Document:

Filing

Change in Control Agreement dated January 31, 2007 between TransCommunity Financial Corporation and Bruce B. Nolte

EX-10.1

TransCommunity Financial Corporation

Change in Control Agreement

This Change in Control Agreement (this “Agreement”) dated this 31st day of January, 2007, by and between Bruce B. Nolte (“Employee”) and TransCommunity Financial Corporation (the “Company”), shall become effective January 31, 2007.

1.

Change in Control Payments 

a.

Severance Pay

In the event that (i) a Change in Control, as defined herein, occurs during Employee’s employment as a full-time employee of the Company or any 100% owned subsidiary of the Company and (ii) within the period beginning on the date of closing of the Change in Control and ending one (1) year thereafter, Employee’s employment with the Company is terminated by the Company without Cause or by Employee for Good Reason, the Company will owe Employee the severance pay, benefits and vesting of stock awards described in this subsection and subsections b and c below.  If severance pay is owed to Employee, the Company shall pay Employee, within thirty (30) days after his termination of employment or such later date as may be required by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), an amount equal to two times the sum of (i) the Employee's annual base salary in effect on his termination of employment, or Change in Control date, whichever is greater, plus (ii) the amount of bonus, if any, paid to Employee during the calendar year preceding the calendar year in which the Change in Control occurs.  

b.

Benefits

The Company shall continue the payment of all premiums due under the long-term care insurance policy purchased for Employee until all payments under such policy are satisfied.  

c.

Awards

To the extent that Employee has been granted options, stock awards or other equity compensation under the Company’s equity compensation plan, Employee’s interest in such awards shall be fully exercisable, vested and nonforfeitable as of the Change in Control date, to the extent not already exercisable or vested as of such date.

d.

Definitions

“Cause,” for purposes of this Agreement, means fraud, dishonesty, embezzlement, gross negligence or willful misconduct in respect of Employee’s obligations to the Company and this Agreement.  

“Good Reason,” for purposes of this Agreement, means (i) Employee is removed as Chief Executive Officer of the Company, (ii) Employee’s job responsibilities are materially changed and restricted, (iii) Employee’s annual salary rate is decreased, or (iv) Employee’s office is based more than twenty-five (25) miles from the facility where Employee was located ninety (90) days prior to the announcement of the possible Change in Control.

“Change in Control,” for purposes of this Agreement, means the occurrence, with respect to the Company of any of an “Acquisition of Controlling Ownership” (as defined in clause (i) below), a “Business Combination” (as defined in clause (ii) below), a “Liquidation or Dissolution” (as defined in clause (iii) below). 

(i)

“Acquisition of Controlling Ownership” means the acquisition (excluding any registered offerings of the Company’s stock)  by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent (50%) of either (x) the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”).  Notwithstanding the foregoing, for purposes of this clause (i), the following acquisitions shall not constitute a Change in Control:

(A)

any acquisition directly from the Company; 

(B)

any acquisition by the Company; 

(C)

any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or 

(D)

any acquisition by any corporation pursuant to a transaction which complies with paragraphs (A), (B) and (C) of clause (ii) below.

(ii)

“Business Combination” means the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”) unless all of the following occur:

(A)

all or substantially all of the individuals and entities who were the beneficial owners respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries, in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be;

(B)

no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly,  more than thirty percent (30%) of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination, or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination; and

(C)

at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Board of the Company immediately prior to the closing of such Business Combination or were elected by such majority at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination.

(iii)

“Liquidation or Dissolution” means the approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

2.

Limitation on Change in Control Payments

Anything in Section 1 above to the contrary notwithstanding, if, with respect to Employee, the payments that Employee has a right to receive under this Agreement plus any other payments from the Company including but not limited to the acceleration of the exercisability and/or vesting of any awards of Common Stock options to purchase Common Stock, together with any other payments which such Participant has the right to receive from the Company or any other affiliated entity, would constitute an “excess parachute payment” (as defined in Section 280G of the Code), then the payments under this Agreement shall be reduced to (but not below zero) to the largest amount that will result in no portion of such payments being subject to the excise tax imposed by Section 4999 of the Code.  The determination of any reduction pursuant to this Section must be made by the Company in good faith, before any payments are due and payable to Employee.

3.

Nonqualified Deferred Compensation Omnibus Provision

It is intended that any payment or benefit which is provided pursuant to or in connection with this Agreement which is considered to be nonqualified deferred compensation subject to Section 409A of the Code shall be paid and provided in a manner, and at such time and in such form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance.  In connection with effecting such compliance with Section 409A of the Code, the following shall apply: 

(i)

Notwithstanding any other provision of this Agreement, the Company is authorized to amend this Agreement, to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by it to be necessary or appropriate to comply, or to evidence or further evidence required compliance, with Section 409A of the Code (including any transition or grandfather rules thereunder).  

(ii)

Neither the Employee nor the Company shall take any action to accelerate or delay the payment of any monies and/or provision of any benefits in any manner which would not be in compliance with Section 409A of the Code (including any transition or grandfather rules thereunder).  Notwithstanding the foregoing: 

(A)

Payment may be delayed for a reasonable period in the event the payment is not administratively practical due to events beyond the recipient’s control such as where the recipient is not competent to receive the payment, there is a dispute as to amount due or the proper recipient of such payment, additional time is needed to calculate the amount payable, or the payment would jeopardize the solvency of the Company. 

(B)

Payments shall be delayed in the following circumstances:  (1) where the Company reasonably anticipates that the payment will violate the terms of a loan agreement to which the Company is a party and that the violation would cause material harm to the Company; or (2) where the Company reasonably anticipates that the payment will violate Federal securities laws or other applicable laws; provided that any payment delayed by operation of this clause (B) will be made at the earliest date at which the Company reasonably anticipates that the payment will not be limited or cause the violations described. 

(iii)

If the Employee is a specified employee of a publicly traded corporation as required by Section 409A(a)(2)(B)(i) of the Code, and any payment or provision of any benefit hereunder is subject to Section 409A any payment or provision of benefits in connection with a separation from service payment event (as determined for purposes of Section 409A of the Code), as opposed to another payment event permitted under Section 409A, shall not be made until six months after the Employee’s separation from service (the “409A Deferral Period”).  In the event such payments are otherwise due to be made in installments or periodically during the 409A Deferral Period, the payments which would otherwise have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled.  In the event benefits are required to be deferred, any such benefit may be provided during the 409A Deferral Period at the Employee’s expense, with the Employee having a right to reimbursement from the Company once the 409A Deferral Period ends, and the balance of the benefits shall be provided as otherwise scheduled. 

4.

Legal Fees and Expenses

The Company must pay all legal fees and expenses, if any, incurred by Employee in obtaining, enforcing, or defending any right or benefit provided by this Agreement, whether successful or not.  Payments under this Section are not severance and are not subject to reduction under any other section of this Agreement.

5.

No Obligation to Mitigate Damages; No Effect on Other Contractual Rights

Employee shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of payment provided for under this Agreement be reduced by any compensation earned by the Employee as the result of employment by another employer after his termination date, or otherwise.  The amounts payable to Employee under Section 1 hereof shall not be treated as damages but as severance compensation to which the Employee is entitled by reason of termination of Employee’s employment in the circumstances contemplated by this Agreement.

6.

Employment Generally

Upon the effective date of this Agreement, Employee will be an “at will” employee of the Company and this Agreement shall confer no rights to continuing employment.

7.

Notices

All notices, consents, and other communications to, upon, and between the respective parties hereto shall be in writing and shall be deemed to have been given, delivered, or made when sent or mailed by registered or certified mail, postage prepaid, and return receipt requested and addressed to the Company at its principal office in Richmond, Virginia, and to the Employee at his residence as shown upon the employment records of the Company.

8.

