount to be used as a delinquency advance or to pay any Interest Shortfalls,
      in
      each case, as required to be paid under the related Servicing Agreement.

     

    (d) Withdrawals
      may be made from a Servicing Account only to make remittances as provided in
      Section 4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or a Servicer
      for Advances which have been recovered by subsequent collection from the related
      Mortgagor; to remove amounts deposited in error; to remove fees, charges or
      other such amounts deposited on a temporary basis; or to clear and terminate
      the
      account at the termination of this Agreement in accordance with Section 10.01.
      As provided in Sections 4.01(c) and 4.02(b), certain amounts otherwise due
      to
      the Servicers may be retained by them and need not be deposited in the
      Distribution Account.

                                                                                                                           

     

    Notwithstanding
      anything herein to the contrary, the Master Servicer shall not be responsible
      for verifying the accuracy of any Prepayment Penalty.

     

    SECTION
      4.02. Distribution
      Account. 

     

    
      
        
        

      

      
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    (a) The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Trust and the Certificateholders, the
      Distribution Account as a segregated account or accounts, each of which shall
      be
      an Eligible Account. If an existing Distribution Account ceases to be an
      Eligible Account, the Securities Administrator shall establish a new
      Distribution Account that is an Eligible Account within ten (10) days and
      transfer all funds and investment property on deposit in such existing
      Distribution Account into the new Distribution Account. The Distribution Account
      shall constitute a trust account of the Trust segregated on the books of the
      Securities Administrator and held by the Securities Administrator in trust
      in
      its Corporate Trust Office, and the Distribution Account and the funds deposited
      therein shall not be subject to, and shall be protected from, all claims, liens,
      and encumbrances of any creditors or depositors of the Trustee, the Securities
      Administrator or the Master Servicer (whether made directly, or indirectly
      through a liquidator or receiver of the Trustee, the Securities Administrator
      or
      the Master Servicer). The amount at any time credited to the Distribution
      Account shall be (i) fully insured by the FDIC to the maximum coverage provided
      thereby or (ii) invested by the Securities Administrator, in Permitted
      Investments, in accordance with Section 4.02(c). All Permitted Investments
      shall
      mature or be subject to redemption or withdrawal on or before, and shall be
      held
      until, the immediately succeeding Distribution Date. With respect to the
      Distribution Account and the funds deposited therein, the Securities
      Administrator shall take such action as may be necessary to ensure that the
      Trust and the Certificateholders shall be entitled to the priorities afforded
      to
      such a trust account (in addition to a claim against the estate of the
      Securities Administrator or the Trustee) as provided by 12 U.S.C. § 92a(e), and
      applicable regulations pursuant thereto, if applicable, or any applicable
      comparable state statute applicable to state chartered banking corporations,
      if
      applicable. The Securities Administrator, Trustee or their affiliates are
      permitted to receive additional compensation that could be deemed to be in
      the
      their economic self-interest for (i) serving as investment adviser,
      administrator, servicing agent, custodian or sub-custodian with respect to
      certain of the Permitted Investments, (ii) using affiliates to effect
      transactions in certain Permitted Investments and (iii) effecting transactions
      in certain Permitted Investments. The Master Servicer and the Securities
      Administrator will deposit in the Distribution Account as identified by the
      Master Servicer or the Securities Administrator and as received by the Master
      Servicer or the Securities Administrator, the following amounts:

     

    (i) any
      amounts withdrawn from a Servicing Account pursuant to Section
      4.01(c);

     

    (ii) any
      Advance and any Compensating Interest Payments required to be made by the Master
      Servicer to the extent required but not made by a Servicer; 

     

    (iii) any
      Insurance Proceeds, Liquidation Proceeds or Recoveries received by or on behalf
      of the Master Servicer or which were not deposited in a Servicing Account;
      

     

    (iv) the
      Purchase Price with respect to any Mortgage Loans purchased by the Seller under
      this Agreement, any Substitution Adjustments pursuant to Section 2.03 of this
      Agreement, the Purchase Price with respect to any Mortgage Loans purchased
      by
      [Thornburg] pursuant to Section 3.25, and all proceeds of any Mortgage Loans
      or
      property acquired with respect thereto repurchased by the [Thornburg] (or its
      assignee) pursuant to Section 10.01;

     

    
      
        
        

      

      
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    (v) any
      amounts required to be deposited with respect to losses on investments of
      deposits in the Distribution Account; and

     

    (vi) any
      other
      amounts received by or on behalf of the Master Servicer or the Securities
      Administrator and required to be deposited in the Distribution Account pursuant
      to this Agreement.

     

    (b) All
      amounts deposited to the Distribution Account shall be held by the Securities
      Administrator in the name of the Trustee in trust for the benefit of the Trust
      and Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Distribution Account shall be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, payments in the nature of (i) late payment charges or
      assumption, tax service, statement account or payoff, substitution,
      satisfaction, release and other like fees and charges (but including, in the
      case of [Thornburg], all Prepayment Penalty Amounts) and (ii) the items
      enumerated in Subsections 4.03(a)(i), (ii), (iii), (iv), (vi), (vii), (ix),
      (x)
      and with respect to the Securities Administrator item (xi), need not be credited
      by the Master Servicer or the related Servicer to the Distribution Account.
      In
      the event that the Master Servicer shall deposit or cause to be deposited to
      the
      Distribution Account any amount not required to be credited thereto, the
      Securities Administrator, upon receipt of a written request therefor signed
      by a
      Servicing Officer of the Master Servicer, shall promptly transfer such amount
      to
      the Master Servicer, any provision herein to the contrary
      notwithstanding.

     

    (c) The
      amount
      at any time credited to the Distribution Account shall be invested, in the
      name
      of the Trustee, or its nominee, for the benefit of the Certificateholders,
      in
      Permitted Investments as follows. All net earnings on Permitted Investments
      shall be for the benefit of [Thornburg], in its capacity as Servicer, except
      that the investment income with respect to the investment of funds in the
      Distribution Account made on the Business Day prior to each Distribution Date
      shall be for the benefit of the Master Servicer. All Permitted Investments
      made
      for the benefit of [Thornburg] shall be made at the written direction of
      [Thornburg] to the Master Servicer (or, if no such written direction is
      received, in investments of the type specified in clause (vi) of the definition
      of Permitted Investments), shall mature or be subject to redemption or
      withdrawal on or before, and shall be held until, the Business Day prior to
      the
      next succeeding Distribution Date. Any and all investment earnings from such
      Permitted Investments shall be paid to [Thornburg], and the risk of loss of
      moneys resulting from such investments shall be borne by and be the risk of
      [Thornburg]. [Thornburg] shall deposit the amount of any such loss in the
      Distribution Account within two Business Days of receipt of notification of
      such
      loss but not later than the next succeeding Distribution Date.

     

    All
      Permitted Investments made for the benefit of the Master Servicer shall be
      in
      such Permitted Investments as shall be selected by the Master Servicer and
      shall
      mature (and be subject to withdrawal and be held until) the next succeeding
      Distribution Date. Any and all investment earnings from such Permitted
      Investments shall be paid to the Master Servicer and the risk of loss on such
      Permitted Investments shall be borne by and be the risk of the Master Servicer.
      The Master Servicer shall deposit the amount of any such loss in the
      Distribution Account no later than the next succeeding Distribution
      Date.

     

    
      
        
        

      

      
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    SECTION
      4.03. Permitted
      Withdrawals and Transfers from the Distribution Account.

     

    (a) The
      Master Servicer will, from time to time on demand of a Servicer, the Securities
      Administrator, or for its own account as set forth below, make or cause to
      be
      made such withdrawals or transfers from the Distribution Account, in the case
      of
      a demand by a Servicer, as the applicable Servicer has designated for such
      transfer or withdrawal pursuant to the applicable Servicing Agreement, or in
      the
      case of a demand by the Securities Administrator as the Securities Administrator
      has demanded pursuant hereto, or as the Master Servicer has determined to be
      appropriate in accordance herewith, for the following purposes:

     

    (i) to
      reimburse the Master Servicer or any Servicer for any Advance of its own funds
      or of such Servicer’s own funds, the right of the Master Servicer or a Servicer
      to reimbursement pursuant to this subclause (i) being limited to amounts
      received on a particular Mortgage Loan (including, for this purpose, the
      Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
      represent late payments or recoveries of the principal of or interest on such
      Mortgage Loan respecting which such Advance was made;

     

    (ii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds or
      Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
      by the Master Servicer or such Servicer in good faith in connection with the
      restoration of the related Mortgaged Property which was damaged by an Uninsured
      Cause or in connection with the liquidation of such Mortgage Loan;

     

    (iii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds relating
      to a particular Mortgage Loan for insured expenses incurred with respect to
      such
      Mortgage Loan and to reimburse the Master Servicer or such Servicer from
      Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses
      incurred with respect to such Mortgage Loan; 

     

    (iv) to
      pay
      the Master Servicer or any Servicer, as appropriate, from Liquidation Proceeds
      or Insurance Proceeds received in connection with the liquidation of any
      Mortgage Loan, the amount which it or such Servicer would have been entitled
      to
      receive under subclause (viii) of this Subsection 4.03(a) as servicing
      compensation on account of each defaulted scheduled payment on such Mortgage
      Loan if paid in a timely manner by the related Mortgagor;

     

    (v) to
      pay
      the Master Servicer or any Servicer from the Purchase Price for any Mortgage
      Loan, the amount which it or such Servicer would have been entitled to receive
      under subclause (viii) of this Subsection (a) as servicing
      compensation;

     

    (vi) to
      reimburse the Master Servicer or any Servicer for servicing related advances
      of
      funds, the right to reimbursement pursuant to this subclause being limited
      to
      amounts received on the related Mortgage Loan (including, for this purpose,
      the
      Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
      represent late recoveries of the payments for which such servicing advances
      were
      made;

     

    (vii) to
      reimburse the Master Servicer or any Servicer for any Advance or advance, after
      a Realized Loss has been allocated with respect to the related Mortgage Loan
      if
      the Advance or advance has not been reimbursed pursuant to clauses (i) and
      (vi);

     

    
      
        
        

      

      
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    (viii) to
      pay
      the Master Servicer its monthly Master Servicing Fee and any investment income
      and other additional servicing compensation payable pursuant to Section
      3.14;

     

    (ix) to
      reimburse the Master Servicer or the Securities Administrator for any expenses
      recoverable by the Master Servicer or the Securities Administrator pursuant
      to
      Sections 3.03 and 3.31;

     

    (x) to
      pay
      [Thornburg], as a Servicer, any Prepayment Penalty Amounts and any earnings
      payable pursuant to Section 4.02(c), and to reimburse or pay any Servicer any
      such amounts as are due thereto under the applicable Servicing Agreement and
      have not been retained by or paid to the Servicer, to the extent provided in
      the
      related Servicing Agreement;

     

    (xi) to
      reimburse the Trustee and the Securities Administrator for expenses, costs
      and
      liabilities incurred by or reimbursable to it from funds of the Trust pursuant
      to Sections 3.30, 3.31 or 8.05 (including those related to the Custodian, to
      the
      extent not paid by [Thornburg]), and to reimburse the Trustee for any fees,
      costs and expenses costs incurred by or reimbursable to it pursuant to Section
      2.03(a), 7.01(b), 8.02, 8.05 or 8.07, to the extent not otherwise reimbursed
      to
      it;

     

    (xii) to
      make
      distributions of Retained Interest to the Retained Interest Holder on each
      Distribution Date;

     

    (xiii) to
      pay to
      [Thornburg] (in its capacity as a Servicer) all investment earnings on amounts
      on deposit in the Distribution Account to which it is entitled under Section
      4.02(c);

     

    (xiv) to
      remove
      amounts deposited in error; and 

     

    (xv) to
      clear
      and terminate the Distribution Account pursuant to Section 10.01. 

     

    (b) In
      addition, on or before the Business Day immediately preceding each Distribution
      Date, the Master Servicer shall deposit in the Distribution Account (or remit
      to
      the Securities Administrator for deposit therein) any Advances or Compensating
      Interest Payments, to the extent required but not made by the related Servicer
      and required to be made by the Master Servicer with respect to the Mortgage
      Loans.

     

    (c) The
      Securities Administrator or the Master Servicer shall keep and maintain separate
      accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
      accounting for any payments or reimbursements from the Distribution Account
      pursuant to subclauses (i) through (vii), inclusive, (ix) and (x) or with
      respect to any such amounts which would have been covered by such subclauses
      had
      the amounts not been retained by the Master Servicer without being deposited
      in
      the Distribution Account under Section 4.02(b).

     

    (d) In
      order
      to comply with its duties under the USA PATRIOT Act of 2001, the Securities
      Administrator shall obtain and verify certain information and documentation
      from
      the other parties hereto, including, but not limited to, each such party's
      name,
      address and other identifying information.

     

    
      
        
        

      

      
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    (e) On
      each
      Distribution Date, the Securities Administrator shall distribute the aggregate
      Available Funds to the Holders of the Certificates in accordance with Section
      5.01.

     

     

    ARTICLE
      V

     

    FLOW
      OF FUNDS

     

    SECTION
      5.01. Distributions.

     

    [May
      vary
      in accordance with transaction.]

     

    (a) On
      each
      Distribution Date and after making any withdrawals from the Distribution Account
      pursuant to Section 4.03(a), the Securities Administrator shall withdraw funds
      on deposit in the Distribution Account to the extent of Available Funds for
      each
      of Loan Group [   ], for such Distribution Date and, based on the
      Distribution Date Statement, make the following disbursements and transfers
      in
      the following order of priority:

     

    (i) the
      Available Funds for Loan Group [   ] shall be distributed on each
      Distribution Date in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class [   ] Certificates, the related
                Interest Distributable Amounts for such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

     

    
      	 	
              (B)

            	
              from
                the Principal Distribution Amount for Loan Group [   ] for
                such Distribution Date, an amount equal to the Senior Principal
                Distribution Amount for Loan Group [   ] for that
                Distribution Date, as follows:

            

    

     

    first,
      to the
      Holder of Class [   ], until the Class Certificate Principal
      Balance of such Class is reduced to zero; and

     

    second,
      to the
      Holders of the Class [   ] Certificates, concurrently, in
      proportion to their outstanding Class Certificate Principal Balances, until
      the
      respective Class Certificate Principal Balance of each such Class is reduced
      to
      zero;

    

    (ii) the
      Available Funds for Loan Group [   ] shall be distributed on each
      Distribution Date in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class [   ] Certificates, the related
                Interest Distributable Amounts for such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

    
      
        
        

      

      
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              (B)

            	
              from
                the Principal Distribution Amount for Loan Group [   ] for
                such Distribution Date, an amount equal to the Senior Principal
                Distribution Amount for Loan Group [   ] for that
                Distribution Date, to the Holders of the Class [   ]
                Certificates, until the Class Certificate Principal Balance of such
                Class
                is reduced to zero;

            

    

    

    (iii) the
      Available Funds for Loan Group [   ] shall be distributed on each
      Distribution Date in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class [   ] Certificates, the related
                Interest Distributable Amounts for such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

     

    
      	 	
              (B)

            	
              from
                the Principal Distribution Amount for Loan Group [   ] for
                such Distribution Date, an amount equal to the Senior Principal
                Distribution Amount for Loan Group [   ] for that
                Distribution Date, to the Holders of the Class [   ]
                Certificates, concurrently, in proportion to their outstanding Class
                Certificate Principal Balances, until the respective Class Certificate
                Principal Balance of each such Class is reduced to
                zero;

            

    

     

    (iv) the
      Available Funds remaining after giving effect to the distributions specified
      in
      subsections (i) through (iii) above will be distributed to the
      Certificateholders in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class B-[   ] Certificates, the related
                Interest Distributable Amount for that
                date;

            

    

     

    
      	 	
              (B)

            	
              to
                the Holders of the Class B-[   ] Certificates, an amount
                allocable to principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to
                zero;

            

    

    

     

    (b) Amounts
      to be paid to the Holders of a Class of Certificates pursuant to Section 5.01(a)
      shall be payable with respect to all Certificates of that Class, pro
      rata,
      based
      on the Certificate Principal Balance or Certificate Notional Balance, as
      applicable, of each Certificate of that Class.

     

    (c) [On
      each
      Distribution Date, the Securities Administrator, as Paying Agent, shall withdraw
      the Class ES Distributable Amount from funds on deposit in the Distribution
      Account and shall distribute such amounts to the Holders of the Class ES
      Certificates.]

     

    
      
        
        

      

      
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    (d) On
      each
      Distribution Date, the Interest Distributable Amounts for the Classes of Senior
      Certificates and Subordinate Certificates on such Distribution Date shall be
      reduced proportionately by Net Interest Shortfalls based on (A) in the case
      of
      the Senior Certificates, the Interest Distributable Amount otherwise
      distributable thereon and (B) in the case of the Subordinate Certificates,
      interest accrued at the related Subordinate Certificate Pass-Through Rate on
      the
      related Apportioned Principal Balance of each such Class, in each case before
      taking into account any reduction in those amounts due to such Net Interest
      Shortfalls; provided,
      however,
      that on
      any Distribution Date after the Senior Termination Date for a Loan Group, Net
      Interest Shortfalls for that Loan Group will be allocated to the Classes of
      Subordinate Certificates based on the amount of interest each such Class of
      Subordinate Certificates would otherwise be entitled to receive on such
      Distribution Date. 

     

    (e) Notwithstanding
      the priority and allocation set forth in Section 5.01(a)(iv) above, if with
      respect to any Class of Subordinate Certificates on any Distribution Date the
      sum of the related Class Subordination Percentages of such Class and of all
      other Classes of Subordinate Certificates which have a higher numerical Class
      designation than such Class (the “Applicable
      Credit Support Percentage”)
      is
      less than the Original Applicable Credit Support Percentage for such Class,
      no
      distribution of Principal Prepayments will be made to any such Classes (the
      “Restricted
      Classes”)
      and
      the amount of such Principal Prepayment otherwise distributable to the
      Restricted Classes shall be distributed to any Classes of Subordinate
      Certificates having lower numerical Class designations than such Class,
pro
      rata,
      based
      on the Class Certificate Principal Balances of the respective Classes
      immediately prior to such Distribution Date and shall be distributed in the
      sequential order provided in Section 5.01(a)(iv) above.

     

    (f) (i)
      Notwithstanding the priority and allocation set forth in Section 5.01(a)(i)
      through (iii) above, on each Distribution Date prior to the Senior Credit
      Support Depletion Date but after the date on which the aggregate Class
      Certificate Principal Balance of any Class of the Senior Certificates in
      Certificate Group [   ] has been reduced to zero, 100% of the
      Principal Prepayments on the Mortgage Loans in the Loan Group related to such
      retired Class of Senior Certificates otherwise distributable on each Class
      of
      Subordinate Certificates pursuant to Section 5.01(a)(iv), in reverse order
      of
      priority, shall be distributed as principal to the Senior Certificates in
      Certificate Group [   ] remaining outstanding pursuant to Section
      5.01(a) until the Class Certificate Principal Balances thereof have been reduced
      to zero, provided that on such Distribution Date either clause (i) or (ii)
      in
      the definition of the Two Times Test has not been met. On each Distribution
      Date
      on which any two of the Group [   ] Certificates remain
      outstanding, any amounts distributable pursuant to this Section 5.01(f)(i)
      shall
      be distributed in proportion to the aggregate Class Certificate Principal
      Balances of such remaining Classes of Senior Certificates in Certificate Group
      [   ] immediately prior to such Distribution Date.

     

    (ii) (A) On
      any
      Distribution Date on which any of the Group [   ] Certificates
      constitutes an Undercollateralized Group, all amounts otherwise distributable
      as
      Available Funds on the Subordinate Certificates, in reverse order of priority
      (or, following the Senior Credit Support Depletion Date, such other amounts
      described in the immediately following sentence), will be distributed as
      principal to the Senior Certificates of such Undercollateralized Group pursuant
      to Section 5.01(a) first,
      up to
      the sum of the Accrued Interest Amount and the Principal Deficiency Amount
      for
      the related Undercollateralized Group (such distribution, an “Undercollateralization
      Distribution”)
      and
second,
      to pay
      to the Subordinate Certificates and the Class [   ] Certificate
      in the same order and priority as provided in Section 5.01(a)(iv). In the event
      that any Group [   ] constitutes an Undercollateralized Group on
      any Distribution Date following the Senior Credit Support Depletion Date,
      Undercollateralization Distributions will be made from any Available Funds
      for a
      Loan Group not related to an Undercollateralized Group remaining after all
      required amounts have been distributed to the related Class of Senior
      Certificates. Undercollateralization Distributions will be applied first
      to pay
      accrued but unpaid interest, if any, and second
      to pay
      principal in the same priority and allocation provided in Section
      5.01(a).

    
      
        
        

      

      
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    (B) If
      on any
      Distribution Date any two of the Group [   ] Certificates are
      Undercollateralized Groups, the distribution described in paragraph (ii)(A)
      above will be made, in the case of Accrued Interest Amounts, pro
      rata
      based
      upon such Accrued Interest Amounts, and, in the case of Principal Deficiency
      Amounts, in proportion to the amount by which the aggregate Class Certificate
      Principal Balance of each Class of Senior Certificates relating to either Loan
      Group [   ], after giving effect to distributions pursuant to
      Section 5.01(a) on such Distribution Date, exceeds the Loan Group Balance of
      the
      related Loan Group for such Distribution Date.

     

    (g) Distributions
      on Physical Certificates.
      The
      Securities Administrator shall make distributions pursuant to Section 5.01
      and
      Section 5.02 in respect of a Distribution Date to each Certificateholder of
      record on the related Record Date (other than as provided in Section 10.01
      hereof respecting the final distribution), in the case of Certificateholders
      of
      the Physical Certificates, by check or money order mailed to such
      Certificateholder at the address appearing in the Certificate Register, or
      by
      wire transfer. Distributions among Certificateholders of a Class shall be made
      in proportion to the Percentage Interests evidenced by the Certificates of
      that
      Class held by such Certificateholders.

     

    (h) Distributions
      on Book-Entry Certificates.
      Each
      distribution pursuant to Section 5.01 and Section 5.02 with respect to a
      Book-Entry Certificate shall be paid to the Depository, which shall credit
      the
      amount of such distribution to the accounts of its Depository Participants
      in
      accordance with its normal procedures. Each Depository Participant shall be
      responsible for disbursing such distribution to the Certificate Owners that
      it
      represents and to each indirect participating brokerage firm (a “brokerage firm”
or “indirect participating firm”) for which it acts as agent. Each brokerage
      firm shall be responsible for disbursing funds to the Certificate Owners that
      it
      represents. All such credits and disbursements with respect to a Book-Entry
      Certificate are to be made by the Depository and the Depository Participants
      in
      accordance with the provisions of the Certificates. None of the Securities
      Administrator, Trustee, the Depositor or the Seller shall have any
      responsibility therefor.

     

    
      
        
        

      

      
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    SECTION
      5.02. [RESERVED].
      [Reserved
      for Flow of Funds relating to additional Loan Groups in accordance with each
      specific transaction]

     

    SECTION
      5.03. Allocation
      of [Net Deferred Interest] and Realized Losses.

     

    (a) [For
      any
      Distribution Date for which there is an amount of Net Deferred Interest with
      respect to the Group [   ] Mortgage Loans, such Net Deferred
      Interest will be allocated to each Class of Group [   ]
      Certificates, other than the Class [   ] Certificates, in an
      amount equal to the excess, if any, for each such Class of (i) the amount that
      would have been the Monthly Interest Distributable Amount for such Class had
      the
      Monthly Interest Distributable Amount been calculated based on the applicable
      Pass-Through Rate rather than the applicable Adjusted Pass-Through Rate, over
      (ii) the actual Monthly Interest Distributable Amount for such
      Date.]

     

    (b) On
      each
      Distribution Date, any amount of Net Deferred Interest allocable to a Class
      of
      Certificates (other than the Interest-Only Certificates) on such Distribution
      Date will be added as principal to the outstanding Class Principal Balance
      of
      such Class of Certificates. 

     

    (c) On
      or
      prior to each Determination Date, the Securities Administrator shall aggregate
      the loan-level information provided by the Master Servicer with respect to
      the
      total amount of Realized Losses, if any, with respect to the Mortgage Loans
      in
      each Loan Group for the related Distribution Date and include such information
      in the Distribution Date Statement.

     

    (d) Realized
      Losses with respect to each Loan Group shall be allocated on any Distribution
      Date as follows:

     

    first,
      to the
      Subordinate Certificates in reverse order of their respective numerical Class
      designations (beginning with the Class of Subordinate Certificates with the
      highest numerical Class designation) until the Class Certificate Principal
      Balance of each such Class is reduced to zero; and

     

    second, 

     

    (A) with
      respect to Loan Group [   ], to the Class [   ]
      Certificates, pro
      rata,
      until
      the Class Certificate Principal Balance of each such Class is reduced to zero;
      provided,
      however,
      that any
      such Realized Losses that would otherwise be allocated to the Class
      [   ] Certificates shall instead be allocated to the Class
      [   ] Certificates until the Class Certificate Principal Balance
      of the Class [   ] Certificates has been reduced to zero;
      and

     

    (B) with
      respect to Loan Group [   ], to the Class [   ]
      Certificates, until the Class Certificate Principal Balance of such Class is
      reduced to zero; 

     

    (e) The
      Class
      Certificate Principal Balance of the Class of Subordinate Certificates then
      outstanding with the highest numerical Class designation shall be reduced on
      each Distribution Date by the amount, if any, by which the aggregate of the
      Class Certificate Principal Balances of all outstanding Classes of Certificates
      (after giving effect to the distribution of principal and the allocation of
      Realized Losses on such Distribution Date) exceeds the aggregate of the Stated
      Principal Balances of all the Mortgage Loans for the following Distribution
      Date. 

     

    
      
        
        

      

      
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    (f) Any
      Realized Loss allocated to a Class of Certificates or any reduction in the
      Class
      Certificate Principal Balance of a Class of Certificates pursuant to Section
      5.03[   ] shall be allocated among the Certificates of such
      Class, pro
      rata,
      in
      proportion to their respective Certificate Principal Balances.

     

    (g) Any
      allocation of Realized Losses to a Certificate or any reduction in the
      Certificate Principal Balance of a Certificate pursuant to Section
      5.03[   ] shall be accomplished by reducing the Certificate
      Principal Balance thereof immediately following the distributions made on the
      related Distribution Date in accordance with the definition of “Certificate
      Principal Balance.”

     

    SECTION
      5.04. Statements. 

     

    (a) Concurrently
      with each distribution to Certificateholders, the Securities Administrator
      shall
      make available to each Certificateholder, the Seller, the Master Servicer,
      the
      Trustee and the Rating Agencies, a statement based, as applicable, on loan-level
      information provided to it by the Master Servicer and the Servicers (the
“Distribution
      Date Statement”)
      as to
      the distributions to be made or made, as applicable, on such Distribution Date.
      The Distribution Date Statement shall include the following:

     

    (i)   the
      amount of the distribution made on such Distribution Date to the Holders of
      each
      Class of Certificates allocable to principal;

     

    (ii)   the
      amount of the distribution made on such Distribution Date to the Holders of
      each
      Class of Certificates allocable to interest;

     

    (iii)   the
      Senior Percentage, Senior Prepayment Percentage, Subordinate Percentage and
      Subordinate Prepayment Percentage with respect to each Loan Group
      [   ] for the following Distribution Date;

     

    (iv)   [reserved];

     

    (v)   the
      aggregate amount of servicing compensation received by each Servicer during
      the
      related Due Period;

     

    (vi)   the
      aggregate amount of Advances for the related Due Period and the amount of
      unreimbursed Advances as reported by each Servicer;

     

    (vii)  the
      Loan
      Group Balance and related Net WAC for each Loan Group at the Close of Business
      at the end of the related Due Period;

     

    (viii) [reserved].

     

    (ix)   the
      aggregate Principal Balance of the One-Month LIBOR Indexed, Six-Month LIBOR
      Indexed, One-Year LIBOR Indexed and One-Year MTA Indexed Mortgage Loans at
      the
      Close of Business at the end of the related Due Period;

     

    
      
        
        

      

      
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    (x)   the
      amount of the Master Servicer Fees paid to or retained by the Master
      Servicer;

     

    (xi)   the
      aggregate amount of Servicing Fees paid to or retained by the
      Servicers;

     

    (xii)  to
      the
      extent that such amounts are paid out of the Distribution Account, the amount
      of
      fees, expenses or indemnification amounts paid by the Trust with an
      identification of the general purpose of such amounts and the party receiving
      such amounts;

     

    (xiii) for
      each
      Loan Group, the number, weighted average remaining term to maturity, weighted
      average life and weighted average Loan Rate of the related Mortgage Loans as
      of
      the related Due Date;

     

    (xiv) the
      number and aggregate unpaid principal balance of Mortgage Loans, in the
      aggregate and for each Loan Group, using the “MBA” method (a) 30 to 59 days
      Delinquent, (b) 60 to 89 days Delinquent, (c) 90 or more days Delinquent, (d)
      as
      to which foreclosure proceedings have been commenced and (e) in bankruptcy,
      in
      each case as of the close of business on the last day of the preceding calendar
      month;

     

    (xv)  the
      rolling six-month delinquency rate for that Distribution Date;

     

    (xvi) the
      total
      number and cumulative principal balance of all REO Properties in each Loan
      Group
      as of the Close of Business of the last day of the preceding Due
      Period;

     

    (xvii) the
      aggregate amount of Principal Prepayments and Prepayment Penalty Amounts with
      respect to each Loan Group made during the related Prepayment
      Period;

     

    (xviii) the
      aggregate amount of Realized Losses for each Loan Group and Recoveries incurred
      during the related Due Period and the cumulative amount of Realized Losses
      and
      Recoveries as of such Distribution Date;

     

    (xix) the
      cumulative amount of Realized Losses for each Loan Group;

     

    (xx) the
      Realized Losses and Recoveries, if any, allocated to each Class of Certificates
      on the related Distribution Date;

     

    (xxi) the
      Class
      Certificate Principal Balance of each Class of Certificates and the Apportioned
      Principal Balances of the Subordinate Certificates after giving effect to any
      distributions made thereon, on such Distribution Date;

     

    (xxii) the
      Interest Distributable Amount in respect of each Class of Certificates, for
      such
      Distribution Date and the respective portions thereof, if any, remaining unpaid
      following the distributions made in respect of such Certificates on such
      Distribution Date;

     

    (xxiii) the
      aggregate amount of any Net Interest Shortfalls and the Unpaid Interest
      Shortfall Amount for such Distribution Date;

     

    (xxiv) the
      Available Funds with respect to each Loan Group;

     

    
      
        
        

      

      
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    (xxv) the
      Pass-Through Rate for each Class of Certificates for such Distribution Date
      

     

    (xxvi) the
      aggregate Principal Balance of Mortgage Loans purchased hereunder by the Seller
      during the related Due Period; 

     

    (xxvii) the
      amount of any Principal Deficiency Amounts or Accrued Interest Amounts paid
      to
      an Undercollateralized Group or amounts paid pursuant to Section
      5.01(f)(i);

     

    (xxviii) the
      total
      number of Mortgage Loans in the aggregate and the aggregate Stated Principal
      Balance for the Group [   ] Mortgage Loans (also separately
      stating such information for the [Adjustable Rate Mortgage Loans, the Three-Year
      Hybrid Mortgage Loans and the Five-Year Hybrid Mortgage Loans]) [(also stating
      separately such information for Negative Amortization Loans)], in each case
      at
      the close of business at the end of the related Due Period;

     

    (xxix) with
      respect to the Group [   ] Mortgage Loans, the amount of any
      Deferred Interest and Net Deferred Interest, if any, and the amount of any
      Net
      Deferred Interest, if any, added to the Class Principal Balance of the Group
      [   ] Certificates; and

     

    (xxx) [with
      respect to Mortgage Loans serviced by [     ], but only
      if such Mortgage Loans were subject to a modification of terms made during
      the
      related Due Period as part of a loss mitigation strategy, the following
      items:

     

    (b) the
      percentage (by outstanding Principal Balance) and the number of Mortgage Loans
      that were modified in the related Due Period;

     

    (c) the
      cumulative percentage (by Cut-Off Date Principal Balance) of modified mortgage
      loans;

     

    (d) the
      amount of principal forgiven with respect to modified Mortgage Loans for the
      related Due Period;

     

    (e) the
      cumulative amount of principal forgiven with respect to modified Mortgage Loans
      from the Closing Date;

     

    (f) the
      percentage (by outstanding Principal Balance) of modified Mortgage Loans that
      are included in the delinquency trigger calculation for purposes of the Step
      Down Conditions, the Two Times Test, the Group [   ] Step Down
      Conditions and the Group [   ] Two Times Test;

     

    (g) the
      delinquency status of the modified Mortgage Loans both pre- and post-
      modification;

     

    (h) the
      number of times the Mortgage Loan has been subject to modification;

     

    (i) the
      effective date of the modification;

     

    
      
        
        

      

      
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    (j) the
      number of modifications made to Mortgage Loans in the last twelve
      months;

     

    (k) the
      percentage (by outstanding Principal Balance) of modified Mortgage Loans that
      are current or delinquent in payment and the delinquency status of the modified
      Mortgage Loans from the Closing Date; and

     

    (l) the
      Loan
      Rate of the modified Mortgage Loans pre- and post- modification.]

     

    The
      Securities Administrator will make the Distribution Date Statement (and, at
      its
      option, any additional files containing the same information in an alternative
      format) available each month to Certificateholders and the other parties to
      this
      Agreement via the Securities Administrator’s internet website. The Securities
      Administrator’s internet website shall initially be located at “[     ].”
      Assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at [     ].
      Parties that are unable to use the above distribution option are entitled to
      have a paper copy mailed to them via first class mail by calling the customer
      service desk and indicating such. The Securities Administrator shall have the
      right to change the way such reports are distributed in order to make such
      distribution more convenient and/or more accessible to the parties, and the
      Securities Administrator shall provide timely and adequate notification to
      all
      parties regarding any such change.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed in a separate section of the report as a dollar
      amount for each Class for each $1,000 original dollar amount as of the Cut-Off
      Date.

     

    (m) Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall, upon written request, furnish to each Person who at any
      time during the calendar year was a Certificateholder of a Regular Certificate,
      if requested in writing by such Person, such information as is reasonably
      necessary to provide to such Person a statement containing the information
      set
      forth in subclauses (i), (ii) and (iv) above, aggregated for such calendar
      year
      or applicable portion thereof during which such Person was a Certificateholder
      and such other customary information which a Certificateholder reasonably
      requests to prepare its tax returns. Such obligation of the Securities
      Administrator shall be deemed to have been satisfied to the extent that
      substantially comparable information shall be prepared and furnished by the
      Securities Administrator to Certificateholders pursuant to any requirements
      of
      the Code as are in force from time to time.

     

    (n) On
      each
      Distribution Date, the Securities Administrator shall supply an electronic
      tape
      to Bloomberg Financial Markets, Inc. in a format acceptable to Bloomberg
      Financial Markets, Inc. on a monthly basis, and shall supply an electronic
      tape
      to Loan Performance and Intex Solutions in a format acceptable to Loan
      Performance and Intex Solutions on a monthly basis.

     

    SECTION
      5.05. Remittance
      Reports; Advances. 

     

    (a) No
      later
      than the second Business Day following each Determination Date, the Master
      Servicer shall deliver to the Securities Administrator by telecopy or electronic
      mail (or by such other means as the Master Servicer and the Securities
      Administrator may agree from time to time) the Remittance Report with respect
      to
      the related Distribution Date. Not later than the Close of Business New York
      time three Business Days prior to the related Distribution Date, the Master
      Servicer shall deliver or cause to be delivered to the Securities Administrator
      in addition to the information provided on the Remittance Report, such other
      loan-level information reasonably available to it with respect to the Mortgage
      Loans as the Securities Administrator may reasonably require to perform the
      calculations necessary to make the distributions contemplated by Section 5.01.
      

    

      
        
          
          

        

        
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    (b) If
      the
      Monthly Payment on a Mortgage Loan that was due on a related Due Date and is
      delinquent, other than as a result of application of the Relief Act, and for
      which the related Servicer was required to make an advance pursuant to the
      related Servicing Agreement exceeds the amount deposited in the Distribution
      Account which will be used for an advance with respect to such Mortgage Loan,
      the Master Servicer, as successor servicer, will deposit in the Distribution
      Account not later than the Business Day immediately preceding the related
      Distribution Date an amount equal to such deficiency, net of the Servicing
      Fee
      and the Master Servicing Fee, for such Mortgage Loan except to the extent the
      Master Servicer determines any such Advance to be Nonrecoverable from
      Liquidation Proceeds, Insurance Proceeds or future payments on the Mortgage
      Loan
      for which such Advance was made. Subject to the foregoing, the Master Servicer
      shall continue to make such Advances through the date that the related Servicer
      is required to do so under its Servicing Agreement. If applicable, on the
      Business Day immediately preceding the related Distribution Date, the Master
      Servicer shall present an Officer’s Certificate to the Securities Administrator
      and the Trustee (i) stating that the Master Servicer elects not to make a
      Advance in a stated amount and (ii) detailing the reason it deems the advance
      to
      be Nonrecoverable.

     

    SECTION
      5.06. Compensating
      Interest Payments.

     

    The
      amount of the Master Servicing Fee payable to the Master Servicer in respect
      of
      any Distribution Date shall be reduced (but not below zero) by the amount of
      any
      Compensating Interest Payment for such Distribution Date, but only to the extent
      that Interest Shortfalls relating to such Distribution Date are required to
      be
      paid but are not actually paid by the related Servicers on the applicable
      Servicer Remittance Date. Such amount shall not be treated as an Advance and
      shall not be reimbursable to the Master Servicer.

     

    SECTION
      5.07. [Reserved].

     

    SECTION
      5.08. [Reserved].

     

    SECTION
      5.09. [Reserved].

     

    SECTION
      5.10. Recoveries.

     

    (a) The
      Class
      Certificate Principal Balance of any Class of Certificates to which a Realized
      Loss has been allocated (including any such Class for which the related Class
      Certificate Principal Balance has been reduced to zero) will be increased up
      to
      the amount of Recoveries for such Distribution Date as follows:

     

    
      
        
        

      

      
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    (i) first,
      to
      increase the Class Certificate Principal Balance of each such Class of Senior
      Certificates of the related Loan Group, up to the amount of Realized Losses
      previously allocated to reduce the Class Certificate Principal Balance for
      each
      such Class, and

     

    (ii) second,
      to
      increase the Class Certificate Principal Balance of each such Class of
      Subordinate Certificates, in each case in order of seniority, up to the amount
      of Realized Losses previously allocated to reduce the Class Certificate
      Principal Balance for each such Class.

     

    (b) Any
      increase to the Class Certificate Principal Balance of a Class of Certificates
      shall increase the Certificate Principal Balance of each Certificate of the
      related Class pro
      rata
      in
      accordance with the applicable Percentage Interest.

     

     

    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01. The
      Certificates.

     

    The
      Certificates shall be substantially in the form annexed hereto as Exhibit A
      through E. Each of the Certificates shall, on original issue, be executed by
      the
      Securities Administrator, and authenticated and delivered by the Securities
      Administrator upon the written order of the Depositor concurrently with the
      sale
      and assignment to the Trustee of the Trust Fund. Each Class of the Regular
      Certificates shall be initially evidenced by one or more Certificates
      representing a Percentage Interest with a minimum dollar denomination of
      $[   ] and integral dollar multiples of $1 in excess thereof
      (provided,
      that,
      such Certificates must be purchased in minimum total investments of at least
      $[   ]), except that one Certificate of each such Class of
      Certificates may be in a different denomination so that the sum of the
      denominations of all outstanding Certificates of such Class shall equal the
      Class Certificate Principal Balance or Class Certificate Notional Balance of
      such Class on the Closing Date. Each of the Class [   ]
      Certificates are issuable only in a Percentage Interest of 100%. [The Class
      ES
      Certificates shall be issued in a minimum Percentage Interest of 1% and in
      integral multiples of 1% in excess thereof].

    The
      Certificates shall be executed on behalf of the Trust by manual or facsimile
      signature on behalf of the Trustee by a Responsible Officer or the Securities
      Administrator. Certificates bearing the manual or facsimile signatures of
      individuals who were, at the time when such signatures were affixed, authorized
      to sign on behalf of the Trustee or Securities Administrator shall bind the
      Trust, notwithstanding that such individuals or any of them have ceased to
      be so
      authorized prior to the authentication and delivery of such Certificates or
      did
      not hold such offices at the date of such Certificate. No Certificate shall
      be
      entitled to any benefit under this Agreement or be valid for any purpose, unless
      such Certificate shall have been manually authenticated by the Trustee or
      Securities Administrator substantially in the form provided for herein, and
      such
      authentication upon any Certificate shall be conclusive evidence, and the only
      evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their authentication.
      Subject to Section 6.02(c), the Senior Certificates (other than the Classes
      Residual Certificates) and each Class of Subordinate Certificates shall be
      Book-Entry Certificates. Each Class of Residual Certificates [and Class ES
      Certificates] shall each be issued as Physical Certificates in definitive,
      fully
      registered form with the applicable legends set forth in Exhibit C-1 and Exhibit
      C-2, respectively.

    
       

      
        
          
          

        

        
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    The
      Private Certificates shall be offered and sold in reliance on the exemption
      from
      registration under Rule 144A of the Securities Act and shall be issued initially
      in the form of one or more permanent global Certificates in definitive, fully
      registered form with the applicable legends set forth in Exhibit D-1 (each,
      a
“Restricted
      Global Security”),
      which
      shall be deposited on behalf of the subscribers for such Certificates
      represented thereby with the Securities Administrator, as custodian for DTC
      and
      registered in the name of a nominee of DTC, duly executed and authenticated
      by
      the Securities Administrator as hereinafter provided. The aggregate principal
      amounts of the Restricted Global Securities may from time to time be increased
      or decreased by adjustments made on the records of the Securities Administrator
      and DTC or its nominee, as the case may be, as hereinafter
      provided.

     

    SECTION
      6.02. Registration
      of Transfer and Exchange of Certificates. 

     

    (a) The
      Certificate Registrar shall cause to be kept at the Corporate Trust Office
      a
      Certificate Register in which, subject to such reasonable regulations as it
      may
      prescribe, the Certificate Registrar shall provide for the registration of
      Certificates and of transfers and exchanges of Certificates as herein provided.
      The Securities Administrator shall initially serve as Certificate Registrar
      for
      the purpose of registering Certificates and transfers and exchanges of
      Certificates as herein provided.

     

    Upon
      surrender for registration of transfer of any Certificate at any office or
      agency of the Certificate Registrar maintained for such purpose pursuant to
      the
      foregoing paragraph (or, so long as the Securities Administrator serves as
      Certificate Registrar, the office of the Certificate Registrar located at
      [      ], or such other office or agency that the
      Certificate Registrar shall designate), the Securities Administrator on behalf
      of the Trust shall execute, authenticate and deliver, in the name of the
      designated transferee or transferees, one or more new Certificates of the same
      aggregate Percentage Interest.

    At
      the
      option of the Certificateholders, Certificates may be exchanged for other
      Certificates in authorized denominations and the same aggregate Percentage
      Interests, upon surrender of the Certificates to be exchanged at any such office
      or agency. Whenever any Certificates are so surrendered for exchange, the
      Securities Administrator shall execute on behalf of the Trust and authenticate
      and deliver the Certificates which the Certificateholder making the exchange
      is
      entitled to receive. Every Certificate presented or surrendered for registration
      of transfer or exchange shall (if so required by the Securities Administrator
      or
      the Certificate Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer satisfactory to the Securities Administrator and the
      Certificate Registrar duly executed by, the Holder thereof or his attorney
      duly
      authorized in writing.

     

    (b) Except
      as
      provided in paragraph (c) or (d) below, the Book-Entry Certificates shall at
      all
      times remain registered in the name of the Depository or its nominee and at
      all
      times: (i) registration of such Certificates may not be transferred by the
      Securities Administrator or the Certificate Registrar except to another
      Depository; (ii) the Depository shall maintain book-entry records with respect
      to the Certificate Owners and with respect to ownership and transfers of such
      Certificates; (iii) ownership and transfers of registration of such Certificates
      on the books of the Depository shall be governed by applicable rules established
      by the Depository; (iv) the Depository may collect its usual and customary
      fees,
      charges and expenses from its Depository Participants; (v) the Trustee, the
      Securities Administrator and the Certificate Registrar shall for all purposes
      deal with the Depository as representative of the Certificate Owners of the
      Certificates for purposes of exercising the rights of Holders under this
      Agreement, and requests and directions for and votes of such representative
      shall not be deemed to be inconsistent if they are made with respect to
      different Certificate Owners; (vi) the Trustee, the Securities Administrator
      and
      the Certificate Registrar may rely and shall be fully protected in relying
      upon
      information furnished by the Depository with respect to its Depository
      Participants and furnished by the Depository Participants with respect to
      indirect participating firms and Persons shown on the books of such indirect
      participating firms as direct or indirect Certificate Owners; and (vii) the
      direct participants of the Depository shall have no rights under this Agreement
      under or with respect to any of the Certificates held on their behalf by the
      Depository, and the Depository may be treated by the Securities Administrator,
      the Certificate Registrar and their respective agents, employees, officers
      and
      directors as the absolute owner of the Certificates for all purposes
      whatsoever.