Modification

No provision of this Agreement, including any provision of this Section, may be modified, deleted or amended in any manner except by an agreement in writing executed by the parties hereto.

9.

Benefit

All of the terms of this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Company and its successors and assigns and by the Employee and his personal representatives.

10.

Severability

In the event that any part of this Agreement shall be held to be unenforceable or invalid, the remaining parts shall nevertheless continue to be valid and enforceable as though the unenforceable or invalid portions were not a part hereof.

11.

Construction

This Agreement is executed and delivered in the Commonwealth of Virginia, without reference to that jurisdiction’s conflict of law provisions.  This Agreement supersedes all other agreements, whether oral or written, between the Employee and the Company, or any of its affiliated or parent companies, with respect to the terms of Employee’s employment by the Company or any of its affiliated or parent companies.  All such prior agreements are null and void.

12.

Headings

The headings provided herein are for convenience only and shall not affect the interpretation of this Agreement.

13.

Counterparts

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original.

14.

Effective Date

This Agreement shall become effective as provided for in the first paragraph of this Agreement.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

			
	
TransCommunity Financial Corporation
	
Employee

	
/s/ Troy A. Peery, Jr.
	
 
	
/s/ Bruce B. Nolte

	
Troy A. Peery, Jr., Chairman
	
 
	
Bruce B. NolteUnassociated Document

    BEAR
      STEARNS ASSET BACKED SECURITIES I LLC,

     

    Depositor,

     

    EMC
      MORTGAGE CORPORATION,

     

    Seller
      and Company,

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    Master
      Servicer and Securities Administrator,

     

    and

     

    CITIBANK,
      N.A.

     

    Trustee

     

    
      	 	 	 

    

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of December 1, 2006

     

    
      	 	 	 

    

    

    SACO
      I
      TRUST 2007-1

     

    MORTGAGE-BACKED
      CERTIFICATES, SERIES 2007-1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

               

            
	
              Section
                1.01

            	
              Defined
                Terms.

            
	
              Section
                1.02

            	
              Allocation
                of Certain Interest Shortfalls.

            
	 	 
	
              ARTICLE
                II

            
	
              CONVEYANCE
                OF TRUST FUND REPRESENTATIONS AND WARRANTIES

               

            
	
              Section
                2.01

            	
              Conveyance
                of Trust Fund.

            
	
              Section
                2.02

            	
              Acceptance
                of the Mortgage Loans.

            
	
              Section
                2.03

            	
              Representations,
                Warranties and Covenants of the Company, the Master Servicer, and
                EMC as
                Seller.

            
	
              Section
                2.04

            	
              Representations
                and Warranties of the Depositor.

            
	
              Section
                2.05

            	
              Delivery
                of Opinion of Counsel in Connection with Substitutions and
                Repurchases.

            
	
              Section
                2.06

            	
              Countersignature
                and Delivery of Certificates.

            
	
              Section
                2.07

            	
              Purposes
                and Powers of the Trust.

            
	 	 
	
              ARTICLE
                III

            
	
              ADMINISTRATION
                AND SERVICING OF EMC MORTGAGE LOANS BY
                THE COMPANY

               

            
	
              Section
                3.01

            	
              The
                Company.

            
	
              Section
                3.02

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                3.03

            	
              Subservicers.

            
	
              Section
                3.04

            	
              Documents,
                Records and Funds in Possession of the Company to Be Held for
                Trustee.

            
	
              Section
                3.05

            	
              Optional
                Purchase of Certain Mortgage Loans.

            
	
              Section
                3.06

            	
              Release
                of Mortgage Files.

            
	
              Section
                3.07

            	
              Maintenance
                of Hazard Insurance.

            
	
              Section
                3.08

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              Section
                3.09

            	
              Books
                and Records.

            
	
              Section
                3.10

            	
              Custodians
                to Retain Possession of Certain Insurance Policies and
                Documents.

            
	
              Section
                3.11

            	
              Fidelity
                Bond, Errors and Omissions Insurance.

            
	
              Section
                3.12

            	
              Realization
                Upon Defaulted Mortgage Loans; Determination of Excess Liquidation
                Proceeds and Realized Losses; Repurchases of Certain Mortgage
                Loans.

            
	
              Section
                3.13

            	
              Servicing
                Compensation.

            
	
              Section
                3.14

            	
              REO
                Property.

            
	
              Section
                3.15

            	
              Liquidation
                Reports.

            
	
              Section
                3.16

            	
              Annual
                Statement as to Compliance.

            
	
              Section
                3.17

            	
              Assessments
                of Compliance and Attestation Reports.

            
	
              Section
                3.18

            	
              Reports
                Filed with Securities and Exchange Commission.

            
	
              Section
                3.19

            	
              Intention
                of the Parties and Interpretation.

            
	 	 
	
              ARTICLE
                IV

            
	
              MASTER
                SERVICING OF MORTGAGE LOANS BY MASTER SERVICER

               

            
	
              Section
                4.01

            	
              Master
                Servicer.

            
	
              Section
                4.02

            	
              Monitoring
                of Company and Servicers.

            
	
              Section
                4.03

            	
              Fidelity
                Bond.

            
	
              Section
                4.04

            	
              Power
                to Act; Procedures.

            
	
              Section
                4.05

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                4.06

            	
              Documents,
                Records and Funds in Possession of Master Servicer, Company and Servicer
                To Be Held for Trustee.

            
	
              Section
                4.07

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              Section
                4.08

            	
              Realization
                Upon Defaulted Mortgage Loans.

            
	
              Section
                4.09

            	
              Compensation
                of the Master Servicer.

            
	
              Section
                4.10

            	
              REO
                Property.

            
	
              Section
                4.11

            	
              UCC.

            
	
              Section
                4.12

            	
              Reserve
                Fund; Payments to and from Swap Administrator; Supplemental Interest
                Trust.

            
	
              Section
                4.13

            	
              Credit
                Support Account.

            
	
              Section
                4.14

            	
              Tax
                Treatment of Class IO Distribution Amounts in the Event of
                Resecuritization of Class A, Class M or Class B
                Certificates.

            
	
              Section
                4.15

            	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            
	 	 
	
              ARTICLE
                V

            
	
              ACCOUNTS

               

            
	
              Section
                5.01

            	
              Collection
                of Mortgage Loan Payments; Protected Account.

            
	
              Section
                5.02

            	
              Permitted
                Withdrawals From the Protected Account.

            
	
              Section
                5.03

            	
              Reports
                to the Master Servicer.

            
	
              Section
                5.04

            	
              Collection
                of Taxes; Assessments and Similar Items; Escrow
                Accounts.

            
	
              Section
                5.05

            	
              Protected
                Accounts.

            
	
              Section
                5.06

            	
              Distribution
                Account.

            
	
              Section
                5.07

            	
              Permitted
                Withdrawals and Transfers from the Distribution
                Account.

            
	 	 
	
              ARTICLE
                VI

            
	
              DISTRIBUTIONS
                AND ADVANCES

            
	
              Section
                6.01

            	
              Advances.

            
	
              Section
                6.02

            	
              Compensating
                Interest Payments.

            
	
              Section
                6.03

            	
              REMIC
                Distributions.

            
	
              Section
                6.04

            	
              Distributions.

            
	
              Section
                6.05

            	
              Allocation
                of Realized Losses.

            
	
              Section
                6.06

            	
              Monthly
                Statements to Certificateholders.

            
	
              Section
                6.07

            	
              REMIC
                Designations and REMIC Distributions.

            
	 	 
	
              ARTICLE
                VII

            
	
              THE
                CERTIFICATES

               

            
	
              Section
                7.01

            	
              The
                Certificates.

            
	
              Section
                7.02

            	
              Certificate
                Register; Registration of Transfer and Exchange of
                Certificates.

            
	
              Section
                7.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            
	
              Section
                7.04

            	
              Persons
                Deemed Owners.

            
	
              Section
                7.05

            	
              Access
                to List of Certificateholders’ Names and Addresses.

            
	
              Section
                7.06

            	
              Book-Entry
                Certificates.

            
	
              Section
                7.07

            	
              Notices
                to Depository.

            
	
              Section
                7.08

            	
              Definitive
                Certificates.

            
	
              Section
                7.09

            	
              Maintenance
                of Office or Agency.

            
	 	 
	
              ARTICLE
                VIII

            
	
              THE
                DEPOSITOR, THE COMPANy AND THE MASTER SERVICER

               

            
	
              Section
                8.01

            	
              Liabilities
                of the Depositor, the Company and the Master Servicer.

            
	
              Section
                8.02

            	
              Merger
                or Consolidation of the Depositor, the Company or the Master
                Servicer.

            
	
              Section
                8.03

            	
              Indemnification
                of the Trustee, the Master Servicer and the Securities
                Administrator.

            
	
              Section
                8.04

            	
              Limitations
                on Liability of the Depositor, the Company, the Master Servicer and
                Others.

            
	
              Section
                8.05

            	
              Master
                Servicer and Company Not to Resign.

            
	
              Section
                8.06

            	
              Successor
                Master Servicer.

            
	
              Section
                8.07

            	
              Sale
                and Assignment of Master Servicing.

            
	 	 
	
              ARTICLE
                IX

            
	
              DEFAULT;
                TERMINATION OF MASTER SERVICER; TERMINATION
                OF COMPANY

               

            
	
              Section
                9.01

            	
              Events
                of Default.

            
	
              Section
                9.02

            	
              Trustee
                to Act; Appointment of Successor.

            
	
              Section
                9.03

            	
              Notification
                to Certificateholders.

            
	
              Section
                9.04

            	
              Waiver
                of Defaults.

            
	
              Section
                9.05

            	
              Company
                Default.

            
	
              Section
                9.06

            	
              Waiver
                of Company Defaults.

            
	 	 
	
              ARTICLE
                X

            
	
              CONCERNING
                THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

               

            
	
              Section
                10.01

            	
              Duties
                of Trustee and the Securities Administrator.

            
	
              Section
                10.02

            	
              Certain
                Matters Affecting the Trustee and the Securities
                Administrator.

            
	
              Section
                10.03

            	
              Trustee
                and Securities Administrator Not Liable for Certificates or Mortgage
                Loans.

            
	
              Section
                10.04

            	
              Trustee
                and Securities Administrator May Own Certificates.

            
	
              Section
                10.05

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

            
	
              Section
                10.06

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            
	
              Section
                10.07

            	
              Insurance.

            
	
              Section
                10.08

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            
	
              Section
                10.09

            	
              Successor
                Trustee or Securities Administrator.

            
	
              Section
                10.10

            	
              Merger
                or Consolidation of Trustee or Securities
                Administrator.

            
	
              Section
                10.11

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            
	
              Section
                10.12

            	
              Tax
                Matters.

            
	
              Section
                10.13

            	
              REMIC-Related
                Covenants.

            
	 	 
	
              ARTICLE
                XI

            
	
              TERMINATION

               

            
	
              Section
                11.01

            	
              Termination
                upon Liquidation or Repurchase of all Mortgage Loans.

            
	
              Section
                11.02

            	
              Final
                Distribution on the Certificates.

            
	
              Section
                11.03

            	
              Additional
                Termination Requirements.

            
	 	 
	
              ARTICLE
                XII

            
	
              MISCELLANEOUS
                PROVISIONS

               

            
	
              Section
                12.01

            	
              Amendment.

            
	
              Section
                12.02

            	
              Recordation
                of Agreement; Counterparts.

            
	
              Section
                12.03

            	
              Governing
                Law.

            
	
              Section
                12.04

            	
              Intention
                of Parties.

            
	
              Section
                12.05

            	
              Notices.

            
	
              Section
                12.06

            	
              Severability
                of Provisions.

            
	
              Section
                12.07

            	
              Assignment.

            
	
              Section
                12.08

            	
              Limitation
                on Rights of Certificateholders.

            
	
              Section
                12.09

            	
              Inspection
                and Audit Rights.

            
	
              Section
                12.10

            	
              Certificates
                Nonassessable and Fully Paid.

            
	
              Section
                12.11

            	
              Third
                Party Rights.

            

    

     

     

    
 

    
      	
              Exhibits

               

            	 
	
              Exhibit
                A-1

            	
              Form
                of Class A Certificates

            
	
              Exhibit
                A-2

            	
              Form
                of Class M Certificates

            
	
              Exhibit
                A-3

            	
              Form
                of Class B Certificates

            
	
              Exhibit
                A-4

            	
              Form
                of Class C Certificates

            
	
              Exhibit
                A-5

            	
              Form
                of Class R Certificates

            
	
              Exhibit
                A-6

            	
              Form
                of Class X Certificates

            
	
              Exhibit
                B

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C

            	
              Form
                of Transfer Affidavit

            
	
              Exhibit
                D

            	
              Form
                of Transferor Certificate

            
	
              Exhibit
                E

            	
              Form
                of Investment Letter (Non-Rule 144A)

            
	
              Exhibit
                F

            	
              Form
                of Rule 144A and Related Matters Certificate

            
	
              Exhibit
                G

            	
              Form
                of Request for Release

            
	
              Exhibit
                H

            	
              DTC
                Letter of Representations

            
	
              Exhibit
                I

            	
              Schedule
                of Mortgage Loans with Lost Notes

            
	
              Exhibit
                J

            	
              Form
                of LaSalle Custodial Agreement

            
	
              Exhibit
                K 

            	
              Form
                of Wells Fargo Custodial Agreement

            
	
              Exhibit
                L

            	
              Form
                of Mortgage Loan Purchase Agreement

            
	
              Exhibit
                M

            	
              Form
                of Back-Up Certification

            
	
              Exhibit
                N

            	
              Swap
                Agreement

            
	
              Exhibit
                O

            	
              Servicing
                Criteria to Be Addressed in Assessment of Compliance

            
	
              Exhibit
                P

            	
              Form
                10-D, Form 8-K and Form 10-K Reporting Responsibility

            
	
              Exhibit
                Q

            	
              Additional
                Disclosure Notification

            
	
              Exhibit
                R-1

            	
              Form
                of GMACM Servicing Agreement

            
	
              Exhibit
                R-2

            	
              Form
                of GMACM Assignment, Assumption and Recognition
                Agreement

            
	
              Exhibit
                R-3

            	
              Form
                of HomeBanc Servicing Agreement

            
	
              Exhibit
                R-4

            	
              Form
                of HomeBanc Assignment, Assumption and Recognition
                Agreement

            
	
              Exhibit
                S

            	
              Reporting
                Data for Monthly Report

            
	
              Exhibit
                T

            	
              Reporting
                Data for Defaulted Loans

            
	
              Exhibit
                U

            	
              Reporting
                Data for Realized Losses and Gains

            
	
              Exhibit
                V

            	
              Form
                of Certification to be provided by the Securities Administrator to
                the
                Depositor

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    POOLING
      AND SERVICING AGREEMENT, dated as of December 1, 2006, among BEAR STEARNS ASSET
      BACKED SECURITIES I LLC, a Delaware limited liability company, as depositor
      (the
“Depositor”), EMC MORTGAGE CORPORATION, a Delaware corporation, as seller (in
      such capacity, the “Seller”) and as company (in such capacity, the “Company”),
      WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as
      master servicer (in such capacity, the “Master Servicer”) and as securities
      administrator (in such capacity, the “Securities Administrator”), and CITIBANK,
      N.A., a national banking association, as trustee (the “Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates. On or prior to the Closing Date, the Depositor
      acquired the Mortgage Loans from the Seller. On the Closing Date, the Depositor
      will sell the Mortgage Loans and certain other property to the Trust Fund and
      receive in consideration therefor Certificates evidencing the entire beneficial
      ownership interest in the Trust Fund.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator, on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the Mortgage Loans
      and certain other related assets subject to this Agreement (other than the
      Reserve Fund, any Prepayment Charge Waiver Amounts and, for the avoidance of
      doubt, the Supplemental Interest Trust, the Swap Agreement, the Swap Account,
      the Credit Support Account and any rights or obligations in respect of the
      Swap Administration Agreement) as a REMIC (as defined herein) for federal income
      tax purposes, and such segregated pool of assets will be designated as “REMIC
      I”. The Class R-1 Certificates will represent the sole class of Residual
      Interests (as defined herein) in REMIC I for purposes of the REMIC Provisions
      (as defined herein). The following table irrevocably sets forth the designation,
      the Uncertificated REMIC I Pass-Through Rate, the initial Uncertificated
      Principal Balance and, for purposes of satisfying Treasury Regulation Section
      1.860G-1(a)(4)(iii), the “latest possible maturity date” for each of the REMIC I
      Regular Interests (as defined herein). None of the REMIC I Regular Interests
      will be certificated.