    
       

      
        
          
          

        

        
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    All
      transfers by Certificate Owners of Book-Entry Certificates shall be made in
      accordance with the procedures established by the Depository Participant or
      brokerage firm representing such Certificate Owners. Each Depository Participant
      shall only transfer Book-Entry Certificates of Certificate Owners that it
      represents or of brokerage firms for which it acts as agent in accordance with
      the Depository’s normal procedures. The parties hereto are hereby authorized to
      execute a Letter of Representations with the Depository or take such other
      action as may be necessary or desirable to register a Book-Entry Certificate
      to
      the Depository. In the event of any conflict between the terms of any such
      Letter of Representation and this Agreement, the terms of this Agreement shall
      control.

     

    (c) If
      (i)(x)
      the Depository or the Depositor advises the Trustee or the Securities
      Administrator in writing that the Depository is no longer willing or able to
      discharge properly its responsibilities as Depository and (y) the Trustee,
      the
      Securities Administrator or the Depositor is unable to locate a qualified
      successor or (ii) after the occurrence and continuation of an Event of Default,
      Holders of Book-Entry Certificates having not less than 51% of the aggregate
      Certificate Principal Balance of the Certificates advise the Trustee, the
      Securities Administrator and the Depository in writing through the Depository
      Participants that the continuation of a book-entry system with respect to
      Certificates through the Depository (or its successor) is no longer in the
      best
      interests of the Holders, then the Trustee or the Securities Administrator
      shall
      request that the Depository notify all Holders of the occurrence of any such
      event and of the availability of definitive, fully registered Certificates
      to
      Holders requesting the same. Upon surrender to the Certificate Registrar of
      the
      Book-Entry Certificates by the Depository, accompanied by registration
      instructions from the Depository for registration, the Securities Administrator
      shall, at the Seller’s expense, execute on behalf of the Trust and authenticate
      definitive, fully registered certificates (the “Definitive
      Certificates”).
      None
      of the Depositor, the Securities Administrator or the Trustee shall be liable
      for any delay in delivery of such instructions and may conclusively rely on,
      and
      shall be protected in relying on, such instructions. Upon the issuance of
      Definitive Certificates, the Trustee, the Securities Administrator, the
      Certificate Registrar, any Paying Agent and the Depositor shall recognize the
      Holders of the Definitive Certificates as Certificateholders
      hereunder.

     

    
      
        
        

      

      
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    (d) No
      transfer, sale, pledge or other disposition of any Private Certificate shall
      be
      made unless such disposition is exempt from the registration requirements of
      the
      Securities Act, and any applicable state securities laws or is made in
      accordance with the Securities Act and laws. Any Private Certificates sold
      to an
“accredited investor” under Rule 501(a)(1), (2), (3) or (7) under the Securities
      Act shall be issued only in the form of one or more Definitive Certificates
      and
      the records of the Securities Administrator and DTC or its nominee shall be
      adjusted to reflect the transfer of such Definitive Certificates. In the event
      of any transfer of any Private Certificate in the form of a Definitive
      Certificate, the transferee shall certify (i) (A) such transfer is made to
      a
      Qualified Institutional Buyer in reliance upon Rule 144A (as evidenced by the
      investment letter delivered to the Securities Administrator, in substantially
      the form attached hereto as Exhibit J-2) under the Securities Act, or (B) such
      transfer is made to an “accredited investor” under Rule 501(c)(1), (2), (3) or
      (7) under the Securities Act (as evidenced by an investment letter delivered
      to
      the Securities Administrator, in substantially the form attached hereto as
      Exhibit J-1, and, if so required by the Securities Administrator, a written
      Opinion of Counsel (which may be in-house counsel) acceptable to and in form
      and
      substance reasonably satisfactory to the Securities Administrator is delivered
      to the Securities Administrator that such transfer may be made pursuant to an
      exemption, describing the applicable exemption and the basis therefor, from
      the
      Securities Act or is being made pursuant to the Securities Act, which Opinion
      of
      Counsel shall not be an expense of the Trustee, the Securities Administrator
      or
      the Depositor or (ii) the Securities Administrator shall require the transferor
      to execute a transferor certificate and the transferee to execute an investment
      letter acceptable to and in form and substance reasonably satisfactory to the
      Depositor and the Securities Administrator certifying to the Depositor and
      the
      Securities Administrator the facts surrounding such transfer, which investment
      letter shall not be an expense of the Trustee, the Securities Administrator
      or
      the Depositor. Each Holder of a Private Certificate desiring to effect such
      transfer shall, and does hereby agree to, indemnify the Trustee, the Securities
      Administrator, the Seller 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. Notwithstanding the foregoing, any transfer made to
      [Thornburg] or to another Affiliate of [Thornburg] will not require any
      investment letter or Opinion of Counsel specified above.

    In
      the
      case of a Private Certificate that is a Book-Entry Certificate, for purposes
      of
      the preceding paragraph, the representations set forth in the investment letter
      in clause (i) shall be deemed to have been made to the Securities Administrator
      by the transferee’s acceptance of such Private Certificate that is also a
      Book-Entry Certificate (or the acceptance by a Certificate Owner of the
      beneficial interest in such Certificate).

     

    Except
      for any transfer made to [Thornburg] or to another Affiliate of [Thornburg],
      no
      transfer of an ERISA-Restricted Certificate in the form of a Definitive
      Certificate shall be made unless the Securities Administrator shall have
      received either (i) a representation from the transferee of such Certificate,
      acceptable to and in form and substance satisfactory to the Securities
      Administrator (such requirement is satisfied only by the Securities
      Administrator’s receipt of a representation letter from the transferee
      substantially in the form of Exhibit I hereto), to the effect that such
      transferee is not an employee benefit plan subject to ERISA or a plan or
      arrangement subject to Section 4975 of the Code, nor a person acting on behalf
      of any such plan or arrangement nor using the assets of any such plan or
      arrangement to effect such transfer or (ii) such Certificate is subject to
      an
      ERISA-Qualifying Underwriting and if the purchaser is an insurance company,
      a
      representation that the purchaser is an insurance company which is purchasing
      such Certificates with funds contained in an “insurance company general account”
(as such term is defined in Section V(e) of Prohibited Transaction Class
      Exemption 95-60 (“PTCE
      95-60”)
      and
      that the purchase and holding of such Certificates are covered under Sections
      I
      and III of PTCE 95-60 or (iii) an Opinion of Counsel satisfactory to the
      Securities Administrator, addressed to the Securities Administrator, to the
      effect that the purchase and holding of such ERISA-Restricted Certificate that
      is also a Physical Certificate will not result in a non-exempt prohibited
      transaction under Section 406 of ERISA or Section 4975 of the Code and will
      not
      subject the Trustee, the Master Servicer, any Servicer, the Securities
      Administrator or the Depositor to any obligation or liability in addition to
      those expressly undertaken in this Agreement, which Opinion of Counsel shall
      not
      be at the expense of the Trust or any of the above parties. Notwithstanding
      anything else to the contrary herein, any purported transfer of an
      ERISA-Restricted Certificate that is also a Physical Certificate to an employee
      benefit plan subject to ERISA or Section 4975 of the Code without the delivery
      to the Securities Administrator of a representation or an Opinion of Counsel
      satisfactory to the Securities Administrator as described above shall be void
      and of no effect.

    
       

      
        
          
          

        

        
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    In
      the
      case of an ERISA-Restricted Certificate that is a Book-Entry Certificate, for
      purposes of clauses (i) or (ii) of the first sentence of the preceding
      paragraph, such representations shall be deemed to have been made to the
      Securities Administrator by the transferee’s acceptance of such ERISA-Restricted
      Certificate that is also a Book-Entry Certificate (or the acceptance by a
      Certificate Owner of the beneficial interest in such Certificate).

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      none of the Trustee, the Securities Administrator nor the Certificate Registrar
      shall have any liability to any Person for any registration of transfer of
      any
      ERISA-Restricted Certificate that is in fact not permitted by this Section
      6.02(d) or for making any payments due on such Certificate to the Holder thereof
      or taking any other action with respect to such Holder under the provisions
      of
      this Agreement so long as the transfer was registered by the Securities
      Administrator or the Certificate Registrar in accordance with the foregoing
      requirements. In addition, none of the Trustee, the Securities Administrator
      nor
      the Certificate Registrar shall be required to monitor, determine or inquire
      as
      to compliance with the transfer restrictions with respect to any such
      Certificate in the form of a Book-Entry Certificate, and neither the Securities
      Administrator nor the Certificate Registrar shall have any liability for
      transfers of Book-Entry Certificates or any interests therein made in violation
      of the restrictions on transfer described in the Prospectus Supplement and
      this
      Agreement.

    (e) Each
      Person who has or who acquires any Ownership Interest in the Class
      [   ] Certificate shall be deemed by the acceptance or
      acquisition of such Ownership Interest to have agreed to be bound by the
      following provisions and to have irrevocably appointed the Depositor or its
      designee as its attorney-in-fact to negotiate the terms of any mandatory sale
      under clause (v) below and to execute all instruments of transfer and to do
      all
      other things necessary in connection with any such sale, and the rights of
      each
      Person acquiring any Ownership Interest in a Residual Certificate are expressly
      subject to the following provisions:

    
       

      
        
          
          

        

        
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    (i) Each
      Person holding or acquiring any Ownership Interest in a Class
      [   ] Certificate shall be a Permitted Transferee who acquires
      such Ownership Interest in a Class [   ] Certificate for its own
      account and not in the capacity as trustee, nominee or agent for another Person
      and shall promptly notify the Securities Administrator of any change or
      impending change in its status as such a Permitted Transferee.

     

    (ii) No
      Ownership Interest in a Residual Certificate may be registered on the Closing
      Date and no Ownership Interest in a Residual Certificate may thereafter be
      transferred, and the Securities Administrator shall not register the Transfer
      of
      a Residual Certificate unless, in addition to the certificates required to
      be
      delivered under subsection (d) above, the Securities Administrator shall have
      been furnished with an affidavit (“Transfer
      Affidavit”)
      of the
      initial owner of such Residual Certificate, or proposed transferee of a Residual
      Certificate in the form attached hereto as Exhibit L.

     

    (iii) In
      connection with any proposed transfer of any Ownership Interest in a Residual
      Certificate, the Securities Administrator shall as a condition to registration
      of the transfer, require delivery to it of a Transferor Certificate in the
      form
      of Exhibit K hereto from the proposed transferor to the effect that the
      transferor (a) has no knowledge the proposed Transferee is not a Permitted
      Transferee acquiring an Ownership Interest in such Residual Certificate, as
      applicable, for its own account and not in a capacity as trustee, nominee,
      or
      agent for another Person, and (b) has not undertaken the proposed transfer
      in
      whole or in part to impede the assessment or collection of tax.

     

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section shall be absolutely
      null and void and shall vest no rights in the purported transferee. If any
      purported transferee shall, in violation of the provisions of this Section,
      become a Holder of such Residual Certificate, then the prior Holder of such
      Residual Certificate that is a Permitted Transferee shall, upon discovery that
      the registration of Transfer of such Residual Certificate was not in fact
      permitted by this Section, be restored to all rights as Holder thereof
      retroactive to the date of registration of transfer of such Residual
      Certificate. None of the Trustee, the Securities Administrator or the
      Certificate Registrar shall have any liability to any Person for any
      registration of Transfer of a Residual Certificate that is in fact not permitted
      by this Section or for making any distributions due on a Residual Certificate
      to
      the Holder thereof or taking any other action with respect to such Holder under
      the provisions of this Agreement so long as, with respect to the Securities
      Administrator, it has received the documents specified in clause (iii). The
      Securities Administrator shall be entitled to recover from any Holder of such
      Residual Certificate that was in fact not a Permitted Transferee at the time
      such distributions were made all distributions made on such Residual
      Certificate. Any such distributions so recovered by the Securities Administrator
      shall be distributed and delivered by the Securities Administrator to the last
      Holder of such Residual Certificate that is a Permitted Transferee.

     

    
      
        
        

      

      
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    (v) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Securities Administrator shall have the right but not the obligation, without
      notice to the Holder of such Residual Certificate or any other Person having
      an
      Ownership Interest therein, to notify the Depositor to arrange for the sale
      of
      such Residual Certificate. The proceeds of such sale, net of commissions (which
      may include commissions payable to the Depositor or its affiliates in connection
      with such sale), expenses and taxes due, if any, will be remitted by the
      Securities Administrator to the previous Holder of such Residual Certificate
      that is a Permitted Transferee, except that in the event that the Securities
      Administrator determines that the Holder of such Residual Certificate may be
      liable for any amount due under this Section or any other provisions of this
      Agreement, the Securities Administrator may withhold a corresponding amount
      from
      such remittance as security for such claim. The terms and conditions of any
      sale
      under this clause (v) shall be determined in the sole discretion of the
      Securities Administrator and it shall not be liable to any Person having an
      Ownership Interest in such Residual Certificate as a result of its exercise
      of
      such discretion.

     

    (vi) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Securities Administrator upon receipt of reasonable compensation will provide
      to
      the Internal Revenue Service, and to the persons specified in Sections
      860E(e)(3) and (6) of the Code, information needed to compute the tax imposed
      under Section 860E(e)(5) of the Code on transfers of residual interests to
      disqualified organizations.

     

    The
      foregoing provisions of this Section shall cease to apply to transfers occurring
      on or after the date on which there shall have been delivered to the Trustee,
      the Securities Administrator and the Servicer, in form and substance
      satisfactory to the Trustee and the Securities Administrator, (i) written
      notification from each Rating Agency that the removal of the restrictions on
      Transfer set forth in this Section will not cause such Rating Agency to
      downgrade its ratings of the Certificates [and (ii) an Opinion of Counsel to
      the
      effect that such removal will not cause either REMIC created hereunder to fail
      to qualify as a REMIC].

     

    (f) No
      service charge shall be made for any registration of transfer or exchange of
      Certificates of any Class, but 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.

    All
      Certificates surrendered for registration of transfer or exchange shall be
      cancelled by the Certificate Registrar and disposed of pursuant to its standard
      procedures.

     

     

    SECTION
      6.03. Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (i)
      any mutilated Certificate is surrendered to the Certificate Registrar or the
      Certificate Registrar receives evidence to its satisfaction of the destruction,
      loss or theft of any Certificate and (ii) there is delivered to the Trustee,
      the
      Securities Administrator, the Depositor and the Certificate Registrar such
      security or indemnity as may be required by them to save each of them harmless,
      then, in the absence of notice to the Trustee, the Securities Administrator
      or
      the Certificate Registrar that such Certificate has been acquired by a bona
      fide
      purchaser, the Securities Administrator shall execute on behalf of the Trust,
      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
      Percentage Interest. Upon the issuance of any new Certificate under this
      Section, the Trustee, the Securities Administrator 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 relation thereto and any other
      expenses (including the fees and expenses of the Trustee, the Securities
      Administrator and the Certificate Registrar) in connection therewith. Any
      duplicate Certificate issued pursuant to this Section, shall constitute complete
      and indefeasible 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.

    
       

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

    

     

    SECTION
      6.04. Persons
      Deemed Owners.

     

    The
      Depositor, the Trustee, the Securities Administrator, the Certificate Registrar,
      any Paying Agent and any agent of the Depositor, the Certificate Registrar,
      any
      Paying Agent, the Securities Administrator or the Trustee may treat the Person,
      including a Depository, in whose name any Certificate is registered as the
      owner
      of such Certificate for the purpose of receiving distributions pursuant to
      Section 5.01 hereof and for all other purposes whatsoever, and none of the
      Trust, the Trustee, the Securities Administrator, the Certificate Registrar,
      the
      Paying Agent or any agent of any of them shall be affected by notice to the
      contrary.

     

    SECTION
      6.05. Appointment
      of Paying Agent.

     

    (a) The
      Paying Agent shall make distributions to Certificateholders from the
      Distribution Account pursuant to Section 5.01 hereof. The duties of the Paying
      Agent may include the obligation to distribute statements and provide
      information to Certificateholders as required hereunder. The Paying Agent
      hereunder shall at all times be an entity duly incorporated and validly existing
      under the laws of the United States of America or any state thereof, authorized
      under such laws to exercise corporate trust powers and subject to supervision
      or
      examination by federal or state authorities. The Paying Agent shall initially
      be
      the Securities Administrator. The Securities Administrator may appoint a
      successor to act as Paying Agent, which appointment shall be reasonably
      satisfactory to the Depositor.

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

    (b) The
      Securities Administrator or the Trustee, as applicable, shall cause the Paying
      Agent (if other than the Trustee or the Securities Administrator) to execute
      and
      deliver to the Trustee an instrument in which such Paying Agent shall agree
      with
      the Trustee that such Paying Agent shall hold all sums, if any, held by it
      for
      payment to the Certificateholders in trust for the benefit of the
      Certificateholders entitled thereto until such sums shall be paid to such
      Certificateholders and shall agree that it shall comply with all requirements
      of
      the Code regarding the withholding of payments in respect of federal income
      taxes due from Certificate Owners and otherwise comply with the provisions
      of
      this Agreement applicable to it.

     

     

    ARTICLE
      VII

     

    DEFAULT

     

    SECTION
      7.01. Event
      of Default. 

     

    (a) If
      any
      one of the following events (each, an “Event
      of Default”)
      shall
      occur and be continuing: 

     

    (i) the
      failure by the Master Servicer to (A) make any Advance on the Business Day
      immediately preceding the related Distribution Date or (B) to deposit in the
      Distribution Account any deposit required to be made under the terms of this
      Agreement, and in either case such failure continues unremedied for a period
      of
      three Business Days after the date upon which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Master Servicer
      (or, if applicable, such shorter time period as is provided in the penultimate
      sentence of Section 7.01(c)); or

     

    (ii) the
      failure by the Master Servicer duly to observe or perform, in any material
      respect, any other covenants, obligations or agreements of the Master Servicer
      as set forth in this Agreement, which failure continues unremedied for a period
      of 60 days, in each case after the date (A) on which written notice of such
      failure, requiring the same to be remedied, shall have been given to the Master
      Servicer by the Trustee or to the Master Servicer and the Trustee by Holders
      of
      Certificates evidencing at least 25% of the Voting Rights or (B) on which a
      Servicing Officer of the Master Servicer has actual knowledge of such failure
      (or, in the case of a breach of its obligation beyond any applicable cure period
      to provide an assessment of compliance, an attestation report or a
      Sarbanes-Oxley Certification pursuant to Sections 3.16 and 3.18, respectively);
      or

     

    (iii) the
      entry
      against the Master 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 days; or 

     

    (iv) the
      Master Servicer shall voluntarily go into liquidation, consent to the
      appointment of a conservator or receiver or liquidator or similar person in
      any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Master Servicer or of or relating
      to
      all or substantially all of its property; or a decree or order of a court or
      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 Master Servicer and such decree or order shall
      have remained in force undischarged, unbonded or unstayed for a period of 60
      days; or the Master Servicer shall admit in writing its inability to pay its
      debts generally as they become due, file a petition to take advantage of any
      applicable insolvency or reorganization statute, make an assignment for the
      benefit of its creditors or voluntarily suspend payment of its
      obligations;

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    (b) then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied within the applicable grace period, the Trustee shall, at the written
      direction of the Holders of Certificates evidencing Voting Rights aggregating
      not less than 51%, or at its option may, with the consent of [Thornburg] (not
      to
      be unreasonably withheld), by notice then given in writing to the Master
      Servicer, terminate all of the rights and obligations of the Master Servicer
      as
      servicer under this Agreement. Any such notice to the Master Servicer shall
      also
      be given to each Rating Agency, the Depositor and the Seller. On or after the
      receipt by the Master Servicer (and by the Trustee if such notice is given
      by
      the Holders) of such written notice, all authority and power of the Master
      Servicer under this Agreement, whether with respect to the Certificates or
      the
      Mortgage Loans or otherwise, shall pass to and be vested in the Trustee and
      the
      Trustee is hereby authorized and empowered to execute and deliver, on behalf
      of
      the Master Servicer, as attorney-in-fact or otherwise, any and all documents
      and
      other instruments, and to do or accomplish all other acts or things necessary
      or
      appropriate to effect the purposes of such notice of termination, whether to
      complete the transfer and endorsement of each Mortgage Loan and related
      documents or otherwise. The Master Servicer agrees to cooperate with the Trustee
      in effecting the termination of the responsibilities and rights of the Master
      Servicer hereunder, including, without limitation, the delivery to the Trustee
      of all documents and records requested by it to enable it to assume the Master
      Servicer's functions under this Agreement within ten Business Days subsequent
      to
      such notice and the transfer within one Business Day subsequent to such notice
      to the Trustee for the administration by it of all cash amounts that shall
      at
      the time be held by the Master Servicer and to be deposited by it in the
      Distribution Account, any REO Account or any Servicing Account or that have
      been
      deposited by the Master Servicer in such accounts or thereafter received by
      the
      Master Servicer with respect to the Mortgage Loans or any REO Property received
      by the Master Servicer. All reasonable costs and expenses (including attorneys'
      fees) incurred in connection with transferring the Master Servicer's duties
      and
      the Mortgage Files to the successor Master Servicer and amending this Agreement
      to reflect such succession as Master Servicer pursuant to this Section shall
      be
      paid by the predecessor Master Servicer (or if the predecessor Master Servicer
      is the Trustee, the initial Master Servicer) upon presentation of reasonable
      documentation of such costs and expenses. The termination of the rights and
      obligations of the Master Servicer shall not affect any liability it may have
      incurred prior to such termination. To the extent that such costs and expenses
      of the Trustee are not fully and timely reimbursed by the predecessor Master
      Servicer, the Trustee shall be entitled to reimbursement of such costs and
      expenses from the Distribution Account.

     

    (c) The
      Securities Administrator shall not later than the close of business on the
      Business Day immediately preceding the related Distribution Date notify the
      Trustee in writing of the Master Servicer’s failure to make any Advance required
      to be made under this Agreement on such date and the amount of such Advance.
      By
      no later than 10:00 A.M. [(Chicago time)] on the relevant Distribution Date,
      the
      Securities Administrator shall notify the Trustee of the continuance of such
      failure or that the Master Servicer has made the Advance, as the case may be.
      Notwithstanding the terms of the Event of Default described in clause (i)(A)
      of
      Section 7.01(a), the Trustee, upon receipt of written notice on the Distribution
      Date from the Securities Administrator of the continuance of the failure of
      the
      Master Servicer to make an Advance, shall, by notice in writing to the Master
      Servicer, which may be delivered by telecopy, immediately suspend all of the
      rights and obligations of the Master Servicer thereafter arising under this
      Agreement, but without prejudice to any rights it may have as a
      Certificateholder or to reimbursement of outstanding Advances or other amounts
      for which the Master Servicer was entitled to reimbursement as of the date
      of
      suspension, and the Trustee, subject to the cure provided for in this paragraph,
      if available, shall act as provided in Section 7.02 to carry out the duties
      of
      the Master Servicer, including the obligation to make any Advance the nonpayment
      of which is described in clause (i)(A) of Section 7.01(a). Any such action
      taken
      by the Trustee must be prior to the distribution on the relevant Distribution
      Date, and shall have all of the rights incidental thereto. If the Master
      Servicer shall within two Business Days following such suspension remit to
      the
      Trustee the amount of any Advance the nonpayment of which by the Master Servicer
      is described in clause (i)(A) of Section 7.01(a), together with all other
      amounts necessary to reimburse the Trustee for actual, necessary and reasonable
      costs incurred by the Trustee because of action taken pursuant to this
      subsection (including interest on any Advance or other amounts paid by the
      Trustee (from and including the respective dates thereof) at a per annum rate
      equal to the prime rate for U.S. money center commercial banks as published
      in
      the Wall
      Street Journal),
      then
      the Trustee, subject to the last two sentences of this paragraph, shall permit
      the Master Servicer to resume its rights and obligations as Master Servicer
      hereunder. If the Master Servicer shall fail to remit such amounts to the
      Trustee within such two Business Days after the Distribution Date, then an
      Event
      of Default shall occur and such notice of suspension shall be deemed to be
      a
      notice of termination without any further action on the part of the Trustee.
      The
      Master Servicer agrees that if it fails to make a required Advance by 10:00
      A.M.
      (Chicago time) on the related Distribution Date on more than two occasions
      in
      any 12 month period, the Trustee shall be under no obligation to permit the
      Master Servicer to resume its rights and obligations as Master Servicer
      hereunder, and notwithstanding the cure period provided in Section
      7.01(a)(i)(A), an Event of Default shall be deemed to have occurred on the
      relevant Distribution Date. 

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

     

    SECTION
      7.02. Trustee
      to Act.

     

    (a) From
      and
      after the date the Master Servicer (and the Trustee, if notice is sent by the
      Holders) receives a notice of termination pursuant to Section 7.01, the Trustee
      shall be the successor in all respects to the Master Servicer in its capacity
      as
      servicer under this Agreement and the transactions set forth or provided for
      herein and shall be subject to all the responsibilities, duties and liabilities
      relating thereto placed on the Master Servicer by the terms and provisions
      hereof arising on and after its succession. As compensation therefor, the
      Trustee shall be entitled to such compensation as the Master Servicer would
      have
      been entitled to hereunder if no such notice of termination had been given.
      Notwithstanding the above, (i) if the Trustee is unwilling to act as successor
      Master Servicer or (ii) if the Trustee is legally unable so to act, subject
      to
      the rights of [Thornburg] under Section 3.33 hereof, the Trustee shall 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 $15,000,000 as the successor
      to the Master Servicer hereunder in the assumption of all or any part of the
      responsibilities, duties or liabilities of the Master Servicer hereunder;
      provided, that the appointment of any such successor Master Servicer shall
      not
      result in the qualification, reduction or withdrawal of the ratings assigned
      to
      the Certificates by each Rating Agency as evidenced by a letter to such effect
      from each Rating Agency. Pending appointment of a successor to the Master
      Servicer hereunder, unless the Trustee is prohibited by law from so acting,
      the
      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 Master Servicer would otherwise have received pursuant
      to
      Section 3.18. The appointment of a successor Master Servicer shall not affect
      any liability of the predecessor Master Servicer which may have arisen under
      this Agreement prior to its termination as Master Servicer to pay any deductible
      under an insurance policy pursuant to Section 3.14 or to indemnify the Trustee
      pursuant to Section 8.05), nor shall any successor Master Servicer be liable
      for
      any acts or omissions of the predecessor Master Servicer or for any breach
      by
      such Master Servicer of any of its representations or warranties contained
      herein or in any related document or agreement. The Trustee and such successor
      shall take such action, consistent with this Agreement, as shall be necessary
      to
      effectuate any such succession. In the event that the Trustee shall not succeed
      to the duties of the Master Servicer pursuant to Section 7.02 hereof,
      [Thornburg] shall have the right, but not the obligation, to be appointed
      successor master servicer hereunder.

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    (b) Any
      successor, including the Trustee, to the Master Servicer as Master Servicer
      shall during the term of its service as Master Servicer continue to service
      and
      administer the Mortgage Loans for the benefit of Certificateholders, and
      maintain in force a policy or policies of insurance covering errors and
      omissions in the performance of its obligations as Master Servicer hereunder
      and
      a Fidelity Bond in respect of its officers, employees and agents to the same
      extent as the Master Servicer is so required pursuant to Section 3.04.

     

    (c) Notwithstanding
      anything else herein to the contrary, in no event shall the Trustee be liable
      for any servicing fee or for any differential in the amount of the servicing
      fee
      paid hereunder and the amount necessary to induce any successor Master Servicer
      to act as successor Master Servicer under this Agreement and the transactions
      set forth or provided for herein.

     

    SECTION
      7.03. Waiver
      of Event of Default.

     

    The
      Majority Certificateholders may, on behalf of all Certificateholders, by notice
      in writing to the Trustee, direct the Trustee to waive any events permitting
      removal of any Master Servicer under this Agreement, provided,
      however,
      that the
      Majority Certificateholders may not waive an event that results in a failure
      to
      make any required distribution on a Certificate without the consent of the
      Holder of such Certificate. Upon any waiver of an Event of Default, such event
      shall cease to exist and any Event of Default arising therefrom shall be deemed
      to have been remedied for every purpose of this Agreement. No such waiver shall
      extend to any subsequent or other event or impair any right consequent thereto
      except to the extent expressly so waived. Notice of any such waiver shall be
      given by the Trustee to each Rating Agency.

     

    SECTION
      7.04. Notification
      to Certificateholders.

     

    (a) Upon
      any
      termination or appointment of a successor to any Master Servicer pursuant to
      this Article VII or Section 3.34, the Certificate Registrar or the Trustee,
      if
      the Master Servicer is also the Certificate Registrar and Securities
      Administrator, shall give prompt written notice thereof to the
      Certificateholders at their respective addresses appearing in the Certificate
      Register and to each Rating Agency.

    
       

      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

    (b) No
      later
      than 60 days after the occurrence of any event which constitutes or which,
      with
      notice or a lapse of time or both, would constitute an Event of Default of
      which
      a Responsible Officer of the Trustee becomes aware of the occurrence of such
      an
      event, the Trustee shall transmit by mail to all Certificateholders notice
      of
      such occurrence unless such Event of Default shall have been waived or
      cured.

     

     

    ARTICLE
      VIII

     

    THE
      TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

     

    SECTION
      8.01. Duties
      of Trustee and Securities Administrator.

     

    The
      Trustee, prior to the occurrence of an Event of Default and after the curing
      or
      waiver of all Events of Default which may have occurred, and the Securities
      Administrator each undertake to perform such duties and only such duties as
      are
      specifically set forth in this Agreement. If an Event of Default has occurred
      (which has not been cured or waived) of which a Responsible Officer has actual
      knowledge, the Trustee shall exercise such of the rights and powers vested
      in it
      by this Agreement, and use the same degree of care and skill in their exercise,
      as a prudent man would exercise or use under the circumstances in the conduct
      of
      his own affairs, unless the Trustee is acting as successor Master Servicer,
      in
      which case it shall use the same degree of care and skill as the Master Servicer
      hereunder with respect to the exercise of the rights and powers of the Master
      Servicer hereunder.

     

    The
      Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to the Trustee and the Securities Administrator, which
      are
      specifically required to be furnished pursuant to any provision of this
      Agreement, shall examine them to determine whether they conform to the
      requirements of this Agreement; provided,
      however,
      that
      neither the Trustee nor the Securities Administrator will be responsible for
      the
      accuracy or content of any such resolutions, certificates, statements, opinions,
      reports, documents or other instruments. If any such instrument is found not
      to
      conform to the requirements of this Agreement in a material manner the Trustee
      and the Securities Administrator shall take such action as it deems appropriate
      to have the instrument corrected.

     

    On
      each
      Distribution Date, the Securities Administrator shall make monthly distributions
      to the Certificateholders from funds in the Distribution Account, as provided
      in
      Section 10.01 hereof based on the report of the Securities
      Administrator.

    No
      provision of this Agreement shall be construed to relieve the Trustee or the
      Securities Administrator from liability for its own negligent action, its own
      negligent failure to act or its own willful misconduct; provided,
      however,
      that:

     

    (i) prior
      to
      the occurrence of an Event of Default, and after the curing of all such Events
      of Default which may have occurred, the duties and obligations of the Trustee
      and the Securities Administrator shall be determined solely by the express
      provisions of this Agreement, neither the Trustee nor the Securities
      Administrator shall be liable except for the performance of such of its duties
      and obligations as are specifically set forth in this Agreement, no implied
      covenants or obligations shall be read into this Agreement against the Trustee
      or the Securities Administrator and, in the absence of bad faith on the part
      of
      the Trustee or the Securities Administrator, respectively, the Trustee or the
      Securities Administrator may conclusively rely, as to the truth of the
      statements and the correctness of the opinions expressed therein, upon any
      certificates or opinions furnished to the Trustee or the Securities
      Administrator, respectively, and conforming to the requirements of this
      Agreement;

    
       

      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

    

     

    (ii) neither
      the Trustee nor the Securities Administrator shall be liable for an error of
      judgment made in good faith by a Responsible Officer of the Trustee or an
      officer of the Securities Administrator, respectively, unless it shall be proved
      that the Trustee or the Securities Administrator, respectively, was negligent
      in
      ascertaining or investigating the facts related thereto;

     

    (iii) neither
      the Trustee nor the Securities Administrator shall be personally liable with
      respect to any action taken, suffered or omitted to be taken by it in good
      faith
      in accordance with the consent or at the direction of Holders of Certificates
      as
      provided herein relating to the time, method and place of conducting any remedy
      pursuant to this Agreement, or exercising or omitting to exercise any trust
      or
      power conferred upon the Trustee or the Securities Administrator, respectively,
      under this Agreement; and

     

    (iv) the
      Trustee shall not be charged with knowledge of any Event of Default or any
      other
      event or matter that may require it to take action or omit to take action
      hereunder unless a Responsible Officer of the Trustee at the Corporate Trust
      Office obtains actual knowledge of such failure or the Trustee receives written
      notice of such Event of Default.

     

    Neither
      the Trustee nor the Securities Administrator shall be required to expend or
      risk
      its own funds or otherwise incur financial or other liability in the performance
      of any of its duties hereunder, or in the exercise of any of its rights or
      powers, if there is reasonable ground for believing that the repayment of such
      funds or indemnity satisfactory to it against such risk or liability is not
      assured to it, and none of the provisions contained in this Agreement shall
      in
      any event require the Trustee or the Securities Administrator to perform, or
      be
      responsible for the manner of performance of, any of the obligations of the
      Master Servicer under this Agreement, except during such time, if any, as the
      Trustee shall be the successor to, and be vested with the rights, duties, powers
      and privileges of, the Master Servicer in accordance with the terms of this
      Agreement.

     

    SECTION
      8.02. Certain
      Matters Affecting the Trustee and the Securities Administrator.

     

    Except
      as
      otherwise provided in Section 8.01 hereof:

     

    (i) the
      Trustee and the Securities Administrator may request and conclusively rely
      upon,
      and shall be fully protected in acting or refraining from acting upon, any
      resolution, Officers’ Certificate, certificate of auditors or any other
      certificate, statement, instrument, opinion, report, notice, request, consent,
      order, appraisal, bond or other paper or document reasonably believed by it
      to
      be genuine and to have been signed or presented by the proper party or parties,
      and the manner of obtaining consents and of evidencing the authorization of
      the
      execution thereof by Certificateholders shall be subject to such reasonable
      regulations as the Trustee and the Securities Administrator may
      prescribe;

    
       

      
        
          
          

        

        
          106

          
            

          

        

        
          
          

        

      

    (ii) the
      Trustee and the Securities Administrator may consult with counsel and any advice
      of its counsel or any Opinion of Counsel shall be full and complete
      authorization and protection in respect of any action taken or suffered or
      omitted by it hereunder in good faith and in accordance with such advice or
      Opinion of Counsel;

     

    (iii) neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the rights or powers vested in it by this Agreement, or to
      institute, conduct or defend any litigation hereunder or in relation hereto,
      at
      the request, order or direction of any of the Certificateholders, pursuant
      to
      the provisions of this Agreement, unless such Certificateholders shall have
      offered to the Trustee or the Securities Administrator, respectively, reasonable
      security or indemnity satisfactory to it against the costs, expenses and
      liabilities which may be incurred therein or thereby; the right of the Trustee
      to perform any discretionary act enumerated in this Agreement shall not be
      construed as a duty, and the Trustee shall not be answerable for other than
      its
      negligence or willful misconduct in the performance of any such
      act;

     

    (iv) neither
      the Trustee nor the Securities Administrator shall be personally liable for
      any
      action taken, suffered or omitted by it in good faith and believed by it to
      be
      authorized or within the discretion or rights or powers conferred upon it by
      this Agreement;

     

    (v) prior
      to
      the occurrence of an Event of Default and after the curing or waiver of all
      Events of Default which may have occurred, the Trustee shall not be bound to
      make any investigation into the facts or matters stated in any resolution,
      certificate, statement, instrument, opinion, report, notice, request, consent,
      order, approval, bond or other paper or documents, unless requested in writing
      to do so by the Majority Certificateholder; provided,
      however,
      that if
      the payment within a reasonable time to the Trustee of the costs, expenses
      or
      liabilities likely to be incurred by it in the making of such investigation
      is,
      in the opinion of the Trustee, not reasonably assured to the Trustee by the
      security afforded to it by the terms of this Agreement, the Trustee may require
      reasonable indemnity against such cost, expense or liability as a condition
      to
      such proceeding. If the Master Servicer fails to reimburse the Trustee in
      respect of the reasonable expense of every such examination relating to the
      Master Servicer, the Trustee shall be reimbursed by the Trust
      Fund;

    (vi) the
      Trustee shall not be accountable, shall have no liability and makes no
      representation as to any acts or omissions hereunder of the Securities
      Administrator or the Master Servicer until such time as the Trustee may be
      required to act as the Master Servicer pursuant to Section 7.02 hereof and
      thereupon only for the acts or omissions of the Trustee as a successor Master
      Servicer; 

     

    (vii) the
      Trustee and the Securities Administrator may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or through
      agents, nominees, attorneys or a custodian, and shall not be responsible for
      any
      willful misconduct or negligence on the part of any agent, nominee, attorney
      or
      custodian appointed by the Trustee or the Securities Administrator in good
      faith; and

    
       

      
        
          
          

        

        
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    (viii) the
      right
      of the Trustee or the Securities Administrator to perform any discretionary
      act
      enumerated in this Agreement shall not be construed as a duty, and neither
      the
      Trustee nor the Securities Administrator shall be answerable for other than
      its
      negligence or willful misconduct in the performance of such act.

     

    SECTION
      8.03. Trustee
      and the Securities Administrator Not Liable for Certificates, Mortgage Loans
      or
      Additional

     Collateral.

     

    The
      recitals contained herein and in the Certificates (other than the authentication
      of the Trustee or Securities Administrator on the Certificates) shall be taken
      as the statements of the Depositor or the Seller, and the neither Trustee nor
      the Securities Administrator assumes responsibility for the correctness of
      the
      same. Neither the Trustee nor the Securities Administrator makes representations
      or warranties as to the validity or sufficiency of this Agreement or of the
      Certificates (other than the signature and authentication of the Securities
      Administrator on the Certificates) or of any Mortgage Loan or related document
      or of MERS or the MERS System. The Trustee shall not be accountable for the
      use
      or application by the Master Servicer, or for the use or application of any
      funds paid to the Master Servicer in respect of related Mortgage Loans or
      deposited in or withdrawn from the Distribution Account by the Master Servicer
      or the Securities Administrator. Neither the Trustee nor the Securities
      Administrator shall at any time have any responsibility or liability for or
      with
      respect to the legality, validity and enforceability of any Mortgage or any
      Mortgage Loan, or the perfection and priority of any Mortgage or the maintenance
      of any such perfection and priority, or for or with respect to the sufficiency
      of the Trust or its ability to generate the payments to be distributed to
      Certificateholders under this Agreement, including, without limitation: the
      existence, condition and ownership of any Mortgaged Property; the existence
      and
      enforceability of any hazard insurance thereon (other than if the Trustee shall
      assume the duties of the Master Servicer pursuant to Section 7.02 hereof);
      the
      validity of the assignment of any Mortgage Loan to the Trustee or of any
      intervening assignment; the completeness of any Mortgage Loan; the performance
      or enforcement of any Mortgage Loan (other than if the Trustee shall assume
      the
      duties of the Master Servicer pursuant to Section 7.02 hereof); the compliance
      by the Depositor or the Seller with any warranty or representation made under
      this Agreement or in any related document or the accuracy of any such warranty
      or representation prior to the Trustee’s receipt of notice or other discovery of
      any non-compliance therewith or any breach thereof; any investment of monies
      by
      or at the direction of the Master Servicer or in the case of the Trustee the
      Securities Administrator or any loss resulting therefrom, it being understood
      that the Trustee shall remain responsible for any Trust property that it may
      hold in its individual capacity and the Securities Administrator shall remain
      responsible for any Trust property that it may hold in its individual capacity;
      the acts or omissions of the Master Servicer (other than as to the Securities
      Administrator, if it is also the Master Servicer, and as to the Trustee, if
      the
      Trustee shall assume the duties of the Master Servicer pursuant to Section
      7.02
      hereof, and then only for the acts or omissions of the Trustee as the successor
      Master Servicer), or any acts or omissions of any Servicer or any Mortgagor;
      any
      action of the Master Servicer (other than as to the Securities Administrator,
      if
      it is also the Master Servicer, and as to the Trustee, if the Trustee shall
      assume the duties of the Master Servicer pursuant to Section 7.02 hereof),
      or in
      the case of the Trustee the Securities Administrator or any Servicer taken
      in
      the name of the Trustee; the failure of the Master Servicer or any Servicer
      to
      act or perform any duties required of it as agent or on behalf of the Trustee
      or
      the Trust hereunder; or any action by the Trustee taken at the instruction
      of
      the Master Servicer (other than if the Trustee shall assume the duties of the
      Master Servicer pursuant to Section 7.02 hereof, and then only for the actions
      of the Trustee as the successor Master Servicer); provided,
      however,
      that the
      foregoing shall not relieve the Trustee of its obligation to perform its duties
      under this Agreement, including, without limitation, the Trustee’s duty to
      review the Mortgage Files, if so required pursuant to Section 2.01 of this
      Agreement.

     

    
      
        
        

      

      
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    SECTION
      8.04. Trustee,
      Custodian, Master Servicer and Securities Administrator May Own
      Certificates.

     

    The
      Trustee, the Custodian, the Master Servicer and the Securities Administrator
      in
      their respective individual capacities, or in any capacity other than as
      Trustee, Custodian, Master Servicer or Securities Administrator hereunder,
      may
      become the owner or pledgee of any Certificates with the same rights they would
      have if they were not Trustee, Custodian, Master Servicer or Securities
      Administrator, as applicable, and may otherwise deal with the parties
      hereto.

     

    SECTION
      8.05. Trustee’s
      and Securities Administrator’s Fees and Expenses.

     

    The
      Trustee shall be compensated by the Master Servicer for its services hereunder
      on behalf of the Trust in accordance with the fee letter between the Master
      Servicer and the Trustee. The Securities Administrator shall be compensated
      by
      the Master Servicer for its services hereunder from a portion of the Master
      Servicing Fee. In addition, the Trustee (as Trustee and in its individual
      corporate capacity) and the Securities Administrator will be entitled to recover
      from the Distribution Account pursuant to Section 4.05(a) all reasonable
      out-of-pocket expenses, disbursements and advances and the expenses of the
      Trustee (including for such purpose, any fees and expenses relating to its
      capacity as Custodian hereunder to the extent not paid by [Thornburg]) and
      the
      Securities Administrator, respectively, including without limitation, in
      connection with any Event of Default, any breach of this Agreement or any claim
      or legal action (including any pending or threatened claim or legal action)
      incurred or made by the Trustee or the Securities Administrator, respectively,
      in the performance of its duties or the administration of the trusts hereunder
      (including the reasonable compensation, expenses and disbursements of its
      counsel) except any such expense, disbursement or advance as may arise from
      its
      negligence or intentional misconduct or which is specifically designated herein
      as the responsibility of the Depositor, the Seller, the Master Servicer, the
      Certificateholders or the Trust hereunder or thereunder. If funds in the
      Distribution Account are insufficient therefor, the Trustee, the Custodian
      and
      the Securities Administrator shall recover such expenses from future collections
      on the Mortgage Loans or as otherwise agreed by the Certificateholders. Such
      compensation and reimbursement obligation shall not be limited by any provision
      of law in regard to the compensation of a trustee of an express
      trust.

     

    
      
        
        

      

      
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    SECTION
      8.06. Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and Securities Administrator hereunder shall at all times be an entity
      duly organized and validly existing under the laws of the United States of
      America or any state thereof, authorized under such laws to exercise corporate
      trust powers, each having a combined capital and surplus
      of at
      least $50,000,000 and (except with respect to the initial Trustee) a minimum
      long-term debt rating in the third highest rating category by each Rating Agency
      and in each Rating Agency’s two highest short-term rating categories, and
      subject to supervision or examination by federal or state authority. If such
      entity publishes reports of condition at least annually, pursuant to law or
      to
      the requirements of the aforesaid supervising or examining authority, then
      for
      the purposes of this Section 8.06, the combined capital and surplus
      of such
      entity shall be deemed to be its combined capital and surplus
      as set
      forth in its most recent report of condition so published. The principal office
      of the Trustee (other than the initial Trustee) shall be in a state with respect
      to which an Opinion of Counsel has been delivered to such Trustee at the time
      such Trustee is appointed Trustee to the effect that the Trust will not be
      a
      taxable entity under the laws of such state. In case at any time the Trustee
      or
      the Securities Administrator shall cease to be eligible in accordance with
      the
      provisions of this Section 8.06, the Trustee or the Securities Administrator,
      as
      applicable shall resign immediately in the manner and with the effect specified
      in Section 8.07 hereof.