     

    
      	
               

              Designation

            	
              Uncertificated
                REMIC I 

              Pass-Through
                Rate

            	
              Initial
                Uncertificated Principal Balance

            	
              Latest
                Possible 

              Maturity
                Date (1)

            
	
              I-1-A

            	
              Variable(2)

            	
              $

            	
              3,345,505.52

            	 	
              January
                25, 2037

            
	
              I-1-B

            	
              Variable(2)

            	
              $

            	
              3,345,505.52

            	 	
              January
                25, 2037

            
	
              I-2-A

            	
              Variable(2)

            	
              $

            	
              3,226,984.42

            	 	
              January
                25, 2037

            
	
              I-2-B

            	
              Variable(2)

            	
              $

            	
              3,226,984.42

            	 	
              January
                25, 2037

            
	
              I-3-A

            	
              Variable(2)

            	
              $

            	
              3,112,657.01

            	 	
              January
                25, 2037

            
	
              I-3-B

            	
              Variable(2)

            	
              $

            	
              3,112,657.01

            	 	
              January
                25, 2037

            
	
              I-4-A

            	
              Variable(2)

            	
              $

            	
              3,002,375.03

            	 	
              January
                25, 2037

            
	
              I-4-B

            	
              Variable(2)

            	
              $

            	
              3,002,375.03

            	 	
              January
                25, 2037

            
	
              I-5-A

            	
              Variable(2)

            	
              $

            	
              2,895,995.47

            	 	
              January
                25, 2037

            
	
              I-5-B

            	
              Variable(2)

            	
              $

            	
              2,895,995.47

            	 	
              January
                25, 2037

            
	
              I-6-A

            	
              Variable(2)

            	
              $

            	
              2,793,380.37

            	 	
              January
                25, 2037

            
	
              I-6-B

            	
              Variable(2)

            	
              $

            	
              2,793,380.37

            	 	
              January
                25, 2037

            
	
              I-7-A

            	
              Variable(2)

            	
              $

            	
              2,694,396.63

            	 	
              January
                25, 2037

            
	
              I-7-B

            	
              Variable(2)

            	
              $

            	
              2,694,396.63

            	 	
              January
                25, 2037

            
	
              I-8-A

            	
              Variable(2)

            	
              $

            	
              2,598,915.87

            	 	
              January
                25, 2037

            
	
              I-8-B

            	
              Variable(2)

            	
              $

            	
              2,598,915.87

            	 	
              January
                25, 2037

            
	
              I-9-A

            	
              Variable(2)

            	
              $

            	
              2,506,814.23

            	 	
              January
                25, 2037

            
	
              I-9-B

            	
              Variable(2)

            	
              $

            	
              2,506,814.23

            	 	
              January
                25, 2037

            
	
              I-10-A

            	
              Variable(2)

            	
              $

            	
              2,417,972.25

            	 	
              January
                25, 2037

            
	
              I-10-B

            	
              Variable(2)

            	
              $

            	
              2,417,972.25

            	 	
              January
                25, 2037

            
	
              I-11-A

            	
              Variable(2)

            	
              $

            	
              2,332,274.66

            	 	
              January
                25, 2037

            
	
              I-11-B

            	
              Variable(2)

            	
              $

            	
              2,332,274.66

            	 	
              January
                25, 2037

            
	
              I-12-A

            	
              Variable(2)

            	
              $

            	
              2,249,610.30

            	 	
              January
                25, 2037

            
	
              I-12-B

            	
              Variable(2)

            	
              $

            	
              2,249,610.30

            	 	
              January
                25, 2037

            
	
              I-13-A

            	
              Variable(2)

            	
              $

            	
              2,169,871.89

            	 	
              January
                25, 2037

            
	
              I-13-B

            	
              Variable(2)

            	
              $

            	
              2,169,871.89

            	 	
              January
                25, 2037

            
	
              I-14-A

            	
              Variable(2)

            	
              $

            	
              2,092,955.98

            	 	
              January
                25, 2037

            
	
              I-14-B

            	
              Variable(2)

            	
              $

            	
              2,092,955.98

            	 	
              January
                25, 2037

            
	
              I-15-A

            	
              Variable(2)

            	
              $

            	
              2,018,762.77

            	 	
              January
                25, 2037

            
	
              I-15-B

            	
              Variable(2)

            	
              $

            	
              2,018,762.77

            	 	
              January
                25, 2037

            
	
              I-16-A

            	
              Variable(2)

            	
              $

            	
              1,947,195.97

            	 	
              January
                25, 2037

            
	
              I-16-B

            	
              Variable(2)

            	
              $

            	
              1,947,195.97

            	 	
              January
                25, 2037

            
	
              I-17-A

            	
              Variable(2)

            	
              $

            	
              1,878,162.69

            	 	
              January
                25, 2037

            
	
              I-17-B

            	
              Variable(2)

            	
              $

            	
              1,878,162.69

            	 	
              January
                25, 2037

            
	
              I-18-A

            	
              Variable(2)

            	
              $

            	
              1,811,573.36

            	 	
              January
                25, 2037

            
	
              I-18-B

            	
              Variable(2)

            	
              $

            	
              1,811,573.36

            	 	
              January
                25, 2037

            
	
              I-19-A

            	
              Variable(2)

            	
              $

            	
              1,747,341.52

            	 	
              January
                25, 2037

            
	
              I-19-B

            	
              Variable(2)

            	
              $

            	
              1,747,341.52

            	 	
              January
                25, 2037

            
	
              I-20-A

            	
              Variable(2)

            	
              $

            	
              1,685,383.82

            	 	
              January
                25, 2037

            
	
              I-20-B

            	
              Variable(2)

            	
              $

            	
              1,685,383.82

            	 	
              January
                25, 2037

            
	
              I-21-A

            	
              Variable(2)

            	
              $

            	
              1,625,619.81

            	 	
              January
                25, 2037

            
	
              I-21-B

            	
              Variable(2)

            	
              $

            	
              1,625,619.81

            	 	
              January
                25, 2037

            
	
              I-22-A

            	
              Variable(2)

            	
              $

            	
              1,567,971.92

            	 	
              January
                25, 2037

            
	
              I-22-B

            	
              Variable(2)

            	
              $

            	
              1,567,971.92

            	 	
              January
                25, 2037

            
	
              I-23-A

            	
              Variable(2)

            	
              $

            	
              1,512,365.29

            	 	
              January
                25, 2037

            
	
              I-23-B

            	
              Variable(2)

            	
              $

            	
              1,512,365.29

            	 	
              January
                25, 2037

            
	
              I-24-A

            	
              Variable(2)

            	
              $

            	
              1,458,727.72

            	 	
              January
                25, 2037

            
	