     

    SECTION
      8.07. Resignation
      or Removal of Trustee and Securities Administrator.

     

    The
      Trustee and Securities Administrator may at any time resign and be discharged
      from the trusts hereby created by giving written notice thereof to the
      Depositor, the Seller, the Master Servicer and each Rating Agency. Upon
      receiving such notice of resignation of the Trustee, the Seller shall promptly
      appoint a successor Trustee that meets the requirements in Section 8.06 or,
      in
      the case of notice of resignation of the Securities Administrator, the Trustee
      shall promptly appoint a successor Securities Administrator that meets the
      requirements in Section 8.06, in each case, by written instrument, in duplicate,
      one copy of which instrument shall be delivered to each of the resigning Trustee
      or Securities Administrator, as applicable, and one copy to the successor
      Trustee or successor Securities Administrator, as applicable. If no successor
      Trustee or successor Securities Administrator, as applicable, shall have been
      so
      appointed and having accepted appointment within 30 days after the giving of
      such notice of resignation, the resigning Trustee or Securities Administrator
      may petition any court of competent jurisdiction for the appointment of a
      successor Trustee or Securities Administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 8.06 hereof or if at any time the
      Trustee or the Securities Administrator shall be legally unable to act, or
      shall
      be adjudged a bankrupt or insolvent, or a receiver of the Trustee or the
      Securities Administrator, as applicable, or of its property shall be appointed,
      or any public officer shall take charge or control of the Trustee or the
      Securities Administrator, as applicable, or of its property or affairs for
      the
      purpose of rehabilitation, conservation or liquidation, or if the Trustee (in
      its capacity as Custodian) or the Securities Administrator fails to provide
      an
      assessment of compliance or an attestation report required under Section 3.16
      within 15 calendar days of March 1 of each calendar year in which Exchange
      Act
      reports are required then the Seller may remove the Trustee or the Trustee
      may
      remove the Securities Administrator, as applicable. If the Seller or the Trustee
      removes the Trustee or the Securities Administrator, respectively under the
      authority of the immediately preceding sentence, the Seller or the Trustee
      shall
      promptly appoint a successor Trustee or successor Securities Administrator
      that
      meets the requirements of Section 8.06, as applicable, by written instrument,
      in
      triplicate, one copy of which instrument shall be delivered to the Trustee
      or
      the Securities Administrator, as applicable, so removed, one copy to the
      successor Trustee or successor Securities Administrator, as applicable, and
      one
      copy to the Master Servicer.

     

    
      
        
        

      

      
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    The
      Majority Certificateholders may at any time remove the Trustee or the Securities
      Administrator by written instrument or instruments delivered to the Seller
      and
      the Trustee; the Seller shall thereupon use its best efforts to appoint a
      successor Trustee or successor Securities Administrator, as applicable, in
      accordance with this Section. 

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor Trustee or a successor Securities Administrator,
      pursuant to any of the provisions of this Section 8.07 shall not become
      effective until acceptance of appointment by the successor Trustee or a
      successor Securities Administrator, as applicable, as provided in Section 8.08
      hereof. If the Trustee or the Securities Administrator is removed pursuant
      to
      this Section 8.07, it shall be reimbursed any outstanding and unpaid fees and
      expenses, and if removed under the authority of the immediately preceding
      paragraph, the Trustee or the Securities Administrator shall also be reimbursed
      any outstanding and unpaid costs and expenses.

     

    Notwithstanding
      anything to the contrary contained herein, in the event that the Master Servicer
      resigns or is removed as Master Servicer hereunder, the Securities Administrator
      shall have the right to resign immediately as Securities Administrator by giving
      written notice to the Seller and the Trustee, with a copy to each Rating Agency;
      provided that such resignation shall not become effective until acceptance
      of
      appointment by a successor Securities Administrator. Notwithstanding anything
      to
      the contrary herein, in the event that the Securities Administrator resigns
      or
      is removed as Securities Administrator hereunder, the Master Servicer shall
      have
      the right to resign immediately as Master Servicer by giving written notice
      to
      the Seller and the Trustee, with a copy to each Rating Agency; provided that
      such resignation shall not become effective until acceptance of appointment
      by a
      successor Master Servicer.

     

    SECTION
      8.08. Successor
      Trustee and Successor Securities Administrator.

     

    Any
      successor Trustee or successor Securities Administrator appointed as provided
      in
      Section 8.07 hereof shall execute, acknowledge and deliver to the Depositor,
      the
      Seller and the Master Servicer and to its predecessor Trustee or Securities
      Administrator an instrument accepting such appointment hereunder, and thereupon
      the resignation or removal of the predecessor Trustee or Securities
      Administrator shall become effective, and such successor Trustee or successor
      Securities Administrator, without any further act, deed or conveyance, shall
      become fully vested with all the rights, powers, duties and obligations of
      its
      predecessor hereunder, with like effect as if originally named as Trustee or
      Securities Administrator. The Depositor, the Seller, the Master Servicer and
      the
      predecessor Trustee or Securities Administrator 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 Trustee or Securities
      Administrator, as applicable, all such rights, powers, duties and
      obligations.

     

    
      
        
        

      

      
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    No
      successor Trustee or Securities Administrator shall accept appointment as
      provided in this Section 8.08 unless at the time of such acceptance such
      successor Trustee or Securities Administrator shall be eligible under the
      provisions of Section 8.06 hereof and the appointment of such successor Trustee
      or Securities Administrator shall not result in a downgrading of the Senior
      Certificates by either Rating Agency, as evidenced by a letter from each Rating
      Agency.

     

    Upon
      acceptance of appointment by a successor Trustee or Securities Administrator
      as
      provided in this Section 8.08, the successor Trustee or Securities Administrator
      shall mail notice of the appointment of a successor Trustee or Securities
      Administrator hereunder to all Holders of Certificates at their addresses as
      shown in the Certificate Register and to each Rating Agency.

     

    SECTION
      8.09. Merger
      or Consolidation of Trustee or Securities Administrator.

     

    Any
      entity into which the Trustee or the Securities Administrator may be merged
      or
      converted or with which it may be consolidated, or any entity resulting from
      any
      merger, conversion or consolidation to which the Trustee or the Securities
      Administrator shall be a party, or any entity succeeding to the corporate trust
      business of the Trustee or the Securities Administrator, shall be the successor
      of the Trustee or the Securities Administrator, as applicable, hereunder,
      provided such entity shall be eligible under the provisions of Section 8.06
      and
      8.08 hereof, 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.

     

    SECTION
      8.10. Appointment
      of Co-Trustee or Separate Trustee.

     

    Notwithstanding
      any other provisions of this Agreement, at any time, for the purpose of meeting
      any legal requirements of any jurisdiction in which any part of the Trust or
      any
      Mortgaged Property may at the time be located, the Depositor and the Trustee
      acting jointly shall have the power, and the Trustee shall, and shall instruct
      the Depositor to, execute and deliver all instruments to appoint one or more
      Persons, approved by the Trustee to act as co-trustee or co-trustees, jointly
      with the Trustee, or separate trustee or separate trustees, of all or any part
      of the Trust, and to vest in such Person or Persons, in such capacity and for
      the benefit of the Certificateholders, such title to the Trust, or any part
      thereof, and, subject to the other provisions of this Section 8.10, such powers,
      duties, obligations, rights and trusts as the Master Servicer and the Trustee
      may consider necessary or desirable. No co-trustee or separate trustee hereunder
      shall be required to meet the terms of eligibility as a successor trustee under
      Section 8.06 hereof, and no notice to Certificateholders of the appointment
      of
      any co-trustee or separate trustee shall be required under Section 8.08
      hereof.

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

     

    (i) all
      rights, powers, duties and obligations conferred or imposed upon the Trustee
      shall be conferred or imposed upon and exercised or performed by the Trustee
      and
      such separate trustee or co-trustee jointly (it being understood that such
      separate trustee or co-trustee is not authorized to act separately without
      the
      Trustee joining in such act), except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed (whether
      as
      Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee
      shall be incompetent or unqualified to perform such act or acts, in which event
      such rights, powers, duties and obligations (including the holding of title
      to
      the Trust or any portion thereof in any such jurisdiction) shall be exercised
      and performed singly by such separate trustee or co-trustee, but solely at
      the
      direction of the Trustee;

    
       

      
        
          
          

        

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

     

    (iii) the
      Depositor and the 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 Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this Article
      VIII. Each separate trustee and co-trustee, upon its acceptance of the trusts
      conferred, shall be vested with the estates or property specified in its
      instrument of appointment, either jointly with the Trustee or separately, as
      may
      be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee and a copy thereof given to
      the
      Depositor.

     

    Any
      separate trustee or co-trustee may, at any time, constitute the Trustee, its
      agent or attorney-in-fact, with full power and authority, to the extent not
      prohibited by law, to do any lawful act under or in respect of this Agreement
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Trustee, to the extent permitted by law, without the appointment of a new or
      successor Trustee.

     

     

    SECTION
      8.11. Limitation
      of Liability.

     

    The
      Certificates are executed by the Securities Administrator, not in its individual
      capacity but solely as Securities Administrator on behalf of the Trust, in
      the
      exercise of the powers and authority conferred and vested in it by this
      Agreement. Each of the undertakings and agreements made on the part of the
      Securities Administrator in the Certificates is made and intended not as a
      personal undertaking or agreement by the Trustee but is made and intended for
      the purpose of binding only the Trust.

     

    SECTION
      8.12. Trustee
      May Enforce Claims Without Possession of Certificates.

     

    (a) All
      rights of action and claims under this Agreement or the Certificates may be
      prosecuted and enforced by the Trustee without the possession of any of the
      Certificates or the production thereof in any proceeding relating thereto,
      and
      such proceeding instituted by the Trustee shall be brought in its own name
      or in
      its capacity as Trustee for the benefit of all Holders of such Certificates,
      subject to the provisions of this Agreement. Any recovery of judgment shall,
      after provision for the payment of the reasonable compensation, expenses,
      disbursement and advances of the Trustee (for the avoidance of doubt, in its
      individual capacity and as Trustee on behalf of the Trust), its agents and
      counsel, be for the ratable benefit or the Certificateholders in respect of
      which such judgment has been recovered.

    
       

      
        
          
          

        

        
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    (b) The
      Trustee shall afford the Seller, the Depositor and each Certificateholder upon
      reasonable notice during normal business hours at its Corporate Trust Office
      or
      other office designated by the Trustee, access to all records maintained by
      the
      Trustee in respect of its duties hereunder and access to officers of the Trustee
      responsible for performing such duties. The Trustee shall cooperate fully with
      the Seller, the Depositor and such Certificateholder and shall, subject to
      the
      first sentence of this Section 8.12(b), make available to the Seller, the
      Depositor and such Certificateholder for review and copying such books,
      documents or records as may be requested with respect to the Trustee’s duties
      hereunder. The Seller, the Depositor and the Certificateholders shall not have
      any responsibility or liability for any action or failure to act by the Trustee
      and are not obligated to supervise the performance of the Trustee under this
      Agreement or otherwise.

     

    (c) The
      Securities Administrator shall afford the Seller, the Depositor, the Trustee
      and
      each Certificateholder upon reasonable notice during normal business hours
      at
      its offices at [     ] or other office designated by
      the Securities Administrator, access to all records maintained by the Securities
      Administrator in respect of its duties hereunder and access to officers of
      the
      Securities Administrator responsible for performing such duties. Upon request,
      the Securities Administrator shall furnish the Depositor and any requesting
      Certificateholder with its most recent audited financial statements. The
      Securities Administrator shall cooperate fully with the Seller, the Depositor,
      the Trustee and such Certificateholder and shall, subject to the first sentence
      of this Section 8.12(c), make available to the Seller, the Depositor and such
      Certificateholder for review and copying such books, documents or records as
      may
      be requested with respect to the Securities Administrator’s duties hereunder.
      The Seller, the Depositor, the Trustee and the Certificateholders shall not
      have
      any responsibility or liability for any action or failure to act by the
      Securities Administrator and are not obligated to supervise the performance
      of
      the Securities Administrator under this Agreement or otherwise.

     

    SECTION
      8.13. Suits
      for Enforcement.

     

    In
      case
      an Event of Default or a default by the Depositor hereunder shall occur and
      be
      continuing, the Trustee may proceed to protect and enforce its rights and the
      rights of the Certificateholders under this Agreement, as the case may be,
      by a
      suit, action or proceeding in equity or at law or otherwise, whether for the
      specific performance of any covenant or agreement contained in this Agreement
      or
      in aid of the execution of any power granted in this Agreement or for the
      enforcement of any other legal, equitable or other remedy, as the Trustee,
      being
      advised by counsel, and subject to the foregoing, shall deem most effectual
      to
      protect and enforce any of the rights of the Trustee and the
      Certificateholders.

     

    SECTION
      8.14. Waiver
      of Bond Requirement.

     

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust, or any part thereof, may
      be
      located that the Trustee post a bond or other surety with any court, agency
      or
      body whatsoever.

    
       

      
        
          
          

        

        
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    SECTION
      8.15. Waiver
      of Inventory, Accounting and Appraisal Requirement.

     

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust, or any part thereof, may
      be
      located that the Trustee file any inventory, accounting or appraisal of the
      Trust with any court, agency or body at any time or in any manner
      whatsoever.

     

    SECTION
      8.16. Appointment
      of Custodians.

     

    The
      Trustee may appoint one or more custodians to hold all or a portion of the
      related Mortgage Files as agent for the Trustee, by entering into a custodial
      agreement. The custodian may at any time be terminated and a substitute
      custodian appointed therefor by the Trustee. Subject to this Article VIII,
      the
      Trustee agrees to comply with the terms of each custodial agreement and to
      enforce the terms and provisions thereof against the custodian for the benefit
      of the Certificateholders having an interest in any Mortgage File held by such
      custodian. Each custodian shall be a depository institution or trust company
      subject to supervision by federal or state authority, shall have combined
      capital and surplus
      of at
      least $15,000,000 and shall be qualified to do business in the jurisdiction
      in
      which it holds any Mortgage File. The Seller shall pay from its own funds,
      without any right to reimbursement, the fees, costs and expenses of each
      custodian (including the costs of custodian’s counsel).

     

     

    ARTICLE
      IX

     

    [REMIC
      ADMINISTRATION

     

    SECTION
      9.01. REMIC
      Administration.

     

    (a) As
      set
      forth in the Preliminary Statement to this Agreement, [   ] REMIC
      elections shall be made by the Trust. The Trustee shall sign and the Securities
      Administrator shall file such elections on Form 1066 or other appropriate
      federal tax or information return for the taxable year ending on the last day
      of
      the calendar year in which the Certificates are issued. The regular interests
      in
      each REMIC created hereunder and the related residual interest shall be as
      designated in the Preliminary Statement. Following the Closing Date, the
      Securities Administrator shall apply to the Internal Revenue Service for an
      employer identification number for each REMIC created hereunder by means of
      a
      Form SS-4 or other acceptable method and shall file a Form 8811 with the
      Internal Revenue Service.

    (b) The
      Closing Date is hereby designated as the “Startup Day” of each REMIC created
      hereunder within the meaning of section 860G(a)(9) of the Code.

     

    (c) Except
      as
      provided in subsection (d) of this Section 9.01, the Securities Administrator
      shall pay any and all tax related expenses (not including taxes) of each REMIC
      created hereunder, including but not limited to any professional fees or
      expenses related to audits or any administrative or judicial proceedings with
      respect to any such REMIC that involve the Internal Revenue Service or state
      tax
      authorities, but only to the extent that (i) such expenses are ordinary or
      routine expenses, including expenses of a routine audit but not expenses of
      litigation (except as described in (ii)); or (ii) such expenses or liabilities
      (including taxes and penalties) are attributable to the negligence or willful
      misconduct of the Securities Administrator in fulfilling its duties hereunder
      (including the Securities Administrator’s duties as tax return
      preparer).

    
       

      
        
          
          

        

        
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    (d) The
      Securities Administrator shall prepare and file, and the Trustee shall sign
      all
      of the federal and state tax and information returns of each REMIC created
      hereunder (collectively, the “Tax
      Returns”)
      as the
      direct representative. The expenses of preparing and filing such Tax Returns
      shall be borne by the Securities Administrator. Notwithstanding the foregoing,
      the Securities Administrator shall have no obligation to prepare, file or
      otherwise deal with partnership tax information or returns. In the event that
      partnership tax information or returns are required by the Internal Revenue
      Service, the Seller, at its own cost and expense, will prepare and file all
      necessary returns. The Internal Revenue Service has issued OID regulations
      under
      Sections 1271 to 1275 of the Code generally addressing the treatment of debt
      instruments issued with original issue discount. Under those regulations, debt
      issued to one Person generally is aggregated in determining if there is OID.
      Because certain Classes of Regular Certificates are expected to be issued to
      one
      Person (which intends to continue to hold the Regular Certificates indefinitely
      and, in any case, for at least 30 days), the Securities Administrator, on behalf
      of the Trust, intends to determine the existence and amount of any OID as if
      those Classes of Regular Certificates were one debt instrument. 

     

    (e) The
      Securities Administrator shall perform on behalf of each REMIC created hereunder
      all reporting and other tax compliance duties that are the responsibility of
      each such REMIC under the Code, the REMIC Provisions or other compliance
      guidance issued by the Internal Revenue Service or any state or local taxing
      authority. Among its other duties, if required by the Code, the REMIC Provisions
      or other such guidance, the Securities Administrator, shall provide (i) to
      the
      Treasury or other governmental authority such information as is necessary for
      the application of any tax relating to the transfer of the Class
      [   ] Certificate to any disqualified organization and (ii) to
      the Certificateholders such information or reports as are required by the Code
      or REMIC Provisions.

     

    (f) Each
      of
      the Trustee, the Securities Administrator and the Holders of Certificates (to
      the extent that the affairs of the REMICs are within such Person’s control and
      the scope of its specific responsibilities under the Agreement) shall take
      any
      action or cause any REMIC created hereunder to take any action necessary to
      create or maintain the status of the REMIC created hereunder as a REMIC under
      the REMIC Provisions and shall assist each other as necessary to create or
      maintain such status. None of the Trustee, the Securities Administrator or
      the
      Holder of a Residual Certificate shall take any action, cause any REMIC created
      hereunder to take any action or fail to take (or fail to cause to be taken)
      any
      action that, under the REMIC Provisions, if taken or not taken, as the case
      may
      be, could result in an Adverse REMIC Event unless the Trustee and the Securities
      Administrator have received an Opinion of Counsel (at the expense of the party
      seeking to take such action) to the effect that the contemplated action will
      not
      result in an Adverse REMIC Event. In addition, prior to taking any action with
      respect to any REMIC created hereunder or the assets therein, or causing any
      such REMIC to take any action which is not expressly permitted under the terms
      of this Agreement, any Holder of the Class [   ] Certificate will
      consult with the Securities Administrator or its designees, in writing, with
      respect to whether such action could cause an Adverse REMIC Event to occur
      with
      respect to any such REMIC, and no such Person shall take any such action or
      cause any REMIC created hereunder to take any such action as to which the
      Securities Administrator has advised it in writing that an Adverse REMIC Event
      could occur. 

     

    
      
        
        

      

      
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    (g) Each
      Holder of the Class [   ] Certificate shall pay when due any and
      all taxes imposed on the related REMICs created hereunder by federal or state
      governmental authorities. To the extent that such Trust taxes are not paid
      by
      the Class [   ] Certificateholder, the Securities Administrator
      shall pay any remaining REMIC taxes out of current or future amounts otherwise
      distributable to the Holder of the Class [   ] Certificate, as
      applicable, or, if no such amounts are available, out of other amounts held
      in
      the Distribution Account, and shall reduce amounts otherwise payable to holders
      of regular interests in such related REMIC, as the case may be.

     

    (h) The
      Securities Administrator shall, for federal income tax purposes, maintain books
      and records with respect to each REMIC created hereunder on a calendar year
      and
      on an accrual basis.

     

    (i) No
      additional contributions of assets shall be made to any REMIC created hereunder,
      except as expressly provided in this Agreement with respect to eligible
      substitute mortgage loans.

     

    (j) Neither
      the Trustee nor the Securities Administrator shall enter into any arrangement
      by
      which any REMIC created hereunder will receive a fee or other compensation
      for
      services.

     

    SECTION
      9.02. Prohibited
      Transactions and Activities.

     

    Neither
      the Depositor nor the Trustee shall sell, dispose of, or substitute for any
      of
      the Mortgage Loans, except in a disposition pursuant to (i) the foreclosure
      of a
      Mortgage Loan, (ii) the bankruptcy of the Trust Fund, (iii) the termination
      of the REMICs created hereunder pursuant to Article X of this Agreement, (iv)
      a
      substitution pursuant to Article II hereof or (v) a repurchase of Mortgage
      Loans
      as contemplated hereunder, nor acquire any assets for any REMIC created
      hereunder, nor sell or dispose of any investments in the Distribution Account
      for gain, nor accept any contributions to any REMIC created hereunder after
      the
      Closing Date, unless it has received an Opinion of Counsel (at the expense
      of
      the party causing such sale, disposition, or substitution) that such
      disposition, acquisition, substitution, or acceptance will not result in an
      Adverse REMIC Event.

     

    SECTION
      9.03. [Tax
      Treatment of the Class ES Certificates.

     

    It
      is the
      intent of the parties hereto that the segregated pool of assets consisting
      of
      any collections in respect of the Class ES Distributable Amount payable to
      the
      Class ES Certificates constitutes, for federal income tax purposes, a grantor
      trust as described in Subpart E of Part I of Subchapter J of the Code and
      Treasury Regulation §301.7701-4(c)(2). The Securities Administrator shall
      prepare and file, and the Trustee shall sign, all of the tax returns in respect
      of such grantor trust. The expenses of preparing and filing such returns shall
      be borne by the Securities Administrator. For purposes of complying with tax
      information reporting requirements, the Securities Administrator shall assume
      that the grantor trust is not a widely held fixed investment trust as that
      term
      is defined in Treasury Regulation section 1.671-5(b)(22).]]

    
       

      
        
          
          

        

        
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    [TAX
      STATUS AND REPORTING

     

    SECTION
      9.01. Tax
      Status and Reporting.
      It is
      the intention of the Depositor and the Trustee that the Trust Fund created
      hereunder be considered a “grantor trust” under the Code. Based upon such
      characterization, within a reasonable period of time after the end of each
      calendar year but not later than the latest date permitted by law, the Trustee
      shall mail to each person who at anytime during such calendar year shall have
      been a Certificateholder the necessary information under applicable law for
      preparation of such Holder’s federal and state income tax returns.]

     

     

    ARTICLE
      X

     

    TERMINATION

     

    SECTION
      10.01. Termination.

     

    (a) The
      respective obligations and responsibilities of the Seller, the Depositor, the
      Master Servicer, the Securities Administrator and the Trustee created hereby
      (other than the obligation of the Securities Administrator to make certain
      payments to Certificateholders after the final Distribution Date and the
      obligation of the Master Servicer to send certain notices as hereinafter set
      forth) shall terminate upon notice to the Trustee and the Securities
      Administrator upon the earliest of (i) the Distribution Date on which the
      Class Certificate Principal Balance (or Class Certificate Notional Balance
      in
      the case of the Interest Only Certificates) of each Class of Certificates has
      been reduced to zero, (ii) the final payment or other liquidation of the
      last Mortgage Loan, (iii) the optional purchase of the Mortgage Loans as
      described in paragraph (b) of this Section 10.01 and (iv) the Latest
      Possible Maturity Date (each of the events in clauses (i) through (iv), a
“Termination
      Event”).

     

    (b) 
      [Thornburg] (solely in its capacity as a Servicer of the Mortgage Loans) may,
      at
      its option, terminate this Agreement on any Distribution Date on which the
      aggregate of the Stated Principal Balances of the Mortgage Loans as of the
      end
      of the immediately preceding Due Period is equal to or less than 10% of the
      aggregate Cut-Off Date Principal Balance, by purchasing, on such Distribution
      Date, all of the outstanding Mortgage Loans and REO Properties at a price equal
      to the sum of (i) the outstanding Stated Principal Balances of the Mortgage
      Loans (other than in respect of REO Properties), (ii) the lesser of (x) the
      appraised value of any REO Property as determined by the higher of two
      appraisals completed by two independent appraisers selected by [Thornburg]
      at
      the expense of [Thornburg] less the good faith estimate of the Master Servicer
      or the related Servicer, as applicable, of Liquidation Expenses to be incurred
      in connection with its disposal and (y) the Principal Balance of each Mortgage
      Loan related to any REO Property and (iii) in all cases, accrued and unpaid
      interest thereon at the applicable Loan Rate through the end of the Due Period
      preceding the final Distribution Date, plus unreimbursed Servicing Advances
      and
      Advances and any unpaid Master Servicing Fees and Servicing Fees allocable
      to
      such Mortgage Loans and REO Properties, plus all amounts, if any, then due
      and
      owing to the Trustee, the Master Servicer and the Securities Administrator
      (the
“Termination
      Price”).

     

    
      
        
        

      

      
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    In
      addition, [      ] (solely in its capacity as the
      Master Servicer) may, at its option, terminate this Agreement on any
      Distribution Date on which the aggregate of the Stated Principal Balances of
      the
      Mortgage Loans as of the end of the immediately preceding Due Period is equal
      to
      or less than 5% of the aggregate Cut-Off Date Principal Balance, by purchasing,
      on such Distribution Date, all of the outstanding Mortgage Loans and REO
      Properties at a price equal to Termination Price; provided,
      that
      the
      right of [      ] to repurchase all the Mortgage
      Loans shall be exercisable only if [Thornburg] has not elected to exercise
      its
      optional termination right on or before such date as described in the
      immediately preceding paragraph.

     

    (c) Notice
      of
      any termination pursuant to Section 10.01(b), specifying the Distribution Date
      (which shall be a date that would otherwise be a Distribution Date) upon which
      the Certificateholders may surrender their Certificates to the Securities
      Administrator for payment of the final distribution and cancellation with
      respect to those Classes, shall be given promptly by the Securities
      Administrator upon the Securities Administrator receiving notice of such date
      from the Master Servicer by letter to the Certificateholders mailed not earlier
      than the 10th day and not later than the 19th day of the month of such
      final distribution specifying (1) the Distribution Date upon which final
      distributions on the related Certificates will be made upon presentation and
      surrender of such Certificates at the office or agency of the Securities
      Administrator therein designated, (2) the amount of any such final
      distribution and (3) that the Record Date otherwise applicable to such
      Distribution Date is not applicable, distributions being made only upon
      presentation and surrender of the Certificates at the office or agency of the
      Securities Administrator therein specified.

     

    (d) Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall cause to be distributed to the Holders of such Classes of Certificates
      on
      the Distribution Date for such final distribution, in proportion to the
      Percentage Interests of their respective Class and to the extent that funds
      are
      available for such purpose, an amount equal to the amount required to be
      distributed to such Holders in accordance with the provisions of
      Section 4.01 hereof for such Distribution Date.

     

    (e) In
      the
      event that the applicable Certificateholders shall not surrender their
      Certificates for final payment and cancellation on or before such final
      Distribution Date relating to these Certificates as put forth in paragraph
      (c)
      of this section, the Securities Administrator shall promptly following such
      date
      cause all funds in the Distribution Account not distributed in final
      distribution to such Certificateholders to be withdrawn therefrom and credited
      to the remaining Certificateholders by depositing such funds in a separate
      account for the benefit of such Certificateholders, and the Securities
      Administrator shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within nine months after the
      second notice all the Certificates shall not have been surrendered for
      cancellation, the Master Servicer shall be entitled to all unclaimed funds
      and
      other assets which remain subject hereto, and the Securities Administrator
      upon
      transfer of such funds shall be discharged of any responsibility for such funds,
      and the Certificateholders shall look to the Master Servicer for
      payment.

     

    
      
        
        

      

      
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    SECTION
      10.02. Additional
      Termination Requirements.

     

    (a) Subsequent
      to both purchase options provided in Section 10.01(c) and Section 10.01(d)
      having been exercised, the Trust shall be terminated in accordance with the
      following additional requirements:

     

    (i) The
      Trustee at the direction of the Securities Administrator shall sell any
      remaining assets of the Trust Fund to [Thornburg] or its designee or
      [      ] or its designee, as the case may be, for
      cash and, within 90 days of such sale, the Securities Administrator shall
      distribute to (or credit to the account of) the Certificateholders the proceeds
      of such sale together with any cash on hand (less amounts retained to meet
      claims) in complete liquidation of the Trust Fund[, and each REMIC created
      hereunder]; and

     

    (ii) [The
      Securities Administrator shall attach a statement to the final federal income
      tax return for each REMIC created hereunder stating that pursuant to Treasury
      Regulation §1.860F-1, the first day of the 90 day liquidation period for such
      REMIC was the date on which the Trustee sold the assets of the Trust Fund and
      shall satisfy all requirements of a qualified liquidation under Section 860F
      of
      the Code and any regulations thereunder as evidenced by an Opinion of Counsel
      delivered to the Trustee and the Securities Administrator obtained at the
      expense of the Seller.]

     

    (b) By
      their
      acceptance of Certificates, the Holders thereof hereby agree to appoint the
      Trustee and the Securities Administration as their attorneys in fact to
      undertake the foregoing steps.

     

     

    ARTICLE
      XI

     

    DISPOSITION
      OF TRUST ASSETS

     

    SECTION
      11.01. Disposition
      of Trust Assets.

     

    Neither
      the Trust, nor this Agreement, may be terminated or voided, or any disposition
      of the assets of the Trust effected, other than in accordance with the terms
      hereof, except to the extent that Holders representing no less than the entire
      beneficial ownership interest of the Certificates have so assented.

     

    ARTICLE
      XII 

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by Seller, the Depositor, the Master
      Servicer, the Securities Administrator and the Trustee, and without the consent
      of the Certificateholders, (i) to cure any ambiguity, (ii) to correct
      or supplement any provisions herein which may be defective or inconsistent
      with
      any other provisions herein, (iii) to make any other provisions with
      respect to matters or questions arising under this Agreement, which shall not
      be
      inconsistent with the provisions of this Agreement, or (iv) to conform the
      terms
      hereof to the description thereof provided in the Prospectus; provided,
      however,
      that any
      such action listed in clause (i) through (iii) above shall be deemed
      not to adversely affect in any material respect the interests of any
      Certificateholder, if evidenced by (i) written notice to the Depositor, the
      Seller, the Master Servicer, the Securities Administrator and the Trustee from
      each Rating Agency that such action will not result in the reduction or
      withdrawal of the rating of any outstanding Class of Certificates with respect
      to which it is a Rating Agency or (ii) an Opinion of Counsel stating that
      such amendment shall not adversely affect in any material respect the interests
      of any Certificateholder, is permitted by the Agreement and all the conditions
      precedent, if any have been complied with, delivered to the Master Servicer,
      the
      Securities Administrator and the Trustee.

    
       

      
        
          
          

        

        
          120

          
            

          

        

        
          
          

        

      

    In
      addition, this Agreement may be amended from time to time by Seller, the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      and
      with the consent of the Majority Certificateholders for the purpose of adding
      any provisions to or changing in any manner or eliminating any of the provisions
      of this Agreement or of modifying in any manner the rights of the Holders of
      Certificates; provided,
      however,
      that no
      such amendment or waiver shall (x) reduce in any manner the amount of, or
      delay the timing of, payments on the Certificates that are required to be made
      on any Certificate without the consent of the Holder of such Certificate,
      (y) adversely affect in any material respect the interests of the Holders
      of any Class of Certificates in a manner other than as described in clause
      (x)
      above, without the consent of the Holders of Certificates of such Class
      evidencing at least a 66% Percentage Interest in such Class, or (z) reduce
      the percentage of Voting Rights required by clause (y) above without the
      consent of the Holders of all Certificates of such Class then outstanding.
      Upon
      approval of an amendment, a copy of such amendment shall be sent to each Rating
      Agency.

     

    Notwithstanding
      any provision of this Agreement to the contrary, neither the Trustee nor the
      Securities Administrator shall consent to any amendment to this Agreement unless
      it shall have first received an Opinion of Counsel, delivered by and at the
      expense of the Person seeking such Amendment (unless such Person is the Trustee
      or the Securities Administrator, in which case the Trustee or the Securities
      Administrator shall be entitled to be reimbursed for such expenses by the Trust
      pursuant to Section 8.05 hereof), to the effect [that such amendment will not
      result in the imposition of a tax on any REMIC created hereunder pursuant to
      the
      REMIC Provisions or cause any REMIC created hereunder to fail to qualify as
      a
      REMIC at any time that any Certificates are outstanding and] that the amendment
      is being made in accordance with the terms hereof, such amendment is permitted
      by this Agreement and all conditions precedent, if any, have been complied
      with.

    Promptly
      after the execution of any such amendment the Securities Administrator shall
      furnish, at the expense of the Person that requested the amendment if such
      Person is the Seller (but in no event at the expense of the Trustee or the
      Securities Administrator), otherwise at the expense of the Trust, a copy of
      such
      amendment and the Opinion of Counsel referred to in the immediately preceding
      paragraph to the Master Servicer and each Rating Agency.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 12.01 to approve the particular form of any proposed amendment;
      instead it shall be sufficient if such consent shall approve the substance
      thereof. The manner of obtaining such consents and of evidencing the
      authorization of the execution thereof by Certificateholders shall be subject
      to
      such reasonable regulations as the Securities Administrator may
      prescribe.

    
       

      
        
          
          

        

        
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    The
      Trustee and Securities Administrator may, but shall not be obligated to, enter
      into any amendment pursuant to this 12.01 Section that affects its rights,
      duties and immunities under this Agreement or otherwise.

     

    SECTION
      12.02. Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the Mortgaged Properties
      are situated, and in any other appropriate public recording office or elsewhere,
      such recordation to be effected by the Trustee at the expense of the Trust,
      but
      only upon direction of Certificateholders accompanied by an Opinion of Counsel
      to the effect that such recordation materially and beneficially affects the
      interests of the Certificateholders.

     

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

     

    SECTION
      12.03. Limitation
      on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not (i) operate to terminate
      this Agreement or the Trust, (ii) 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 the Trust or
      (iii) otherwise affect the rights, obligations and liabilities of the
      parties hereto or any of them.

     

    Except
      as
      expressly provided for herein, no Certificateholder shall have any right to
      vote
      or in any manner otherwise control the operation and management of the Trust,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third person
      by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

    No
      Certificateholder shall have any right by virtue of any provision of this
      Agreement to institute any suit, action or proceeding in equity or at law upon
      or under or with respect to this Agreement, unless such Holder previously shall
      have given to the Trustee a written notice of default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      entitled to at least 25% of the Voting Rights shall have made written request
      upon the Trustee to institute such action, suit or proceeding in its own name
      as
      Trustee hereunder and shall have offered to the Trustee such reasonable
      indemnity as it may require against the costs, expenses and liabilities to
      be
      incurred therein or thereby, and the Trustee for 15 days after its receipt
      of such notice, request and offer of indemnity, shall have neglected or refused
      to institute any such action, suit or proceeding. It is understood and intended,
      and expressly covenanted by each Certificateholder with every other
      Certificateholder and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatever by virtue of any provision of this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of such Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder, which priority or preference is not otherwise provided
      for herein, or to enforce any right under this Agreement, except in the manner
      herein provided and for the equal, ratable and common benefit of all
      Certificateholders. For the protection and enforcement of the provisions of
      this
      Section 12.03, each and every Certificateholder and the Trustee shall be
      entitled to such relief as can be given either at law or in equity.

    
       

      
        
          
          

        

        
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    SECTION
      12.04. Governing
      Law; Jurisdiction.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given if personally delivered at or mailed by first
      class mail, postage prepaid, or by express delivery service or delivered via
      telecopy, to (a) in the case of the Seller, to [Thornburg Mortgage Home
      Loans, Inc., 150 Washington Avenue, Suite 302, Santa Fe, New Mexico 87501,
      Attention: Deborah Burns (telecopy number (505) 467-5215)], or such other
      address or telecopy number as may hereafter be furnished to the Depositor,
      the
      Master Servicer, the Securities Administrator, and the Trustee in writing by
      the
      Seller, (b) in the case of the Trustee, to the Corporate Trust Office or such
      other address or telecopy number as may hereafter be furnished to the Depositor,
      the Master Servicer, the Securities Administrator, and the Seller in writing
      by
      the Trustee, (c) in the case of the Depositor, to Thornburg Mortgage
      Securities Corporation, 150 Washington Avenue, Suite 302, Santa Fe, New Mexico
      87501, Attention: Deborah Burns (telecopy number (505) 467-5215), or such
      other address or telecopy number as may hereafter be furnished to the, or such
      other address or telecopy number as may be furnished to the Seller, the Master
      Servicer, the Securities Administrator, and the Trustee in writing by the
      Depositor and (d) in the case of the Master Servicer or Securities
      Administrator, for certificate transfer purposes, to
      [      ], Attention:
      [      ], or such other address or telecopy number
      as may be furnished to the Depositor, the Seller, the Securities Administrator,
      and the Trustee in writing by the Master Servicer. Any notice required or
      permitted to be mailed to a Certificateholder shall be given by first class
      mail, postage prepaid, at the address of such Holder as shown in the Certificate
      Register. Notice of any Event of Default shall be given by telecopy and by
      certified mail. Any notice so mailed within the time prescribed in this
      Agreement shall be conclusively presumed to have duly been given when mailed,
      whether or not the Certificateholder receives such notice. A copy of any notice
      required to be telecopied hereunder shall also be mailed to the appropriate
      party in the manner set forth above.

     

    
      
        
        

      

      
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    SECTION
      12.06. Severability
      of Provisions.

     

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

     

     

    SECTION
      12.07. Article
      and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

     

    SECTION
      12.08. Notice
      to the Rating Agencies.

     

    (a) The
      Securities Administrator shall be obligated to use its best reasonable efforts
      promptly to provide notice to the Rating Agencies with respect to each of the
      following of which a Responsible Officer of the Securities Administrator has
      actual knowledge:

     

    (i) any
      material change or amendment to this Agreement;

     

    (ii) the
      occurrence of any Event of Default that has not been cured or
      waived;

     

    (iii) the
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Trustee;

     

    (iv) the
      final
      payment to Holders of the Certificates of any Class; and

     

    (v) any
      change in the location of any Account.

     

    (b) In
      addition, the Securities Administrator shall promptly furnish to the Rating
      Agencies copies of each Statement to Certificateholders described in Section
      5.04 hereof; if the Trustee is acting as a successor Master Servicer pursuant
      to
      Section 7.02 hereof, the Trustee shall notify the Rating Agencies of any event
      that would result in the inability of the Trustee to make Advances and the
      Master Servicer shall promptly furnish to each Rating Agency copies of the
      following:

    (i) each
      annual statement as to compliance described in Section 3.17 hereof;

     

    (ii) each
      annual assessment of compliance and attestation report described in Section
      3.16
      hereof; and

     

    (iii) each
      notice delivered pursuant to Section 5.05(b) hereof which relates to the fact
      that the Master Servicer has not made an Advance.

    
       

      
        
          
          

        

        
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    (c) All
      notices to the Rating Agencies provided for in this Agreement shall be in
      writing and sent by first class mail, telecopy or overnight courier, as
      follows:

     

    If
      to
      [      ], to:

    

    [      ]

     

    SECTION
      12.09. Further
      Assurances.

     

    Notwithstanding
      any other provision of this Agreement, neither the Regular Certificateholders
      nor the Trustee shall have any obligation to consent to any amendment or
      modification of this Agreement unless they have been provided reasonable
      security or indemnity against their out-of-pocket expenses (including reasonable
      attorneys’ fees) to be incurred in connection therewith.

     

    SECTION
      12.10. Benefits
      of Agreement.

     

    Nothing
      in this Agreement or in the Certificates, expressed or implied, shall give
      to
      any Person, other than the Certificateholders and the parties hereto and their
      successors hereunder, any benefit or any legal or equitable right, remedy or
      claim under this Agreement.

     

    SECTION
      12.11. Acts
      of Certificateholders.

     

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Agreement to be given or taken by the Certificateholders
      may be embodied in and evidenced by one or more instruments of substantially
      similar tenor signed by such Certificateholders in person or by agent duly
      appointed in writing, and such action shall become effective when such
      instrument or instruments are delivered to the Trustee and the Seller. Such
      instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “act” of the Certificateholders
      signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Agreement and conclusive in favor of the Trustee and the Trust,
      if made in the manner provided in this Section 12.11.

    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by the certificate
      of
      a notary public or other officer authorized by law to take acknowledgments
      of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Whenever such execution is by a
      signer acting in a capacity other than his or her individual capacity, such
      certificate or affidavit shall also constitute sufficient proof of his
      authority.

     

    (c) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by any Certificateholder shall bind every future Holder of such
      Certificate and the Holder of every Certificate issued upon the registration
      of
      transfer thereof or in exchange therefor or in lieu thereof, in respect of
      anything done, omitted or suffered to be done by the Trustee or the Trust in
      reliance thereon, whether or not notation of such action is made upon such
      Certificate.

    
       

      
        
          
          

        

        
          125

          
            

          

        

        
          
          

        

      

    

     

    SECTION
      12.12. Successors
      and Assigns.

     

    The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto.

     

     

    SECTION
      12.13. Derivatives
      Transactions.

     

    The
      Trust
      and the Securities Administrator are authorized, at the direction and the
      expense of the Holders of a majority of the Voting Rights allocated to the
      Class
      of Subordinate Certificates outstanding having the highest numerical designation
      (or, if no Subordinate Certificates are outstanding, a majority of the Voting
      Rights allocated to the Senior Certificates other than the Class
      [   ] Certificates), to enter into such derivative transactions
      for the benefit of any Certificateholders as may be deemed desirable by such
      Holders, so long as (i) as evidenced by one or more Opinions of Counsel
      addressed to the Securities Administrator (at the expense of such Holders),
      the
      execution and delivery of such derivative transaction is permitted under this
      Agreement and the inclusion of such derivative in the Trust will not be
      inconsistent with the ERISA provisions contained herein or cause the
      Certificates (other than the ERISA-Restricted Certificates) to fail to qualify
      for the Underwriter’s Exemption, [(ii) a REMIC Opinion (at the expense of such
      Holders) is delivered to the Securities Administrator], (iii) an Opinion of
      Counsel addressed to the Securities Administrator (at the expense of such
      Holders) that the execution and delivery of such derivative transaction and
      documentation as presented to the Securities Administrator is permitted under
      this Agreement, and (iv) the Rating Agency shall have confirmed in writing
      that
      the inclusion of such derivative would not result in a downgrade of its then
      rating of any Class of Certificates.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    

     

    
      
        
        

      

      
        126

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto 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.

     

    THORNBURG
      MORTGAGE SECURITIES CORPORATION,

    as
      Depositor

     

    By:          

    Name:

    
      	 	 	
              Title:

            

    

     

    THORNBURG
      MORTGAGE HOME LOANS, INC., as
      Seller

     

    By:          

    Name:
      

    Title:
      

     

    [      ],
      

    as
      Master Servicer

    

    By:          

    Name:
      

    Title:
      

     

    [      ],
      

    as
      Securities Administrator

     

    By:          

    Name:
      

    Title:
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [      ],
      as Trustee and Custodian

     

    By:                   

    Name:
      

    Title:
      

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF

            	 	
              )

            
	 	 	
              )
                ss.:

            
	
              COUNTY
                OF

            	 	
              )

            

    

     

    On
      the
      ______ day of [      ], before me, a notary public
      in and for said State, personally appeared ___________________________
      known to
      me to be a _______________________ of Thornburg Mortgage Securities Corporation,
      a Delaware corporation that executed the within instrument, and also known
      to me
      to be the person who executed it on behalf of said corporation, and acknowledged
      to me that such corporation executed the within instrument.

     

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

     

                

    Notary
      Public

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW MEXICO

            	 	
              )

            
	 	 	
              )
                ss.:

            
	
              COUNTY
                OF SANTA FE

            	 	
              )

            

    

    

     

    On
      the
      _____ day
      of
      [      ], before me, a notary public in and for
      said State, personally appeared [      ] known to
      me to be a [      ] of [Thornburg Mortgage Home
      Loans, Inc.], a Delaware corporation that executed the within instrument, and
      also known to me to be the person who executed it on behalf of said corporation,
      and acknowledged to me that such corporation executed the within
      instrument.

     

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

     

                

    Notary
      Public

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF

            	 	
              )

            
	 	 	
              )
                ss.:

            
	
              COUNTY
                OF

            	 	
              )

            

    

    

     

    On
      the
      ______ day of [      ], before me, a notary public
      in and for said State, personally appeared _________________________ known
      to me
      to be a _______________________ of [      ] that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

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

     

                

    Notary
      Public

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

      
        	
                STATE
                  OF

              	 	
                )

              
	 	 	
                )
                  ss.:

              
	
                COUNTY
                  OF

              	 	
                )

              

      

       

    

    On
      the
      _____ day of [      ], before me, a notary public
      in and for said State, personally appeared ___________________________________
      known to me to be _______________________________ of
      [      ], that executed the within instrument, and
      also known to me to be the person who executed it on behalf of said corporation,
      and acknowledged to me that such corporation executed the within
      instrument.

     

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

     

                

    Notary
      Public

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

    

    MORTGAGE
      LOAN SCHEDULE

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
        A-1

       

      FORM
        OF SENIOR CERTIFICATE (OTHER THAN SENIOR INTEREST-ONLY
        CERTIFICATES)

       

      CLASS
        [          ]
        CERTIFICATE

       

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

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT”, AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
        NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
        TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
        OF SUCH
        REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION.
        [Applicable only to the Private Senior Certificates]

       

      THE
        HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE
        REPRESENTED AND WARRANTED THAT IT ACQUIRED SUCH CERTIFICATE AS A “QUALIFIED
        INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES
        FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
        TO
        WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
        144A.
        [Applicable only to the Private Senior Certificates]

       

      UNTIL
        THIS CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
        PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
        OF
        ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) AN OPINION OF
        COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, WHICH OPINION OF COUNSEL
        SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE SECURITIES ADMINISTRATOR
        OR
        THE TRUST, ADDRESSED TO THE SECURITIES ADMINISTRATOR, TO THE EFFECT THAT
        THE
        PURCHASE AND HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER, ANY SERVICER, THE
        SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
        THOSE
        EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY. A TRANSFEREE
        ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
        REPRESENTATION IN THIS PARAGRAPH. [Applicable
        only to the Private Senior Certificates]

       

      
        
          
          

        

        
          A-1-1

          
            

          

        

        
          
          

        

      

      
 

      
        	
                Certificate
                  No.:

              	
                [            ]

              
	 	 
	
                Cut-Off
                  Date:

              	
                [            ]

              
	 	 
	
                First
                  Distribution Date:

              	
                [            ]

              
	 	 
	
                Initial
                  Certificate Principal

                Balance
                  of this Certificate

                (“Denomination”):

              	
                $[            ]

              
	 	 
	
                Original
                  Class Certificate

                Principal
                  Balance of this

                Class:

              	
                $[            ]

              
	 	 
	
                Percentage
                  Interest:

              	
                [            ]%

              
	 	 
	
                Pass-Through
                  Rate:

              	
                [            ]

              
	 	 
	
                CUSIP:

              	
                ______
                  __
                  _

              
	 	 
	
                Class:

              	
                [            ]

              
	 	 
	
                Final
                  Scheduled Distribution Date:

              	
                [            ]

              

      

      
        
          
          

        

        
          A-1-2

          
            

          

        

        
          
          

        

      

      Thornburg
        Mortgage Securities Trust [      ],

      Mortgage
        Loan Pass-Through Certificates,

      Series
        [      ]

      Class
        [       ]

       

      evidencing
        the Percentage Interest in the distributions allocable to the Certificates
        of
        the above-referenced Class with respect to the Trust consisting primarily
        of
        [     ] mortgage loans (the “Mortgage Loans”) purchased
        from others by

       

      THORNBURG
        MORTGAGE SECURITIES CORPORATION, as Depositor.

       

      Principal
        in respect of this Certificate is distributable monthly as set forth herein.
        Accordingly, the Certificate Principal Balance of this Certificate at any
        time
        may be less than the Initial Certificate Principal Balance set forth on the
        face
        hereof, as described herein. This Certificate does not evidence an obligation
        of, or an interest in, and is not guaranteed by the Depositor, the Seller,
        the
        Master Servicer, the Securities Administrator or the Trustee referred to
        below
        or any of their respective affiliates.

       

      This
        certifies that CEDE & CO is the registered owner of the Percentage Interest
        evidenced by this Certificate (obtained by dividing the Denomination of this
        Certificate by the Original Class Certificate Principal Balance) in certain
        monthly distributions with respect to a Trust consisting primarily of the
        Mortgage Loans deposited by Thornburg Mortgage Securities Corporation (the
        “Depositor”). The Trust was created pursuant to the pooling and servicing
        agreement dated as of [        ] (the
“Agreement”) by and among the Depositor, Thornburg Mortgage Home Loans, Inc.
        (“TMHL”), as seller (the “Seller”),
        [          ], as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and the
        [          ], as trustee (the
“Trustee”). This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound. To the extent not defined herein, the capitalized terms
        used
        herein have the meanings assigned in the Agreement.

       

      No
        transfer of this Certificate shall be made unless such disposition is exempt
        from the registration requirements of the Securities Act of 1933, as amended
        (the “1933 Act”), and any applicable state securities laws or is made in
        accordance with the 1933 Act and such laws. In the event of any transfer,
        the
        transferee will be deemed to represent and warrant that that it acquired
        such
        certificate as a “Qualified Institutional Buyer” as defined in Rule 144A under
        the 1933 Act that purchases for its own account or for the account of a
        Qualified Institutional Buyer to whom notice is given that the transfer is
        being
        made in reliance on Rule 144A.[Applicable
        only to the Non-Offered Certificates]

       

      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.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

      
        
          
          

        

        
          A-1-3

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:
        [          ]

       

      THORNBURG
        MORTGAGE SECURITIES TRUST

      [      ]

       

      
        	 	
                By:
                  

              	
                [          ],

              

      

      not
        in
        its individual capacity,

      but
        solely as Securities Administrator

      

      

      

      By                 

       

      

      

      This
        is
        one of the Certificates

      referenced
        in the within-mentioned Agreement

       

      

      

      By
        ________________________________________

      Authorized
        Signatory of

      [          ],

      as
        Securities Administrator

      

      
        
          
          

        

        
          A-1-4

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-2

       

      FORM
        OF SENIOR INTEREST-ONLY CERTIFICATES

       

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

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT”, AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
        NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
        TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
        OF SUCH
        REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION.

       

      THE
        HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE
        REPRESENTED AND WARRANTED THAT IT ACQUIRED SUCH CERTIFICATE AS A “QUALIFIED
        INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES
        FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
        TO
        WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
        144A.

       

      UNTIL
        THIS CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
        PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
        OF
        ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) AN OPINION OF
        COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, WHICH OPINION OF COUNSEL
        SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE SECURITIES ADMINISTRATOR
        OR
        THE TRUST, ADDRESSED TO THE SECURITIES ADMINISTRATOR, TO THE EFFECT THAT
        THE
        PURCHASE AND HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER, ANY SERVICER, THE
        SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
        THOSE
        EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY. A TRANSFEREE
        ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
        REPRESENTATION IN THIS PARAGRAPH.

       

      
        
          
          

        

        
          A-2-1

          
            

          

        

        
          
          

        

      

      THIS
        CERTIFICATE IS AN INTEREST-ONLY CERTIFICATE AND, ACCORDINGLY, IS NOT ENTITLED
        TO
        ANY DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

       

      
        
          
          

        

        
          A-2-2

          
            

          

        

        
          
          

        

      

      
        
          	
                  Certificate
                    No.:

                	
                  [            ]

                
	 	 
	
                  Cut-Off
                    Date:

                	
                  [            ]

                
	 	 
	
                  First
                    Distribution Date:

                	
                  [            ]

                
	 	 
	
                  Initial
                    Certificate Principal

                  Balance
                    of this Certificate

                  (“Denomination”):

                	
                  $[            ]

                
	 	 
	
                  Original
                    Class Certificate

                  Principal
                    Balance of this

                  Class:

                	
                  $[            ]

                
	 	 
	
                  Percentage
                    Interest:

                	
                  [            ]%

                
	 	 
	
                  Pass-Through
                    Rate:

                	
                  [            ]

                
	 	 
	
                  CUSIP:

                	
                  ______
                    __
                    _

                
	 	 
	
                  Class:

                	
                  [            ]

                
	 	 
	
                  Final
                    Scheduled Distribution Date:

                	
                  [            ]

                

        

        
          
            
            

          

          
            A-2-3

            
              

            

          

          
            
            

          

        

      Thornburg
        Mortgage Securities Trust
        [          ],

      Mortgage
        Loan Pass-Through Certificates, 

      Series
        [          ]

      Class
        [          ]

       

      evidencing
        the Percentage Interest in the distributions allocable to the Certificates
        of
        the above-referenced Class with respect to the Trust consisting primarily
        of
        [     ] mortgage loans (the “Mortgage Loans”) purchased
        from others by

       

      THORNBURG
        MORTGAGE SECURITIES CORPORATION, as Depositor.

       

      Interest
        in respect of this Certificate is distributable monthly as set forth herein.
        Accordingly, the Certificate Notional Amount of this Certificate at any time
        may
        be less than the Initial Certificate Notional Amount set forth on the face
        hereof, as described herein. This Certificate does not evidence an obligation
        of, or an interest in, and is not guaranteed by the Depositor, the Seller,
        the
        Master Servicer, the Securities Administrator or the Trustee referred to
        below
        or any of their respective affiliates.

       

      This
        certifies that CEDE & CO is the registered owner of the Percentage Interest
        evidenced by this Certificate (obtained by dividing the Denomination of this
        Certificate by the Original Class Certificate Notional Amount) in certain
        monthly distributions with respect to a Trust consisting primarily of the
        Mortgage Loans deposited by Thornburg Mortgage Securities Corporation (the
        “Depositor”). The Trust was created pursuant to the pooling and servicing
        agreement dated as of [        ] (the
“Agreement”) by and among the Depositor, Thornburg Mortgage Home Loans, Inc.
        (“TMHL”), as seller (the “Seller”),
        [          ], as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and the
        [          ], as trustee (the
“Trustee”). This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound. To the extent not defined herein, the capitalized terms
        used
        herein have the meanings assigned in the Agreement.

       

      No
        transfer of this Certificate shall be made unless such disposition is exempt
        from the registration requirements of the Securities Act of 1933, as amended
        (the “1933 Act”), and any applicable state securities laws or is made in
        accordance with the 1933 Act and such laws. In the event of any transfer,
        the
        transferee will be deemed to represent and warrant that that it acquired
        such
        certificate as a “Qualified Institutional Buyer” as defined in Rule 144A under
        the 1933 Act that purchases for its own account or for the account of a
        Qualified Institutional Buyer to whom notice is given that the transfer is
        being
        made in reliance on Rule 144A.

       

      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.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

      
        
          
          

        

        
          A-2-4

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

       

      [Reserved]

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

       

      FORM
        OF CLASS [        ]
        CERTIFICATES

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT”, AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFER AFFIDAVIT
        IN
        ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
        PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
        OF
        ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) IF SUCH CERTIFICATE
        HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT
        THE
        PURCHASER IS AN INSURANCE COMPANY PURCHASING THIS CERTIFICATE WITH FUNDS
        CONTAINED IN AN “INSURANCE COMPANY GENERAL ACCOUNT” AS DEFINED IN SECTION V(e)
        OF PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60 AND THAT THE PURCHASE
        AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER SECTIONS I AND III OF PTCE
        95-60 OR (C) AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR,
        WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE
        SECURITIES ADMINISTRATOR OR THE TRUST, ADDRESSED TO THE SECURITIES
        ADMINISTRATOR, TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
        WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
        OF
        ERISA OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER
        SERVICER, ANY SERVICER, THE SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO
        ANY
        OBLIGATION IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR
        TO ANY
        LIABILITY. A TRANSFEREE ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED
        TO
        HAVE MADE THE REPRESENTATION IN THIS PARAGRAPH.

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      
        	
                Certificate
                  No.:

              	
                [            ]

              
	 	 
	
                Cut-Off
                  Date:

              	
                [            ]

              
	 	 
	
                First
                  Distribution Date:

              	
                [            ]

              
	 	 
	
                Initial
                  Certificate Principal

                Balance
                  of this Certificate

                (“Denomination”):

              	
                $[            ]

              
	 	 
	
                Original
                  Class Certificate

                Principal
                  Balance of this

                Class:

              	
                $[            ]

              
	 	 
	
                Percentage
                  Interest:

              	
                [            ]%

              
	 	 
	
                Pass-Through
                  Rate:

              	
                [            ]

              
	 	 
	
                CUSIP:

              	
                ______
                  __
                  _

              
	 	 
	
                Class:

              	
                [            ]

              
	 	 
	
                Final
                  Scheduled Distribution Date:

              	
                [            ]

              

      

      
        
          
          

        

        
          C-2

          
            

          

        

        
          
          

        

      

      Thornburg
        Mortgage Securities Trust
        [          ]

      Mortgage
        Loan Pass-Through Certificates, 

      Series
        [          ]

      Class
        [          ]

       

      evidencing
        the Percentage Interest in the distributions allocable to the Certificates
        of
        the above-referenced Class with respect to the Trust consisting primarily
        of
        [     ] loans (the “Mortgage Loans”) purchased from
        others by

       

      THORNBURG
        MORTGAGE SECURITIES CORPORATION, as Depositor.

       

      This
        Certificate does not evidence an obligation of, or an interest in, and is
        not
        guaranteed by the Depositor, the Seller, the Master Servicer, the Securities
        Administrator or the Trustee referred to below or any of their respective
        affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
        or
        insured by any governmental agency or instrumentality.

       

      This
        certifies that _____________________________ is the registered owner of the
        Percentage Interest evidenced by this Certificate specified above in the
        interest represented by all Certificates of the Class to which this Certificate
        belongs in a Trust consisting primarily of the Mortgage Loans deposited by
        Thornburg Mortgage Securities Corporation (the “Depositor”). The Trust was
        created pursuant to the pooling and servicing agreement dated as of
        [        ] (the “Agreement”) by and
        among the Depositor, Thornburg Mortgage Home Loans, Inc. (“TMHL”), as seller
        (the “Seller”), [          ],
        as master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and
        [          ], as trustee (the
“Trustee”). This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound. To the extent not defined herein, the capitalized terms
        used
        herein have the meanings assigned in the Agreement.

       

      Any
        distribution of the proceeds of any remaining assets of the Trust will be
        made
        only upon presentment and surrender of this Certificate at the Corporate
        Trust
        Office or the office or agency maintained by the Securities
        Administrator.

       

      Each
        Holder of this Certificate will be deemed to have agreed to be bound by the
        restrictions of the Agreement, including but not limited to the restrictions
        that (i) each person holding or acquiring any Ownership Interest in this
        Certificate must be a Permitted Transferee, (ii) no Ownership Interest in
        this
        Certificate may be transferred without delivery to the Securities Administrator
        of (a) a transfer affidavit of the proposed transferee and (b) a transfer
        certificate of the transferor, each of such documents to be in the form
        described in the Agreement, (iii) each person holding or acquiring any Ownership
        Interest in this Certificate must agree to require a transfer affidavit and
        to
        deliver a transfer certificate to the Securities Administrator as required
        pursuant to the Agreement, (iv) each person holding or acquiring an Ownership
        Interest in this Certificate must agree not to transfer an Ownership Interest
        in
        this Certificate if it has actual knowledge that the proposed transferee
        is not
        a Permitted Transferee and (v) any attempted or purported transfer of any
        Ownership Interest in this Certificate in violation of such restrictions
        will be
        absolutely null and void and will vest no rights in the purported transferee.
        The Securities Administrator will provide the Internal Revenue Service and
        any
        pertinent persons with the information needed to compute the tax imposed
        under
        the applicable tax laws on transfers of residual interests to disqualified
        organizations, if any person other than a Permitted Transferee acquires an
        Ownership Interest on a Class [   ] Certificate in violation of
        the restrictions mentioned above.

       

      
        
          
          

        

        
          C-3

          
            

          

        

        
          
          

        

      

      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.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized officer of
        the
        Securities Administrator.

      
        
          
          

        

        
          C-4

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:
        [          ]

       

      THORNBURG
        MORTGAGE SECURITIES TRUST 

      [          ]

       

      
        	 	
                By:
                  

              	
                [          ],

              

      

      not
        in
        its individual capacity,

      but
        solely as Securities Administrator

      

      

      

      By             

       

      

      

      This
        is
        one of the Certificates

      referenced
        in the within-mentioned Agreement

       

      

      

      By
        ________________________________________

      Authorized
        Signatory of

      [          ],

      as
        Securities Administrator

      
        
          
          

        

        
          C-5

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D

      

      FORM
        OF SUBORDINATE CERTIFICATE

       

      CLASS
        [          ]
        CERTIFICATE

       

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

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT”, AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
        NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
        TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
        OF SUCH
        REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION.

       

      THE
        HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE
        REPRESENTED AND WARRANTED THAT IT ACQUIRED SUCH CERTIFICATE (I)(A) PURSUANT
        TO A
        REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT
        OR
        (B) AS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE 1933
        ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
        INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE
        IN
        RELIANCE ON RULE 144A.

      

      THIS
        CERTIFICATE IS SUBORDINATE IN RIGHT AND PAYMENT AS DESCRIBED IN THE AGREEMENT
        REFERRED TO HEREIN.

       

      UNTIL
        THIS CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
        PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
        OF
        ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) AN OPINION OF
        COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, WHICH OPINION OF COUNSEL
        SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE SECURITIES ADMINISTRATOR
        OR
        THE TRUST, ADDRESSED TO THE SECURITIES ADMINISTRATOR, TO THE EFFECT THAT
        THE
        PURCHASE AND HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
        CODE
        AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER, ANY SERVICER, THE
        SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
        THOSE
        EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY. A TRANSFEREE
        ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
        REPRESENTATION IN THIS PARAGRAPH. [Applicable
        only to Class [    ] Certificates]

       

      
        
          
          

        

        
          D-1

          
            

          

        

        
          
          

        

      

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
        PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
        OF
        ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) IF SUCH CERTIFICATE
        HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT
        THE
        PURCHASER IS AN INSURANCE COMPANY PURCHASING THIS CERTIFICATE WITH FUNDS
        CONTAINED IN AN “INSURANCE COMPANY GENERAL ACCOUNT” AS DEFINED IN SECTION V(e)
        OF PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60 AND THAT THE PURCHASE
        AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER SECTIONS I AND III OF PTCE
        95-60 OR (C) AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR,
        WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE
        SECURITIES ADMINISTRATOR OR THE TRUST, ADDRESSED TO THE SECURITIES
        ADMINISTRATOR, TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
        WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
        OF
        ERISA OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER
        SERVICER, ANY SERVICER, THE SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO
        ANY
        OBLIGATION IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR
        TO ANY
        LIABILITY. A TRANSFEREE ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED
        TO
        HAVE MADE THE REPRESENTATION IN THIS PARAGRAPH. THIS CERTIFICATE IS SUBORDINATE
        IN RIGHT AND PAYMENT AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
        [Applicable
        only to Applicable only to Class [    ],
        Certificates]

       

      
        
          
          

        

        
          D-2

          
            

          

        

        
          
          

        

      

       

      THIS
        CERTIFICATE IS SUBORDINATE IN RIGHT AND PAYMENT AS DESCRIBED IN THE AGREEMENT
        REFERRED TO HEREIN.

       

      
        
          
          

        

        
          D-3

          
            

          

        

        
          
          

        

      

      
        
          	
                  Certificate
                    No.:

                	
                  [            ]

                
	 	 
	
                  Cut-Off
                    Date:

                	
                  [            ]

                
	 	 
	
                  First
                    Distribution Date:

                	
                  [            ]

                
	 	 
	
                  Initial
                    Certificate Principal

                  Balance
                    of this Certificate

                  (“Denomination”):

                	
                  $[            ]

                
	 	 
	
                  Original
                    Class Certificate

                  Principal
                    Balance of this

                  Class:

                	
                  $[            ]

                
	 	 
	
                  Percentage
                    Interest:

                	
                  [            ]%

                
	 	 
	
                  Pass-Through
                    Rate:

                	
                  [            ]

                
	 	 
	
                  CUSIP:

                	
                  ______
                    __
                    _

                
	 	 
	
                  Class:

                	
                  [            ]

                
	 	 
	
                  Final
                    Scheduled Distribution Date:

                	
                  [            ]

                

        

        
          
            
            

          

          
            D-4

            
              

            

          

          
            
            

          

        

      Thornburg
        Mortgage Securities Trust
        [          ],

      Mortgage
        Loan Pass-Through Certificates,

      Series
        [          ]

      Class
        [            ]

       

      evidencing
        the Percentage Interest in the distributions allocable to the Certificates
        of
        the above-referenced Class with respect to the Trust consisting primarily
        of
        [     ] mortgage loans (the “Mortgage Loans”) purchased
        from others by 

       

      THORNBURG
        MORTGAGE SECURITIES CORPORATION, as Depositor.

       

      Principal
        in respect of this Certificate is distributable monthly as set forth herein.
        Accordingly, the Certificate Principal Balance of this Certificate at any
        time
        may be less than the Initial Certificate Principal Balance set forth on the
        face
        hereof, as described herein. This Certificate does not evidence an obligation
        of, or an interest in, and is not guaranteed by the Depositor, the Seller,
        the
        Master Servicer, the Securities Administrator or the Trustee referred to
        below
        or any of their respective affiliates.

       

      This
        certifies that CEDE & CO is the registered owner of the Percentage Interest
        evidenced by this Certificate (obtained by dividing the Denomination of this
        Certificate by the Original Class Certificate Principal Balance) in certain
        monthly distributions with respect to a Trust consisting primarily of the
        Mortgage Loans deposited by Thornburg Mortgage Securities Corporation (the
        “Depositor”). The Trust was created pursuant to the pooling and servicing
        agreement dated as of [        ] (the
“Agreement”) by and among the Depositor, Thornburg Mortgage Home Loans, Inc.
        (“TMHL”), as seller (the “Seller”),
        [          ], as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and the
        [          ], as trustee (the
“Trustee”). This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound. To the extent not defined herein, the capitalized terms
        used
        herein have the meanings assigned in the Agreement.

       

      No
        transfer of this Certificate shall be made unless such disposition is exempt
        from the registration requirements of the Securities Act of 1933, as amended
        (the “1933 Act”), and any applicable state securities laws or is made in
        accordance with the 1933 Act and such laws. In the event of any transfer,
        the
        transferee will be deemed to represent and warrant that that it acquired
        such
        certificate as a “Qualified Institutional Buyer” as defined in Rule 144A under
        the 1933 Act that purchases for its own account or for the account of a
        Qualified Institutional Buyer to whom notice is given that the transfer is
        being
        made in reliance on Rule 144A.

       

      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.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

      
        
          
          

        

        
          D-5

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:
        [            ]

       

      THORNBURG
        MORTGAGE SECURITIES TRUST

      [          ]

       

      
        	 	
                By:
                  

              	
                [          ],

              

      

      not
        in
        its individual capacity,

      but
        solely as Securities Administrator

      

      

      

      By                 

       

      

      

      This
        is
        one of the Certificates

      referenced
        in the within-mentioned Agreement

       

      

      

      By
        ________________________________________

      Authorized
        Signatory of

      [          ],

      as
        Securities Administrator

      

       

      
        
          
          

        

        
          D-6

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D-2

       

      FORM
        OF CLASS ES CERTIFICATE

       

      THIS
        CERTIFICATE DOES NOT EVIDENCE AN INTEREST IN ANY REMIC CREATED PURSUANT TO
        THE
        AGREEMENT REFERENCED HEREIN. 

       

      THIS
        CERTIFICATE IS NOT ENTITLED TO DISTRIBUTIONS OF PRINCIPAL AND WILL NOT ACCRUE
        INTEREST. THE HOLDER OF THIS CERTIFICATE WILL BE ENTITLED TO CERTAIN
        DISTRIBUTIONS AS PROVIDED IN THE AGREEMENT.

       

      THIS
        CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
        NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
        TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
        OF SUCH
        REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED (A) (1) UNLESS
        SUCH
        TRANSFER IS MADE IN RELIANCE UPON RULE 144A OF THE SECURITIES ACT OF 1933,
        AS
        AMENDED (THE “1933 ACT”) OR (2) UNLESS SUCH TRANSFER IS MADE IN RELIANCE UPON
        RULE 501 (C)(1), (2), (3) OR (7) OF THE 1933 ACT (IN EACH CASE AS EVIDENCED
        BY
        AN INVESTMENT LETTER DELIVERED TO THE SECURITIES ADMINISTRATOR, IN SUBSTANTIALLY
        THE FORM ATTACHED TO THE POOLING AND SERVICING AGREEMENT AND, IF SO REQUIRED
        BY
        THE SECURITIES ADMINISTRATOR, A WRITTEN OPINION OF COUNSEL (WHICH MAY BE
        IN-HOUSE COUNSEL) ACCEPTABLE TO AND IN FORM AND SUBSTANCE REASONABLY
        SATISFACTORY TO THE SECURITIES ADMINISTRATOR, THAT SUCH TRANSFER MAY BE MADE
        PURSUANT TO AN EXEMPTION, DESCRIBING THE APPLICABLE EXEMPTION AND THE BASIS
        THEREFOR, FROM THE 1933 ACT OR IS BEING MADE PURSUANT TO THE 1933 ACT, WHICH
        OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE SECURITIES ADMINISTRATOR
        OR
        THE DEPOSITOR) OR (B) THE TRANSFEROR SHALL HAVE EXECUTED A TRANSFEROR
        CERTIFICATE (IN SUBSTANTIALLY THE FORM ATTACHED TO THE POOLING AND SERVICING
        AGREEMENT) AND THE TRANSFEREE SHALL HAVE EXECUTED AN INVESTMENT LETTER (IN
        SUBSTANTIALLY THE FORM ATTACHED TO THE POOLING AND SERVICING AGREEMENT)
        ACCEPTABLE TO AND IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE DEPOSITOR
        AND THE SECURITIES ADMINISTRATOR CERTIFYING TO THE DEPOSITOR AND THE SECURITIES
        ADMINISTRATOR THE FACTS SURROUNDING SUCH TRANSFER, WHICH INVESTMENT LETTER
        SHALL
        NOT BE AN EXPENSE OF THE SECURITIES ADMINISTRATOR OR THE DEPOSITOR..

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
        PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
        OF
        ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) IF SUCH CERTIFICATE
        HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT
        THE
        PURCHASER IS AN INSURANCE COMPANY PURCHASING THIS CERTIFICATE WITH FUNDS
        CONTAINED IN AN “INSURANCE COMPANY GENERAL ACCOUNT” AS DEFINED IN SECTION V(e)
        OF PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 (“PTCE 95-60”) AND THAT THE
        PURCHASE AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER SECTIONS I AND
        III OF
        PTCE-95-60, OR (C) AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS
        OF
        THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING TO THE CONTRARY
        HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
        EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE REPRESENTATION
        OR THE OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR AS
        DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

       

      
        
          
          

        

        
          D-2-1

          
            

          

        

        
          
          

        

      

      THIS
        CERTIFICATE MUST BE ACQUIRED BY A PROPOSED TRANSFEREE FOR ITS OWN ACCOUNT
        AND
        NOT IN A CAPACITY AS TRUSTEE, NOMINEE, MIDDLEMAN, OR AGENT FOR ANY OTHER
        PERSON.

       

      
        
          
          

        

        
          D-2-2

          
            

          

        

        
          
          

        

      

      

        
          	
                  Certificate
                    No.:

                	
                  1

                
	 	 
	
                  Cut-Off
                    Date:

                	
                  [      ]

                
	 	 
	
                  Percentage
                    Interest:

                	
                  100%

                
	 	 
	
                  CUSIP:

                	
                  [      ]

                
	 	 
	
                  Class:

                	
                  ES

                
	 	 
	
                  Class
                    Notional Certificate Balance

                	
                  $[      ]

                

        

        
          
            
            

          

          
            D-2-3

            
              

            

          

          
            
            

          

        

      Thornburg
        Mortgage Securities Trust [      ],

      Mortgage
        Loan Pass-Through Certificates, 

      Series
        [      ]

      Class
        ES

       

      evidencing
        the Percentage Interest in the distributions allocable to the Certificates
        of
        the above-referenced Class with respect to the Trust consisting primarily
        of
        [      ] mortgage loans (the “Mortgage Loans”)
        purchased from others by 

       

      THORNBURG
        MORTGAGE SECURITIES CORPORATION, as Depositor.

       

      This
        Certificate does not evidence an obligation of, or an interest in, and is
        not
        guaranteed by the Depositor, the Seller, the Master Servicer, the Securities
        Administrator or the Trustee referred to below or any of their respective
        affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
        or
        insured by any governmental agency or instrumentality.

       

      This
        certifies that _________________________ is the registered owner of the
        Percentage Interest evidenced by this Certificate (obtained by dividing the
        Denomination of this Certificate by the Original Class Certificate Principal
        Balance) in certain monthly distributions with respect to a Trust consisting
        primarily of the Mortgage Loans deposited by Thornburg Mortgage Securities
        Corporation (the “Depositor”). The Trust was created pursuant to the pooling and
        servicing agreement dated as of [      ] (the
“Agreement”) by and among the Depositor, Thornburg Mortgage Home Loans, Inc.
        (“TMHL”), as seller (the “Seller”), [      ], as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and [      ], as
        trustee (the “Trustee”). This Certificate is issued under and is subject to the
        terms, provisions and conditions of the Agreement, to which Agreement the
        Holder
        of this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound. To the extent not defined herein, the capitalized terms
        used
        herein have the meanings assigned in the Agreement.

       

      No
        transfer of this Certificate shall be made unless such disposition is exempt
        from the registration requirements of the Securities Act of 1933, as amended
        (the “1933 Act”), and any applicable state securities laws or is made in
        accordance with the 1933 Act and such laws. In the event of any transfer,
        (i)
        (A) such transfer is made in reliance upon Rule 144A or (B) such transfer
        is made to an “accredited investor” under Rule 501(c)(1), (2), (3) or (7) (in
        each case as evidenced by an investment letter delivered to the Securities
        Administrator, in substantially the form attached to the Pooling and Servicing
        Agreement, and, if so required by the Securities Administrator and the
        Depositor, a written Opinion of Counsel (which may be in-house counsel)
        acceptable to and in form and substance reasonably satisfactory to the
        Securities Administrator that such transfer may be made pursuant to an
        exemption, describing the applicable exemption and the basis therefor, from
        the
        1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
        shall not be an expense of the Securities Administrator or the Depositor)
        or
        (ii) the Securities Administrator shall require the transferor to execute
        a
        transferor certificate (in substantially the form attached to the Pooling
        and
        Servicing Agreement) and the transferee to execute an investment letter (in
        substantially the form attached to the Pooling and Servicing Agreement)
        acceptable to and in form and substance reasonably satisfactory to the
        Securities Administrator certifying to the Depositor and the Securities
        Administrator the facts surrounding such transfer, which investment letter
        shall
        not be an expense of the Securities Administrator or the
        Depositor.

      
        
          
          

        

        
          D-2-4

          
            

          

        

        
          
          

        

      

      

      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.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      
        
          
          

        

        
          D-2-5

          
            

          

        

        
          
          

        

      

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:
        [      ]

       

      THORNBURG
        MORTGAGE SECURITIES TRUST

      [      ]

       

      
        	 	
                By:
                  

              	
                [      ],

              

      

      not
        in
        its individual capacity,

      but
        solely as Securities Administrator

      

      

      

      By                 

       

      

      

      This
        is
        one of the Certificates

      referenced
        in the within-mentioned Agreement

       

      

      

      By
        ________________________________________

      Authorized
        Signatory of

      [      ],

      as
        Securities Administrator

      

      
        
          
          

        

        
          D-2-6

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

       

      FORM
        OF REVERSE OF THE CERTIFICATES

       

      THORNBURG
        MORTGAGE SECURITIES TRUST
        [          ]

      Mortgage
        Loan Pass-Through Certificates, Series
        [          ]

      

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        Thornburg Mortgage Securities Trust
        [          ], Mortgage Loan
        Pass-Through Certificates, Series
        [          ] (herein
        collectively called the “Certificates”), and representing a beneficial ownership
        interest in the Trust governed by the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the funds on deposit in the Distribution Account for payment
        hereunder and that the Trustee is not liable to the Certificateholders for
        any
        amount payable under this Certificate or the Agreement or, except as expressly
        provided in the Agreement, subject to any liability under the
        Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced thereby, and the rights, duties and immunities
        of the Trustee.

       

      Pursuant
        to the terms of the Agreement, a distribution will be made on the
        [   ] day of each month, or if the [   ] day is
        not a Business Day, then on the next succeeding Business Day (the “Distribution
        Date”), commencing on the first Distribution Date specified on the face hereof,
        to the Person in whose name this Certificate is registered at the close of
        business on the applicable Record Date in an amount equal to the product
        of the
        Percentage Interest evidenced by this Certificate and the amount required
        to be
        distributed to Holders of Certificates of the Class to which this Certificate
        belongs on such Distribution Date pursuant to the Agreement.

       

      Distributions
        on this Certificate shall be made, (i) in the case of a Physical Certificate,
        by
        check or money order mailed to the address of the person entitled thereto
        as it
        appears on the Certificate Register or, upon the request of a Certificateholder,
        by wire transfer as set forth in the Agreement and (ii) in the case of a
        Book-Entry Certificate, to the Depository, which shall credit the amounts
        of
        such distributions to the accounts of its Depository Participants in accordance
        with its normal procedures. The final distribution on each Certificate will
        be
        made in like manner, but only upon presentment and surrender of such Certificate
        at the office or agency of the Securities Administrator specified in the
        notice
        to Certificateholders of such final distribution.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Trustee
        and
        the rights of the Certificateholders under the Agreement at any time, by
        the
        Depositor, the Seller, the Master Servicer, the Securities Administrator,
        the
        Trustee and Holders of the requisite percentage of the Percentage Interests
        of
        each Class of Certificates affected by such amendment, as specified in the
        Agreement. Any such consent by the Holder of this Certificate shall be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        exchange therefor or in lieu hereof whether or not notation of such consent
        is
        made upon this Certificate. The Agreement also permits the amendment thereof,
        in
        certain limited circumstances, without the consent of the Holders of any
        of the
        Certificates.

       

      
        
          
          

        

        
          E-1

          
            

          

        

        
          
          

        

      

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        of
        the Securities Administrator upon surrender of this Certificate for registration
        of transfer at the office or agency maintained by the Securities Administrator
        accompanied by a written instrument of transfer in form satisfactory to the
        Securities Administrator and 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 the same Class in authorized
        denominations and evidencing the same aggregate Percentage Interest in the
        Trust
        will be issued to the designated transferee or transferees.

       

      Subject
        to the terms of the Agreement, each Class of Book-Entry Certificates will
        be
        registered as being held by the Depository or its nominee and beneficial
        interests will be held by Certificate Owners through the book-entry facilities
        of the Depository or its nominee in minimum denominations of
        $[          ] and integral
        dollar multiples of $1 in excess thereof (provided,
        that,
        such Certificates must be purchased in minimum total investments of at least
        [          ],) except that one
        Certificate of each such Class of Certificates may be in a different
        denomination so that the sum of the denominations of all outstanding
        Certificates of such Class shall equal the Class Certificate Principal Balance
        or Class Certificate Notional Balance of such Class on the Closing Date.
        Each of
        the Class [          ]
        Certificates and Class
        [          ] Certificates are
        issuable only in a Percentage Interest of
        [          ]. 

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in
        denominations specified in the Agreement. As provided in the Agreement and
        subject to certain limitations therein set forth, Certificates are exchangeable
        for new Certificates of the same Class in authorized denominations and
        evidencing the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made for any such registration of transfer or exchange,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge payable in connection
        therewith.

       

      The
        Depositor, the Seller, the Master Servicer, the Securities Administrator
        and the
        Trustee and any agent of the Depositor or the Trustee may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Depositor, the Trustee nor any such agent shall be affected
        by
        any notice to the contrary.

       

      On
        any
        date on which the aggregate of the Stated Principal Balances of the Mortgage
        Loans on such date is equal to or less than 10% of the Cut-Off Date Aggregate
        Principal Balance, Thornburg Mortgage Home Loans, Inc., in its capacity as
        a
        Servicer (hereinafter “TMHL”), may purchase, on the related Distribution Date,
        all of the outstanding Mortgage Loans and REO Properties at a price equal
        to the
        Termination Price. In the event that TMHL does not exercise its right of
        optional termination, on any date on which the aggregate of the Stated Principal
        Balances of the Mortgage Loans on such date is equal to or less than 5% of
        the
        Cut-Off Date Aggregate Principal Balance,
        [          ], in its capacity
        as Master Servicer, may purchase, on the related Distribution Date, all of
        the
        outstanding Mortgage Loans and REO Properties at a price equal to the
        Termination Price. 

       

      
        
          
          

        

        
          E-2

          
            

          

        

        
          
          

        

      

      In
        the
        event that neither TMHL nor the Master Servicer exercises its right of optional
        termination, the obligations and responsibilities created by the Agreement
        will
        terminate upon notice to the Trustee upon the earliest of (i) the Distribution
        Date on which the Class Certificate Principal Balance of each Class of
        Certificates has been reduced to zero, (ii) the final payment or other
        liquidation of the last Mortgage Loan and (iii) the Latest Possible Maturity
        Date.

       

      
        
          
          

        

        
          E-3

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        

      ____________________________________________________________________________________________________________________________________________________________

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

       

      the
        Percentage Interest evidenced by the within Certificate and hereby authorizes
        the transfer of registration of such Percentage Interest to assignee on the
        Certificate Register of the Trust.

       

      I
        (We)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:
        ______________________________________________________________.

       

      Dated:
        _____________

       

                            
                        

      Signature
        by or on behalf of assignor

       

      
        
          
          

        

        
          E-4

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      Distributions
        shall be made, by wire transfer or otherwise, in immediately available funds
        to__________________________________________________________________________________________________________________________________________________________for
        the account
        of_______________________________________________________________,

      account
        number ________________________, or, if mailed by check, to
        ___________________ ______________________________________________________________________________Applicable
        statements should be mailed to ___________________________________________
        _____________________________________________________________________________.

       

      This
        information is provided by
        _____________________________________________,

      the
        assignee named above, or
        _____________________________________________________,

      as
        its
        agent. 

      
        
          
          

        

        
          E-5

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F

       

      REQUEST
        FOR RELEASE 

       

                                     

      Date

       

      [Addressed
        to Trustee

      or,
        if
        applicable, custodian]

       

      In
        connection with the administration of the mortgages held by you as Trustee
        under
        a certain Pooling and Servicing Agreement dated as of
        [        ] among Thornburg Mortgage
        Securities Corporation, as Depositor, Thornburg Mortgage Home Loans, Inc.,
        as
        Seller, [          ], as
        Master Servicer and Securities Administrator and you, as Trustee and Custodian
        (the “Pooling and Servicing Agreement”), the undersigned [Master Servicer]
        [Servicer] hereby requests a release of the Mortgage File held by you as
        Trustee
        with respect to the following described Mortgage Loan for the reason indicated
        below.

       

      Mortgagor’s
        Name:

       

      Address:

       

      Loan
        No.:

       

      Reason
        for requesting file:

       

      1. Mortgage
        Loan paid in full. (The [Master Servicer] [Servicer] hereby certifies that
        all
        amounts received in connection with the loan have been or will be credited
        to
        the Collection Account or the Distribution Account (whichever is applicable)
        pursuant to the Pooling and Servicing Agreement.)

       

      2. The
        Mortgage Loan is being foreclosed.

       

      3. Mortgage
        Loan substituted. (The [Master Servicer] [Servicer] hereby certifies that
        a
        Qualified Substitute Mortgage Loan has been assigned and delivered to you
        along
        with the related Mortgage File pursuant to the Pooling and Servicing
        Agreement.)

       

      4. Mortgage
        Loan repurchased. (The [Master Servicer] [Servicer] hereby certifies that
        the
        Purchase Price has been credited to the Collection Account or the Distribution
        Account (whichever is applicable) pursuant to the Pooling and Servicing
        Agreement.)

       

      5. Other.
        (Describe)

       

      The
        undersigned acknowledges that the above Mortgage File will be held by the
        undersigned in accordance with the provisions of the Pooling and Servicing
        Agreement and will be returned to you within ten (10) days of our receipt
        of the
        Mortgage File, except if the Mortgage Loan has been paid in full, or repurchased
        or substituted for a Qualified Substitute Mortgage Loan (in which case the
        Mortgage File will be retained by us without obligation to return to
        you).

       

      
        
          
          

        

        
          F-1

          
            

          

        

        
          
          

        

      

      Capitalized
        terms used herein shall have the meanings ascribed to them in the Pooling
        and
        Servicing Agreement.

       

      _____________________________________

      [Name
        of
        [Master Servicer] [Servicer]]

       

      By:__________________________________

      Name:

      Title:
        Servicing Officer

      

      

      
        
          
          

        

        
          F-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G-1

       

      FORM
        OF RECEIPT OF MORTGAGE NOTE

       

      RECEIPT
        OF MORTGAGE NOTE

       

      Thornburg
        Mortgage Securities Corporation

      150
        Washington Avenue, Suite 302

      Santa
        Fe,
        New Mexico 87501

      

      
        	 	
                Re:
                  

              	
                Thornburg
                  Mortgage Securities Trust
                  [          ],
                  

              

      

      Mortgage
        Loan Pass-Through Certificates, Series
        [          ]
 

       

      Ladies
        and Gentlemen:

       

      Pursuant
        to Section 2.01 of the Pooling and Servicing Agreement, dated as of
        [        ], among Thornburg Mortgage
        Securities Corporation, as Depositor, Thornburg Mortgage Home Loans, Inc.,
        as
        Seller, [          ], as
        Master Servicer and Securities Administrator and
        [          ], as Trustee, we
        hereby acknowledge the receipt of the original Mortgage Note with respect
        to
        each Mortgage Loan listed on Exhibit 1, with any exceptions thereto listed
        on
        Exhibit 2.

       

      

       

      [          ],
        as Trustee

       

      

      

      By:           
                       

      Name:

      Title:

       

      

       

      Dated:
        

       

      
        
          
          

        

        
          G-1-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        1

       

      MORTGAGE
        LOAN SCHEDULE

       

      [To
        be retained in a separate closing binder entitled “Thornburg
        [          ] Mortgage Loan
        Schedule” at the Washington DC offices of McKee Nelson LLP]

       

      
        
          
          

        

        
          G-1-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        2

       

      EXCEPTION
        REPORT

       

      [To
        be retained in a separate closing binder entitled “Thornburg
        [          ] Mortgage Loan
        Schedule” at the Washington DC offices of McKee Nelson LLP]

       

      
        
          
          

        

        
          G-1-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G-2

       

      FORM
        OF INTERIM CERTIFICATION OF TRUSTEE

       

      INTERIM
        CERTIFICATION OF TRUSTEE

       

      [date]

       

      

       

      
        	
                Thornburg
                  Mortgage Securities Corporation

                150
                  Washington Avenue, Suite 302

                Santa
                  Fe, New Mexico 87501

              	 
	 	 
	
                Thornburg
                  Mortgage Home Loans, Inc.

                150
                  Washington Avenue, Suite 302

                Santa
                  Fe, New Mexico 87501

              	 
	 	 
	
                [          ]

                [          ]

              	 

      

      

       

      Re:   Pooling
        and Servicing Agreement among Thornburg Mortgage Securities Corporation,
        as
        Depositor, Thornburg Mortgage Home Loans, Inc., as Seller,
        [          ], as Master
        Servicer and Securities Administrator and
        [          ], as Trustee,
        Thornburg Mortgage Loan Pass-Through
        Certificates, Series
        [          ] 

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of the above-captioned Pooling and Servicing
        Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Trustee,
        hereby certifies that, as to each Mortgage Loan listed in the Mortgage Loan
        Schedule (other than any Mortgage Loan paid in full or listed on the attached
        schedule) it has received:

       

      
        	 	
                (i)

              	
                all
                  documents required to be delivered to the Trustee pursuant to
                  Section 2.01 of the Pooling and Servicing Agreement are in its
                  possession;

              

      

       

      
        	 	
                (ii)

              	
                such
                  documents have been reviewed by the Trustee and have not been mutilated,
                  damaged or torn and relate to such Mortgage Loan;
                  and

              

      

       

      
        	 	
                (iii)

              	
                based
                  on the Trustee’s examination and only as to the foregoing, the information
                  set forth in the Mortgage Loan Schedule that corresponds to items
                  (i),
                  (ii), (iii), (xiii), (xiv) and (xviii) of the Mortgage Loan Schedule
                  accurately reflects information set forth in the Mortgage
                  File.

              

      

       

      Based
        on
        its review and examination and only as to the foregoing documents, such
        documents appear regular on their face and related to such Mortgage
        Loan.

       

      The
        Trustee has made no independent examination of any documents contained in
        each
        Mortgage File beyond the review specifically required in the Pooling and
        Servicing Agreement. The Trustee makes no representations as to: (i) the
        validity, legality, sufficiency, enforceability or genuineness of any of
        the
        documents contained in each Mortgage File of any of the Mortgage Loans
        identified on the Mortgage Loan Schedule, or (ii) the collectibility,
        insurability, effectiveness or suitability of any such Mortgage
        Loan.