              I-24-B

            	
              Variable(2)

            	
              $

            	
              1,458,727.72

            	 	
              January
                25, 2037

            
	
              I-25-A

            	
              Variable(2)

            	
              $

            	
              1,406,989.57

            	 	
              January
                25, 2037

            
	
              I-25-B

            	
              Variable(2)

            	
              $

            	
              1,406,989.57

            	 	
              January
                25, 2037

            
	
              I-26-A

            	
              Variable(2)

            	
              $

            	
              1,357,083.65

            	 	
              January
                25, 2037

            
	
              I-26-B

            	
              Variable(2)

            	
              $

            	
              1,357,083.65

            	 	
              January
                25, 2037

            
	
              I-27-A

            	
              Variable(2)

            	
              $

            	
              1,308,945.15

            	 	
              January
                25, 2037

            
	
              I-27-B

            	
              Variable(2)

            	
              $

            	
              1,308,945.15

            	 	
              January
                25, 2037

            
	
              I-28-A

            	
              Variable(2)

            	
              $

            	
              1,262,511.54

            	 	
              January
                25, 2037

            
	
              I-28-B

            	
              Variable(2)

            	
              $

            	
              1,262,511.54

            	 	
              January
                25, 2037

            
	
              I-29-A

            	
              Variable(2)

            	
              $

            	
              1,217,722.51

            	 	
              January
                25, 2037

            
	
              I-29-B

            	
              Variable(2)

            	
              $

            	
              1,217,722.51

            	 	
              January
                25, 2037

            
	
              I-30-A

            	
              Variable(2)

            	
              $

            	
              1,174,519.88

            	 	
              January
                25, 2037

            
	
              I-30-B

            	
              Variable(2)

            	
              $

            	
              1,174,519.88

            	 	
              January
                25, 2037

            
	
              I-31-A

            	
              Variable(2)

            	
              $

            	
              1,132,847.54

            	 	
              January
                25, 2037

            
	
              I-31-B

            	
              Variable(2)

            	
              $

            	
              1,132,847.54

            	 	
              January
                25, 2037

            
	
              I-32-A

            	
              Variable(2)

            	
              $

            	
              1,092,651.33

            	 	
              January
                25, 2037

            
	
              I-32-B

            	
              Variable(2)

            	
              $

            	
              1,092,651.33

            	 	
              January
                25, 2037

            
	
              I-33-A

            	
              Variable(2)

            	
              $

            	
              1,053,879.03

            	 	
              January
                25, 2037

            
	
              I-33-B

            	
              Variable(2)

            	
              $

            	
              1,053,879.03

            	 	
              January
                25, 2037

            
	
              I-34-A

            	
              Variable(2)

            	
              $

            	
              1,016,480.27

            	 	
              January
                25, 2037

            
	
              I-34-B

            	
              Variable(2)

            	
              $

            	
              1,016,480.27

            	 	
              January
                25, 2037

            
	
              I-35-A

            	
              Variable(2)

            	
              $

            	
              980,406.45

            	 	
              January
                25, 2037

            
	
              I-35-B

            	
              Variable(2)

            	
              $

            	
              980,406.45

            	 	
              January
                25, 2037

            
	
              I-36-A

            	
              Variable(2)

            	
              $

            	
              945,610.67

            	 	
              January
                25, 2037

            
	
              I-36-B

            	
              Variable(2)

            	
              $

            	
              945,610.67

            	 	
              January
                25, 2037

            
	
              I-37-A

            	
              Variable(2)

            	
              $

            	
              912,047.72

            	 	
              January
                25, 2037

            
	
              I-37-B

            	
              Variable(2)

            	
              $

            	
              912,047.72

            	 	
              January
                25, 2037

            
	
              I-38-A

            	
              Variable(2)

            	
              $

            	
              879,673.98

            	 	
              January
                25, 2037

            
	
              I-38-B

            	
              Variable(2)

            	
              $

            	
              879,673.98

            	 	
              January
                25, 2037

            
	
              I-39-A

            	
              Variable(2)

            	
              $

            	
              848,447.36

            	 	
              January
                25, 2037

            
	
              I-39-B

            	
              Variable(2)

            	
              $

            	
              848,447.36

            	 	
              January
                25, 2037

            
	
              I-40-A

            	
              Variable(2)

            	
              $

            	
              818,327.27

            	 	
              January
                25, 2037

            
	
              I-40-B

            	
              Variable(2)

            	
              $

            	
              818,327.27

            	 	
              January
                25, 2037

            
	
              I-41-A

            	
              Variable(2)

            	
              $

            	
              789,274.55

            	 	
              January
                25, 2037

            
	
              I-41-B

            	
              Variable(2)

            	
              $

            	
              789,274.55

            	 	
              January
                25, 2037

            
	
              I-42-A

            	
              Variable(2)

            	
              $

            	
              761,251.41

            	 	
              January
                25, 2037

            
	
              I-42-B

            	
              Variable(2)

            	
              $

            	
              761,251.41

            	 	
              January
                25, 2037

            
	
              I-43-A

            	
              Variable(2)

            	
              $

            	
              734,221.43

            	 	
              January
                25, 2037

            
	
              I-43-B

            	
              Variable(2)

            	
              $

            	
              734,221.43

            	 	
              January
                25, 2037

            
	
              I-44-A

            	
              Variable(2)

            	
              $

            	
              708,149.46

            	 	
              January
                25, 2037

            
	
              I-44-B

            	
              Variable(2)

            	
              $

            	
              708,149.46

            	 	
              January
                25, 2037

            
	
              I-45-A

            	
              Variable(2)

            	
              $

            	
              19,181,779.45

            	 	
              January
                25, 2037

            
	
              I-45-B

            	
              Variable(2)

            	
              $

            	
              19,181,779.45

            	 	
              January
                25, 2037

            
	
              II-1-A

            	
              Variable(2)

            	
              $

            	
              1,244,451.80

            	 	
              January
                25, 2037

            
	
              II-1-B

            	
              Variable(2)

            	
              $

            	
              1,244,451.80

            	 	
              January
                25, 2037

            
	
              II-2-A

            	
              Variable(2)

            	
              $

            	
              1,200,364.65

            	 	
              January
                25, 2037

            
	
              II-2-B

            	
              Variable(2)

            	
              $

            	
              1,200,364.65

            	 	
              January
                25, 2037

            
	
              II-3-A

            	
              Variable(2)

            	
              $

            	
              1,157,837.46

            	 	
              January
                25, 2037

            
	
              II-3-B

            	
              Variable(2)

            	
              $

            	
              1,157,837.46

            	 	
              January
                25, 2037

            
	
              II-4-A

            	
              Variable(2)

            	
              $

            	
              1,116,815.08

            	 	
              January
                25, 2037

            
	
              II-4-B

            	
              Variable(2)

            	
              $

            	
              1,116,815.08

            	 	
              January
                25, 2037

            
	
              II-5-A

            	
              Variable(2)

            	
              $

            	
              1,077,244.31

            	 	
              January
                25, 2037

            
	
              II-5-B

            	
              Variable(2)

            	
              $

            	
              1,077,244.31

            	 	
              January
                25, 2037

            
	
              II-6-A

            	
              Variable(2)

            	
              $

            	
              1,039,073.83

            	 	
              January
                25, 2037

            
	
              II-6-B

            	
              Variable(2)

            	
              $

            	
              1,039,073.83

            	 	
              January
                25, 2037

            
	
              II-7-A

            	
              Variable(2)

            	
              $

            	
              1,002,254.13

            	 	
              January
                25, 2037

            
	
              II-7-B

            	
              Variable(2)

            	
              $

            	
              1,002,254.13

            	 	
              January
                25, 2037

            
	
              II-8-A

            	
              Variable(2)

            	
              $

            	
              966,737.47

            	 	
              January
                25, 2037

            
	