       

      
        
          
          

        

        
          G-2-1

          
            

          

        

        
          
          

        

      

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement.

       

      

       

      [          ],
        as Trustee

       

      By:             

      Name:             

      Title:             

      

      
        
          
          

        

        
          G-2-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G-3

       

      FORM
        OF FINAL CERTIFICATION OF TRUSTEE

       

      FINAL
        CERTIFICATION OF TRUSTEE

       

      [date]

       

      
        	
                Thornburg
                  Mortgage Securities Corporation

                150
                  Washington Avenue, Suite 302

                Santa
                  Fe, New Mexico 87501

              	 
	 	 
	
                Thornburg
                  Mortgage Home Loans, Inc.

                150
                  Washington Avenue, Suite 302 

                Santa
                  Fe, New Mexico 87501

              	 
	 	 
	
                [          ]

                [          ]

              	 

      

      

       

      Re:   Pooling
        and Servicing Agreement among Thornburg Mortgage Securities Corporation,
        as
        Depositor, Thornburg Mortgage Home Loans, Inc., as Seller,
        [          ], as Master
        Servicer and Securities Administrator and
        [          ], as Trustee,
        Thornburg Mortgage Loan Pass-Through
        Certificates, Series
        [          ] 

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of the above-captioned Pooling and Servicing
        Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Trustee,
        hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan
        Schedule (other than any Mortgage Loan paid in full or listed on the attached
        Document Exception Report) it has received all documents required to be
        delivered to the Trustee pursuant to Section 2.01 of the Pooling and Servicing
        Agreement.

       

      Based
        on
        its review and examination and only as to the foregoing documents, (a) such
        documents appear regular on their face and related to such Mortgage Loan,
        and
        (b) the information set forth in items (i), (ii), (iii), (xiii), (xiv) and
        (xviii) of the definition of the “Mortgage Loan Schedule” in Section 1.01 of the
        Pooling and Servicing Agreement accurately reflects information set forth
        in the
        Mortgage File.

       

      The
        Trustee has made no independent examination of any documents contained in
        each
        Mortgage File beyond the review specifically required in the Pooling and
        Servicing Agreement. The Trustee makes no representations as to: (i) the
        validity, legality, sufficiency, enforceability or genuineness of any of
        the
        documents contained in each Mortgage File of any of the Mortgage Loans
        identified on the Mortgage Loan Schedule, or (ii) the collectibility,
        insurability, effectiveness or suitability of any such Mortgage
        Loan.

       

      
        
          
          

        

        
          G-3-1

          
            

          

        

        
          
          

        

      

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement.

       

      

      
         

        [          ],
          as Trustee

         

        By:             

        Name:             

        Title:             

        

      

       

      

      
        
          
          

        

        
          G-3-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        H

       

      FORM
        OF LOST NOTE AFFIDAVIT

       

      Personally
        appeared before me the undersigned authority to administer oaths,
        ______________________ who first being duly sworn deposes and says: Deponent
        is
        ______________________ of Thornburg Mortgage Home Loans, Inc. (the “Seller”) and
        who has personal knowledge of the facts set out in this affidavit.

       

      On
        ___________________, _________________________ did execute and deliver a
        promissory note in the principal amount of $__________.

       

      That
        said
        note has been misplaced or lost through causes unknown and is currently lost
        and
        unavailable after diligent search has been made. The Seller’s records show that
        an amount of principal and interest on said note is still presently outstanding,
        due, and unpaid, and such Seller is still owner and holder in due course
        of said
        lost note.

       

      The
        Seller executes this Affidavit for the purpose of inducing
        [          ], as trustee on
        behalf of Thornburg Mortgage Securities Trust
        [          ], Mortgage Loan
        Pass-Through Certificates, Series
        [          ], to accept the
        transfer of the above described loan from the Seller.

       

      The
        Seller agrees to indemnify
        [          ] and Thornburg
        Mortgage Securities Corporation and hold them harmless for any losses incurred
        by such parties resulting from the fact that the above described Note has
        been
        lost or misplaced.

       

      

      By:
        __________________________________

      __________________________________

       

      
        	
                STATE
                  OF 

              	
                )

              	 
	 	
                )

              	
                ss:

              
	
                COUNTY
                  OF

              	
                )

              	 

      

      

      

      On
        this
        ____ day of ___________ 20__, before me, a Notary Public, in and for said
        County
        and State, appeared ________________________, who acknowledged the extension
        of
        the foregoing and who, having been duly sworn, states that any representations
        therein contained are true.

       

      Witness
        my hand and Notarial Seal this ____ day of _______ 20__.

       

      _______________________________

      _______________________________

       

      My
        commission expires _______________.

      

      
        
          
          

        

        
          H-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

       

      FORM
        OF ERISA REPRESENTATION

       

      [date]

      

      Thornburg
        Mortgage Securities Corporation

      150
        Washington Avenue, Suite 302

      Santa
        Fe,
        New Mexico 87501

      [          ]

      [          ]

       

      Re:
         Thornburg
        Mortgage Securities Trust
        [          ], 

             
        Mortgage Loan Pass-Through Certificates, Series 

             
        [          ] (for ERISA
        Restricted Certificates)  

       

      Ladies
        and Gentlemen:

       

      1. The
        undersigned is the ______________________ of _________________ (the
“Transferee”), a [corporation duly organized] and existing under the laws of
        __________, on behalf of which she makes this affidavit.

       

      2.  The
        Transferee either (x) is not an employee benefit plan subject to Section
        406 or
        Section 407 of the Employee Retirement Income Security Act of 1974, as amended
        (“ERISA”), or a plan or arrangement subject to Section 4975 of the Internal
        Revenue Code of 1986, as amended (the “Code”), the Trustee of any such plan or
        arrangement or a person acting on behalf of any such plan or arrangement
        or
        using the assets of any such plan or arrangement to effect such transfer
        (a
“Plan Investor”); (y) if the Certificates have been the subject of an
        ERISA-Qualifying Underwriting, is an insurance company which is purchasing
        such
        Certificates with funds contained in an “insurance company general account” (as
        such term is defined in Section V(e) of Prohibited Transaction Class Exemption
        95-60 (“PTCE 95-60”) and that the purchase and holding of such Certificates are
        covered under Section I and III of PTCE 95-60; or (z) shall deliver to the
        Securities Administrator and the Depositor an opinion of counsel (a “Benefit
        Plan Opinion”) satisfactory to the Securities Administrator, and upon which the
        Securities Administrator and the Depositor shall be entitled to rely, to
        the
        effect that the purchase or holding of such Certificate by the Transferee
        will
        not constitute or result in a non-exempt prohibited transaction under Section
        406 of ERISA or Section 4975 of the Code and will not subject the Trustee,
        the
        Master Servicer, any Servicer, the Securities Administrator or the Depositor
        to
        any obligation in addition to those undertaken by such entities in the Pooling
        and Servicing Agreement or to any liability, which opinion of counsel shall
        not
        be an expense of the Trustee, the Securities Administrator or the
        Trust.

       

      3. The
        Transferee hereby acknowledges that under the terms of the Pooling and Servicing
        Agreement dated as of [        ] (the
“Agreement”) among Thornburg Mortgage Securities Corporation, as Depositor,
        Thornburg Mortgage Home Loans, Inc., as Seller,
        [          ], as Master
        Servicer and Securities Administrator and
        [          ], as Trustee, no
        transfer of the ERISA Restricted Certificates shall be permitted to be made
        to
        any person unless the Depositor and Securities Administrator have received
        a
        certificate from such transferee in the form hereof.

       

      
        
          
          

        

        
          I-1

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Transferee has executed this certificate.

       

      

       

      _________________________________

      [Transferee]

       

      By:______________________________

      Name:

      Title:

      

      
        
          
          

        

        
          I-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        J-1

       

      FORM
        OF INVESTMENT LETTER [NON-RULE 144A]

       

      [date]

       

      

      Thornburg
        Mortgage Securities Corporation

      150
        Washington Avenue, Suite 302

      Santa
        Fe,
        New Mexico 87501

      [          ]

      [          ]

       

      

       

      
        	 	
                Re:
                  

              	
                Thornburg
                  Mortgage Securities Trust
                  [          ],
                  

              

      

                     
        Mortgage Loan Pass-Through Certificates, Series
        [          ] 

       

      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) if we are acquiring an ERISA Restricted
        Certificate either (i) we are not an employee benefit plan that is subject
        to
        the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or a
        plan or an arrangement that is subject to Section 4975 of the Internal Revenue
        Code of 1986, as amended (the “Code”) (a “Plan”), nor are we acting on behalf of
        any such plan or an arrangement nor using the assets of any such plan or
        arrangement to effect such transfer; (ii) if the Certificates have been the
        subject of an ERISA-Qualifying Underwriting, we are an insurance company
        which
        is purchasing such Certificates with funds contained in an “insurance company
        general account” (as such term is defined in Section V(e) of Prohibited
        Transaction Class Exemption 95-60 (“PTCE 95-60”) and the purchase and holding of
        such Certificates are covered under Section I and III of PTCE 95-60 or (iii)
        we
        have presented an Opinion of Counsel satisfactory to the Securities
        Administrator, which Opinion of Counsel shall not be an expense of the Trustee,
        the Securities Administrator or the Trust, addressed to the Securities
        Administrator and the Depositor, to the effect that the purchase and holding
        of
        such ERISA Restricted Certificate that is a Physical Certificate will not
        result
        in a non-exempt prohibited transaction under Section 406 of ERISA or Section
        4975 of the Code and will not subject the Trustee, the Master Servicer, any
        Servicer, the Securities Administrator or the Depositor to any obligation
        in
        addition to those expressly undertaken in this Agreement or to any liability,
        (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 (i) 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 to the addressees of this Certificate satisfactory to
        the
        Securities Administrator that such sale, transfer or other disposition may
        be
        made pursuant to an exemption from the Act, (2) the purchaser or transferee
        of
        such Certificate has executed and delivered to you a certificate to
        substantially the same effect as this certificate, and (3) the purchaser
        or
        transferee has otherwise complied with any conditions for transfer set forth
        in
        the Pooling and Servicing Agreement.

       

      
        
          
          

        

        
          J-1-1

          
            

          

        

        
          
          

        

      

      Very
        truly yours,

       

      [NAME
        OF TRANSFEREE]

       

      By:                                    

      Authorized
        Officer

       

      
        
          
          

        

        
          J-1-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        J-2

      

      FORM
        OF RULE 144A INVESTMENT LETTER

      

       

      [date]

       

      Thornburg
        Mortgage Securities Corporation

      150
        Washington Avenue, Suite 302

      Santa
        Fe,
        New Mexico 87501

      

      [          ]

      [          ]

      

       

      
        	 	
                Re:
                  

              	
                Thornburg
                  Mortgage Securities Trust
                  [          ],
                  

              

      

                     
        Mortgage Loan Pass-Through Certificates, Series
        [          ]
 

       

      Ladies
        and Gentlemen:

       

      In
        connection with our acquisition of the above Certificates we certify that
        (a) we
        understand that the Certificates are not being registered under the Securities
        Act of 1933, as amended (the “Act”), or any state securities laws and are being
        transferred to us in a transaction that is exempt from the registration
        requirements of the Act and any such laws, (b) we have 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,
        (c)
        if we are acquiring an ERISA Restricted Certificate, either: (i) we are not
        an
        employee benefit plan that is subject to the Employee Retirement Income Security
        Act of 1974, as amended (“ERISA”), or a plan or an arrangement that is subject
        to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (a
“Plan”), nor are we acting on behalf of any such plan or arrangement or using
        the assets of any such plan or arrangement of effect such transfer; (ii)
        if the
        Certificate is the subject of an ERISA-Qualifying Underwriting, we are an
        insurance company which is purchasing such Certificates with funds contained
        in
        an “insurance company general account” (as such term is defined in Section V(e)
        of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”) and the purchase
        and holding of such Certificates are covered under Section I and III of PTCE
        95-60 or (iii) we have presented an Opinion of Counsel satisfactory to the
        Securities Administrator, which Opinion of Counsel shall not be an expense
        of
        the Trustee, the Securities Administrator or the Trust, addressed to the
        Securities Administrator and the Depositor, to the effect that the purchase
        and
        holding of such ERISA Restricted Certificate that is a Physical Certificate
        will
        not result in a non-exempt prohibited transaction under Section 406 of ERISA
        or
        Section 4975 of the Code and will not subject the Trustee, the Master Servicer,
        any Servicer, the Securities Administrator or the Depositor to any obligation
        in
        addition to those expressly undertaken in this Agreement or to any liability,
        (d) we have not, nor has anyone acting on our behalf offered, transferred,
        pledged, sold or otherwise disposed of the Certificates, any interest in
        the
        Certificates or any other similar security to, or solicited any offer to
        buy or
        accept a transfer, pledge or other disposition of the Certificates, any interest
        in the Certificates or any other similar security from, or otherwise approached
        or negotiated with respect to the Certificates, any interest in the Certificates
        or any other similar security with, any person in any manner, or made any
        general solicitation by means of general advertising or in any other manner,
        or
        taken any other action, that would constitute a distribution of the Certificates
        under the Act or that would render the disposition of the Certificates a
        violation of Section 5 of the Act or require registration pursuant thereto,
        nor
        will act, nor has authorized or will authorize any person to act, in such
        manner
        with respect to the Certificates, and (e) we are a “qualified institutional
        buyer” as that term is defined in Rule 144A under the Act and have completed
        either of the forms of certification to that effect attached hereto as Annex
        1
        or Annex 2. We are aware that the sale to us is being made in reliance on
        Rule
        144A. We are acquiring the Certificates for our own account or for resale
        pursuant to Rule 144A and further, understand that such Certificates may
        be
        resold, pledged or transferred only (i) to a person reasonably believed to
        be a
        qualified institutional buyer that purchases for its own account or for the
        account of a qualified institutional buyer to whom notice is given that the
        resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
        pursuant to another exemption from registration under the Act.

       

      
        
          
          

        

        
          J-2-1

          
            

          

        

        
          
          

        

      

      Very
        truly yours,

       

      [NAME
        OF TRANSFEREE]

       

      

      By:                                    

      Authorized
        Officer

       

      
        
          
          

        

        
          J-2-2

          
            

          

        

        
          
          

        

      

      ANNEX
        1 TO EXHIBIT J-2

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees Other Than Registered Investment Companies]

       

      The
        undersigned (the “Buyer”) hereby certifies as follows to the parties listed in
        the Rule 144A Transferee Certificate to which this certification relates
        with
        respect to the Certificates described therein:

       

      i. As
        indicated below, the undersigned is the President, Chief Financial Officer,
        Senior Vice President or other executive officer of the Buyer.

       

      ii. In
        connection with purchases by the Buyer, the Buyer is a “qualified institutional
        buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as
        amended (“Rule 144A”) because (i) the Buyer owned and/or invested on a
        discretionary basis $            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 of 1986, as amended.

       

      ___ Bank.
        The
        Buyer (a) is a national bank or banking institution organized under the laws
        of
        any State, territory or the District of Columbia, the business of which is
        substantially confined to banking and is supervised by the State or territorial
        banking commission or similar official or is a foreign bank or equivalent
        institution, and (b) has an audited net worth of at least $25,000,000 as
        demonstrated in its latest annual financial statements, a
        copy
        of which is attached hereto.

       

      ___ Savings
        and Loan.
        The
        Buyer (a) is a savings and loan association, building and loan association,
        cooperative bank, homestead association or similar institution, which is
        supervised and examined by a State or Federal authority having supervision
        over
        any such institutions or is a foreign savings and loan association or equivalent
        institution and (b) has an audited net worth of at least $25,000,000 as
        demonstrated in its latest annual financial statements, a
        copy
        of which is attached hereto.

       

      ___ Broker-dealer.
        The
        Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange
        Act of 1934.

       

      
        
          

        

        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.

      

      
 

      
        
          
          

        

        
          J-2-3

          
            

          

        

        
          
          

        

      

      ___ Insurance
        Company.
        The
        Buyer is an insurance company whose primary and predominant business activity
        is
        the writing of insurance or the reinsuring of risks underwritten by insurance
        companies and which is subject to supervision by the insurance commissioner
        or a
        similar official or agency of a State, territory or the District of
        Columbia.

       

      ___ State
        or Local Plan.
        The
        Buyer is a plan established and maintained by a State, its political
        subdivisions, or any agency or instrumentality of the State or its political
        subdivisions, for the benefit of its employees.

       

      ___ ERISA
        Plan.
        The
        Buyer is an employee benefit plan within the meaning of Title I of the Employee
        Retirement Income Security Act of 1974.

       

      ___ Investment
        Advisor.
        The
        Buyer is an investment advisor registered under the Investment Advisors Act
        of
        1940.

       

      ___ Small
        Business Investment Company.
        Buyer
        is a small business investment company licensed by the U.S. Small Business
        Administration under Section 301(c) or (d) of the Small Business Investment
        Act
        of 1958.

       

      ___ Business
        Development Company.
        Buyer
        is a business development company as defined in Section 202(a)(22) of the
        Investment Advisors Act of 1940.

       

      iii. The
        term
“securities”
as
        used
        herein does
        not include
        (i)
        securities of issuers that are affiliated with the Buyer, (ii) securities
        that
        are part of an unsold allotment to or subscription by the Buyer, if the Buyer
        is
        a dealer, (iii) securities issued or guaranteed by the U.S. or any
        instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
        (v) loan participations, (vi) repurchase agreements, (vii) securities owned
        but
        subject to a repurchase agreement and (viii) currency, interest rate and
        commodity swaps.

       

      iv. For
        purposes of determining the aggregate amount of securities owned and/or invested
        on a discretionary basis by the Buyer, the Buyer used the cost of such
        securities to the Buyer and did not include any of the securities referred
        to in
        the preceding paragraph, except (i) where the Buyer reports its securities
        holdings in its financial statements on the basis of their market value,
        and
        (ii) no current information with respect to the cost of those securities
        has
        been published. If clause (ii) in the preceding sentence applies, the securities
        may be valued at market. Further, in determining such aggregate amount, the
        Buyer may have included securities owned by subsidiaries of the Buyer, but
        only
        if such subsidiaries are consolidated with the Buyer in its financial statements
        prepared in accordance with generally accepted accounting principles and
        if the
        investments of such subsidiaries are managed under the Buyer’s direction.
        However, such securities were not included if the Buyer is a majority-owned,
        consolidated subsidiary of another enterprise and the Buyer is not itself
        a
        reporting company under the Securities Exchange Act of 1934, as
        amended.

       

      v. 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.

       

      vi. Until
        the
        date of purchase of the Rule 144A Securities, the Buyer will notify each
        of the
        parties to which this certification is made of any changes in the information
        and conclusions herein. Until such notice is given, the Buyer’s purchase of the
        Certificates will constitute a reaffirmation of this certification as of
        the
        date of such purchase. In addition, if the Buyer is a bank or savings and
        loan
        is provided above, the Buyer agrees that it will furnish to such parties
        updated
        annual financial statements promptly after they become available.

       

      
        
          
          

        

        
          J-2-4

          
            

          

        

        
          
          

        

      

                                             

      Print
        Name of Buyer

       

      By:                                   
        

      Name:

      Title:

       

      Date:                                 
        

      
        
          
          

        

        
          J-2-5

          
            

          

        

        
          
          

        

      

      ANNEX
        2 TO EXHIBIT J-2

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees That are Registered Investment Companies]

       

      The
        undersigned (the “Buyer”) hereby certifies as follows to the parties listed in
        the Rule 144A Transferee Certificate to which this certification relates
        with
        respect to the Certificates described therein:

       

      1. As
        indicated below, the undersigned is the President, Chief Financial Officer
        or
        Senior Vice President of the Buyer or, if the Buyer is a “qualified
        institutional buyer” as that term is defined in Rule 144A under the Securities
        Act of 1933, as amended (“Rule 144A”) because Buyer is part of a Family of
        Investment Companies (as defined below), is such an officer of the
        Adviser.

       

      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, as amended and
        (ii)
        as marked below, the Buyer alone, or the Buyer’s Family of Investment Companies,
        owned at least $100,000,000 in securities (other than the excluded securities
        referred to below) as of the end of the Buyer’s most recent fiscal year. For
        purposes of determining the amount of securities owned by the Buyer or the
        Buyer’s Family of Investment Companies, the cost of such securities was used,
        except (i) where the Buyer or the Buyer’s Family of Investment Companies reports
        its securities holdings in its financial statements on the basis of their
        market
        value, and (ii) no current information with respect to the cost of those
        securities has been published. If clause (ii) in the preceding sentence applies,
        the securities may be valued at market.

       

      ___ The
        Buyer
        owned $            
        in
        securities (other than the excluded securities referred to below) as of the
        end
        of the Buyer’s most recent fiscal year (such amount being calculated in
        accordance with Rule 144A).

       

      ___ The
        Buyer
        is part of a Family of Investment Companies which owned in the aggregate
        $        
        in
        securities (other than the excluded securities referred to below) as of the
        end
        of the Buyer’s most recent fiscal year (such amount being calculated in
        accordance with Rule 144A).

       

      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) securities
        issued or guaranteed by the U.S. or any instrumentality thereof, (iii) bank
        deposit notes and certificates of deposit, (iv) loan participations, (v)
        repurchase agreements, (vi) securities owned but subject to a repurchase
        agreement and (vii) currency, interest rate and commodity swaps.

       

      
        
          
          

        

        
          J-2-6

          
            

          

        

        
          
          

        

      

      5. The
        Buyer
        is familiar with Rule 144A and understands that the parties listed in the
        Rule
        144A Transferee Certificate to which this certification relates are relying
        and
        will continue to rely on the statements made herein because one or more sales
        to
        the Buyer will be in reliance on Rule 144A. In addition, the Buyer will only
        purchase for the Buyer’s own account.

       

      6. Until
        the
        date of purchase of the Certificates, the undersigned will notify the parties
        listed in the Rule 144A Transferee Certificate to which this certification
        relates of any changes in the information and conclusions herein. Until such
        notice is given, the Buyer’s purchase of the Certificates will constitute a
        reaffirmation of this certification by the undersigned as of the date of
        such
        purchase.

       

                                      

      Print
        Name of Buyer or Adviser

       

      By:                                

      Name:

      Title:

       

      IF
        AN ADVISER:

       

                                          

      Print
        Name of Buyer

       

      Date:                                 
        

      

      
        
          
          

        

        
          J-2-7

          
            

          

        

        
          
          

        

      

      EXHIBIT
        K

       

      FORM
        OF TRANSFEROR CERTIFICATE

       

      [date]

       

      Thornburg
        Mortgage Securities Corporation

      150
        Washington Avenue, Suite 302

      Santa
        Fe,
        New Mexico 87501

      

      [          ]

      [          ]

      

       

      
        	 	
                Re:
                  

              	
                Thornburg
                  Mortgage Securities Trust
                  [          ],
                  Mortgage

              

      

                      Loan
        Pass-Through Certificates, Series
        [          ], Class
        [   ]

       

      Ladies
        and Gentlemen:

       

      In
        connection with our proposed transfer of an Ownership Interest in Class
        [   ] Certificates, we hereby certify that (a) we have no
        knowledge that the proposed Transferee is not a Permitted Transferee acquiring
        an Ownership Interest in such Class [   ] Certificate for its own
        account and not in a capacity as trustee, nominee, or agent for another Person,
        and (b) we have not undertaken the proposed transfer in whole or in part
        to
        impede the assessment or collection of tax.

       

      Very
        truly yours,

       

      [_____________________]

       

      By:
        ______________________________

       

      
        
          
          

        

        
          K-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        L

       

      TRANSFER
        AFFIDAVIT FOR CLASS [       ]
        CERTIFICATE

      PURSUANT
        TO SECTION 6.02(e)

       

      THORNBURG
        MORTGAGE SECURITIES TRUST
        [          ],

      MORTGAGE
        LOAN PASS-THROUGH CERTIFICATES, SERIES
        [          ], 

      CLASS
        [          ] AND CLASS
        [          ] 

      

      

      
        	
                STATE
                  OF 

              	
                )

              	 
	 	
                )

              	
                ss:

              
	
                COUNTY
                  OF

              	
                )

              	 

      

      

      The
        undersigned, being first duly sworn, deposes and says as follows:

       

      
        	
                1.

              	
                The
                  undersigned is an officer of ______________________, the proposed
                  Transferee of a 100% Ownership Interest in the Class [   ]
                  Certificate (the “Certificate”) issued pursuant to the Pooling and
                  Servicing Agreement, (the “Agreement”), dated as of
                  [        ], relating to the
                  above-referenced Certificates, among Thornburg Mortgage Securities
                  Corporation, as Depositor, Thornburg Mortgage Home Loans, Inc.,
                  as Seller,
                  [          ], as Master
                  Servicer and
                  [          ], as
                  Trustee. Capitalized terms used, but not defined herein, shall
                  have the
                  meanings ascribed to such terms in the Agreement. The Transferee
                  has
                  authorized the undersigned to make this affidavit on behalf of
                  the
                  Transferee.

              

      

       

      
        	
                2.

              	
                The
                  Transferee is, as of the date hereof, and will be, as of the date
                  of the
                  Transfer, a Permitted Transferee. The Transferee is acquiring its
                  Ownership Interest for its own account and not in a capacity as
                  trustee,
                  nominee or agent for another party.

              

      

       

      
        	
                3.

              	
                The
                  Transferee has been advised of, and understands that (i) a tax
                  will be
                  imposed on Transfers of the Certificate to Persons that are not
                  Permitted
                  Transferees; (ii) such tax will be imposed on the transferor, or,
                  if such
                  Transfer is through an agent (which includes a broker, nominee
                  or
                  middleman) for a Person that is not a Permitted Transferee, on
                  the agent;
                  and (iii) the Person otherwise liable for the tax shall be relieved
                  of
                  liability for the tax if the subsequent Transferee furnished to
                  such
                  Person an affidavit that such subsequent Transferee is a Permitted
                  Transferee and, at the time of Transfer, such Person does not have
                  actual
                  knowledge that the affidavit is false. The Transferee has provided
                  financial statements or other financial information requested by
                  the
                  Transferor in connection with the transfer of the Certificate to
                  permit
                  the Transferor to assess the financial capability of the Transferee
                  to pay
                  such taxes.

              

      

       

      
        	
                4.

              	
                The
                  Transferee has been advised of, and understands that a tax may
                  be imposed
                  on a “pass-through entity” holding the Certificate if, at any time during
                  the taxable year of the pass-through entity, a Disqualified Organization
                  is the record holder of an interest in such entity. The Transferee
                  understands that such tax will not be imposed for any period with
                  respect
                  to which the record holder furnishes to the pass-through entity
                  an
                  affidavit that such record holder is not a Disqualified Organization
                  and
                  the pass-through entity does not have actual knowledge that such
                  affidavit
                  is false. (For this purpose, a “pass-through entity” includes a regulated
                  investment company, a real estate investment trust or common trust
                  fund, a
                  partnership, trust or estate, and certain cooperatives and, except
                  as may
                  be provided in Treasury Regulations, persons holding interests
                  in
                  pass-through entities as a nominee for another
                  Person.)

              

      

       

      
        
          
          

        

        
          L-1

          
            

          

        

        
          
          

        

      

      
        	
                5.

              	
                The
                  Transferee has reviewed the provisions of Section 6.02(e) of the
                  Agreement
                  and understands the legal consequences of the acquisition of an
                  Ownership
                  Interest in the Certificate including, without limitation, the
                  restrictions on subsequent Transfers and the provisions regarding
                  voiding
                  the Transfer and mandatory sales. The Transferee expressly agrees
                  to be
                  bound by and to abide by the provisions of Section 6.02(e) of the
                  Agreement and the restrictions noted on the face of the Certificate.
                  The
                  Transferee understands and agrees that any breach of any of the
                  representations included herein shall render the Transfer to the
                  Transferee contemplated hereby null and
                  void.

              

      

       

      
        	
                6.

              	
                The
                  Transferee agrees to require a Transfer Affidavit from any Person
                  to whom
                  the Transferee attempts to Transfer its Ownership Interest in the
                  Certificate, and the Transferee will not Transfer its Ownership
                  Interest
                  or cause any Ownership Interest to be Transferred to any Person
                  that the
                  Transferee knows is not a Permitted Transferee. In connection with
                  any
                  such Transfer by the Transferee, the Transferee agrees to deliver
                  to the
                  Securities Administrator a certificate substantially in the form
                  set forth
                  as Exhibit K to the Agreement (a “Transferor
                  Certificate”).

              

      

       

      
        	
                7.

              	
                The
                  Transferee does not have the intention to impede the assessment
                  or
                  collection of any tax legally required to be paid with respect
                  to the
                  Certificate.

              

      

       

      8.    
The
        Transferee’s taxpayer identification number is             .

       

      
        	
                9.

              	
                The
                  Transferee is aware that the Certificate may be a “noneconomic residual
                  interest” within the meaning of the REMIC provisions and that the
                  transferor of a noneconomic residual interest will remain liable
                  for any
                  taxes due with respect to the income on such residual interest,
                  unless no
                  significant purpose of the transfer was to impede the assessment
                  or
                  collection of tax.

              

      

       

      
        
          
          

        

        
          L-2

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Transferee has caused this instrument to be executed
        on its
        behalf, pursuant to authority of its Board of Directors, by its duly authorized
        officer and its corporate seal to be hereunto affixed, duly attested, this
            
        day
        of
                  ,
        20  .

       

      [NAME
        OF TRANSFEREE]

       

      By:  
                                    

      Name:

      Title:

       

      [Corporate
        Seal]

       

      ATTEST:

       

                                
        

      [Assistant]
        Secretary

       

      Personally
        appeared before me the above-named             
        ______,
        known
        or proved to me to be the same person who executed the foregoing instrument
        and
        to be the                     
        of the
        Transferee, and acknowledged that he executed the same as his free act and
        deed
        and the free act and deed of the Transferee.

       

      Subscribed
        and sworn before me this     
        day
        of
        
        ,
        20  .

       

      

      

      

                                             

      NOTARY
        PUBLIC

       

      
        	 	 	 	 	 	 	 	
                My
                  Commission expires the     
                  day of                 ,
                  20  .

              

      

       

      

       

      
        
          
          

        

        
          L-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        M

       

      [RESERVED]

       

      

      
        
          
          

        

        
          M-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        N

       

      LIST
        OF SERVICERS AND SERVICING AGREEMENTS

       

      
        	 	
                1.

              	
                [          ]

              

      

       

      
        	 	
                1.

              	 

      

       

      
        
          
          

        

        
          N-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        O

       

      [Reserved]

       

      
        
          
          

        

        
          O-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        P

       

      [Reserved]

       

      
        
          
          

        

        
          P-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Q

       

      SERVICING
        CRITERIA

       

      

      The
        assessment of compliance to be delivered by
        [          ]
        (“[          ]”), in its
        capacities as Master Servicer and Securities Administrator, and
        [          ], in its capacity
        as Custodian, shall address, at a minimum, the criteria identified below
        as
“Applicable Servicing Criteria”:

       

      
        	
                Servicing
                  Criteria

              	
                Applicable

                Servicing

                Criteria
                  for
                  [          ]

              	
                Applicable

                Servicing

                Criteria
                  for
                  [          ]

              
	
                Reference

              	
                Criteria

              	 	 

      

      
        	 	
                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

              	 
	
                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

              	 
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans are maintained.

              	 	 
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements.

              	
                X

              	 
	 	
                Cash
                  Collection and Administration

              	 	 
	
                1122(d)(2)(i)

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	
                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

              	 
	
                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

              	 
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements.

              	
                X

              	 

      

      
 

      
        
          
          

        

        
          Q-1

          
            

          

        

        
          
          

        

         

        
           

          
            	
                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing

                    Criteria
                      for
                      [          ]

                  	
                    Applicable

                    Servicing

                    Criteria
                      for
                      [          ]

                  
	
                    Reference

                  	
                    Criteria

                  	 	 

          

        

      

      
        	
                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

              	 
	
                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

              	 
	 	
                Investor
                  Remittances and Reporting

              	 	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the
                  Servicer.

              	
                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

              	 
	
                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

              	 
	
                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

              	 

      

       

      
        
          
          

        

        
          Q-2

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria
                    for
                    [          ]

                	
                  Applicable

                  Servicing

                  Criteria
                    for
                    [          ]

                
	
                  Reference

                	
                  Criteria

                	 	 

        

      

      
        	 	
                Pool
                  Asset Administration

              	 	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents.

              	 	
                X

              
	
                1122(d)(4)(ii)

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements.

              	 	
                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

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  accordance with the related mortgage loan documents.

              	 	 
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	 	 
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents.

              	 	 
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements.

              	 	 
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	 	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan
                  documents.

              	 	 
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the related mortgage
                  loans,
                  or such other number of days specified in the transaction
                  agreements.

              	 	 

      

       

      
        
          
          

        

        
          Q-3

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria
                    for
                    [          ]

                	
                  Applicable

                  Servicing

                  Criteria
                    for
                    [          ]

                
	
                  Reference

                	
                  Criteria

                	 	 

        

      

      
        	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements.

              	 	 
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission.

              	 	 
	
                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.

              	 	 
	
                1122(d)(4)(xiv)

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	
                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

              	 
	 	 	 	 

      

      
        
          
          

        

        
          Q-4

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R

       

      ADDITIONAL
        FORM 10-D DISCLOSURE

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              

      

      
        	
                Item
                  1: Distribution and Pool Performance Information

                 

              	 
	
                Information
                  included in the Distribution Date Statement

              	
                Servicer

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Any
                  information required by 1121 which is NOT included on the Distribution
                  Date Statement

              	
                Depositor

              
	
                Item
                  2: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer, Securities Administrator and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Item
                  3: Sale of Securities and Use of Proceeds

                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	
                Depositor

              

      

       

      
        
          
          

        

        
          R-1

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  ADDITIONAL
                    FORM 10-D DISCLOSURE

                
	
                  Item
                    on Form 10-D

                	
                  Party
                    Responsible 

                

        

      

      
        	
                Item
                  4: Defaults Upon Senior Securities

                 

                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	
                Securities
                  Administrator

                Trustee
                  (in the event of the 

                Master
                  Servicer’s termination)

              
	
                Item
                  5: Submission of Matters to a Vote of Security
                  Holders

                 

                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  6: Significant Obligors of Pool Assets

                 

                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Item
                  7: Significant Enhancement Provider Information

                 

                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Item
                  8: Other Information

                 

                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                Any
                  party responsible for the applicable Form 8-K Disclosure
                  item

              

      

       

      
        
          
          

        

        
          R-2

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  ADDITIONAL
                    FORM 10-D DISCLOSURE

                
	
                  Item
                    on Form 10-D

                	
                  Party
                    Responsible 

                

        

      

      
        	
                Item
                  9: Exhibits

              	 
	
                Distribution
                  Date Statement to Certificateholders

              	
                Securities
                  Administrator

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              

      

      
        
          
          

        

        
          R-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        S

       

      ADDITIONAL
        FORM 10-K DISCLOSURE

       

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              

      

      
        	
                Item
                  1B: Unresolved Staff Comments

                 

              	
                Depositor

              
	
                Item
                  9B: Other Information

                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                Any
                  party responsible for disclosure items on Form 8-K

              
	
                Item
                  15: Exhibits, Financial Statement Schedules

              	
                Securities
                  Administrator

                Depositor

              
	
                Reg
                  AB Item 1112(b): Significant Obligors of Pool
                  Assets

              	 
	
                Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Reg
                  AB Item 1114(b)(2): Credit Enhancement Provider Financial
                  Information

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Reg
                  AB Item 1115(b): Derivative Counterparty Financial
                  Information

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Reg
                  AB Item 1117: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 

      

       

      
        
          
          

        

        
          S-1

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  ADDITIONAL
                    FORM 10-K DISCLOSURE

                
	
                  Item
                    on Form 10-K

                	
                  Party
                    Responsible 

                

        

      

      
        	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer, Securities Administrator and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Reg
                  AB Item 1119: Affiliations and Relationships

              	 
	
                Whether
                  (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                  of
                  the following parties, and (b) to the extent known and material,
                  any of
                  the following parties are affiliated with one another:

              	
                Depositor
                  as to Depositor and Issuing Entity (a) 

                Sponsor/Seller
                  as to Sponsor/Seller (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any “outside the ordinary course business arrangements” other
                  than would be obtained in an arm’s length transaction between (a) the
                  Sponsor (Seller), Depositor or Issuing Entity on the one hand,
                  and (b) any
                  of the following parties (or their affiliates) on the other hand,
                  that
                  exist currently or within the past two years and that are material
                  to a
                  Certificateholder’s understanding of the Certificates:

              	
                Depositor
                  as to Depositor and Issuing Entity (a) 

                Sponsor/Seller
                  as to Sponsor/Seller (a)

              

      

       

      
        
          
          

        

        
          S-2

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  ADDITIONAL
                    FORM 10-K DISCLOSURE

                
	
                  Item
                    on Form 10-K

                	
                  Party
                    Responsible 

                

        

      

      
        	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any specific relationships involving the transaction
                  or the pool
                  assets between (a) the Sponsor (Seller), Depositor or Issuing Entity
                  on
                  the one hand, and (b) any of the following parties (or their affiliates)
                  on the other hand, that exist currently or within the past two
                  years and
                  that are material:

              	
                Depositor
                  as to Depositor and Issuing Entity 

                Sponsor/Seller
                  as to Sponsor/Seller

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              

      

       

      

      
        
          
          

        

        
          S-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        T

       

      ADDITIONAL
        FORM 8-K DISCLOSURE

       

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              

      

      
        	
                Item
                  1.01- Entry into a Material Definitive Agreement

                 

                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                All
                  parties

              
	
                Item
                  1.02- Termination of a Material Definitive Agreement

                 

                Disclosure
                  is required regarding termination of any definitive agreement that
                  is
                  material to the securitization (other than expiration in accordance
                  with
                  its terms), even if depositor is not a party. 

                 

                Examples:
                  servicing agreement, custodial agreement.

              	
                All
                  parties

              
	
                Item
                  1.03- Bankruptcy or Receivership

                 

                Disclosure
                  is required regarding the bankruptcy or receivership, with respect
                  to any
                  of the following: 

              	
                Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Sponsor
                  (Seller)

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Affiliated Servicer

              	
                Servicer

              
	
                ▪
                  Other Servicer servicing 20% or more of the pool assets at the
                  time of the
                  report

              	
                Servicer

              
	
                ▪
                  Other material servicers

              	
                Servicer

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Significant Obligor

              	
                Depositor

              
	
                ▪
                  Credit Enhancer (10% or more)

              	
                Depositor

              
	
                ▪
                  Derivative Counterparty

              	
                Depositor

              

      

       

      
        
          
          

        

        
          T-1

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  FORM
                    8-K DISCLOSURE INFORMATION

                
	
                  Item
                    on Form 8-K

                	
                  Party
                    Responsible 

                

        

      

      
        	
                ▪
                  Custodian

              	
                Custodian

              
	
                Item
                  2.04- Triggering Events that Accelerate or Increase a Direct Financial
                  Obligation or an Obligation under an Off-Balance Sheet
                  Arrangement

                 

                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the Distribution Date Statements to the
                  certificateholders.

              	
                Depositor

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Item
                  3.03- Material Modification to Rights of Security
                  Holders

                 

                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement.

              	
                Securities
                  Administrator

                Depositor

              
	
                Item
                  5.03- Amendments of Articles of Incorporation or Bylaws; Change
                  of Fiscal
                  Year

                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”.

              	
                Depositor

              
	
                Item
                  6.01- ABS Informational and Computational
                  Material

              	
                Depositor

              
	
                Item
                  6.02- Change of Servicer or Securities Administrator

                 

                Requires
                  disclosure of any removal, replacement, substitution or addition
                  of any
                  master servicer, affiliated servicer, other servicer servicing
                  10% or more
                  of pool assets at time of report, other material servicers or
                  trustee.

              	
                Master
                  Servicer/Securities Administrator/Depositor/

                Servicer/Trustee
                  (if change of the 

                Securities
                  Administrator)

              
	
                Reg
                  AB disclosure about any new servicer or master servicer is also
                  required.

              	
                Servicer/Master
                  Servicer/Depositor

              
	
                Reg
                  AB disclosure about any new Trustee is also required.

              	
                Trustee

              
	
                Item
                  6.03- Change in Credit Enhancement or External
                  Support

                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  

              	
                Depositor/Securities
                  Administrator

              

      

       

      
        
          
          

        

        
          T-2

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  FORM
                    8-K DISCLOSURE INFORMATION

                
	
                  Item
                    on Form 8-K

                	
                  Party
                    Responsible 

                

        

      

      
        	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor

              
	
                Item
                  6.04- Failure to Make a Required Distribution

              	
                Securities
                  Administrator

              
	
                Item
                  6.05- Securities Act Updating Disclosure

                 

                If
                  any material pool characteristic differs by 5% or more at the time
                  of
                  issuance of the securities from the description in the final prospectus,
                  provide updated Reg AB disclosure about the actual asset
                  pool.

              	
                Depositor

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	
                Depositor

              
	
                Item
                  7.01- Reg FD Disclosure

              	
                All
                  parties

              
	
                Item
                  8.01- Other Events

                 

                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to
                  certificateholders.

              	
                Depositor

              
	
                Item
                  9.01- Financial Statements and Exhibits

              	
                Responsible
                  party for reporting/disclosing the financial statement or
                  exhibit

              

      

      

      
        
          
          

        

        
          T-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        U

       

      FORM
        OF
        ADDITIONAL DISCLOSURE NOTIFICATION

       

      [          ]
        as Securities Administrator 

      [          ]

      Fax:
        [          ]

      E-mail:
        [          ]

       

      Attn:
        Corporate Trust Services - THORNBURG MORTGAGE TRUST
        [          ]-SEC REPORT
        PROCESSING

       

      RE:
        Additional Form [  ] Disclosure Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 3.19(a)(ii) of the Pooling and Servicing Agreement
        dated
        as of [        ] by and among the
        Thornburg Mortgage Securities Corporation, as depositor, Thornburg Mortgage
        Home
        Loans, Inc., as seller,
        [          ], as master
        servicer and securities administrator and
        [          ], as trustee, the
        undersigned, as [    ], hereby notifies you that certain
        events have come to our attention that [will][may] need to be disclosed on
        Form
        [10-D] [10-K] [8-K].

       

      Description
        of Additional Form [10-D] [10-K] [8-K] Disclosure:

       

      

       

      

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [  ]
        Disclosure:

       

      

       

      Any
        inquiries related to this notification should be directed to
        [   ], phone number: [   ]; email address:
        [   ].

       

      [NAME
        OF
        PARTY]

      as
        [role]

       

      

       

      By:
        __________________

      Name:

      Title:

      
        
          
          

        

        
          U-1

          
            

          

        

        
          
          

        

      

      SCHEDULE
        I

       

      MORTGAGE
        LOAN SCHEDULE

       

      [To
        be retained in a separate closing binder entitled “Thornburg
        [          ] Mortgage Loan
        Schedule” at the Washington DC offices of McKee Nelson LLP]

       

      
        
          
          

        

        
          SCHEDULE
            I

          
            

          

        

        
          
          

        

      

      SCHEDULE
        II

       

      GROUP
        [   ] MORTGAGE LOAN SCHEDULE

       

      [To
        be
        updated by Seller on each distribution date for which a Modifiable Mortgage
        Loan
        becomes modified in the immediately preceding Due Period.]

       

      
        
          
          

        

        
          SCHEDULE
            II

          
            

          

        

        
          
          

        

      

      SCHEDULE
        III

       

      GROUP
        [   ] MORTGAGE LOAN SCHEDULE

       

      [To
        be retained in a separate closing binder entitled “Thornburg
        [          ] Mortgage Loan
        Schedule” at the Washington DC offices of McKee Nelson LLP]

       

      
        
          
          

        

        
          SCHEDULE
            III

          
            

          

        

        
          
          

        

      

      SCHEDULE
        IV

       

      GROUP
        [   ] MORTGAGE LOAN SCHEDULE

       

      [To
        be retained in a separate closing binder entitled “Thornburg
        [          ] Mortgage Loan
        Schedule” at the Washington DC offices of McKee Nelson LLP]

       

      
        
          
          

        

        
          SCHEDULE
            IV

          
            

          

        

        
          
          

        

      

      SCHEDULE
        V

       

      GROUP
        [   ] MORTGAGE LOAN SCHEDULE

       

      [To
        be retained in a separate closing binder entitled “Thornburg
        [          ] Mortgage Loan
        Schedule” at the Washington DC offices of McKee Nelson LLP]

       

      
        
          
          

        

        
          SCHEDULE
            VForm
      of Trust Agreement

    

     

    

     

    

     

    AMENDED
      AND RESTATED TRUST AGREEMENT

    

    

    

    among

    

    

    

    THORNBURG
      MORTGAGE SECURITIES CORPORATION,

    as
      Depositor,

    

    

    

    [     ],

    as
      Owner
      Trustee

    

    

    and

    

    

    [     ],

    as
      Securities Administrator

    

    

    

    Dated
      [     ]

    

    

    

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ]

    MORTGAGE-BACKED
      NOTES, SERIES [     ]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF
      CONTENTS

    

    
      	 	
              Page

            
	 	 
	
              ARTICLE
                I DEFINITIONS

            	 
	 	 
	
              Section
                1.01. Definitions.

            	
              1

            
	
              Section
                1.02. Other Definitional Provisions.

            	
              5

            
	 	 
	
              ARTICLE
                II ORGANIZATION

            	 
	 	 
	
              Section
                2.01. Name.

            	
              6

            
	
              Section
                2.02. Office.

            	
              6

            
	
              Section
                2.03. Purpose and Powers.

            	
              6

            
	
              Section
                2.04. Appointment of the Owner Trustee.

            	
              7

            
	
              Section
                2.05. Initial Capital Contribution; Declaration of Trust.

            	
              7

            
	
              Section
                2.06. Initial Beneficiary.

            	
              7

            
	
              Section
                2.07. Liability of the Holders of the Ownership
                Certificates.

            	
              7

            
	
              Section
                2.08. Situs of Trust.

            	
              7

            
	
              Section
                2.09. Title to Trust Property.

            	
              8

            
	
              Section
                2.10. Representations and Warranties of the Depositor.

            	
              8

            
	
              Section
                2.11. Tax Treatment.

            	
              9

            
	
              Section
                2.12. Investment Company.

            	
              10

            
	 	 
	
              ARTICLE
                III THE OWNERSHIP CERTIFICATES AND TRANSFERS OF INTERESTS

            	 
	 	 
	
              Section
                3.01. The Ownership Certificates.

            	
              10

            
	
              Section
                3.02. Execution, Authentication and Delivery of the Ownership
                Certificates.

            	
              11

            
	
              Section
                3.03. Registration of and Limitations on Transfers and Exchanges
                of the
                Ownership Certificates.

            	
              11

            
	
              Section
                3.04. Lost, Stolen, Mutilated or Destroyed Ownership
                Certificates.

            	
              13

            
	
              Section
                3.05. Persons Deemed Certificateholders.

            	
              14

            
	
              Section
                3.06. Access to List of Certificateholders’ Names and
                Addresses.

            	
              14

            
	
              Section
                3.07. Maintenance of Office or Agency.

            	
              14

            
	
              Section
                3.08. Certificate Paying Agent.

            	
              15

            
	
              Section
                3.09. Derivative Transactions.

            	
              16

            
	 	 
	
              ARTICLE
                IV APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

            	 
	 	 
	
              Section
                4.01. Certificate Distribution Account.

            	
              16

            
	
              Section
                4.02. Application of Trust Funds.

            	
              17

            
	
              Section
                4.03. Method of Payment.

            	
              18

            
	
              Section
                4.04. Tax Returns.

            	
              18

            
	
              Section
                4.05. Segregation of Moneys; No Interest.

            	
              19

            
	 	 

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    
      	
              ARTICLE
                V AUTHORITY AND DUTIES OF THE OWNER TRUSTEE; ACTION BY
                CERTIFICATEHOLDERS

            	 
	 	 
	
              Section
                5.01. General Authority.

            	
              19

            
	
              Section
                5.02. General Duties.

            	
              19

            
	
              Section
                5.03. Action Upon Instruction.

            	
              20

            
	
              Section
                5.04. No Duties Except as Specified under Specified Documents or
                in
                Instructions.

            	
              21

            
	
              Section
                5.05. Restrictions.

            	
              22

            
	
              Section
                5.06. Prior Notice to Holders with Respect to Certain Matters;
                Separateness Covenants.

            	
              22

            
	
              Section
                5.07. Action by Certificateholders with Respect to Certain
                Matters.

            	
              24

            
	
              Section
                5.08. Action by the Holders with Respect to Bankruptcy.

            	
              25

            
	
              Section
                5.09. Restrictions on the Holders’ Power.

            	
              25

            
	
              Section
                5.10. Majority Control.

            	
              25

            
	 	 
	
              ARTICLE
                VI CONCERNING THE OWNER TRUSTEE

            	 
	 	 
	
              Section
                6.01. Acceptance of Trusts and Duties.

            	
              25

            
	
              Section
                6.02. Furnishing of Documents.

            	
              26

            
	
              Section
                6.03. Books and Records.

            	
              26

            
	
              Section
                6.04. Representations and Warranties.

            	
              27

            
	
              Section
                6.05. Reliance; Advice of Counsel.

            	
              28

            
	
              Section
                6.06. Not Acting in Individual Capacity.

            	
              29

            
	
              Section
                6.07. Owner Trustee Not Liable for Ownership Certificates or
                Collateral.

            	
              29

            
	
              Section
                6.08. Owner Trustee May Own Ownership Certificates and
                Notes.

            	
              29

            
	
              Section
                6.09. Licenses.

            	
              30

            
	
              Section
                6.10. Doing Business in Other Jurisdictions.

            	
              30

            
	
              Section
                6.11. Reporting Requirements of the Commission.

            	
              30

            
	 	 
	
              ARTICLE
                VII INDEMNIFICATION AND COMPENSATION

            	 
	 	 
	
              Section
                7.01. Trust Expenses.

            	
              32

            
	
              Section
                7.02. Indemnification.

            	
              32

            
	
              Section
                7.03. Compensation.

            	
              33

            
	
              Section
                7.04. Lien on Trust Estate.

            	
              33

            
	 	 
	
              ARTICLE
                VIII TERMINATION OF AGREEMENT

            	 
	 	 
	
              Section
                8.01. Termination of Agreement.

            	
              33

            
	 	 
	
              ARTICLE
                IX SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

            	 
	 	 
	
              Section
                9.01. Eligibility Requirements for Owner Trustee.

            	
              34

            
	
              Section
                9.02. Resignation or Removal of Owner Trustee.

            	
              34

            
	
              Section
                9.03. Successor Owner Trustee.

            	
              35

            
	
              Section
                9.04. Merger or Consolidation of Owner Trustee.

            	
              36

            
	
              Section
                9.05. Appointment of Co-Trustee or Separate Trustee.

            	
              36

            
	 	 

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

     

    
      	
              ARTICLE
                X MISCELLANEOUS

            	 
	 	 
	
              Section
                10.01. Supplements and Amendments.

            	
              37

            
	
              Section
                10.02. No Legal Title to Trust Estate in Holders.

            	
              39

            
	
              Section
                10.03. Pledge of Collateral by Owner Trustee is Binding.

            	
              39

            
	
              Section
                10.04. Limitations on Rights of Others.

            	
              39

            
	
              Section
                10.05. Notices.

            	
              39

            
	
              Section
                10.06. Severability.

            	
              39

            
	
              Section
                10.07. Separate Counterparts.

            	
              40

            
	
              Section
                10.08. Successors and Assigns.

            	
              40

            
	
              Section
                10.09. Headings.

            	
              40

            
	
              Section
                10.10. Governing Law.

            	
              40

            
	
              Section
                10.11. No Petition.

            	
              40

            
	
              Section
                10.12. No Recourse.

            	
              41

            
	 	 
	
              ARTICLE
                XI OFFICERS

            	 
	 	 
	
              Section
                11.01. Appointment of Officers.

            	
              41

            
	
              Section
                11.02. Officers to Provide Information to the Owner
                Trustee.

            	
              41

            

    

     

    EXHIBITS:

    

    
      	
              Exhibit
                A

            	
              Form
                of Ownership Certificates

            

    

    
      	
              Exhibit
                B

            	
              Form
                of Certificate of Trust

            

    

    
      	
              Exhibit
                C-1

            	
              Form
                of Rule 144A Investment Letter

            

    

    
      	
              Exhibit
                C-2

            	
              Form
                of Accredited Investor Investment
                Letter

            

    

    
      	
              Exhibit
                D

            	
              Owner
                Trustee Fee Letter Agreement 

            

    

    
      	
              Exhibit
                E

            	
              Transaction
                Parties

            

    

    

    

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    This
      AMENDED AND RESTATED TRUST AGREEMENT dated [     ], is
      by and among THORNBURG
      MORTGAGE SECURITIES CORPORATION.,
      a
      Delaware corporation (the “Depositor”), [     ],
      [Insert description], as owner trustee (the “Owner Trustee”) and
      [     ], [Insert description] (the “Securities
      Administrator”).

     

    WHEREAS,
      on [     ] the Depositor formed Thornburg Mortgage
      Securities Trust [     ], as a Delaware statutory trust
      (the “Trust”) pursuant to (i) the Trust Agreement, dated as of
      [     ] (the “Original Trust Agreement”), by and
      between the Depositor and the Owner Trustee and (ii) a Certificate of Trust
      filed with the Secretary of State of the State of Delaware on
      [     ]; and

     

    WHEREAS,
      the parties to this Agreement desire to amend and restate the Original Trust
      Agreement in its entirety, and, as evidenced by their signatures hereto, the
      parties to this Agreement consent to and the Original Trust Agreement is hereby
      amended, restated and replaced in its entirety as of the date first written
      above by this Agreement; and

     

    WHEREAS,
      on the Closing Date pursuant to the Sale and Servicing Agreement dated as of
      [     ], Depositor intends to sell, transfer and assign
      to the Trust certain Collateral, including Mortgage Loans and related assets,
      which Collateral the statutory trust intends to pledge under the Indenture
      in
      order to secure the issuance of the Thornburg Mortgage Securities Trust
      [     ] Mortgage-Backed Notes, Series
      [     ] (the “Notes”), the net proceeds of which would
      be applied toward the purchase of the Collateral; and

     

    WHEREAS,
      the Trust intends to issue its Ownership Certificates to the Depositor, as
      additional consideration for the Collateral and the Depositor intends to
      transfer the Ownership Certificates to[     ] under the
      terms of the Purchase Agreement between the Depositor and
      [     ], dated [     ];
      and

     

    WHEREAS,
      the Initial Holder intends to buy the Ownership Certificates; and

     

    WHEREAS,
      the Depositor, the Owner Trustee and the Securities Administrator desire to
      enter into this Agreement in order to effect the foregoing.

     

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

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.01. Definitions.
      For all
      purposes of this Agreement, the following terms shall have the meanings set
      forth below. 

     

    Actual
      Knowledge:
      With
      respect to the Owner Trustee, any officer within the Corporate Trust Office
      of
      the Owner Trustee responsible for administering the Trust hereunder, or under
      the Operative Agreements, who has actual knowledge of an action taken or an
      action not taken with regard to the Trust. Actions taken or actions not taken
      of
      which the Owner Trustee should have had knowledge, or has constructive
      knowledge, do not meet the definition of Actual Knowledge hereunder. With
      respect to the Securities Administrator, any Responsible Officer of the
      Securities Administrator who has actual knowledge of an action taken or an
      action not taken with regard to the Trust.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Agreement
      or
Trust
      Agreement:
      This
      Amended and Restated Trust Agreement and any amendments or modifications
      hereof.

     

    Authorized
      Officer:
      With
      respect to the Trust, any officer of the Owner Trustee who is authorized to
      act
      for the Owner Trustee in matters relating to the Trust and who is identified
      on
      the list of Authorized Officers delivered by the Owner Trustee to the Indenture
      Trustee and the Securities Administrator on the Closing Date (as such list
      may
      be modified or supplemented from time to time thereafter) and, so long as the
      Administration Agreement is in effect, any Vice President, Assistant Vice
      President, Trust Officer, or more senior officer of the Securities Administrator
      who is authorized to act for the Securities Administrator in matters relating
      to
      the Trust and to be acted upon by the Securities Administrator pursuant to
      the
      Administration Agreement and who is identified on the list of Authorized
      Officers delivered by the Securities Administrator to the Indenture Trustee
      and
      the Owner Trustee on the Closing Date (as such list may be modified or
      supplemented from time to time thereafter).

     

    Bank:
      [     ], in its individual capacity and not as Owner
      Trustee under this Agreement.

     

    Certificate
      Distribution Account:
      The certificate distribution account maintained by or on behalf of the
      Securities Administrator for the benefit of the Trust
      and
      the Certificateholders pursuant to Section 4.01.

     

    Certificate
      of Trust:
      The
      Certificate of Trust duly executed and filed by the Owner Trustee on
      [     ] for the Trust pursuant to Section 3810(a) of
      the Delaware Trust Statute in the form of Exhibit B hereto.

     

    Certificate
      Paying Agent:
      Initially, the Securities Administrator, in its capacity as Certificate Paying
      Agent, or any successor to the Securities Administrator in such
      capacity.

     

    Certificate
      Register:
      The
      register maintained by the Certificate Registrar in which the Certificate
      Registrar shall provide for the registration of the Ownership Certificates
      and
      of transfers and exchanges of such Ownership Certificates.

     

    Certificate
      Registrar:
      Initially, the Securities Administrator, in its capacity as Certificate
      Registrar, or any successor to the Securities Administrator in such
      capacity.

     

    Certificateholder
      or Holder:
      The
      Person in whose name an Ownership Certificate is registered in the Certificate
      Register, except that, any Ownership Certificate registered in the name of
      the
      Owner Trustee, the Securities Administrator, the Indenture Trustee or any
      Affiliate of any of the foregoing of which the Certificate Registrar has actual
      acknowledge shall be deemed not to be outstanding and any such Person shall
      not
      be considered a Certificateholder or Holder for purposes of giving any request,
      demand, authorization, direction, notice, consent or waiver under the Indenture
      or this Agreement.

     

    Collateral:
      As
      defined in the Indenture.

    
      
         

      

      
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    Corporate
      Trust Office:
      With
      respect to (i) the Owner Trustee, the principal corporate trust office of the
      Owner Trustee located at [     ], or at such other
      address in the State of Delaware as the Owner Trustee may designate by notice
      to
      the Securities Administrator, the Indenture Trustee and the Certificateholders,
      or the principal corporate trust office of any successor Owner Trustee (the
      address (which shall be in the State of Delaware) of which the successor owner
      trustee will notify the Securities Administrator, the Indenture Trustee and
      the
      Certificateholders); (ii) the Securities Administrator, the principal corporate
      trust office of the Securities Administrator at which, at any particular time,
      its corporate trust business shall be administered, which office at the date
      hereof for purposes of transfers and exchanges and for presentment and surrender
      of the Ownership Certificates and for payment thereof is located at
      [     ], Attention: Client Manager (Thornburg Mortgage
      Securities Trust [     ]), and for all other purposes
      is located at [     ], Attention: Corporate Trust Group
      (Thornburg Mortgage Securities Trust [     ]) (or for
      overnight deliveries, at [     ], Attention: Client
      Manager (Thornburg Mortgage Securities Trust [     ]))
      or such other address or addresses that the Securities Administrator may
      designate from time to time by notice to the Owner Trustee, Indenture Trustee
      and the Certificateholders; and (iii) the Certificate Registrar, the principal
      office of the Certificate Registrar at which at any particular time its
      corporate trust business shall be administered, which office at the date of
      execution of this Agreement is located at the Corporate Trust Office of the
      Securities Administrator, or at such other address as the Certificate Registrar
      may designate from time to time by notice to the Certificateholders and the
      Owner Trustee, or the principal corporate trust office of any successor
      Certificate Registrar at the address designated by such successor Certificate
      Registrar by notice to the Certificateholders and the Owner
      Trustee.

     

    Delaware
      Trust Statute:
      Chapter
      38 of Title 12 of the Delaware Code, 12 Del.C. Section 3801 et
      seq.,
      as the
      same may be amended from time to time.

     

    Depositor:
      Thornburg Mortgage Securities Corporation, a Delaware corporation.

     

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

     

    Indenture:
      The
      indenture dated as of [     ], among the Issuer, the
      Indenture Trustee and the Securities Administrator, as such may be amended
      or
      supplemented from time to time.

     

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

     

    Initial
      Holder:
      [Thornburg Mortgage, Inc.]

     

    Liabilities:
      The
      meaning specified in Section 7.02.

     

    Master
      Servicer:
      [     ], or any successor in interest, as master
      servicer under the Sale and Servicing Agreement.

     

    Net
      Proceeds from the Notes:
      The
      proceeds received by the Trust from time to time from the issuance and sale
      of
      its Notes, less the costs and expenses incurred in connection with the issuance
      and sale of such Notes.

    
      
         

      

      
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    Non-U.S.
      Person:
      Any
      person other than a “United States person” as defined in Section 7701(a)(30) of
      the Code.

     

    Noteholders:
      The
      holders from time to time of the Notes.

     

    Notes:
      As
      defined in the third WHEREAS clause of this Agreement.

     

    Officer:
      Those
      officers of the Trust referred to in Article XI.

     

    Opinion
      of Counsel:
      One or
      more written opinions of counsel who may, except as otherwise expressly provided
      in this Agreement, be employees of or counsel to the Depositor and who shall
      be
      satisfactory to the Owner Trustee and the Securities Administrator, which
      opinion shall be addressed to the Owner Trustee and the Securities
      Administrator. 

     

    Original
      Trust Agreement:
      The
      Trust Agreement, dated as of [     ], between the
      Depositor and the Owner Trustee.

     

    Ownership
      Certificates:
      One or
      more certificates representing an undivided beneficial ownership interest in
      the
      Trust in substantially the form annexed hereto as Exhibit A.

     

    Owner
      Trustee:
      [     ], [Insert description], and any successor in
      interest, not in its individual capacity, but solely as owner trustee under
      this
      Agreement.

     

    Privately
      Offered Notes:
      The
      Class [     ] Notes and the Subordinate
      Notes.

     

    Proposer:
      The
      Certificateholder making a written request pursuant to Section
      5.07.

     

    Prospective
      Holder:
      Each
      prospective purchaser and any subsequent transferee of Ownership
      Certificates.

     

    Responsible
      Officer:
      With
      respect to (i) the Owner Trustee, any officer within the Corporate Trust Office
      of the Owner Trustee with direct responsibility for the administration of the
      Trust and also, with respect to a particular matter, any other officer to whom
      such matter is referred because of such officer’s knowledge of, and familiarity
      with, the particular subject; and (ii) the Securities Administrator, any officer
      within the Corporate Trust Office of the Securities Administrator with direct
      responsibility for the administration of the Trust and also, with respect to
      a
      particular matter, any other officer to whom such matter is referred because
      of
      such officer’s knowledge of, and familiarity with, the particular
      subject.

     

    Sale
      and Servicing Agreement:
      The
      Sale and Servicing Agreement dated as of [   ], by and among the
      Trust, as Issuer, Thornburg Mortgage Securities Corporation, as Depositor,
      [   ], as Seller, [   ], as initial seller,
      [   ], as Master Servicer and Securities Administrator, and
      [     ], as Indenture Trustee, as such may be amended
      or supplemented from time to time.

     

    Secretary
      of State:
      The
      Secretary of State of the State of Delaware.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended.

    
      
         

      

      
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    Securities
      Administrator:
      [     ], or any successor in interest as securities
      administrator under the Sale and Servicing Agreement.

     

    Seller:
      [     ]

     

    Trust:
      The
      trust established pursuant to the Original Trust Agreement and the Certificate
      of Trust which shall carry on its business operations under the name of
“Thornburg Mortgage Securities Trust
      [     ].”

     

    Section
      1.02. Other Definitional Provisions.

     

    (a) Capitalized
      terms used herein and not defined herein shall have the same meanings assigned
      to them in the Sale and Servicing Agreement or in the Indenture, as
      applicable.

     

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

     

    (c) As
      used
      in this Agreement and in any certificate or other document made or delivered
      pursuant hereto or thereto, accounting terms not defined in this Agreement
      or in
      any such certificate or other document, and accounting terms partly defined
      in
      this 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 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 Agreement or in any such
      certificate or other document shall control.

     

    (d) The
      words
“hereof,” “herein,” “hereunder” and words of similar import when used in this
      Agreement shall refer to this Agreement as a whole and not to any particular
      provision of this Agreement; Section and Exhibit references contained in this
      Agreement are references to Sections and Exhibits in or to this Agreement unless
      otherwise specified; and the term “including” shall mean “including without
      limitation.”

     

    (e) The
      definitions contained in this 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.

     

    (f) 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.

    
      
         

      

      
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    ARTICLE
      II

    ORGANIZATION

     

    Section
      2.01. Name.
      The
      trust established under the Original Trust Agreement and the Certificate of
      Trust and continued hereunder shall be referred to as “Thornburg Mortgage
      Securities Trust [     ]” in which name the Owner
      Trustee and the Officers may conduct the activities contemplated hereby,
      including the making and executing of contracts, agreements and other
      instruments on behalf of the Trust and sue and be sued and, except as limited
      herein, exercise all of the powers that a Delaware statutory trust may exercise
      under the Delaware Trust Statute.

     

    Section
      2.02. Office.
      The
      principal office of the Trust shall be in care of the Owner Trustee, at its
      Corporate Trust Office. The Trust shall also have an office in care of the
      Securities Administrator at its Corporate Trust Office.

     

    Section
      2.03. Purpose
      and Powers.
      The
      purpose of the Trust is, and the Trust shall have the power and authority,
      to
      engage in any of the following activities:

     

    (a) to
      issue
      one or more Classes of Notes pursuant to the Indenture and one or more Ownership
      Certificates pursuant to this Agreement and to sell, transfer and exchange
      such
      Notes and such Ownership Certificates;

     

    (b) to
      acquire the Collateral from the Depositor;

     

    (c) to
      assign, grant, transfer, pledge, mortgage and convey the Trust Estate pursuant
      to the Indenture and to hold, manage and distribute to the Certificateholders
      pursuant to the terms of the Sale and Servicing Agreement any portion of the
      Collateral released from the lien of, and remitted to the Trust pursuant to,
      the
      Indenture; 

     

    (d) to
      enter
      into and perform its obligations, or exercise its rights under, the Operative
      Agreements (as defined in the Sale and Servicing Agreement), including the
      Yield
      Maintenance Agreement, the Auction Swap Agreement and Servicing Agreements
      to
      which it is to be a party or an assignee of the rights thereunder;

     

    (e) 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; and

     

    (f) subject
      to compliance with the Operative Agreements, to engage in such other activities
      as may be required in connection with conservation of the Trust Estate and
      the
      making of distributions and payments to the Certificateholders and the
      Noteholders.

     

    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 Agreement or the Operative
      Agreements.

     

    Section
      2.04. Appointment
      of the Owner Trustee.
      The
      Depositor hereby appoints the Bank to act as owner trustee (the “Owner Trustee”)
      of the Trust effective as of the date hereof to have all the rights, powers
      and
      duties set forth herein with respect to accomplishing the purposes of the
      Trust.

    
      
         

      

      
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    The
      Owner
      Trustee is hereby authorized to execute this Agreement, the Indenture, the
      Administration Agreement, the Sale and Servicing Agreement and any other
      Operative Agreement on behalf of the Trust. The Owner Trustee is hereby
      authorized to take all actions required or permitted to be taken by it in
      accordance with the terms of this Agreement.

     

    Section
      2.05. Initial Capital Contribution; Declaration of Trust.

     

    (a) The
      Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust,
      as of the date hereof, the sum of $10. The Owner Trustee hereby acknowledges
      receipt in trust from the Depositor, as of the Closing Date, of the foregoing
      contribution which shall constitute the initial corpus of the Trust Estate
      and
      shall be deposited in the Certificate Distribution Account. 

     

    (b) The
      Owner
      Trustee hereby declares that it will hold the 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 Operative
      Agreements. It is the intention of the parties hereto that the Trust constitutes
      a statutory trust under the Delaware Trust Statute and that this Agreement
      constitutes the governing instrument of such statutory trust. The execution
      and
      filing of the Certificate of Trust with the Secretary of State by the Owner
      Trustee is hereby ratified and approved. Except as otherwise provided in this
      Agreement, the rights of the Certificateholders will be those of beneficial
      owners of the Trust.

     

    Section
      2.06. Initial
      Beneficiary.
      Upon the
      formation of the Trust by the initial contribution by the Depositor and the
      filing of the Certificate of Trust pursuant to Section 2.05 and until the
      issuance of the Ownership Certificates, the Depositor shall be the sole
      beneficiary of the Trust.

     

    Section
      2.07. Liability of the Holders of the Ownership Certificates.
      To
      the
      fullest extent permitted by applicable law, no Certificateholder shall have
      any
      personal liability for any liability or obligation of the Trust or, except
      as
      otherwise provided herein, to the Owner Trustee.

     

    Section
      2.08. Situs
      of Trust.
      The
      Trust will be located in the State of Delaware. All bank accounts maintained
      by
      the Owner Trustee on behalf of the Trust shall be located in the States of
      Delaware, New York or the jurisdiction where the Securities Administrator
      maintains bank accounts with respect to collections on the Collateral. The
      only
      offices of the Trust will be as described in Section 2.02 hereof. The Trust
      shall not have any employees; provided,
      however,
      that
      nothing herein shall restrict or prohibit the Owner Trustee from having
      employees within or without the State of Delaware. Payments will be received
      by
      the Trust only in Delaware, New York or the jurisdiction in which the Securities
      Administrator maintains the Certificate Distribution Account, and payments
      will
      be made by the Trust only from the Trust Accounts or from Delaware, New York
      or
      the jurisdiction in which the Securities Administrator maintains the Certificate
      Distribution Account.

    
      
         

      

      
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    Section
      2.09. Title to Trust Property.

     

    (a) Subject
      to the Indenture, title to all of the Trust Estate shall be vested at all times
      in the Trust as a separate legal entity until this Agreement terminates pursuant
      to Article VIII hereof; provided,
      however,
      that if
      the laws of any jurisdiction require that title to any part of the Trust Estate
      be vested in the trustee of the Trust, then title to that part of the Trust
      Estate shall be deemed to be vested in the Owner Trustee or any co-trustee
      or
      separate trustee, as the case may be, appointed pursuant to Article IX of this
      Agreement.

     

    (b) The
      Certificateholders shall have no legal title to any part of the Trust Estate.
      No
      transfer by operation of law or otherwise of any interest of the
      Certificateholders shall operate to terminate this Agreement or the trusts
      created hereunder or entitle any transferee to an accounting or to the transfer
      to it of any part of the Trust Estate.

     

    Section
      2.10. Representations
      and Warranties of the Depositor.
      The
      Depositor hereby represents and warrants to the Owner Trustee and the Securities
      Administrator as of the date of this Agreement and as of the Closing Date,
      as
      follows:

     

    (a) 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 and had at all relevant times,
      and now has, power, authority and the legal right to acquire and own the
      Mortgage Loans.

     

    (b) 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 property or the conduct of
      its
      business shall require such qualifications.

     

    (c) The
      Depositor has the power and authority to execute and deliver any Operative
      Agreement to which it is a party and to carry out its terms; the Depositor
      has
      full power and authority to sell and assign the Collateral to be sold and
      assigned to and deposited with the Trust and the Depositor has duly authorized
      such assignment and deposit to the Trust by all necessary corporate action;
      and
      the execution, delivery and performance of this Agreement or any other Operative
      Agreement to which it is a party has been duly authorized by the Depositor
      by
      all necessary corporate action and, assuming the due authorization, execution
      and delivery of each such agreement by the other parties thereto, each such
      agreement constitutes a valid and binding obligation of the Depositor,
      enforceable against the Depositor in accordance with its terms, except as
      enforcement thereof may be subject to or limited by bankruptcy, insolvency,
      moratorium, reorganization or other similar laws relating to or affecting
      creditors’ rights generally and by general equitable principles.

     

    (d) The
      consummation of the transactions contemplated by this Agreement and the
      fulfillment of the terms hereof and thereof 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 certificate of incorporation
      or
      by-laws of the Depositor, or any indenture, agreement or other instrument to
      which the Depositor is a party or by which it is bound; nor result in the
      creation or imposition of any lien upon any of its properties pursuant to the
      terms of any such indenture, agreement or other instrument (other than pursuant
      to the Operative Agreements); 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.

    
      
         

      

      
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    (e) There
      are
      no proceedings or investigations, pending or, to the best knowledge of the
      Depositor, threatened, before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Depositor
      or
      its properties: (i) asserting the invalidity of this Agreement or any other
      Operative Agreement to which the Depositor is a party, (ii) seeking to prevent
      the consummation of any of the transactions contemplated by this Agreement
      or
      any other Operative Agreement to which the Depositor is a party or (iii) seeking
      any determination or ruling that might materially and adversely affect the
      performance by the Depositor of its obligations under, or the validity or
      enforceability of, this Agreement or any other Operative Agreement to which
      the
      Depositor is a party.

     

    (f) The
      Depositor has not failed to obtain any consent, approval, authorization, or
      order of, and has not failed to cause any registration or qualification with,
      any court or regulatory authority or other governmental body having jurisdiction
      over the Depositor, which consent, approval, authorization, order, registration,
      or qualification is required for, and the absence of which would materially
      and
      adversely affect, the legal and valid execution, delivery, and performance
      of
      this Agreement by the Depositor. No consent or approval of any other person
      or
      entity is necessary for the Depositor to perform its obligations hereunder
      or,
      if any such consent or approval is necessary, such consent or approval has
      previously been obtained.

     

    (g) The
      representations and warranties of the Depositor made pursuant to the Sale and
      Servicing Agreement are true and correct.

     

    (h) This
      Agreement is not required to be qualified under the Trust Indenture Act of
      1939,
      as amended, and the Trust is not required to be registered as an “investment
      company” under the Investment Company Act of 1940, as amended.

     

    Section
      2.11. Tax
      Treatment.
      It is
      the intention of the parties hereto that, for federal and state income and
      state
      and local franchise tax purposes, the Trust shall not be treated as (i) an
      association subject separately to taxation as a corporation, (ii) a “publicly
      traded partnership” as defined in Treasury Regulation Section 1.7704-1
      promulgated under the Code or (iii) a “taxable mortgage pool” as defined in
      Section 7701(i) of the Code. It is also the intention of the parties hereto
      that
      (i) the Notes (other than the Privately Offered Notes) qualify under applicable
      tax laws as indebtedness secured by the Collateral and (ii) the Trust formed
      hereby shall be disregarded as an entity separate from the sole Holder of the
      Ownership Certificates and the Privately Offered Notes unless and until the
      date
      when either (a) there is more than one Holder of the Ownership Certificates
      and
      the Privately Offered Notes or (b) any class of Notes (other than the Privately
      Offered Notes) is recharacterized as an equity interest in the Trust for federal
      income tax purposes and is owned by a Person other than the holder of the
      Ownership Certificates and the Privately Offered Notes, in which case upon
      receipt of written notification or actual knowledge that such an event has
      occurred, the Securities Administrator shall comply with its obligations under
      Section 4.04. In such event, the Trust is intended to be classified as a
      partnership for federal income tax purposes. The Depositor, the Owner Trustee,
      the Securities Administrator and each Holder of an Ownership Certificate agree
      to treat the transactions contemplated hereby in accordance with the above
      stated intentions unless and until determined to the contrary by an applicable
      taxing authority, and the provisions of this Agreement shall be interpreted
      to
      further the above stated intentions.

    
      
         

      

      
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    Section
      2.12. Investment
      Company.
      Neither
      the Depositor nor any Holder of any Ownership Certificates shall take any action
      which would cause the Trust to become an “investment company” which would be
      required to register under the Investment Company Act of 1940, as
      amended.

     

    ARTICLE
      III

    THE
      OWNERSHIP CERTIFICATES AND TRANSFERS OF INTERESTS

     

    Section
      3.01. The Ownership Certificates. Initially,
      there shall be a single Ownership Certificate in definitive, fully registered
      form representing a 100% Percentage Interest which shall initially be registered
      in the name of the Initial Holder. No Ownership Certificates shall be issued
      in
      authorized denominations of less than 10% Percentage Interest and multiples
      of
      1% in excess thereof. The Ownership 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 3.02. Any Ownership
      Certificates bearing the manual 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
      Agreement, notwithstanding that such individuals or any of them shall have
      ceased to be so authorized prior to the authentication and delivery of such
      Ownership Certificates or did not hold such offices at the date of
      authentication and delivery of such Ownership 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 any Ownership Certificates duly registered in such Person’s name pursuant to
      Section 3.03.

     

    Section
      3.02. Execution, Authentication and Delivery of the Ownership
      Certificates. Concurrently
      with the sale of the Collateral to the Trust pursuant to the Sale and Servicing
      Agreement, the Owner Trustee shall cause the Ownership Certificates issued
      hereunder to be executed and authenticated on behalf of the Trust and delivered
      to the Initial Holder as assignee of the Depositor. 

     

    The
      Ownership Certificates shall not entitle the Holders to any benefits under
      this
      Agreement or be valid for any purpose unless there shall appear on such
      Ownership Certificates a certificate of authentication substantially in the
      form
      set forth in Exhibit A hereto, executed by the Certificate Registrar, as the
      Owner Trustee’s authenticating agent, by manual signature; such authentication
      shall constitute conclusive evidence that such Ownership Certificates shall
      have
      been duly authenticated and delivered hereunder. An Ownership Certificate shall
      be dated the date of its authentication.

    
      
         

      

      
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    Section
      3.03. Registration
      of and Limitations on Transfers and Exchanges of the Ownership
      Certificates.
      The
      Certificate Registrar shall keep or cause to be kept, at the office or agency
      maintained pursuant to Section 3.07, a Certificate Register in which, subject
      to
      such reasonable regulations as it may prescribe, the Certificate Registrar
      shall
      provide for the registration of the Ownership Certificates and of transfers
      and
      exchanges of the Ownership Certificates as herein provided; provided,
      however,
      that no
      Ownership Certificate shall be issued in any such transfer and exchange
      representing less than a 10% Percentage Interest in the Ownership Certificates.
      The Securities Administrator shall be the initial Certificate Registrar. If
      the
      Certificate Registrar resigns or is removed, the Owner Trustee, with the consent
      of the Depositor, shall appoint a successor Certificate Registrar.

     

    Subject
      to satisfaction of the conditions set forth below, upon surrender for
      registration of transfer of any Ownership Certificates at the office or agency
      maintained pursuant to Section 3.07, the Owner Trustee shall execute,
      authenticate and deliver (or cause the Certificate Registrar as its
      authenticating agent to authenticate and deliver), in the name of the designated
      transferee or transferees, one or more new Ownership Certificates evidencing
      in
      aggregate the Percentage Interest of the Ownership Certificates so surrendered
      and dated the date of authentication by the Owner Trustee or the Certificate
      Registrar. At the option of the Holder, Ownership Certificates may be exchanged
      for other Ownership Certificates evidencing in the aggregate the Percentage
      Interest of the Ownership Certificate to be surrendered in such an exchange
      at
      the office or agency maintained pursuant to Section 3.07.

     

    Every
      Ownership Certificate presented or surrendered for registration of transfer
      or
      exchange shall be accompanied by a written instrument of transfer in form
      satisfactory to the Owner Trustee and the Certificate Registrar duly executed
      by
      the Holder or such Holder’s attorney duly authorized in writing. Each Ownership
      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
      the
      Ownership 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 the Ownership
      Certificates or any other expense arising as a result of any registration of
      transfer or exchange.

     

    The
      preceding provisions of this Section notwithstanding, the Owner Trustee shall
      not make and the Certificate Registrar shall not register transfer or exchanges
      of any Ownership Certificates for a period of 15 days preceding the due date
      for
      any payment with respect to the Ownership Certificates.

     

    No
      transfer of any Ownership Certificates 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. Except in the case of the initial transfer to the Initial Holder, in
      the
      event of any such transfer, the Certificate Registrar or the Depositor shall
      prior to such transfer require the transferee to execute (i) an investment
      letter (in the form attached hereto as Exhibit C-1) certifying to the Trust,
      the
      Owner Trustee, the Securities Administrator, the Certificate Registrar and
      the
      Depositor that such transferee is a “qualified institutional buyer” under Rule
      144A under the Securities Act or (ii) an investment letter (in the form attached
      hereto as Exhibit C-2) certifying to the Trust, the Owner Trustee, the
      Securities Administrator, the Certificate Registrar and the Depositor that
      such
      transferee is an “accredited investor” (as defined in Rule 501(a)(1) (2), (3) or
      (7) of the Securities Act), and any expense associated with the preparation
      and
      execution of any such investment letter shall not be an expense of the Trust,
      the Owner Trustee, the Securities Administrator, the Certificate Registrar
      or
      the Depositor. A Holder of an Ownership Certificate desiring to effect the
      transfer of any Ownership Certificates shall, and does hereby agree to,
      indemnify the Trust, the Owner Trustee, the Securities Administrator, the
      Certificate Registrar and the Depositor against any and all liability that
      may
      result if the transfer is not so exempt or is not made in accordance with such
      federal and state laws.

    
      
         

      

      
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    The
      Initial Holder will be (i) the initial Certificateholder of a 100%
      Percentage Interest in the Ownership Certificates and (ii) the initial Note
      Owner of a 100% Percentage Interest in each of the Privately Offered Notes.
      The
      Initial Holder (or any other Certificateholder or Note Owner of the Privately
      Offered Notes) is hereby prohibited from transferring any beneficial ownership
      interest in the Ownership Certificate or any Privately Offered Notes, except
      as
      provided in this Section 3.03 and Sections 2.03 and 2.04 of the
      Indenture.

     

    No
      sale,
      transfer, pledge or other disposition of any beneficial ownership interest
      in
      the Ownership Certificates may be effectuated, and the Certificate Registrar
      shall refuse to register any such sale, transfer, pledge or other disposition
      except if (a) the transferee delivers to the Owner Trustee, the Indenture
      Trustee and the Certificate Registrar an Opinion of Counsel (which shall not
      be
      an expense of the Owner Trustee, the Indenture Trustee or the Certificate
      Registrar) that the sale, transfer or other disposition of the Ownership
      Certificates will not result in the Trust becoming subject to tax for federal
      income tax purposes or (b) such sale, transfer, pledge or other disposition
      is
      in conjunction with a simultaneous sale or transfer of an equal Percentage
      Interest in all classes of the Privately Offered Notes then Outstanding (as
      defined in the Indenture). In connection with any transfer of all or a portion
      of the Ownership Certificates pursuant to clause (b) of the immediately
      preceding sentence, the transferee shall certify to the Certificate Registrar,
      the Owner Trustee and the Indenture Trustee in an investment letter
      substantially in the form attached hereto as Exhibit C-1 or Exhibit C-2, as
      applicable, that such transfer has been made in accordance with clause (b)
      and
      shall agree to indemnify the Trust, the Owner Trustee, the Securities
      Administrator, the Certificate Registrar and the Depositor against any liability
      that may result if the transfer was made in contravention of clause
      (b).

     

    Except
      in
      the case of the initial transfer to the Initial Holder, no transfer of any
      Ownership Certificates shall be made unless the Certificate Registrar shall
      have
      received a representation letter (substantially in the form attached hereto
      as
      Exhibit C-1 or Exhibit C-2, as applicable) from the proposed transferee of
      such
      Ownership Certificates to the effect that such proposed transferee is not an
      employee benefit plan or other retirement arrangement subject to Section 406
      of
      ERISA, or Section 4975 of the Code, or any substantially similar applicable
      law,
      or a Person acting on behalf of or using the assets of any such plan, which
      representation letter shall not be an expense of the Trust, the Owner Trustee,
      the Securities Administrator, the Certificate Registrar or the Depositor.

    
      
         

      

      
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    The
      Trust
      shall cause each Ownership Certificate to contain a legend, substantially in
      the
      form of the applicable legends provided in Exhibit A hereto, stating that
      transfer of such Ownership Certificate is subject to certain restrictions and
      referring prospective purchasers of the Ownership Certificates to this Section
      3.03 with respect to such restrictions.

     

    Notwithstanding
      anything to the contrary herein, no transfer, pledge or encumbrance of any
      Ownership Certificates shall be made to any Person unless the Owner Trustee
      and
      the Certificate Registrar have received an Opinion
      of Counsel
      (which
      shall not be an expense of the Owner Trustee or the Certificate Registrar)
      to
      the effect that such transfer, pledge or encumbrance would not have any adverse
      effect of the status of the Notes (other than the Privately Offered Notes)
      as
      debt for federal income tax purposes and would not result in the Trust’s
      becoming taxable for federal income tax purposes.

     

    If
      any
      purported transferee shall become a Holder in violation of the provisions of
      this Section, then upon receipt of written notice to the Certificate Registrar
      and the Certificate Paying Agent that the registration of transfer of the
      Ownership Certificates to such Holder was not in fact permitted by this Section,
      then the transfer to that Holder shall be void
      ab
      initio
      and the
      last preceding Holder that was and that continues to be an eligible Holder
      in
      accordance with the provisions of this Section shall be restored to all rights
      as Holder thereof retroactive to the date of such registration of transfer
      of
      such Ownership Certificates. The Certificate Registrar shall be under no
      liability to any Person for any registration of transfer of any Ownership
      Certificates that is in fact not permitted by this Section, for making any
      payment due on such Ownership Certificate to the Holder thereof or for taking
      any other action with respect to such Holder under the provisions of this
      Agreement so long as the transfer was registered upon receipt of the Opinion
      of
      Counsel described in the immediately preceding paragraph.

     

    Section
      3.04. Lost,
      Stolen, Mutilated or Destroyed Ownership Certificates.
      If (a)
      any mutilated Ownership Certificates are surrendered to the Certificate
      Registrar, or (b) the Certificate Registrar receives evidence to its
      satisfaction that any Ownership Certificates have been destroyed, lost or
      stolen, and there is delivered to the Certificate Registrar proof of ownership
      satisfactory to the Certificate Registrar, together with such security or
      indemnity as required by the Certificate Registrar and the Owner Trustee to
      save
      each of them harmless, then in the absence of notice to the Certificate
      Registrar or the Owner Trustee that such Ownership Certificates have been
      acquired by a protected purchaser, the Owner Trustee shall execute on behalf
      of
      the Trust, and the Owner Trustee or the Certificate Registrar shall authenticate
      and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
      or stolen Ownership Certificates, new Ownership Certificates of like tenor
      and
      Percentage Interest. In connection with the issuance of any new Ownership
      Certificates under this Section 3.04, the Owner Trustee or the Certificate
      Registrar may require the payment of a sum sufficient to cover any expenses
      of
      the Owner Trustee or the Certificate Registrar (including any fees and expenses
      of counsel) and any tax or other governmental charge that may be imposed in
      connection therewith. Any duplicate Ownership Certificates issued pursuant
      to
      this Section 3.04 shall constitute conclusive evidence of ownership in the
      Trust, as if originally issued, whether or not the lost, stolen or destroyed
      Ownership Certificates shall be found at any time.

     

    Section
      3.05. Persons
      Deemed Certificateholders.
      Prior to
      due presentation of any Ownership Certificates for registration of transfer,
      the
      Owner Trustee, the Certificate Registrar or any Certificate Paying Agent may
      treat the Holder as the owner of such Ownership Certificates for the purpose
      of
      receiving distributions pursuant to Section 4.02 and for all other purposes
      whatsoever, and none of the Trust, the Owner Trustee, the Certificate Registrar
      or any Certificate Paying Agent shall be bound by any notice to the
      contrary.

    
      
         

      

      
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    Section
      3.06. Access
      to List of Certificateholders’ Names and Addresses.
      The
      Certificate Registrar shall furnish or cause to be furnished to the Depositor,
      the Certificate Paying Agent or the Owner Trustee, within 15 days after receipt
      by the Certificate Registrar of a written request therefor from the Depositor,
      the Certificate Paying Agent or the Owner Trustee, in such form as the
      Depositor, the Certificate Paying Agent or the Owner Trustee, as the case may
      be, may reasonably require, of the names and addresses of the Holders as of
      the
      most recent Record Date. A Holder, by receiving and holding any Ownership
      Certificates, shall be deemed to have agreed not to hold any of the Trust,
      the
      Depositor, the Certificate Registrar, the Certificate Paying Agent or the Owner
      Trustee accountable or liable for damages by reason of the disclosure of its
      name and address, regardless of the source from which such information was
      derived.

     

    Section
      3.07. Maintenance
      of Office or Agency.
      The
      Certificate Registrar on behalf of the Trust, shall maintain an office or
      offices or agency or agencies where any Ownership 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 Ownership Certificates
      and the Operative Agreements may be served. The Certificate Registrar shall
      give
      the Owner Trustee prompt notice, in writing, of any such notice or demand.
      The
      Certificate Registrar initially designates the Corporate Trust Office of the
      Securities Administrator located at [     ] as its
      office for such purposes. The Certificate Registrar shall give prompt written
      notice to the Depositor, the Owner Trustee, the Certificate Paying Agent and
      the
      Certificateholders of any change in the location of the Certificate Register
      or
      any such office or agency.

     

    Section
      3.08. Certificate Paying Agent. 