              II-8-B

            	
              Variable(2)

            	
              $

            	
              966,737.47

            	 	
              January
                25, 2037

            
	
              II-9-A

            	
              Variable(2)

            	
              $

            	
              932,477.76

            	 	
              January
                25, 2037

            
	
              II-9-B

            	
              Variable(2)

            	
              $

            	
              932,477.76

            	 	
              January
                25, 2037

            
	
              II-10-A

            	
              Variable(2)

            	
              $

            	
              899,430.56

            	 	
              January
                25, 2037

            
	
              II-10-B

            	
              Variable(2)

            	
              $

            	
              899,430.56

            	 	
              January
                25, 2037

            
	
              II-11-A

            	
              Variable(2)

            	
              $

            	
              867,553.02

            	 	
              January
                25, 2037

            
	
              II-11-B

            	
              Variable(2)

            	
              $

            	
              867,553.02

            	 	
              January
                25, 2037

            
	
              II-12-A

            	
              Variable(2)

            	
              $

            	
              836,803.76

            	 	
              January
                25, 2037

            
	
              II-12-B

            	
              Variable(2)

            	
              $

            	
              836,803.76

            	 	
              January
                25, 2037

            
	
              II-13-A

            	
              Variable(2)

            	
              $

            	
              807,142.89

            	 	
              January
                25, 2037

            
	
              II-13-B

            	
              Variable(2)

            	
              $

            	
              807,142.89

            	 	
              January
                25, 2037

            
	
              II-14-A

            	
              Variable(2)

            	
              $

            	
              778,531.92

            	 	
              January
                25, 2037

            
	
              II-14-B

            	
              Variable(2)

            	
              $

            	
              778,531.92

            	 	
              January
                25, 2037

            
	
              II-15-A

            	
              Variable(2)

            	
              $

            	
              750,933.74

            	 	
              January
                25, 2037

            
	
              II-15-B

            	
              Variable(2)

            	
              $

            	
              750,933.74

            	 	
              January
                25, 2037

            
	
              II-16-A

            	
              Variable(2)

            	
              $

            	
              724,312.52

            	 	
              January
                25, 2037

            
	
              II-16-B

            	
              Variable(2)

            	
              $

            	
              724,312.52

            	 	
              January
                25, 2037

            
	
              II-17-A

            	
              Variable(2)

            	
              $

            	
              698,633.71

            	 	
              January
                25, 2037

            
	
              II-17-B

            	
              Variable(2)

            	
              $

            	
              698,633.71

            	 	
              January
                25, 2037

            
	
              II-18-A

            	
              Variable(2)

            	
              $

            	
              673,864.00

            	 	
              January
                25, 2037

            
	
              II-18-B

            	
              Variable(2)

            	
              $

            	
              673,864.00

            	 	
              January
                25, 2037

            
	
              II-19-A

            	
              Variable(2)

            	
              $

            	
              649,971.22

            	 	
              January
                25, 2037

            
	
              II-19-B

            	
              Variable(2)

            	
              $

            	
              649,971.22

            	 	
              January
                25, 2037

            
	
              II-20-A

            	
              Variable(2)

            	
              $

            	
              626,924.37

            	 	
              January
                25, 2037

            
	
              II-20-B

            	
              Variable(2)

            	
              $

            	
              626,924.37

            	 	
              January
                25, 2037

            
	
              II-21-A

            	
              Variable(2)

            	
              $

            	
              604,693.52

            	 	
              January
                25, 2037

            
	
              II-21-B

            	
              Variable(2)

            	
              $

            	
              604,693.52

            	 	
              January
                25, 2037

            
	
              II-22-A

            	
              Variable(2)

            	
              $

            	
              583,249.82

            	 	
              January
                25, 2037

            
	
              II-22-B

            	
              Variable(2)

            	
              $

            	
              583,249.82

            	 	
              January
                25, 2037

            
	
              II-23-A

            	
              Variable(2)

            	
              $

            	
              562,565.42

            	 	
              January
                25, 2037

            
	
              II-23-B

            	
              Variable(2)

            	
              $

            	
              562,565.42

            	 	
              January
                25, 2037

            
	
              II-24-A

            	
              Variable(2)

            	
              $

            	
              542,613.46

            	 	
              January
                25, 2037

            
	
              II-24-B

            	
              Variable(2)

            	
              $

            	
              542,613.46

            	 	
              January
                25, 2037

            
	
              II-25-A

            	
              Variable(2)

            	
              $

            	
              523,368.05

            	 	
              January
                25, 2037

            
	
              II-25-B

            	
              Variable(2)

            	
              $

            	
              523,368.05

            	 	
              January
                25, 2037

            
	
              II-26-A

            	
              Variable(2)

            	
              $

            	
              504,804.19

            	 	
              January
                25, 2037

            
	
              II-26-B

            	
              Variable(2)

            	
              $

            	
              504,804.19

            	 	
              January
                25, 2037

            
	
              II-27-A

            	
              Variable(2)

            	
              $

            	
              486,897.76

            	 	
              January
                25, 2037

            
	
              II-27-B

            	
              Variable(2)

            	
              $

            	
              486,897.76

            	 	
              January
                25, 2037

            
	
              II-28-A

            	
              Variable(2)

            	
              $

            	
              469,625.52

            	 	
              January
                25, 2037

            
	
              II-28-B

            	
              Variable(2)

            	
              $

            	
              469,625.52

            	 	
              January
                25, 2037

            
	
              II-29-A

            	
              Variable(2)

            	
              $

            	
              452,965.02

            	 	
              January
                25, 2037

            
	
              II-29-B

            	
              Variable(2)

            	
              $

            	
              452,965.02

            	 	
              January
                25, 2037

            
	
              II-30-A

            	
              Variable(2)

            	
              $

            	
              436,894.63

            	 	
              January
                25, 2037

            
	
              II-30-B

            	
              Variable(2)

            	
              $

            	
              436,894.63

            	 	
              January
                25, 2037

            
	
              II-31-A

            	
              Variable(2)

            	
              $

            	
              421,393.46

            	 	
              January
                25, 2037

            
	
              II-31-B

            	
              Variable(2)

            	
              $

            	
              421,393.46

            	 	
              January
                25, 2037

            
	
              II-32-A

            	
              Variable(2)

            	
              $

            	
              406,441.39

            	 	
              January
                25, 2037

            
	
              II-32-B

            	
              Variable(2)

            	
              $

            	
              406,441.39

            	 	
              January
                25, 2037

            
	
              II-33-A

            	
              Variable(2)

            	
              $

            	
              392,018.98

            	 	
              January
                25, 2037

            
	
              II-33-B

            	
              Variable(2)

            	
              $

            	
              392,018.98

            	 	
              January
                25, 2037

            
	
              II-34-A

            	
              Variable(2)

            	
              $

            	
              378,107.49

            	 	
              January
                25, 2037

            
	
              II-34-B

            	
              Variable(2)

            	
              $

            	
              378,107.49

            	 	
              January
                25, 2037

            
	
              II-35-A

            	
              Variable(2)

            	
              $

            	
              364,688.85

            	 	
              January
                25, 2037

            
	
              II-35-B

            	
              Variable(2)

            	
              $

            	
              364,688.85

            	 	
              January
                25, 2037

            
	
              II-36-A

            	
              Variable(2)

            	
              $

            	
              351,745.62

            	 	
              January
                25, 2037

            
	
              II-36-B

            	
              Variable(2)

            	
              $

            	
              351,745.62

            	 	
              January
                25, 2037

            
	
              II-37-A

            	
              Variable(2)

            	
              $

            	
              339,260.97

            	 	
              January
                25, 2037

            
	
              II-37-B

            	
              Variable(2)

            	
              $

            	
              339,260.97

            	 	
              January
                25, 2037

            
	
              II-38-A

            	
              Variable(2)

            	
              $

            	
              327,218.67

            	 	
              January
                25, 2037

            
	
              II-38-B

            	
              Variable(2)

            	
              $

            	
              327,218.67

            	 	
              January
                25, 2037

            
	
              II-39-A

            	
              Variable(2)

            	
              $

            	
              315,603.08

            	 	
              January
                25, 2037

            
	
              II-39-B

            	
              Variable(2)

            	
              $

            	
              315,603.08

            	 	
              January
                25, 2037

            
	
              II-40-A

            	
              Variable(2)

            	
              $

            	
              304,399.09

            	 	
              January
                25, 2037

            
	
              II-40-B

            	
              Variable(2)

            	
              $

            	
              304,399.09

            	 	
              January
                25, 2037

            
	
              II-41-A

            	
              Variable(2)

            	
              $

            	
              293,592.14

            	 	
              January
                25, 2037

            
	
              II-41-B

            	
              Variable(2)

            	
              $

            	
              293,592.14

            	 	
              January
                25, 2037

            
	
              II-42-A

            	
              Variable(2)

            	
              $

            	
              283,168.18

            	 	
              January
                25, 2037

            
	
              II-42-B

            	
              Variable(2)

            	
              $

            	
              283,168.18

            	 	
              January
                25, 2037

            
	
              II-43-A

            	
              Variable(2)

            	
              $

            	
              273,113.64

            	 	
              January
                25, 2037

            
	
              II-43-B

            	
              Variable(2)

            	
              $

            	
              273,113.64

            	 	
              January
                25, 2037

            
	
              II-44-A

            	
              Variable(2)

            	
              $

            	
              263,415.46

            	 	
              January
                25, 2037

            
	
              II-44-B

            	
              Variable(2)

            	
              $

            	
              263,415.46

            	 	
              January
                25, 2037

            
	
              II-45-A

            	
              Variable(2)

            	
              $

            	
              7,135,184.76

            	 	
              January
                25, 2037

            
	
              II-45-B

            	
              Variable(2)

            	
              $

            	
              7,135,184.76

            	 	
              January
                25, 2037

            

    

    _____________________________________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for each REMIC I Regular Interest.

     

    (2) Calculated
      in accordance with the definition of “Uncertificated REMIC I Pass-Through Rate”
herein.

     

    REMIC
      II

     

    As
      provided herein, the
      Securities Administrator on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the REMIC I Regular
      Interests as a REMIC for federal income tax purposes, and such segregated pool
      of assets will be designated as “REMIC II”. The Class R-2 Certificates will
      represent the sole class of Residual Interests in REMIC II for purposes of
      the
      REMIC Provisions. The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      II Pass-Through Rate, the initial Uncertificated Principal Balance and, for
      purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each of the REMIC II Regular Interests (as
      defined herein). None of the REMIC II Regular Interests will be
      certificated.

     

    
      	
              Designation

            	
              Uncertificated
                REMIC II

              Pass-Through
                Rate

            	
              Initial
                Uncertificated Principal Balance

            	
              Latest
                Possible Maturity Date (1)

            
	
              AA

            	
              Variable(2)

            	
              $

            	
              126,757,141.63

            	 	
              January
                25, 2037

            
	
              I-A

            	
              Variable(2)

            	
              $

            	
              677,840.00

            	 	
              January
                25, 2037

            
	
              II-A

            	
              Variable(2)

            	
              $

            	
              252,145.00

            	 	
              January
                25, 2037

            
	
              M-1

            	
              Variable(2)

            	
              $

            	
              60,790.00

            	 	
              January
                25, 2037

            
	
              M-2

            	
              Variable(2)

            	
              $

            	
              60,790.00

            	 	
              January
                25, 2037

            
	
              M-3

            	
              Variable(2)

            	
              $

            	
              27,810.00

            	 	
              January
                25, 2037

            
	
              M-4

            	
              Variable(2)

            	
              $

            	
              27,810.00

            	 	
              January
                25, 2037

            
	
              M-5

            	
              Variable(2)

            	
              $

            	
              26,515.00

            	 	
              January
                25, 2037

            
	
              M-6

            	
              Variable(2)

            	
              $

            	
              19,400.00

            	 	
              January
                25, 2037

            
	
              B-1

            	
              Variable(2)

            	
              $

            	
              20,695.00

            	 	
              January
                25, 2037

            
	
              B-2

            	
              Variable(2)

            	
              $

            	
              14,875.00

            	 	
              January
                25, 2037

            
	
              B-3

            	
              Variable(2)

            	
              $

            	
              18,110.00

            	 	
              January
                25, 2037

            
	
              B-4

            	
              Variable(2)

            	
              $

            	
              23,280.00

            	 	
              January
                25, 2037

            
	
              ZZ

            	
              Variable(2)

            	
              $

            	
              1,356,820.44

            	 	
              January
                25, 2037

            
	
              IO

            	
              (2)

            	
              $

            	
              (3)

            	 	
              January
                25, 2037

            
	
              1-Sub

            	
              Variable(2)

            	
              $

            	
              5,298.33

            	 	
              January
                25, 2037

            
	
              1-Grp

            	
              Variable(2)

            	
              $

            	
              18,855.13

            	 	
              January
                25, 2037

            
	
              2-Sub

            	
              Variable(2)

            	
              $

            	
              1,970.78

            	 	
              January
                25, 2037

            
	
              2-Grp

            	
              Variable(2)

            	
              $

            	
              7,013.68

            	 	
              January
                25, 2037

            
	
              XX

            	
              Variable(2)

            	
              $

            	
              129,310,884.16

            	 	
              January
                25, 2037

            

    

    ___________________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each REMIC II Regular
                Interest

            

    

    .

    
      	
              (2)

            	
              Calculated
                in accordance with the definition of “Uncertificated REMIC II Pass-Through
                Rate” herein.

            

    

    

    
      	
              (3)

            	
              REMIC
                II Regular Interest IO will not have an Uncertificated Principal
                Balance
                but will accrue interest on its uncertificated notional amount calculated
                in accordance with the definition of “Uncertificated Notional Amount”
                herein.

            

    

    

     

    

     

    CERTIFICATES

    

    As
      provided herein, the Securities Administrator on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the REMIC II Regular
      Interests as a REMIC for federal income tax purposes, and such segregated pool
      of assets will be designated as “REMIC III”. The Class R-3 Certificates will
      represent the sole class of Residual Interests in REMIC III for purposes of
      the
      REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, Pass-Through Rate,
      Initial Certificate Principal Balance (or initial Uncertificated Principal
      Balance, in the case of the Class C Interest and the Class IO Interest) and,
      for
      purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each class of Certificates and interests
      that represents ownership of one or more of the Regular Interests in REMIC
      III
      created hereunder. The Trust Fund will also issue the Class X Certificates,
      as
      designated below, which will not represent a Regular Interest in any REMIC
      created hereunder. 

     

    Each
      Certificate, other than the Class C, Class X and Class R Certificates,
      represents ownership of a Regular Interest in REMIC III and also represents
      (i)
      the right to receive certain amounts specified herein in respect of Basis Risk
      Shortfall Carry Forward Amounts (as defined herein) and (ii) the obligation
      to
      pay Class IO Distribution Amounts (as defined herein). The entitlement to
      principal of the Regular Interest which corresponds to each Certificate shall
      be
      equal in amount and timing to the entitlement to principal of such Certificate.
      