     

    (a) The
      Owner
      Trustee may appoint, and hereby appoints, the Securities Administrator as
      Certificate Paying Agent under this Agreement. The Certificate Paying Agent
      shall make distributions to the Holders from the Certificate Distribution
      Account pursuant to Section 4.02 hereof and Section 4.05 of the Sale and
      Servicing Agreement and, upon request, shall report the amounts of such
      distributions to the Owner Trustee. The Certificate Paying Agent shall have
      the
      revocable power to withdraw funds from the Certificate Distribution Account
      for
      the purpose of making the distributions referred to above. The Securities
      Administrator hereby accepts such appointment and further agrees that it will
      be
      bound by the provisions of this Agreement and the Sale and Servicing 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 Ownership
      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;

    
      
         

      

      
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    (ii) give
      the
      Owner Trustee notice of any default by the Trust of which a Responsible Officer
      of the Securities Administrator has actual knowledge in the making of any
      payment required to be made with respect to the Ownership
      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 Ownership
      Certificates if at any time it ceases to meet the standards under this
      Section 3.08 required to be met by the Certificate Paying Agent at the time
      of its appointment; 

     

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

     

    (vi) not
      institute bankruptcy proceedings against the Trust in connection with this
      Agreement.

     

    (b) In
      the
      event that the Securities Administrator shall no longer be the Certificate
      Paying Agent hereunder, the Owner Trustee, with the consent of the Depositor,
      shall appoint a successor to act as Certificate Paying Agent (which shall be
      a
      bank or trust company). The Owner Trustee shall cause such successor Certificate
      Paying Agent or any additional Certificate Paying Agent appointed by the Owner
      Trustee to execute and deliver to the Owner Trustee an instrument in which
      such
      successor Certificate Paying Agent or additional Certificate Paying Agent shall
      agree with the Owner Trustee that as Certificate Paying Agent, such successor
      Certificate Paying Agent or additional Certificate Paying Agent will hold all
      sums, if any, held by it for payment in trust for the benefit of the Holders
      entitled thereto until such sums shall be paid to such Holders. The Certificate
      Paying Agent shall return all unclaimed funds to the Owner Trustee, and upon
      removal of a Certificate Paying Agent, such Certificate Paying Agent shall
      also
      return all funds in its possession to the Owner Trustee. The provisions of
      Sections 5.03, 5.04, 6.01, 6.05, 6.07, 6.08, 7.01 and 7.02 shall apply to the
      Securities Administrator, as though it had been named in such sections, also
      in
      its roles as Certificate Paying Agent and as Certificate Registrar for so long
      as the Securities Administrator shall act as Certificate Paying Agent and as
      Certificate Registrar and, to the extent applicable, to any other Certificate
      Paying Agent or Certificate Registrar appointed hereunder. Any reference in
      this
      Agreement to the Certificate Paying Agent shall include any co-paying agent
      unless the context requires otherwise. Notwithstanding anything herein to the
      contrary, if the Securities Administrator resigns or is removed as Securities
      Administrator and such Securities Administrator is the same entity as the
      Certificate Registrar and the Certificate Paying Agent, the Certificate
      Registrar and the Certificate Paying Agent
      shall
      resign and the Owner Trustee, at the written direction of the Depositor, shall
      appoint a successor Certificate Registrar and Certificate Paying
      Agent.

    
      
         

      

      
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    Section
      3.09. Derivative
      Transactions.
      The
      Trust is authorized, at the direction and the expense of the Certificateholders,
      to enter into (or cause the Securities Administrator to enter into on its
      behalf) (and to pledge to the Indenture Trustee under the Indenture) such
      derivative transactions for the benefit of any Noteholders as may be deemed
      desirable by the Certificateholders, so long as (i) as evidenced by an Opinion
      of Counsel addressed to the Indenture Trustee and the Trust (at the expense
      of
      the Certificateholders), the inclusion of such derivative in the Trust Estate
      will not be inconsistent with the ERISA provisions contained herein or in the
      Operative Agreements, (ii) as evidenced by an Opinion of Counsel delivered
      to
      the Indenture Trustee and the Trust (at the expense of the Certificateholders),
      such derivative transaction will not adversely affect the tax aspects of the
      Notes and (iii) each Rating Agency shall have confirmed in writing that the
      inclusion of such derivative would not result in a downgrade of its then current
      rating of any Class of Notes. Notwithstanding the foregoing, such Opinions
      of
      Counsel shall not be required with respect to the Yield Maintenance Agreements,
      any successor Yield Maintenance Agreements, the Auction Swap Agreement or any
      successor Auction Swap Agreement.

     

    ARTICLE
      IV

    APPLICATION
      OF TRUST FUNDS; CERTAIN DUTIES

     

    Section
      4.01. Certificate
      Distribution Account.
      (a) The
      Securities Administrator shall establish and maintain on behalf of the Trust
      and
      the Certificateholder, the Certificate Distribution Account.

     

    (a) The
      Certificate Distribution Account shall be an Eligible Account. If the
      Certificate Distribution Account ceases to be an Eligible Account, the
      Securities Administrator shall establish a new Certificate Distribution Account
      that is an Eligible Account within 10 days and transfer all funds and investment
      property on deposit in such existing Certificate Distribution Account into
      such
      new Certificate Distribution Account. The funds in the Certificate Distribution
      Account shall remain uninvested.

     

    (b) The
      Certificate Paying Agent shall withdraw funds from the Certificate Distribution
      Account for payments to the Certificateholders in the manner specified in this
      Agreement. In addition, the Securities Administrator may prior to making the
      payment required pursuant to Section 4.02 from time to time make withdrawals
      from the Certificate Distribution Account for the following
      purposes:

     

    (i) to
      withdraw funds deposited in error in the Certificate Distribution Account;
      and

     

    (ii) to
      clear
      and terminate the Certificate Distribution Account upon the termination of
      the
      Trust.

     

    (c) All
      of
      the right, title and interest of the Trust in all funds on deposit from time
      to
      time in the Certificate Distribution Account and in all proceeds thereof shall
      be held for the benefit of the Holders and such other persons entitled to
      payments therefrom. Except as otherwise expressly provided herein, the
      Certificate Distribution Account shall be under the sole dominion and control
      of
      the Securities Administrator for the benefit of the
      Certificateholders.

    
      
         

      

      
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    Section
      4.02. Application of Trust Funds. 

     

    (a) The
      Owner
      Trustee hereby directs the Certificate Paying Agent to distribute on each
      Payment Date to the Holders amounts on deposit in the Certificate Distribution
      Account and the Certificate Paying Agent hereby acknowledges such direction.
      All
      distributions of amounts due on or in respect of the Ownership Certificates
      shall be made to the Certificateholders, pro
      rata,
      based
      upon their Percentage Interests in the Ownership Certificates.

     

    (b) All
      payments to be made under this Agreement by the Certificate Paying Agent shall
      be made only from the income and proceeds of the Trust Estate and only to the
      extent that the Certificate Paying Agent has received such income or proceeds.
      The Certificate Paying Agent shall not be liable to any Holder, the Indenture
      Trustee or the Owner Trustee for any amounts payable pursuant to this Section
      4.02 except to the extent that non-payment is due to the Certificate Paying
      Agent’s acts or omissions amounting to willful misconduct or gross
      negligence.

     

    (c) In
      the
      event that any withholding tax is imposed on the distributions (or allocations
      of income) to the Certificateholders, such tax shall reduce the amount otherwise
      distributable to the Certificateholders in accordance with this Section 4.02.
      The Certificate Paying Agent, if instructed by the Securities Administrator,
      is
      hereby authorized and directed to retain or cause to be retained from amounts
      otherwise distributable to the Certificateholders sufficient funds (as
      determined by the Securities Administrator) 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 own discretion
      withhold such amounts in accordance with this paragraph (c). In the event that
      the Certificateholder wishes to apply for a refund of any such withholding
      tax,
      the Owner Trustee shall reasonably cooperate with such Certificateholder in
      making such a claim so long as such Certificateholder agrees to reimburse the
      Owner Trustee for any out-of-pocket expenses incurred.

     

    (d) Distributions
      to the Holders shall be subordinated to the creditors of the Trust, including,
      without limitation, the Noteholders and the Owner Trustee.

    
      
         

      

      
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    Section
      4.03. Method
      of Payment.
      Subject
      to Section 8.01(c), distributions required to be made to the Holders on any
      Payment Date as provided in Section 4.02 shall be made to each Person who was
      a
      Holder on the preceding Record Date either by wire transfer, in immediately
      available funds, to the account of such Holder at a bank or other entity having
      appropriate facilities therefor, if such Holder 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 Holder
      at
      the address of such Holder appearing in the Certificate Register.

     

    Section
      4.04. Tax
      Returns.
      The
      Securities Administrator shall (a) maintain (or cause to be maintained) the
      books of the Trust on a calendar year basis using the accrual method of
      accounting, (b) deliver (or cause to be delivered) to each Holder as may be
      required by the Code and applicable Treasury Regulations, such information
      as
      may be required to enable each Holder to prepare its federal and state income
      tax returns, (c) prepare and file or cause to be prepared and filed such tax
      returns relating to the Trust as may be required by the Code and applicable
      Treasury Regulations (making such elections as may from time to time be required
      or appropriate under any applicable state or federal statutes, rules or
      regulations) and (d) collect or cause to be collected any withholding tax
      as described in and in accordance with Section 4.02 of this Agreement with
      respect to income or distributions to Holders and prepare or cause to be
      prepared the appropriate forms relating thereto; provided,
      however,
      that
      the Securities Administrator shall not be required to compute the Trust’s gross
      income and provided,
      further,
      that
      the Securities Administrator shall not be required to prepare and file
      partnership or corporation income tax returns on behalf of the Trust (or any
      additional tax work caused by Section 3.09) unless it receives an Opinion of
      Counsel (which shall not be at the Securities Administrator’s expense, but shall
      be an expense of the Trust or other party requesting such opinion) as to the
      necessity of such filings, and reimbursement for related reasonable expenses
      from the Trust not to exceed $10,000 per year. The Owner Trustee, where required
      by applicable tax law to do so, shall sign all tax and information returns
      prepared or caused to be prepared by the Securities Administrator pursuant
      to
      this Section 4.04 at the written request of the Securities Administrator, and
      in
      doing so shall rely entirely upon, and shall have no liability for information
      or calculations provided by, the Securities Administrator, or any other Person.
      In no event shall the Securities Administrator be liable for any errors or
      omissions in preparing or filing the tax returns or errors or omissions in
      maintaining the books of the Trust if such errors or omissions were due to
      errors or omissions in the information contained in the reports delivered by
      the
      Servicers to the Master Servicer pursuant to the underlying Servicing
      Agreements. Anything to the contrary notwithstanding, in no event shall the
      Securities Administrator be liable for any errors or omissions in the preparing
      or filing of any tax returns or in maintaining the books of the Trust unless
      such error or omissions are due to the Securities Administrator’s negligence or
      willful misconduct in so preparing, filing or maintaining.

     

    Section
      4.05. Segregation
      of Moneys; No Interest.
      Moneys
      received by or on behalf of the Owner Trustee hereunder and deposited into
      the
      Certificate Distribution Account will be segregated except to the extent
      required otherwise by law or the provisions of the Sale and Servicing Agreement.
      Amounts on deposit in the Certificate Distribution Account shall not be
      invested. The Securities Administrator shall not be liable for payment of any
      interest in respect of such moneys.

    
      
         

      

      
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    ARTICLE
      V

    AUTHORITY
      AND DUTIES OF THE OWNER TRUSTEE;

    ACTION
      BY
      CERTIFICATEHOLDERS

     

    Section
      5.01. General
      Authority.
      The
      Owner Trustee is authorized and directed to execute and deliver the Notes,
      the
      Ownership Certificates, and the other Operative Agreements, including each
      Yield
      Maintenance Agreement, to which the Trust is to be a party and each certificate
      or other document attached as an exhibit to or contemplated by the Operative
      Agreements to which the Trust is to be a party and any amendment or other
      agreement or instrument described herein, as evidenced conclusively by the
      Owner
      Trustee’s execution thereof, and, on behalf of the Trust, to direct the
      Securities Administrator to authenticate the Notes. 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 Operative
      Agreements.

     

    Section
      5.02. General Duties. 

     

    (a) 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 Agreement and the other
      Operative Agreements to which the Trust is a party and to administer the Trust
      in the interest of the Certificateholders, subject to the Operative Agreements
      and in accordance with the provisions of this Agreement. Notwithstanding the
      foregoing, the Owner Trustee shall be deemed to have discharged its duties
      and
      responsibilities hereunder and under the Operative Agreements to the extent
      the
      Securities Administrator or the Depositor has agreed in the Administration
      Agreement, the Sale and Servicing Agreement or this Agreement, respectively,
      to
      perform any act or to discharge any duty of the Owner Trustee or the Trust
      hereunder or under any Operative Agreement, and the Owner Trustee shall not
      be
      held liable for the default or failure of the Securities Administrator or the
      Depositor to carry out its obligations under the Administration Agreement,
      this
      Agreement, the Sale and Servicing Agreement, or any other Operative Agreement,
      respectively; and

     

    (b) [Reserved].

     

    (c) Notwithstanding
      any provision in the Operative Agreements to the contrary, the Owner Trustee
      shall have no obligation to perform any duty, obligation, covenant, or agreement
      of the Trust except as expressly set forth in this Section 5.02(c)(i) through
      (vi). The Owner Trustee shall take the following administrative actions on
      behalf of the Trust:

     

    (i) the
      delivery of the Opinions of Counsel as to Collateral (Section 3.06 of the
      Indenture);

     

    (ii) provide
      notice to the Depositor, the Securities Administrator and the Indenture Trustee
      upon Actual Knowledge by the Owner Trustee of a breach of the Issuer’s negative
      covenants set forth in Section 3.08 of the Indenture;

     

    (iii) upon
      request of the Indenture Trustee, causing the preparation of an Officer’s
      Certificate (and executing the same on behalf of the Issuer) and the obtaining
      of the Opinion of Counsel with respect to any request by the Issuer to the
      Indenture Trustee to take any action under the Indenture (Sections 4.01 and
      11.01 of the Indenture);

    
      
         

      

      
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    (iv) the
      compliance with any directive of the Indenture Trustee with respect to the
      sale
      of the Collateral in a commercially reasonable manner if an Event of Default
      shall have occurred and be continuing under the Indenture (Section 5.04 of
      the
      Indenture);

     

    (v) upon
      request of the Securities Administrator, causing the preparation of an Issuer
      Request and Officer’s Certificate (and executing the same on behalf of the
      Issuer) and the obtaining of an Opinion of Counsel, if necessary, for the
      release of the Collateral, as defined in the Indenture (Section 8.04 of the
      Indenture); and 

     

    (vi) causing
      the preparation of Issuer Orders and Officer’s Certificates (and executing the
      same on behalf of the Issuer) and the obtaining of Opinions of Counsel with
      respect to the execution of supplemental indentures and, if necessary, the
      mailing to the Noteholders of notices with respect to their consent to such
      supplemental indentures (Sections 9.01, 9.02 and 9.03 of the
      Indenture);

     

    provided,
      however, that in performing such administrative actions the Owner Trustee shall
      be subject to the rights, privileges and indemnities otherwise available to
      it
      under this Agreement and the other Operative Agreements. 

     

    Section
      5.03. Action Upon Instruction.

     

    (a) Subject
      to this Article V and, in particular, Section 5.07 and in accordance with the
      terms of the Operative Agreements, a majority in interest of the Holders may
      by
      written instruction direct the Owner Trustee in the management of the Trust,
      but
      only to the extent consistent with the limited purpose of the Trust. Such
      direction may be exercised at any time by written instruction of the Holders
      pursuant to this Article V.

     

    (b) Notwithstanding
      the foregoing, the Owner Trustee shall not be required to take any action
      hereunder or under any Operative Agreement if the Owner Trustee shall have
      reasonably determined, or shall have been advised by counsel, that such action
      is likely to result in liability on the part of the Owner Trustee or is contrary
      to the terms hereof or of any Operative Agreement 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 Agreement or under any other
      Operative Agreement, or in the event that the Owner Trustee is unsure as to
      the
      application of any provision of this Agreement or any other Operative Agreement
      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
      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 may promptly give
      notice (in such form as shall be appropriate under the circumstances) to the
      Holders 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 a majority of the Percentage Interest of the Holders of the
      Ownership Certificates, except as provided in Section 5.06, 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 reasonably shorter period of time as may be specified
      in
      such notice or as reasonably 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 Agreement or any other Operative Agreement, as it shall
      deem to be in the best interests of the Holders, and the Owner Trustee shall
      have no liability to any Person for such action or inaction.

    
      
         

      

      
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    Section
      5.04. 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
      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
      or the Trust 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 Agreement, and (ii) in accordance with any document or instruction
      delivered to the Owner Trustee pursuant to this Agreement; and no implied duties
      or obligations shall be read into this Agreement or any Operative Agreement
      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 the Trust or to prepare or file any Securities and Exchange
      Commission filing for the Trust (including but not limited to Section 13 and
      15(d) of the Securities Exchange Act of 1934 and as may be required by the
      Sarbanes Oxley Act of 2002) or to record this Agreement or any Operative
      Agreement or to prepare or file any tax return for the Trust. 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 Trust
      Estate that result from actions by, or claims against the Bank that are not
      related to the ownership or the administration of the Trust Estate.

     

    Section
      5.05. 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 Holders shall not direct the
      Owner Trustee to take action that would violate the provisions of this Section
      5.05.

     

    (b) The
      Owner
      Trustee shall not, except as provided herein and as provided in the Granting
      Clause of the Indenture, convey or transfer any of the Trust’s properties or
      assets, including those included in the Trust Estate, to any person unless
      (x) 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 Holder and (y) such conveyance or transfer shall not violate the provisions
      of the Indenture or the Sale and Servicing Agreement.

     

    Section
      5.06. Prior
      Notice to Holders with Respect to Certain Matters;
      Separateness Covenants.
      With
      respect to the following matters, the Owner Trustee shall not take action unless
      at least 30 days before the taking of such action (which time may be waived
      by
      Holders holding 100% of the Percentage Interests in the Ownership Certificates),
      the Owner Trustee shall have notified the Holders in writing of the proposed
      action and the Holders holding in aggregate a 100% Percentage Interest in the
      Ownership Certificates shall have notified the Owner Trustee in writing prior
      to
      the 30th day after such notice is given that such Holders have consented to
      such
      action or provided alternative direction:

    
      
         

      

      
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    (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 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
      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 Delaware Trust
      Statute);

     

    (c) The
      amendment of the Indenture by a supplemental indenture or of this Agreement
      or
      any other Operative Agreement in circumstances where the consent of any
      Noteholder is required;

     

    (d) The
      amendment or other change of the Indenture by a supplemental indenture or of
      this Agreement, any Yield Maintenance Agreement, the Auction Swap Agreement
      or
      any other Operative Agreement in circumstances where the consent of any
      Noteholder is not required and such amendment materially adversely affects
      the
      interests of the Holders;

     

    (e) The
      amendment of the Sale and Servicing Agreement in circumstances where the consent
      of any Securityholder is required;

     

    (f) 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 and adversely affect the interests
      of
      the Holders;

     

    (g) The
      appointment pursuant to the Indenture of a successor Note Registrar, Paying
      Agent or Indenture Trustee or pursuant to this Agreement of a successor
      Certificate Registrar or Certificate Paying Agent or the consent to the
      assignment by the Note Registrar, Paying Agent, Indenture Trustee, Certificate
      Registrar or Certificate Paying Agent of its obligations under the Indenture
      or
      this Agreement, as applicable;

     

    (h) The
      consent to the calling or waiver of any default of any Operative
      Agreement;

     

    (i) The
      consent to the assignment by the Indenture Trustee of its obligations under
      any
      Operative Agreement;

     

    (j) Except
      as
      provided in Article VIII hereof, the dissolution, termination or liquidation
      of
      the Trust in whole or in part;

     

    (k) The
      merger, conversion or consolidation of the Trust with or into any other entity,
      or conveyance or transfer of all or substantially all of the Trust’s assets to
      any other entity;

     

    (l) The
      incurrence, assumption or guaranty by the Trust of any indebtedness other than
      as set forth in this Agreement or the Operative Agreements;

    
      
         

      

      
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    (m) The
      taking of any action which conflicts with any Operative Agreement or would
      make
      it impossible to carry on the ordinary business of the Trust or change the
      Trust’s purpose and powers set forth in this Agreement;

     

    (n) The
      confession of a judgment against the Trust;

     

    (o) The
      possession of the Trust assets, or assignment of the Trust’s right to property,
      for other than a Trust purpose; or

     

    (p) The
      lending of funds by the Trust to any entity.

     

    The
      Owner
      Trustee shall not be obligated to procure any required written consent of the
      Noteholders to any such action and to the extent such consent is required and
      is
      not provided to the Owner Trustee, the Owner Trustee shall be under no
      obligation to take, or refrain from taking, any such action with respect to
      such
      matters.

     

    In
      addition, the Trust shall not commingle its assets with those of any other
      entity. The Trust shall maintain its financial and accounting books and records
      separate from those of any other entity. Except as expressly set forth herein,
      the Trust shall pay its indebtedness, operating expenses and liabilities from
      its own funds, and the Trust shall neither incur any indebtedness nor pay the
      indebtedness, operating expenses and liabilities of any other entity nor
      guarantee nor become obligated for the debts of any other person. Except as
      expressly set forth herein, the Trust shall not engage in any dissolution,
      liquidation, consolidation, merger or sale of assets. The Trust shall maintain
      appropriate minutes or other records of all appropriate actions and shall
      maintain its office and bank accounts separate from the offices and bank
      accounts of the Depositor or any of its Affiliates. The Trust shall not engage
      in any business activity in which it is not currently engaged other than as
      contemplated by the Operative Agreements and related documentation. The Trust
      shall not form, or cause to be formed, any subsidiaries and shall not own or
      acquire any asset other than as contemplated by the Operative Agreements and
      related documentation. Other than as contemplated by the Operative Agreements
      and related documentation, the Trust shall not follow the directions or
      instructions of the Depositor. The Trust shall hold itself out as a separate
      entity from the Depositor, the Certificateholders, and any of their Affiliates,
      conduct its own business in its own name and use stationery, invoices, checks
      or
      other business forms under its own name and not that of any Certificateholder,
      Affiliate, or other person. The Trust shall observe all formalities required
      under the Delaware Trust Statute. The Trust shall not hold out its credit as
      being available to satisfy the obligations of any other person or entity. The
      Trust shall not acquire the obligations or securities of its Affiliates or
      the
      Seller. Other than as contemplated by the Operative Agreements and related
      documentation, the Trust shall not pledge its assets for the benefit of any
      other person or entity. The Trust shall correct any known misunderstanding
      regarding its separate identity. The Trust shall not identify itself as a
      division of any other person or entity. The Trust shall maintain adequate
      capital in light of its contemplated business operations. The Trust shall
      conduct business with its Affiliates on an arm’s-length basis.

     

    For
      accounting purposes, the Trust shall be treated as an entity separate and
      distinct from the Holders. The pricing and other material terms of all
      transactions and agreements to which the Trust is a party shall be intrinsically
      fair to all parties thereto. This Agreement is and shall be the only agreement
      among the parties thereto with respect to the creation, operation and
      termination of the Trust.

    
      
         

      

      
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    Section
      5.07. Action
      by Certificateholders with Respect to Certain Matters.
      (a) The
      Owner
      Trustee shall not have the power, except upon the written direction of Holders
      holding in the aggregate a 100% Percentage Interest in the Ownership
      Certificates, to (i) remove the Securities Administrator under the
      Administration Agreement pursuant to Section 9 thereof, (ii) appoint a successor
      Securities Administrator pursuant to Section 9 of the Administration Agreement,
      (iii) remove or replace the Indenture Trustee, (iv) institute a bankruptcy
      against the Trust, or (v) except as expressly provided in the Indenture, to
      sell
      the 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 and authorized by Holders holding in the aggregate a 100%
      Percentage Interest in the Ownership Certificates. So long as the Indenture
      remains in effect, to the extent permitted by applicable law, the Holders shall
      have no power to commence, and shall not commence, any bankruptcy with respect
      to the Trust or direct the Owner Trustee to commence any bankruptcy with respect
      to the Trust.

     

    (b) Upon
      the
      written request of any Certificateholder (a “Proposer”), the Owner Trustee shall
      distribute promptly to all Certificateholders any request for action or consent
      of Certificateholders submitted by such Proposer, with a copy to the Securities
      Administrator. The Owner Trustee shall provide a reasonable method for
      collecting responses to such request and shall tabulate and report the results
      thereof to the Certificateholders and the Securities Administrator. The Owner
      Trustee shall have no responsibility or duty to determine if any such proposed
      action or consent is permitted under the terms of this Agreement or applicable
      law. The Proposer shall pay all reasonable expenses incurred by the Owner
      Trustee under this Section 5.07.

     

    Section
      5.08. Action
      by the Holders with Respect to Bankruptcy.
      The
      Owner Trustee shall not have the power to commence or consent to a bankruptcy
      relating to the Trust without the unanimous approval of the Holders and the
      delivery to the Owner Trustee by each such Holder of a certificate certifying
      that such Holder reasonably believes that the Trust is insolvent. This paragraph
      shall survive for one year and one day following termination of this Agreement.
      So long as the Indenture remains in effect, the Holders shall not have the
      power
      to institute, and shall not institute, any bankruptcy with respect to the Trust
      or direct the Owner Trustee to take such action.

     

    Section
      5.09. Restrictions
      on the Holders’ Power.
      The
      Holders 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 Agreement or any of the Operative
      Agreements or would be contrary to Section 2.03 nor shall the Owner Trustee
      be
      obligated to follow any such direction, if given. The Holders shall not
      guarantee any obligations of the Trust.

     

    Section
      5.10. Majority
      Control.
      Except
      as expressly provided herein, any action that may be taken by the
      Certificateholders under this Agreement may be taken by the Holders of Ownership
      Certificates evidencing not less than a majority of the outstanding Percentage
      Interests of the Ownership Certificates. Except as expressly provided herein,
      any written notice of the Certificateholders delivered pursuant to this
      Agreement shall be effective if signed by Holders of Ownership Certificates
      evidencing not less than a majority of the outstanding Percentage Interests
      of
      the Ownership Certificates at the time of the delivery of such
      notice.

    
      
         

      

      
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    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 the same
      but only upon the terms of this Agreement. The Owner Trustee also agrees to
      disburse all moneys actually received by it constituting part of the Trust
      Estate upon the terms of this Agreement. The Owner Trustee shall not be
      answerable or accountable hereunder or under any other Operative Agreements
      under any circumstances, except (i) for its own willful misconduct, gross
      negligence or bad faith, (ii) in the case of the inaccuracy of any
      representation or warranty contained in Section 6.04, (iii) for liabilities
      arising from the failure by the Owner Trustee to perform obligations expressly
      undertaken by it in the last sentence of Section 5.04, or (iv) for taxes, fees
      or other charges based on or measured by any fees, commissions or compensation
      received by the Bank in connection with any of the transactions contemplated
      by
      this Agreement, any other Operative Agreements or the Notes. In particular,
      but
      not by way of limitation:

     

    (a) The
      Owner
      Trustee shall not be liable for any error of judgment made in good faith by
      a
      Responsible Officer of the Owner Trustee;

     

    (b) The
      Owner
      Trustee shall not be liable with respect to any action taken or omitted to
      be
      taken by the Owner Trustee in accordance with the instructions of the
      Holders;

     

    (c) No
      provision of this Agreement shall require the Owner Trustee to expend or risk
      funds or otherwise incur any financial liability in the performance of any
      of
      the Owner Trustee’s rights or powers hereunder or under any other Operative
      Agreements if the Bank 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;

     

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

     

    (e) The
      Owner
      Trustee shall not be liable with respect to any action taken or omitted to
      be
      taken by the Depositor, the Securities Administrator, the Master Servicer,
      the
      Indenture Trustee, any Officer or the Certificate Paying Agent or Certificate
      Registrar under this Agreement or any other Operative Agreement or otherwise
      and
      the Owner Trustee shall not be obligated to perform or monitor the performance
      of any obligations or duties under this Agreement or the other Operative
      Agreements which are to be performed by the Certificate Paying Agent or
      Certificate Registrar under this Agreement, the Securities Administrator or
      the
      Depositor under the Administration Agreement, the Indenture Trustee under the
      Indenture or by any other Person under any of the Operative Agreements;
      and

     

    (f) The
      Owner
      Trustee shall not be responsible for or in respect of the recitals herein,
      the
      validity or sufficiency of this Agreement or for the due execution hereof by
      the
      Depositor or for the form, character, genuineness, sufficiency, value or
      validity of any of the Trust Estate or for or in respect of the validity or
      sufficiency of the Operative Agreements, other than the certificate of
      authentication on the Ownership Certificates, and the Owner Trustee shall in
      no
      event assume or incur any liability, duty or obligation to any Noteholder,
      the
      Depositor or to the Holders, other than as expressly provided for
      herein.

    
      
         

      

      
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    Section
      6.02. Furnishing
      of Documents.
      The
      Owner Trustee will furnish to the Securities Administrator (for distribution
      to
      the Holders), promptly upon receipt of a written request therefor, duplicates
      or
      copies of all reports, notices, requests, demands, certificates, financial
      statements and any other instruments furnished to the Owner Trustee hereunder
      or
      under the Operative Agreements unless the Securities Administrator shall have
      already received the same.

     

    Section
      6.03. Books
      and Records.
      The
      Owner Trustee shall keep or cause to be kept proper books of record and account
      of all the transactions under this Agreement, including a record of the name
      and
      address of the Holders. The Owner Trustee shall be deemed to have complied
      with
      this Section 6.03 by the appointment of the Securities Administrator and the
      Certificate Paying Agent to perform the duties hereunder.

     

    Section
      6.04. Representations and Warranties. 

     

    (a) The
      Bank
      represents and warrants to the Depositor and the Holders, as
      follows:

     

    (i) the
      Bank
      is a banking corporation duly organized, validly existing and in good standing
      under the laws of the State of [     ] and has the
      power and authority to execute, deliver and perform its obligations under this
      Agreement and (assuming due authorization, execution and delivery of this
      Agreement by the Depositor and the Securities Administrator), has the power
      and
      authority as Owner Trustee to execute and deliver the Operative Agreements
      and
      to perform its obligations thereunder and, assuming the due authorization,
      execution and delivery hereof by the other parties hereto, this Agreement
      constitutes a legal, valid and binding obligation of the Bank or the Owner
      Trustee, as the case may be, enforceable against the Bank or the Owner Trustee,
      as the case may be, in accordance with its terms, except that (a) the
      enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally and
      (b) the remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the discretion
      of
      the court before which any proceeding therefor may be brought;

     

    (ii) the
      Bank
      has no reason to believe that anyone authorized to act on its behalf has offered
      any interest in and to the Trust for sale to, or solicited any offer to acquire
      any of the same from, anyone;

     

    (iii) the
      execution, delivery and performance by the Bank, either in its individual
      capacity or as Owner Trustee, as the case may be, of the Operative Agreements
      will not result in any violation of, or be in any conflict with, or constitute
      a
      default under any of the provisions of any indenture, mortgage, chattel
      mortgage, deed of trust, conditional sales contract, lease, note or bond
      purchase agreement, license, judgment, order or other agreement to which the
      Bank is a party or by which it or any of its properties is bound;

     

    
      
         

      

      
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    (iv) the
      execution and delivery by the Bank of this Agreement, and the performance of
      its
      duties as Owner Trustee hereunder, do not require the consent or approval of,
      the giving of notice to, or the registration with, or the taking of any other
      action with respect to, any governmental authority or agency of the State of
      Delaware (except as may be required by the Delaware securities laws or the
      Delaware Trust Statute or as may be required to enforce the lien of the
      Indenture); and

     

    (v) there
      are
      no pending or, to the best of its knowledge, threatened actions or proceedings
      against the Bank before any court, administrative agency or tribunal which,
      if
      determined adversely to it, would materially and adversely affect its ability,
      either in its individual capacity or as Owner Trustee, as the case may be,
      to
      perform its obligations under this Agreement or the Operative
      Agreements.

     

    (b) [     ],
      as Securities Administrator, hereby represents and warrants to the Depositor
      and
      the Holders, that:

     

    (i) it
      is a
      national banking association duly organized and validly existing in good
      standing under the laws of the United States, and has the power and authority
      to
      execute, deliver and perform its obligations under this Agreement and, assuming
      the due authorization, execution and delivery hereof by the other parties
      hereto, this Agreement constitutes a legal, valid and binding obligation of
      the
      Securities Administrator, enforceable against the Securities Administrator
      in
      accordance with its terms, except that (a) the enforceability thereof may be
      limited by bankruptcy, insolvency, moratorium, receivership and other similar
      laws relating to creditors’ rights generally and (b) the remedy of specific
      performance and injunctive and other forms of equitable relief may be subject
      to
      equitable defenses and to the discretion of the court before which any
      proceeding therefor may be brought;

     

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

     

    (iii) neither
      the execution nor the delivery by it of this 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, governmental rule or
      regulation governing the banking or trust powers of the Securities Administrator
      or any judgment or order binding on it, or constitute any default under its
      charter documents or by-laws or any indenture, mortgage, contract, agreement
      or
      instrument to which it is a party or by which any of its properties may be
      bound.

     

    Section
      6.05. Reliance; Advice of Counsel. 

     

    (a) Except
      as
      provided in Section 6.01, 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 or partnership entity 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 manner
      of ascertainment 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 the general partner, in the case of a
      partnership) and by the treasurer or any assistant treasurer or the secretary
      or
      any assistant secretary 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.

    
      
         

      

      
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    (b) In
      its
      exercise or administration of the trusts and powers hereunder and in the
      performance of its duties and obligations under this Agreement, including its
      obligations under Section 5.02(b), or the other Operative Agreements, the Owner
      Trustee may employ agents and attorneys and enter into agreements (including
      the
      Administration Agreement) with any of them, and the Owner Trustee shall not
      be
      answerable for the default or misconduct of any such agents or attorneys if
      such
      agents or attorneys shall have been selected by the Owner Trustee with
      reasonable care. If, and to the extent, the Holders shall have failed to
      reimburse the Owner Trustee for all reasonable expenses and indemnities incurred
      pursuant to this Section 6.05(b), as provided in Sections 7.01 and 7.02, the
      Owner Trustee may seek reimbursement therefor from the Trust
      Estate.

     

    (c) In
      the
      administration of the trusts and performance of its duties hereunder, the Owner
      Trustee may consult with counsel, accountants and other skilled Persons to
      be
      selected and employed by it, and the Owner Trustee shall not be liable for
      anything done, suffered or omitted in good faith by it in accordance with the
      reasonable advice or opinion of any such counsel, accountants or other skilled
      Persons. If, and to the extent, the Holders shall have failed to reimburse
      the
      Owner Trustee for all reasonable expenses and indemnities incurred pursuant
      to
      this Section 6.05(c), as provided in Sections 7.01 and 7.02, the Owner Trustee
      may seek reimbursement therefor from the Trust Estate.

     

    Section
      6.06. Not
      Acting in Individual Capacity.
      Except
      as provided in this Article VI, in accepting the trusts hereby created the
      Owner
      Trustee acts solely as 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 the Operative Agreements shall look only to the
      Trust Estate for payment or satisfaction thereof.

     

    Section
      6.07. Owner
      Trustee Not Liable for Ownership Certificates or Collateral.
      The
      recitals contained herein and in the Ownership Certificates (other than the
      signature and authentication of the Owner Trustee on the Ownership Certificates)
      shall not be taken as the statements of the Owner Trustee, and the Owner Trustee
      assumes no responsibility for the correctness thereof. The Owner Trustee makes
      no representations as to the validity or sufficiency of this Agreement, of
      any
      Operative Agreement or of the Ownership Certificates (other than the signature
      and authentication of the Owner Trustee on the Ownership Certificates) or the
      Notes, or of any Collateral or related documents. The Owner Trustee shall at
      no
      time have any responsibility or liability for or with respect to the legality,
      validity and enforceability of any Collateral, or the perfection and priority
      of
      any security interest created by any Collateral or the maintenance of any such
      perfection and priority, or for or with respect to the sufficiency of the Trust
      Estate or its ability to generate the payments to be distributed to
      Certificateholders under this Agreement or the Noteholders under the Indenture,
      including, without limitation: the existence, condition and ownership of any
      Collateral; the existence and enforceability of any insurance thereon; the
      existence and contents of any Collateral on any computer or other record
      thereof; the validity of the assignment of any Collateral to the Trust or of
      any
      intervening assignment; the completeness of any Collateral; the performance
      or
      enforcement of any Collateral; the compliance by the Depositor with any warranty
      or representation made under any Operative Agreements or in any related document
      or the accuracy of any such warranty or representation or any action of the
      Securities Administrator or the Indenture Trustee taken in the name of the
      Owner
      Trustee.

    
      
         

      

      
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    Section
      6.08. Owner Trustee
      May Own Ownership Certificates and Notes.
      The
      Owner Trustee in its individual capacity may become the Holder or the owner
      or
      pledgee of Notes and may deal with the Depositor, the Securities Administrator
      and the Indenture Trustee in banking transactions with the same rights as it
      would have if it were not Owner Trustee.

     

    Section
      6.09. Licenses.
      The
      Depositor shall exercise its best efforts to cause the Trust to obtain and
      maintain the effectiveness of any licenses required in connection with this
      Agreement and the other Operative Agreements and the transactions contemplated
      hereby and thereby until such time as the Trust shall terminate in accordance
      with the terms hereof. It shall be the duty of the Owner Trustee to cooperate
      with the Depositor with respect to such matters. Such obligation of the
      Depositor shall not be duplicative of any obligations of the Securities
      Administrator or the Indenture Trustee under the Administration Agreement or
      the
      Indenture.

     

    Section
      6.10. Doing Business
      in Other Jurisdictions.
      Notwithstanding anything contained herein to the contrary, neither the Bank
      nor
      the Owner Trustee shall be required to take any action in any jurisdiction
      other
      than in the State of Delaware if the taking of such action will (i) require
      the
      consent or approval or authorization or order of or the giving of notice to,
      or
      the registration with or the taking of any other action in respect of, any
      state
      or other governmental authority or agency of any jurisdiction other than the
      State of Delaware; (ii) result in any fee, tax or other governmental charge
      under the laws of any jurisdiction or any political subdivisions thereof in
      existence on the date hereof other than the State of Delaware becoming payable
      by the Bank or the Owner Trustee; or (iii) subject the Bank or the Owner Trustee
      to personal jurisdiction in any jurisdiction other than the State of Delaware
      for causes of action arising from acts unrelated to the consummation of the
      transactions by the Bank or the Owner Trustee, as the case may be, contemplated
      hereby. The Owner Trustee shall be entitled to obtain advice of counsel (which
      advice shall be an expense of the Trust) to determine whether any action
      required to be taken pursuant to this Agreement results in the consequences
      described in clauses (i), (ii) or (iii) of the preceding sentence. In the event
      that such counsel advises the Owner Trustee that such action will result in
      such
      consequences, the Owner Trustee will appoint a co-trustee pursuant to Section
      9.05 hereof to proceed with such action.

     

    Section
      6.11. Reporting
      Requirements of the Commission.The
      Depositor, the Securities Administrator and the Owner Trustee acknowledge and
      agree that the purpose of this Section 6.11 is to facilitate compliance by
      the
      Depositor with the provisions of Regulation AB. Neither the Depositor nor the
      Securities Administrator shall exercise its right to request delivery of
      information or other performance under these provisions other than in good
      faith, or for purposes other than the Depositor’s compliance with Regulation AB.
      The Owner Trustee agrees to cooperate in good faith with any reasonable request
      made by the Depositor or the Securities Administrator for information regarding
      the Owner Trustee which is required in order to enable the Depositor to comply
      with the provisions of Regulation AB, including, without limitation, Items
      1109(a), 1109(b), 1117 and 1119(a) and (b) of Regulation AB as it relates to
      the
      Owner Trustee or to the Owner Trustee’s obligations under this Trust
      Agreement.

    
      
         

      

      
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    (b) For
      so
      long as the Depositor is required to file reports with respect to the Notes
      under Regulation AB, the Owner Trustee shall, as promptly as practicable, notify
      the Depositor and the Securities Administrator, in writing, of: (i) the
      commencement of or, if applicable, the termination of, any and all legal
      proceedings pending against the Owner Trustee or any and all proceedings of
      which any property of the Owner Trustee is the subject, that is material to
      Securityholders; and (ii) any such proceedings known to be contemplated by
      governmental authorities. The Owner Trustee shall also notify the Depositor
      and
      the Securities Administrator in writing, as promptly as practicable following
      notice to or discovery by a Responsible Officer of the Owner Trustee of any
      material changes to proceedings described in the preceding sentence. In
      addition, the Owner Trustee shall furnish to the Depositor and the Securities
      Administrator, in writing, the necessary disclosure regarding the Owner Trustee
      describing such proceedings required to be disclosed under Item 1117 of
      Regulation AB, for inclusion in reports filed by or on behalf of the Depositor
      with the Commission. 

     

    For
      so long as the Notes are outstanding and the Depositor is required to report
      under Regulation AB with respect to the Notes, the Owner Trustee shall, no
      later
      than January 31st
      of each calendar year, provide to the Depositor and the Securities Administrator
      such information regarding the Owner Trustee as is required for the purpose
      of
      compliance with Items 1109(a), 1109(b), 1119(a) and 1119(b) of Regulation AB;
      and (ii) as promptly as practicable following notice to or discovery by a
      Responsible Officer of the Owner Trustee of any changes to such information,
      provide to the Depositor and the Securities Administrator, in writing, such
      updated information. Such information shall include, at a minimum:

     

    (A) the
      Owner Trustee’s name and form of organization;

     

    (B) a
      description of the extent to which the Owner Trustee has had prior experience
      serving as a trustee for asset-backed securities transactions involving mortgage
      backed securities; and

     

    (C) a
      description of any affiliation between the Owner Trustee and any of the parties
      identified in Exhibit E.

     

    In
      addition, the Owner Trustee shall provide a description of whether there is,
      and
      if so the general character of, any business relationship, agreement,
      arrangement, transaction or understanding between the Owner Trustee and any
      of
      the parties identified in Exhibit E that is entered into outside the ordinary
      course of business or is on terms other than would be obtained in an arm’s
      length transaction with an unrelated third party, apart from this transaction,
      that currently exists or that existed during the past two years and that is
      material to an investor’s understanding of the Notes.

    
      
         

      

      
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    With
      respect to the information required to be provided under this Section 6.11(b),
      the Owner Trustee shall not be required to provide such information in the
      event
      that there has been no change to the information previously provided by the
      Owner Trustee to the Depositor. In connection with each report on Form 10-K
      with
      respect to the Notes and each report on Form 10-D with respect to the Notes
      filed by or on behalf of the Depositor, the Owner Trustee shall be deemed to
      represent and warrant, as of March 15th
      for the
      report on Form 10-K and as of the related Payment Date for the report on Form
      10-D, that any information previously provided by the Owner Trustee under this
      Section 6.11 is materially correct and does not contain any material omissions
      unless the Owner Trustee has provided an update to such information.

     

    ARTICLE
      VII

    INDEMNIFICATION
      AND COMPENSATION

     

    Section
      7.01. Trust
      Expenses.
      The
      Initial Holder shall pay the organizational expenses of the Trust as they may
      arise or shall, upon the request of the Owner Trustee, promptly reimburse the
      Owner Trustee for any such expenses paid by the Owner Trustee in connection
      therewith. The Owner Trustee shall be reimbursed from amounts on deposit in
      the
      Collection Account in accordance with Section 8.05 of the Sale and Servicing
      Agreement for the reasonable expenses of the Owner Trustee hereunder (other
      than
      the annual fees paid pursuant to Section 7.03), including, without limitation,
      the reasonable compensation, expenses and disbursements of such agents,
      representatives, experts and counsel as the Owner Trustee may employ in
      connection with the exercise and performance of its rights and duties under
      the
      Operative Agreements.

     

    Section
      7.02. Indemnification.
      [Thornburg Mortgage, Inc.] agrees to assume liability for, and indemnify the
      Bank and its successors, assigns, agents and servants, against and from, any
      and
      all liabilities, obligations, losses, damages, taxes, claims, actions, suits,
      costs, expenses and disbursements (including reasonable legal fees and expenses)
      of any kind and nature whatsoever (collectively, “Expenses”) which may be
      imposed on, incurred by or asserted at any time against the Bank (whether or
      not
      indemnified against by other parties) in any way relating to or arising out
      of
      this Agreement, any Operative Agreement, the Collateral, the administration
      of
      the Trust Estate or the action or inaction of the Owner Trustee hereunder,
      except only that [Thornburg Mortgage, Inc.] shall not be required to indemnify
      the Bank for Expenses arising or resulting from any of the matters described
      in
      clauses (i) through (iv) of the third sentence of Section 6.01; provided,
      however,
      the
      Bank agrees not to seek indemnification from [Thornburg Mortgage, Inc.] for
      matters for which the Bank is indemnified pursuant to the Sale and Servicing
      Agreement until sixty (60) days after request for indemnification has been
      made
      by the Bank to the appropriate party thereunder and adequate funds have not
      been
      received by the Bank from the appropriate party in connection therewith. The
      Bank agrees that to the extent funds are received under the Sale and Servicing
      Agreement with respect to an indemnification claim for which the Bank has also
      received funds from [Thornburg Mortgage, Inc.], the Bank shall refund to
      [Thornburg Mortgage, Inc.] funds equal to such amount received under the Sale
      and Servicing Agreement. The indemnities contained in this Section 7.02 shall
      survive the resignation or termination of the Owner Trustee or the termination
      of this 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 shall be subject to the approval of [Thornburg Mortgage, Inc.],
      which approval shall not be unreasonably withheld. 

    
      
         

      

      
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    Section
      7.03. Compensation.
      The Bank
      shall receive as compensation for its services hereunder as Owner Trustee such
      fees as are agreed by the Owner Trustee and [Thornburg Mortgage Home Loans,
      Inc.] from the Master Servicer pursuant to the terms of a separate fee
      agreement.

     

    Section
      7.04. Lien
      on Trust Estate.
      The Bank
      shall have a lien on the Trust Estate for any compensation or indemnity due
      hereunder, such lien to be subject only to prior liens of the Indenture. The
      Bank shall not bring any proceedings to foreclose on such lien if and to the
      extent the Trust Estate is subject to the lien of the Indenture. Any amount
      paid
      to the Owner Trustee pursuant to this Article VII shall be deemed not to be
      part
      of the Trust Estate immediately after such payment.

     

    ARTICLE
      VIII

     

    TERMINATION
      OF AGREEMENT

     

    Section
      8.01. Termination of Agreement.

     

    (a) This
      Agreement (other than Sections 7.01, 7.02 and 7.04) shall terminate and the
      trusts created hereby shall dissolve and terminate and the Trust Estate shall,
      subject to the Indenture and Sections 4.01 and 7.04 of this Agreement and
      Section 3808 of the Delaware Trust Statute, be distributed to the Holders
pro
      rata
      based on
      their Percentage Interests in the Ownership Certificates, and this Agreement
      shall be of no further force or effect, upon the earlier of (i) the full payment
      of principal and interest due on all Classes of the Notes; and (ii) the sale
      or
      other final disposition by the Indenture Trustee or the Owner Trustee, as the
      case may be, of all the Trust Estate and the final distribution by the
      Securities Administrator or the Owner Trustee, as the case may be, of all moneys
      or other property or proceeds of the Trust Estate in accordance with the terms
      of the Indenture, the Sale and Servicing Agreement and Section 4.02. The
      bankruptcy, liquidation or dissolution of any Holder shall not operate to
      terminate this Agreement, nor entitle such Holder’s legal representatives to
      claim an accounting or to take any action or proceeding in any court for a
      partition or winding up of the Trust Estate, nor otherwise affect the rights,
      obligations and liabilities of the parties hereto.

     

    (b) Except
      as
      provided in Section 8.01(a), neither the Depositor nor the Holders shall be
      entitled to revoke or terminate the Trust established hereunder prior to payment
      in full of the Notes.

     

    (c) Notice
      of
      any termination of the Trust, specifying the Payment Date upon which the Holders
      shall surrender their Ownership 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 the Holders and the Rating Agencies mailed
      within five Business Days of receipt of notice of the final payment on the
      Notes
      pursuant to the Sale and Servicing Agreement, stating (i) the Payment Date
      upon
      or with respect to which final payment of the Ownership Certificates shall
      be
      made upon presentation and surrender of the Ownership 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 Ownership Certificates at the office of the Certificate Paying
      Agent therein specified. The Certificate Paying Agent shall give such notice
      to
      the Owner Trustee and the Certificate Registrar at the time such notice is
      given
      to the Holders. Upon presentation and surrender of the Ownership Certificates,
      the Certificate Paying Agent shall cause to be distributed to the Holders
pro
      rata
      based on
      their Percentage Interests in the Ownership Certificates amounts distributable
      on such Payment Date pursuant to [Section 5.01(a)[   ]] of the
      Sale and Servicing Agreement.

    
      
         

      

      
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    In
      the
      event that all of the Holders shall not surrender their Ownership 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 Holders to surrender their Ownership
      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 Ownership
      Certificates was to have been made pursuant to the Section 4.05 and [Section
      5.01(a)[   ]] of the Sale and Servicing Agreement, all the
      Ownership 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 Holders concerning surrender
      of
      their Ownership Certificates, and the cost thereof shall be paid out of the
      funds and other assets that shall remain subject to this Agreement. Any funds
      remaining in the Certificate Distribution Account after exhaustion of such
      remedies shall be distributed by the Certificate Paying Agent to the Trust
      and
      thereafter the Holders of the non-cancelled Ownership Certificates shall look
      only to the Trust for payment on a pro
      rata
      basis.

     

    (d) Upon
      the
      winding up of the Trust and its termination, and written notice thereof by
      the
      Certificate Paying Agent to the Owner Trustee, 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
      of
      the Delaware Trust Statute.

     

    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 Delaware Trust Statute; authorized to exercise corporate
      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 which has) a short-term debt rating of at least
“A-1”
or the equivalent by, or which is otherwise acceptable to, each Rating Agency.
      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, the Owner Trustee shall resign immediately
      in
      the manner and with the effect specified in Section 9.02.

     

    Section
      9.02. Resignation
      or Removal of Owner Trustee.
      The
      Owner Trustee may at any time resign and be discharged from the trusts hereby
      created by giving 30 days’ prior written notice thereof to the Depositor and the
      Indenture Trustee. Upon receiving such notice of resignation, the Depositor
      shall promptly appoint a successor Owner Trustee by written instrument, in
      duplicate, one copy of which instrument shall be delivered to the resigning
      Owner Trustee and one copy 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.

    
      
         

      

      
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    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 Depositor, or if at any time the Owner Trustee shall be legally
      unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of
      the
      Owner Trustee or of its property shall be appointed, or any public officer
      shall
      take charge or control of the Owner Trustee or of its property or affairs for
      the purpose of rehabilitation, conservation or liquidation, then the Depositor
      may remove the Owner Trustee. If the Depositor shall remove the Owner Trustee
      under the authority of the immediately preceding sentence, the Depositor shall
      promptly appoint a successor Owner Trustee by written instrument in duplicate,
      one copy of which instrument shall be delivered to the outgoing Owner Trustee
      so
      removed and one copy to the successor Owner Trustee and payment of 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 Securities Administrator shall provide notice of
      such resignation or removal of the Owner Trustee to 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 Depositor and the Securities Administrator and
      to
      its predecessor Owner Trustee an instrument accepting such appointment under
      this 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 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
      Agreement; and the Depositor, the Securities 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
      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,
      the Securities Administrator shall mail notice of the successor of such Owner
      Trustee to all Certificateholders, the Indenture Trustee, the Noteholders and
      the Rating Agencies. If the Securities Administrator fails to mail such notice
      within 10 days after acceptance of appointment by the successor Owner Trustee,
      the successor Owner Trustee shall cause such notice to be mailed at the expense
      of the Securities Administrator.

    
      
         

      

      
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    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,
provided
      such
      Person shall be eligible pursuant to Section 9.01, 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.

     

    Section
      9.05. Appointment
      of Co-Trustee or Separate Trustee.
      Notwithstanding any other provisions of this Agreement, at any time, for the
      purpose of meeting any legal requirements of any jurisdiction in which any
      part
      of the Trust Estate or any Collateral may at the time be located, and for the
      purpose of performing certain duties and obligations of the Owner Trustee with
      respect to the Trust and the Certificates under the Sale and Servicing
      Agreement, the Owner Trustee shall have the power and shall execute and deliver
      all instruments to appoint one or more Persons approved by the Owner Trustee
      to
      act as co-trustee, jointly with the Owner Trustee, or separate trustee or
      separate trustees, of all or any part of the 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 Owner Trustee may consider necessary
      or
      desirable. No co-trustee or separate trustee under this Agreement shall be
      required to meet the terms of eligibility as a successor 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.

     

    The
      Owner
      Trustee hereby appoints the Securities Administrator for the purpose of
      establishing and maintaining the Certificate Distribution Account and making
      investments and the distributions therefrom to the Persons entitled thereto
      pursuant to Section 4.02 of this Agreement. 

     

    Each
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provision 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 Trust 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 Agreement shall be personally liable by reason of any act
      or
      omission of any other trustee under this Agreement; and 

    
      
         

      

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

     

    Any
      notice, request or other writing given to the Owner Trustee shall be deemed
      to
      have been given to the separate trustees and co-trustees, as if given to each
      of
      them. Every instrument appointing any separate trustee or co-trustee, other
      than
      this Agreement, shall refer to this Agreement and to the conditions of this
      Article. Each separate trustee and co-trustee, upon its acceptance of
      appointment, shall be vested with the estates 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 Agreement, specifically
      including every provision of this 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 Securities 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 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 trustee.

     

    ARTICLE
      X

    MISCELLANEOUS

     

    Section
      10.01. Supplements
      and Amendments.
      This
      Agreement may be amended by the Depositor, the Securities Administrator and
      the
      Owner Trustee, with the consent of the Holders and with prior written notice
      to
      the Rating Agencies, but without the consent of any of the Noteholders or the
      Indenture Trustee, to (a) cure any ambiguity, to correct or supplement any
      provisions in this Agreement or for the purpose of adding any provisions to
      or
      changing in any manner or eliminating any of the provisions in this Agreement
      or
      of modifying in any manner the rights of the Noteholders or the Holders or
      (b)
      to comply with Regulation AB under Section 6.11 hereof; provided,
      however, that
      such
      action shall not, as evidenced by an Opinion of Counsel, adversely affect in
      any
      material respect the interests of any Noteholder or any Holder or adversely
      affect the tax status of the Trust. An amendment shall not be deemed to
      adversely affect in any material respect the interests of any Noteholder or
      any
      Holder and no opinion referred to in the preceding proviso shall be required
      to
      be delivered if the Person requesting the amendment obtains a letter from each
      Rating Agency stating that the amendment would not result in the downgrading
      or
      withdrawal of the respective ratings then assigned to each Class of Notes.
      Notwithstanding the preceding sentence, an opinion shall be required with
      respect to tax matters as set forth in this paragraph. Notwithstanding the
      foregoing, neither an Opinion of Counsel nor any letters from any Rating Agency
      referred to above shall be required if such amendment is made pursuant to (b)
      above.

     

    This
      Agreement may also be amended from time to time by the Depositor, the Securities
      Administrator and the Owner Trustee, with the prior written consent of the
      Rating Agencies and with the prior written consent of the Indenture Trustee,
      the
      Holders (as defined in the Indenture) of Notes evidencing more than 662⁄3% of the
      Outstanding Balance (as defined in the Indenture) of the Notes, and the consent
      of Holders of 662⁄3% of the Percentage Interest in the Ownership Certificates, for
      the purpose of adding any provisions to or changing in any manner or eliminating
      any of the provisions of this Agreement or of modifying in any manner the rights
      of the Holders; provided,
      however,
      that no
      such amendment shall, as evidenced by an Opinion of Counsel, adversely affect
      the tax status of the Trust; and provided,
      further,
      that no
      such amendment shall (a) increase or reduce in any manner the amount of, or
      accelerate or delay the timing of, collections of payments on the Collateral
      or
      payments that shall be required to be made for the benefit of the Noteholders
      or
      the Holders or (b) reduce the aforesaid percentage of the Outstanding
      Balance of the Notes and the Percentage Interests of Holders of the Ownership
      Certificates required to consent to or to waive the requirement for the Holders
      to consent to any such amendment, in either case of clause (a) or (b)
      without the consent of the holders of all the outstanding Notes and Ownership
      Certificates, respectively.

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

    Notwithstanding
      the foregoing, no provision of Sections 2.03 or 5.06 hereof may be amended
      in
      any manner unless (i) 100% of the Outstanding Balance of the Noteholders have
      consented in writing thereto, (ii) the Rating Agencies have consented in writing
      thereto or (iii) the Notes have been paid in full and the Indenture has been
      discharged.

     

    Promptly
      after the execution of any such amendment or consent, the Owner Trustee shall
      furnish written notification of the substance of such amendment or consent
      to
      the Holders, the Indenture Trustee and the Rating Agencies.

     

    It
      shall
      not be necessary for the consent of the Holders, the Noteholders 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 the Holders provided for in this Agreement or in any
      other
      Operative Agreement) and of evidencing the authorization of the execution
      thereof by the Holders shall be subject to such reasonable requirements as
      the
      Owner Trustee may prescribe.

     

    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.

     

    Prior
      to
      the execution of any amendment to this Agreement or the Certificate of Trust,
      the Owner Trustee and the Securities Administrator shall be entitled to receive
      and rely upon an Opinion of Counsel, at the expense of the Trust, stating that
      the execution of such amendment is authorized or permitted by this Agreement.
      Neither the Owner Trustee nor the Securities Administrator shall be obligated
      to
      enter into any such amendment which affects the Owner Trustee’s or Securities
      Administrator’s own rights, duties or immunities under this Agreement or
      otherwise.

     

    Section
      10.02. No
      Legal Title to Trust Estate in Holders.
      The
      Holders shall not have legal title to any part of the Trust Estate and shall
      only be entitled to receive distributions pursuant to Section 4.02 once all
      amounts then owing with respect to the Notes have been paid in accordance with
      the Indenture. No transfer, by operation of law of any right, title and interest
      of the Holders in and to its undivided beneficial interest in the Trust Estate
      or hereunder shall operate to terminate this Agreement or the trusts hereunder
      or entitle any successor transferee to an accounting or to the transfer to
      it of
      legal title to any part of the Trust Estate.

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

     

    Section
      10.03. Pledge
      of Collateral by Owner Trustee is Binding.
      The
      pledge of the Collateral to the Indenture Trustee by the Trust made under the
      Indenture and pursuant to the terms of this Agreement shall bind the Holders
      and
      shall be effective to transfer or convey the rights of the Trust and the Holders
      in and to such Collateral to the extent set forth in the Indenture. No purchaser
      or other grantee shall be required to inquire as to the authorization,
      necessity, expediency or regularity of such pledge or as to the application
      of
      any proceeds with respect thereto by the Owner Trustee.

     

    Section
      10.04. Limitations
      on Rights of Others.
      Nothing
      in this Agreement, whether express or implied (except for Section 7.04), shall
      be construed to give to any Person other than the Owner Trustee and the Holders
      any legal or equitable right in the Trust Estate or under or in respect of
      this
      Agreement or any covenants, conditions or provisions contained
      herein.

     

    Section
      10.05. Notices.
      Unless
      otherwise expressly specified or permitted by the terms hereof, all notices
      shall be in writing and delivered by hand, by courier or mailed by certified
      mail, postage prepaid, (a) if to the Owner Trustee or the Trust, addressed
      to it
      at the Corporate Trust Office of the Owner Trustee or to such other address
      as
      the Owner Trustee may have set forth in a written notice to the Holders
      addressed to them at the addresses set forth for such Certificateholders in
      the
      Certificate Register and to the Depositor; (b) if to the Securities
      Administrator, addressed to it at the Corporate Trust Office of the Securities
      Administrator located at [     ]; and (c) if to the
      Certificate Registrar, addressed to it at the Corporate Trust office of the
      Certificate Registrar; and (d) if to the Depositor, addressed to it at
      Thornburg Mortgage Securities Corporation, 150 Washington Avenue, Suite 302,
      Santa Fe, New Mexico 87501, Attention: [     ]
      (telecopy number (505) 467-5215). Whenever any notice in writing is
      required to be given by the Owner Trustee or the Securities Administrator,
      such
      notice shall be deemed given and such requirement satisfied if such notice
      is
      mailed by certified mail, postage prepaid, addressed as provided
      above.

     

    Section
      10.06. Severability.
      Any
      provision of this Agreement which 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
      10.07. Separate
      Counterparts.
      This
      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
      10.08. Successors
      and Assigns.
      All
      representations, warranties, covenants and agreements contained herein shall
      be
      binding upon, and inure to the benefit of, the Owner Trustee and its successors
      and assigns and the Depositor and each Holder and its respective successors,
      all
      as herein provided. Any request, notice, direction, consent, waiver or other
      instrument or action by any Holder shall bind the successors of such
      Holder.

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    Section
      10.09. 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
      10.10. Governing
      Law.
      THIS
      AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO THE CONFLICT OF
      LAWS PROVISIONS THEREOF, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
      PERFORMANCE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
      SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. SECTION 3540 OF TITLE 12
      OF
      THE DELAWARE CODE SHALL NOT APPLY TO THE TRUST.

     

    Section
      10.11. No Petition. 

     

    (a) The
      Owner
      Trustee and the Securities Administrator, by entering into this Agreement,
      the
      Holders, by accepting the Ownership Certificates, and the Indenture Trustee
      and
      each Noteholder, by accepting the benefits of this Agreement, 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 under any United States federal or state bankruptcy or similar law
      in
      connection with any obligations relating to the Ownership Certificates, the
      Notes, this Agreement or any of the other Operative Agreements.

     

    (b) The
      Depositor shall not be liable for the default or misconduct of the Securities
      Administrator, the Owner Trustee, the Indenture Trustee or the Certificate
      Paying Agent under any of the Operative Agreements or otherwise and the
      Depositor shall have no obligation or liability to perform the obligations
      of
      the Trust under this Agreement or the Operative Agreements that are required
      to
      be performed by the Securities Administrator under the Administration Agreement
      or the Indenture Trustee under the Indenture.

     

    Section
      10.12. No
      Recourse.
      Each
      Holder by accepting any Ownership Certificates acknowledges that such Ownership
      Certificate represents a beneficial ownership interest in the Trust only and
      does not represent an interest in or an obligation of the Depositor, the
      Securities Administrator, the Owner Trustee, any co-trustee, the Bank or any
      Affiliate thereof (other than the Trust) and no recourse may be had against
      such
      parties or their assets, except as may be expressly set forth or contemplated
      in
      this Agreement, the Ownership Certificates or the other Operative
      Agreements.

     

    ARTICLE
      XI

    OFFICERS

     

    Section
      11.01. Appointment
      of Officers.
      The
      Trust may have one or more Officers who are hereby empowered to take and are
      responsible for performing all ministerial duties on behalf of the Trust
      pursuant to this Agreement and the other Operative Agreements, including,
      without limitation, the execution of Officers’ Certificates (as defined in the
      Indenture), Issuer Orders (as defined in the Indenture), Issuer Requests (as
      defined in the Indenture), the annual compliance report required under Section
      3.09 of the Indenture, and any annual reports, documents and other reports
      which
      the Trust is required to file with the Securities and Exchange Commission
      pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as
      amended.

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

     

    Section
      11.02. Officers
      to Provide Information to the Owner Trustee.
      It shall
      be the duty of each Officer to keep the Owner Trustee reasonably and promptly
      informed as to material events relating to the Trust, including, without
      limitation, all claims pending or threatened against the Trust, the purchase
      and
      sale of any material portion of the Trust Estate and the execution by such
      Officer on behalf of the Trust of any material agreements or
      instruments.

     

    

    

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

     

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

     

    THORNBURG
      MORTGAGE SECURITIES CORPORATION,
      as
      Depositor

    

    

    By: 
      ________________________________
Name: 
Title:
      

    

    

    [     ],

    not
      in
      its individual capacity but solely as 

    Owner
      Trustee

    

    

    By: 
      ________________________________

    Name:

    Title:

    

    [     ],

    not
      in
      its individual capacity but solely as Securities Administrator

    

    

    By: 
      ________________________________

    Name:
      

    Title:
      

    

    

    Acknowledged
      and Agreed, solely

    for
      purposes of Section 7.02:

    

    THORNBURG
      MORTGAGE, INC.

    

    

    By: 
      __________________________________
Name: 
Title:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    [FORM
      OF
      OWNERSHIP CERTIFICATES]

     

    [Face]

    

    THIS
      OWNERSHIP CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY
      STATE. THIS OWNERSHIP CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY OFFERED OR
      SOLD
      OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (A)
      A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE ACT, IN A
      TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES
      LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT
      TO
      RULE 144A OR (B) AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH
      (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE ACT THAT IS ACQUIRING THE
      OWNERSHIP CERTIFICATE FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
      INSTITUTIONAL “ACCREDITED INVESTOR,” NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
      CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE ACT. NO PERSON IS
      OBLIGATED TO REGISTER THIS OWNERSHIP CERTIFICATE UNDER THE ACT OR ANY STATE
      SECURITIES LAWS.

     

    NO
      TRANSFER OF THIS OWNERSHIP CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
      REGISTRAR SHALL HAVE RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE OF
      THIS OWNERSHIP CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT 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
      ANY
      SUBSTANTIALLY SIMILAR APPLICABLE LAW,
      OR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF ANY SUCH
      PLAN.

     

    ANY
      SALE
      OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS OWNERSHIP CERTIFICATE
      MAY ONLY BE EFFECTUATED IF (I) THE TRANSFEREE DELIVERS TO THE OWNER TRUSTEE,
      THE
      INDENTURE TRUSTEE AND THE CERTIFICATE REGISTRAR AN OPINION OF COUNSEL THAT
      THE
      SALE, TRANSFER OR OTHER DISPOSITION OF SUCH OWNERSHIP CERTIFICATE WILL NOT
      RESULT IN THE TRUST BECOMING SUBJECT TO TAX FOR FEDERAL INCOME TAX PURPOSES
      OR
      (II) SUCH SALE OR TRANSFER IS IN CONJUNCTION WITH A SIMULTANEOUS SALE OR
      TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY OFFERED
      NOTES THEN OUTSTANDING.

     

    THIS
      OWNERSHIP CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE
      DEPOSITOR, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES
      ADMINISTRATOR OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY
      PROVIDED IN THE TRUST AGREEMENT OR THE OTHER OPERATIVE
      AGREEMENTS.

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    THIS
      OWNERSHIP CERTIFICATE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE
      SALE AND SERVICING AGREEMENT REFERRED TO HEREIN.

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ]

     

    
      	
              Certificate
                No. _________

            	
              Percentage
                Interest: ___%

            
	 	 
	
              First
                Payment Date: [     ]

            	
              CUSIP:
                _____________    

            

    

    

    

    Evidencing
      a fractional undivided beneficial ownership interest in the Trust, the property
      of which consists primarily of the Collateral in Thornburg Mortgage Securities
      Trust [     ] (the “Trust”), a Delaware statutory trust
      formed by Thornburg Mortgage Securities Corporation, a Delaware limited
      liability company, as Depositor (the “Depositor”), pursuant to the Agreement
      referred to below.

     

    This
      certifies that [insert name of Holder] is the registered owner of the Percentage
      Interest in the Ownership Certificates referred to above.

     

    The
      Trust
      was created pursuant to a trust agreement, dated as of
      [     ], as amended and restated by that amended and
      restated trust agreement dated [     ] (as amended and
      supplemented from time to time, the “Agreement” or “Trust Agreement”), among the
      Depositor, [     ], as owner trustee (the “Owner
      Trustee”, which term includes any successor entity under the Agreement) and
      [     ] (“[     ]”), as
      securities administrator (in such capacity, the “Securities Administrator”), a
      summary of certain of the pertinent provisions of which is set forth hereinafter
      and a Certificate of Trust filed with the Secretary of State of the State of
      Delaware on [     ]. This Ownership Certificate is
      issued under and is subject to the terms, provisions and conditions of the
      Agreement, to which Agreement the Holder of this Ownership Certificate by virtue
      of the acceptance hereof assents and by which such Holder is bound, as described
      in the Sale and Servicing Agreement. Distributions on this Ownership Certificate
      shall be made by [     ] in its capacity of Certificate
      Paying Agent under the Agreement and as Securities Administrator under the
      Sale
      and Servicing Agreement referred to below.

     

    This
      Ownership Certificate is one of a duly authorized issue of Ownership
      Certificates (herein called the “Ownership Certificates”) issued under the
      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
      Ownership Certificates and the terms upon which the Ownership Certificates
      are
      executed and delivered. To the extent not otherwise defined herein, capitalized
      terms used herein have the meanings assigned to such terms in the Agreement
      or
      the Sale and Servicing Agreement, dated as of [     ]
      (as amended and supplemented from time to time, the “Sale and Servicing
      Agreement”), by and among the Trust, the Seller, the Initial Seller, the
      Depositor, the Master Servicer, the Securities Administrator and
      [     ], as Indenture Trustee (the “Indenture
      Trustee”). The rights of the Holders of the Ownership Certificates are
      subordinated to the rights of the Holders of the Notes as set forth in the
      Indenture, dated as of [     ] (the “Indenture”), among
      the Trust, the Indenture Trustee and the Securities Administrator.

     

    There
      will be distributed on the [     ]th
      day of
      each month or, if such [     ]th
      day is
      not a Business Day, the next Business Day (each, a “Payment Date”), commencing
      in [     ], to the Person in whose name this Ownership
      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 (as shown in the face of this Ownership
      Certificate) in the amount to be distributed to Certificateholders on such
      Payment Date, all as described in the Sale and Servicing Agreement.

     

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    The
      Certificateholder, by its acceptance of this Ownership Certificate, agrees
      that
      it will look solely to the funds on deposit in the Certificate Distribution
      Account that have been released from the lien of the Indenture for payment
      hereunder and that none of the Owner Trustee, the Securities Administrator,
      or
      the Certificate Paying Agent in their individual capacities or the Depositor
      is
      personally liable to the Certificateholders for any amount payable under this
      Ownership Certificate or the Agreement or, except as expressly provided in
      the
      Agreement, subject to any liability under the Agreement.

     

    The
      Holder of this Ownership Certificate acknowledges and agrees that its rights
      to
      receive distributions in respect of this Ownership Certificate are subordinated
      to the rights of the Noteholders as described in the Indenture.

     

    The
      Depositor and each Certificateholder, by acceptance of an Ownership Certificate,
      agree to treat, and to take no action inconsistent with the treatment of, the
      Ownership Certificates for federal, state and local income tax purposes as
      an
      equity interest in the Trust.

     

    Each
      Certificateholder, by its acceptance of an Ownership Certificate, covenants
      and
      agrees that such Certificateholder 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, 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
      Ownership Certificates, the Notes, the Agreement or any other of the Operative
      Agreements.

     

    Distributions
      on this Ownership Certificate will be made as provided in the 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 Ownership Certificate or the making of any notation hereon.
      Except as otherwise provided in the Agreement and notwithstanding the above,
      the
      final distribution on this Ownership 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 Ownership Certificate at the office
      or
      agency maintained by the Certificate Registrar for that purpose by the
      Trust.

     

    Reference
      is hereby made to the further provisions of this Ownership 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 Ownership Certificate shall not entitle the Holder hereof to
      any
      benefit under the Agreement or be valid for any purpose.

     

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    THIS
      OWNERSHIP CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS, AND
      THE
      OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
      IN
      ACCORDANCE WITH SUCH LAWS.

     

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its
      individual capacity, has caused this Ownership Certificate to be duly
      executed.

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ]

    By: [     ],
      not in its individual capacity but solely as Owner Trustee

     

    

    By: 
      ___________________________________

    Authorized
      Signatory

    

    

    

    Dated:
      __________

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      the Ownership Certificate referred to in the within-mentioned Trust
      Agreement.

     

    [     ],
      not in its individual capacity but solely as Certificate Registrar

     

     

    By: 
      ___________________________________
Authorized
      Signatory

     

     

     

    Dated:
      __________

    
      
         

      

      
        A-6

        
          

        

      

      
         

      

    

    [REVERSE
      OF OWNERSHIP CERTIFICATE]

     

    The
      Ownership Certificates do not represent an obligation of, or an interest in,
      the
      Depositor, the Indenture Trustee, the Owner Trustee, the Securities
      Administrator, the Bank or any Affiliates of any of them and no recourse may
      be
      had against any such parties or their assets, except as expressly set forth
      or
      contemplated herein or in the Agreement or the other Operative Agreements.
      In
      addition, this Ownership 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 Collateral, all as more
      specifically set forth herein. A copy of the 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
      Agreement permits the amendment thereof as specified below, provided that any
      amendment be accompanied by an Opinion of Counsel to the effect that such
      amendment complies with the provisions of the Agreement and would 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 or to comply with the requirements of Regulation
      AB,
      it shall not be necessary to obtain the consent of any Noteholder or the
      Indenture Trustee. If the purpose of the amendment is to add or eliminate or
      change any provision of the Agreement, other than as specified in the preceding
      sentence, the amendment shall require the consent of the Holders of 662⁄3% of the
      Percentage Interest in the Ownership Certificates, the consent of Noteholders
      evidencing more than 662⁄3% of the Outstanding Balance of the Notes 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 to any
      Certificateholder or Noteholder, or (ii) reduce the aforesaid percentage of
      Certificateholders and Noteholders which are required to consent to any such
      amendment, in the case of either clause (i) or (ii), without the consent of
      the
      holders of all the outstanding Notes and Certificates, as
      applicable.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Ownership Certificate is registerable in the Certificate
      Register upon surrender of this Ownership Certificate for registration of
      transfer at the offices or agencies of the Certificate Registrar maintained
      by
      the Trust, 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 Ownership
      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 Agreement is the Securities
      Administrator.

     

    The
      Ownership Certificates are issuable only in a minimum Percentage Interest of
      10%
      and multiples of one (1%) in excess thereof. As provided in the Agreement and
      subject to certain limitations therein set forth, Ownership Certificates are
      exchangeable for new Ownership Certificates evidencing in the aggregate the
      Percentage Interest of the Ownership Certificate surrendered in the exchange,
      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 or any expense incurred
      thereby.

     

    
      
         

      

      
        A-7

        
          

        

      

      
         

      

    

    The
      Owner
      Trustee, the Certificate Paying Agent, the Securities Administrator, the
      Certificate Registrar and any agent of the Owner Trustee, the Certificate Paying
      Agent, the Securities Administrator and the Certificate Registrar may treat
      the
      Person in whose name this Ownership Certificate is registered as the owner
      hereof for all purposes, and none of the Owner Trustee, the Certificate Paying
      Agent, the Securities Administrator, the Certificate Registrar or any such
      agent
      shall be affected by any notice to the contrary.

     

    The
      obligations and responsibilities created by the Agreement and the Trust created
      thereby shall terminate upon the satisfaction and discharge of the Indenture
      pursuant to Section 4.01 thereof and the termination of the Sale and Servicing
      Agreement.

     

    
      
         

      

      
        A-8

        
          

        

      

      
         

      

    

    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 Ownership Certificate, and all rights thereunder, hereby irrevocably
      constituting and appointing

    
       

      
        
to
        transfer said Ownership 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 Ownership 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.

     

    
      
         

      

      
        A-9

        
          

        

      

      
         

      

    

    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)

    

    

    
      
         

      

      
        A-10

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    FORM
      OF
      CERTIFICATE OF TRUST

    OF

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ]

     

    This
      Certificate of Trust of Thornburg Mortgage Securities Trust
      [     ] (the “Trust”) is being duly executed and filed
      by the undersigned, as owner trustee, to form a statutory trust under the
      Delaware Statutory Trust Act, 12 Del. C.§§
3801
      et seq.
      (the
“Act”).

     

    1. Name.
      The
      name of the statutory trust formed hereby is Thornburg Mortgage Securities
      Trust
      [     ].

     

    2. Delaware
      Trustee.
      The
      name and the business address of the trustee of the Trust with a principal
      place
      of business in the State of Delaware and County of
      [     ] is [     ],
      [ADDRESS].

     

    3. Effective
      Date.
      This
      Certificate of Trust shall be effective upon filing with the Secretary of State
      of the State of Delaware.

     

    IN
      WITNESS WHEREOF, the undersigned, being the owner trustee of the Trust, has
      duly
      executed this Certificate of Trust in accordance with Section 3811(a)(1) of
      the
      Act.

     

    [     ],

    as
      Owner
      Trustee

     

    By: 
      ______________________________
Name:
Title:

    

    

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    EXHIBIT
      C-1

    

     

    FORM
      OF
      RULE 144A INVESTMENT LETTER

     

    

    __________________

    Date               

    

    [     ]

       
as
      Certificate Registrar and Securities Administrator

    [     ]

    

    [     ]

         as
      Owner Trustee

    [     ]

    

    Thornburg
      Mortgage Securities Corporation

          as
      Depositor

    150
      Washington Avenue, Suite 302

    Santa
      Fe,
      New Mexico 87501

    Attention:
      [     ]

    

    Thornburg
      Mortgage Securities Trust [     ]

    [     ]

    Attention:
      Corporate Trust Department

    

    
      	
              Re:

            	
              Thornburg
                Mortgage Securities Trust [     ]
                Ownership
                Certificates

            

    

    

    Ladies
      and Gentlemen:

    

    In
      connection with our acquisition of Thornburg Mortgage Securities Trust
      [     ] Ownership Certificates (the “Certificates”), we
      certify that (a) we understand that the Certificates have not been registered
      under the Securities Act of 1933, as amended (the “Act”), or any state
      securities laws and is being transferred to us in a transaction that is exempt
      from the registration requirements of the Act and any such laws, (b) we
      have such knowledge and experience in financial and business matters that we
      are
      capable of evaluating the merits and risks of investment in the Certificates,
      (c) we have had the opportunity to ask questions of and receive answers from
      Thornburg Mortgage Securities Corporation (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 have not, nor has anyone acting on our behalf, offered, transferred, pledged,
      sold or otherwise disposed of the Certificates or any interest in the
      Certificates, or solicited any offer to buy, transfer, pledge or otherwise
      dispose of the Certificates or any interest in the Certificates from any person
      in any manner, or made any general solicitation by means of general advertising
      or in any other manner, or taken any other action that would constitute a
      distribution of the Certificates under the Act or that would render the
      disposition of the Certificates a violation of Section 5 of the Act or any
      state
      securities laws or require registration pursuant thereto, and we will not act,
      or authorize any person to act, in such manner with respect to the Certificates
      and (e) we are a “qualified institutional buyer” as that term is defined in Rule
      144A under the Act (“Rule 144A”). We are aware that the sale to us is being made
      in reliance on Rule 144A.

     

    
      
         

      

      
        C-1-1

        
          

        

      

      
         

      

    

    We
      are
      acquiring the Certificates for our own account or for resale pursuant to Rule
      144A and understand that such Certificates may be resold, pledged or transferred
      only (1) 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 (2) pursuant to another exemption
      from
      registration under the Act.

     

    We
      hereby
      acknowledge that under the terms of the Amended and Restated Trust Agreement
      among Thornburg Mortgage Securities Corporation, as Depositor,
      [     ], as Owner Trustee, and
      [     ], as Securities Administrator, dated
      [     ], no transfer of the Certificates shall be
      permitted to be made to any person unless (i) except in the case of transfers
      of
      Certificates in conjunction with a simultaneous sale or transfer of an equal
      Percentage Interest in all classes of the Privately Offered Notes outstanding
      (and any sale or transfer of any beneficial ownership interest in the Privately
      Offered Notes may only be effectuated in conjunction with a simultaneous sale
      or
      transfer of an equal Percentage Interest in (x) all other classes of Privately
      Offered Notes then outstanding and (y) the Certificates) unless we or any
      prospective transferee furnishes to the Certificate Registrar an opinion of
      counsel concluding that the transfer will not cause the Trust to become subject
      to federal income tax as a corporation and (ii) only if the Certificate
      Registrar has received a certificate from such transferee in the form hereof.
      We
      also hereby acknowledge that, under the terms of the Trust Agreement, no
      transfer of less than a 10% Percentage Interest in the Certificates shall be
      permitted.

     

    In
      addition, we hereby certify that we are not an employee benefit plan or other
      retirement arrangement subject to Section 406 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 to any substantially similar
      law, the trustee of any such plan or a person acting on behalf of any such
      plan
      nor a person using the assets of any such plan.

     

    We
      hereby
      indemnify the Trust, the Owner Trustee, the Depositor, the Securities
      Administrator and the Certificate Registrar against any liability that may
      result to any of them if our transfer or other disposition of the Certificates
      (or any interest therein) is not exempt from the registration requirements
      of
      the Act and any applicable state securities laws or is not made in accordance
      with such federal and state laws, the provisions of this certificate or the
      applicable provisions of the Trust Agreement.

     

    Very
      truly yours,

    

    [Name
      of
      Transferee]

    

    

    By: 
      ________________________________

    Name:

    Title:

    
      
         

      

      
        C-1-2

        
          

        

      

      
         

      

    

    ANNEX
      1
      TO EXHIBIT C-1

     

    

    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 units 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.

     

    ______________________

    
      	
              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.

            

    

     

    
      
         

      

      
        C-1-3

        
          

        

      

      
         

      

    

    ___ STATE
      OR
      LOCAL PLAN. The Buyer is a plan established and maintained by a State, its
      political subdivisions, or any agency or instrumentality of the State or its
      political subdivisions, for the benefit of its employees.

     

    ___ ERISA
      PLAN. The Buyer is an employee benefit plan within the meaning of Title I of
      the
      Employee Retirement Income Security Act of 1974.

     

    ___ INVESTMENT
      ADVISOR. The Buyer is an investment 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 of 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 and Exchange Act of 1934.

     

    
      
         

      

      
        C-1-4

        
          

        

      

      
         

      

    

    5. The
      Buyer
      acknowledges that it is familiar with Rule 144A and understands that the seller
      to it and other parties related to the Securities are relying and will continue
      to rely on the statements made herein because one or more sales to the Buyer
      may
      be in reliance on Rule 144A.

     

    
      	
               

              ____

              Yes

            	
               

              ____

              No

            	
              Will
                the Buyer be purchasing the Rule 144A 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:
      ____________________________________________

    
      
         

      

      
        C-1-5

        
          

        

      

      
         

      

    

     

    ANNEX
      2
      TO EXHIBIT C-1

    

     

    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 of the Buyer’s family of
      Investment Companies, the cost of such securities was used.

     

    ____ The
      Buyer
      owned $__________ in securities (other that 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 advisor
      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.

     

    
      
         

      

      
        C-1-6

        
          

        

      

      
         

      

    

    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:

    

    
      
         

      

      
        C-1-7

        
          

        

      

      
         

      

    

    EXHIBIT
      C-2

     

    

    FORM
      OF
      INVESTMENT LETTER FOR ACCREDITED INVESTORS

     

    ______________________

    Date

    

    [     ]

    as
      Certificate Registrar and Securities Administrator

    [     ]

    

    [     ]

          as
      Owner Trustee

    [     ]

    

    Thornburg
      Mortgage Securities Corporation

          as
      Depositor

    150
      Washington Avenue, Suite 302

    Santa
      Fe,
      New Mexico 87501

    Attention:
      [     ]

    

    Thornburg
      Mortgage Securities Trust [     ]

    [     ]

    Attention:
      Corporate Trust Department

     

    Re:
      Thornburg
      Mortgage Securities Trust [     ], Ownership
      Certificates

     

    Ladies
      and Gentlemen:

    

    ________________________
      (the “Purchaser”) intends to purchase from ________________ (the “Seller”),
      ownership certificates issued by Thornburg Mortgage Securities Trust
      [     ] (the “Certificates”), pursuant to the Amended
      and Restated Trust Agreement (the “Trust Agreement”), dated
      [     ], among Thornburg Mortgage Securities
      Corporation, as depositor (the “Depositor”), [     ],
      as securities administrator (the “Securities Administrator”) and
      [     ], as owner trustee (the “Owner Trustee”)
      evidencing a ___% Percentage Interest. All terms used herein and not otherwise
      defined shall have the meanings set forth in the Trust Agreement. The Purchaser
      hereby certifies, represents and warrants to, and covenants with, the Depositor,
      the Securities Administrator and the Owner Trustee that:

     

    1. The
      Purchaser understands that (a) the Certificates have not been and will not
      be
      registered or qualified under the Securities Act of 1933, as amended (the “Act”)
      or any state securities law, (b) the Depositor is not required to so register
      or
      qualify the Certificates, (c) the Certificates may be resold only if registered
      and qualified pursuant to the provisions of the Act or any state securities
      law,
      or if an exemption from such registration and qualification is available, (d)
      the Trust Agreement contains restrictions regarding the transfer of the
      Certificates and (e) the Certificates will bear a legend to the foregoing
      effect.

     

    
      
         

      

      
        C-2-1

        
          

        

      

      
         

      

    

    2. The
      Purchaser is acquiring the Certificates for its own account for investment
      only
      and not with a view to or for sale in connection with any distribution thereof
      in any manner that would violate the Act or any applicable state securities
      laws.

     

    3. The
      Purchaser is (a) a substantial, sophisticated institutional investor (or an
      entity all of the equity owners of which are substantial sophisticated
      institutional investors) having such knowledge and experience in financial
      and
      business matters, and, in particular, in such matters related to securities
      similar to the Certificates, such that it is capable of evaluating the merits
      and risks of investment in the Certificates, (b) able to bear the economic
      risks
      of such an investment and (c) an “accredited investor” within the meaning of
      Rule 501(a)(1), (2), (3) or (7) promulgated pursuant to the Act.

     

    4. The
      Purchaser has been furnished with, and has had an opportunity to review a copy
      of the Trust Agreement and such other information concerning the Certificates,
      the Mortgage Loans and the Depositor as has been requested by the Purchaser
      from
      the Depositor or the Seller and is relevant to the Purchaser’s decision to
      purchase the Certificates. The Purchaser has had any questions arising from
      such
      review answered by the Depositor or the Seller to the satisfaction of the
      Purchaser. 

     

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

     

    6. The
      purchaser acknowledges that under the terms of the Trust Agreement no transfer
      of the Certificates shall be permitted to be made to any person unless (i)
      except in the case of transfers of Certificates in conjunction with a
      simultaneous sale or transfer of an equal Percentage Interest in all classes
      of
      the Privately Offered Notes outstanding (and any sale or transfer of any
      beneficial ownership interest in the Privately Offered Notes may only be
      effectuated in conjunction with a simultaneous sale or transfer of an equal
      Percentage Interest in (x) all other classes of Privately Offered Notes then
      outstanding and (y) the Certificates) unless we or any prospective transferee
      furnishes to the Certificate Registrar an opinion of counsel concluding that
      the
      transfer will not cause the Trust to become subject to federal income tax as
      a
      corporation and (ii) only if the Certificate Registrar has received a
      certificate from such transferee in the form hereof. We also hereby acknowledge
      that, under the terms of the Trust Agreement, no transfer of less than a 10%
      Percentage Interest in the Certificates shall be permitted.

     

    
      
         

      

      
        C-2-2

        
          

        

      

      
         

      

    

    7. In
      addition, we hereby certify that we are not an employee benefit plan or other
      retirement arrangement subject to Section 406 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 to any substantially similar
      law, the trustee of any such plan or a person acting on behalf of any such
      plan
      nor a person using the assets of any such plan

     

    We
      hereby
      indemnify the Trust, the Owner Trustee, the Depositor, the Securities
      Administrator and the Certificate Registrar against any liability that may
      result to any of them if our transfer or other disposition of the Certificates
      (or any interest therein) is not exempt from the registration requirements
      of
      the Act and any applicable state securities laws or is not made in accordance
      with such federal and state laws, the provisions of this certificate or the
      applicable provisions of the Trust Agreement.

     

    Very
      truly yours,

    

    ______________________________________

    [Name
      of
      Transferee]

    

    

    

    By  
      ________________________________________
Name:
Title:

    

    

    
      
         

      

      
        C-2-3

        
          

        

      

      
         

      

    

    EXHIBIT
      D

    

     

    OWNER
      TRUSTEE FEE LETTER AGREEMENT

     

    [Retained
      on file at: 

     

    [     ]

     

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

    

    EXHIBIT
      E

    

    TRANSACTION
      PARTIES

    

      
        	
                Depositor

              	
                Thornburg
                  Mortgage Securities Corporation

              

      

      

      
        	
                Indenture
                  Trustee

              	
                [     ]

              

      

      

      
        	
                Owner
                  Trustee

              	
                [     ]

              

      

      

      
        	
                Securities
                  Administrator

              	
                [     ]

              

      

      

      
        	
                Certificate
                  Registrar

              	
                [     ]

              

      

      

      
        	
                Master
                  Servicer

              	
                [     ]

              

      

      

      
        	
                Custodian

              	
                [     ]

              

      

      

      
        	
                Yield
                  Maintenance Counterparty

              	
                [     ]

              

      

      

      
        	
                Auction
                  Swap Counterparty

              	
                [     ]

              

      

      

      
        	
                Auction
                  Administrator

              	
                [     ]

              

      

      

      
        	
                Servicers

              	
                [     ],
                  [     ] and various other
                  servicers

              

      

      

      
        	
                Subservicer

              	
                [     ]

              

      

      

      
        	
                Originators

              	
                [     ],
                  [     ], and various other banks, savings and
                  loan associations and other mortgage lending
                  institutions

              

      

       

      
        	
                Sponsor
                  and Initial Seller

              	
                Thornburg
                  Mortgage Home Loans, Inc.

              

      

      

      
        	
                Seller

              	
                [     ]

              

    

     

    
      
         

      

      
        E-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]