     

    
      	
              Designation

            	
              Pass-Through
                Rate

            	
              Initial
                Certificate

              or
                Uncertificated

              Principal
                Balance

            	
              Latest
                Possible

              Maturity
                Date (1)

            
	
              I-A(2)

            	
              Variable(3)

            	
              $

            	
              135,568,000.00

            	
              January
                25, 2037

            
	
              II-A(2)

            	
              Variable(3)

            	
              $

            	
              50,429,000.00

            	
              January
                25, 2037

            
	
              M-1(2)

            	
              Variable(3)

            	
              $

            	
              12,158,000.00

            	
              January
                25, 2037

            
	
              M-2(2)

            	
              Variable(3)

            	
              $

            	
              12,158,000.00

            	
              January
                25, 2037

            
	
              M-3(2)

            	
              Variable(3)

            	
              $

            	
              5,562,000.00

            	
              January
                25, 2037

            
	
              M-4(2)

            	
              Variable(3)

            	
              $

            	
              5,562,000.00

            	
              January
                25, 2037

            
	
              M-5(2)

            	
              Variable(3)

            	
              $

            	
              5,303,000.00

            	
              January
                25, 2037

            
	
              M-6(2)

            	
              Variable(3)

            	
              $

            	
              3,880,000.00

            	
              January
                25, 2037

            
	
              B-1(2)

            	
              Variable(3)

            	
              $

            	
              4,139,000.00

            	
              January
                25, 2037

            
	
              B-2(2)

            	
              Variable(3)

            	
              $

            	
              2,975,000.00

            	
              January
                25, 2037

            
	
              B-3(2)

            	
              Variable(3)

            	
              $

            	
              3,622,000.00

            	
              January
                25, 2037

            
	
              B-4(2)

            	
              Variable(3)

            	
              $

            	
              4,656,000.00

            	
              January
                25, 2037

            
	
              Class
                C Interest

            	
              Variable(3)(4)

            	
              $

            	
              12,676,044.14

            	
              January
                25, 2037

            
	
              Class
                IO Interest

            	
              (5)

            	 	
              (6)

            	
              January
                25, 2037

            
	
              X

            	
              N/A

            	 	
              N/A

            	
              January
                25, 2037

            

    

    

    ______________________________________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for each REMIC III Regular Interest (as defined
      herein).

     

    (2) This
      Class of Certificates represents ownership of a Regular Interest in REMIC III.
      Any amount distributed on this Class of Certificates on any Distribution Date
      in
      excess of the amount distributable on the related Regular Interest in REMIC
      III
      on such Distribution Date shall be treated for federal income tax purposes
      as
      having been paid from the Reserve Fund or the Supplemental Interest Trust,
      as
      applicable, and any amount distributable on the related Regular Interest in
      REMIC III on such Distribution Date in excess of the amount distributable on
      such Class of Certificates on such Distribution Date shall be treated for such
      purposes as having been distributed to the Holders of such Certificates and
      then
      paid by such Holders to the Supplemental Interest Trust, all pursuant to and
      as
      further provided in Section 4.12 hereof.

     

    (3) Calculated
      in accordance with the definition of “Pass-Through Rate” herein. Each Regular
      Interest in REMIC III which corresponds to a Class A, Class M or Class B
      Certificate will have the same Pass-Through Rate as such Certificate, except
      with respect to the related Net WAC Cap Rate. The Net WAC Cap Rate for each
      such
      Regular Interest in REMIC III and Certificate is specified in the definition
      of
“Net WAC Cap Rate.”

     

    (4)
       The
      Class
      C Interest will not accrue interest on its Uncertificated Principal Balance,
      but
      will accrue interest on its Uncertificated Notional Amount as described
      herein. 

     

    (5) For
      federal income tax purposes, the Class IO Interest will not have a Pass-Through
      Rate, but will be entitled to 100% of the amounts distributed on REMIC II
      Regular Interest IO.

    

    (6) For
      federal income tax purposes, the Class IO Interest will not have an
      Uncertificated Principal Balance, but will have a notional amount equal to
      the
      Uncertificated Notional Amount of REMIC II Regular Interest IO.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    REMIC
      IV

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the Class C Interest
      as a REMIC for federal income tax purposes, and such segregated pool of assets
      will be designated as “REMIC IV”. The Class R-4 Interest represents the sole
      class of Residual Interests in REMIC IV for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth the Class designation, Pass-Through Rate, Initial
      Certificate Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      the indicated Class of Certificates that represents a Regular Interest in REMIC
      IV created hereunder. Each Class C Certificate represents ownership of a Regular
      Interest in REMIC IV and also represents (i) the obligation to pay certain
      amounts specified herein in respect of Basis Risk Shortfall Carry Forward
      Amounts and (ii) the right to receive Class IO Distribution
      Amounts.

     

    
      	
              Class
                Designation

            	
              Pass-Through
                Rate

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              C

            	
              Variable(2)

            	
              $ 12,676,044.14

            	
              January
                25, 2037

            

    

    

    _______________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for the Class C Certificates.

    

    (2) The
      Class
      C Certificates will not accrue interest on its Uncertificated Principal Balance,
      but will receive 100% of the amounts received in respect of the Class C
      Interest. 

     

    REMIC
      V

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee shall
      elect to treat the segregated pool of assets consisting of the Class IO Interest
      as a REMIC for federal income tax purposes, and such segregated pool of assets
      will be designated as “REMIC V”. The Class R-5 Interest represents the sole
      class of Residual Interests in REMIC V for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth the designation, Pass-Through Rate, initial
      Uncertificated Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      the indicated class of interests that represents a Regular Interest in REMIC
      V
      created hereunder:

     

    
      	
              Designation

            	
              Pass-Through
                Rate

            	
              Initial
                Uncertificated Principal Balance

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              IO(2)

            	
              (3)

            	
              (4)

            	
              January
                25, 2037

            

    

    _______________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for REMIC V Regular Interest IO.

    

    (2) REMIC
      V
      Regular Interest IO will be held as an asset of the Supplemental Interest
      Trust.

    

    (3) REMIC
      V
      Regular Interest IO will not have a Pass-Through Rate, but will receive 100%
      of
      the amounts received in respect of the Class IO Interest. 

    

    (4) REMIC
      V
      Regular Interest IO will not have an Uncertificated Principal Balance, but
      will
      have a notional amount equal to the Uncertificated Notional Amount of the Class
      IO Interest.

    

     

    The
      Trust
      Fund shall be named, and may be referred to as, the “SACO I Trust 2007-1.” The
      Certificates issued hereunder may be referred to as “Mortgage-Backed
      Certificates, Series 2007-1” (including for purposes of any endorsement or
      assignment of a Mortgage Note or Mortgage).

     

    In
      consideration of the mutual agreements herein contained, the Depositor, the
      Master Servicer, the Securities Administrator, the Seller, the Company and
      the
      Trustee agree as follows:

     

    

    

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Defined
      Terms. 

     

    Whenever
      used in this Agreement, the following words and phrases, unless otherwise
      expressly provided or unless the context otherwise requires, shall have the
      meanings specified in this Article.

     

    10-K
      Filing Deadline:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan, those customary mortgage master servicing
      practices of prudent mortgage master 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 Master Servicer (except in its capacity as successor to the
      Company or a Servicer).

     

    Accepted
      Servicing Practices:
      With
      respect to each EMC Mortgage Loan, those mortgage servicing practices (including
      collection procedures) that are in accordance with all applicable statutes,
      regulations and prudent mortgage banking practices for similar mortgage
      loans.

     

    Account:
      The
      Distribution Account, the Credit Support Account, the Reserve Fund, the Swap
      Account and any Protected Account.

     

    Accrual
      Period:
      With
      respect to the Class A Certificates and Class M Certificates and any
      Distribution Date, the period from and including the immediately preceding
      Distribution Date (or with respect to the first Accrual Period, the Closing
      Date) to and including the day prior to such Distribution Date. With respect
      to
      the Class B Certificates and Class C Certificates and the Class C Interest
      and
      any Distribution Date, the calendar month immediately preceding such
      Distribution Date. All calculations of interest on the Class A Certificates
      and
      Class M Certificates will be made on the basis of the actual number of days
      elapsed in the related Accrual Period. All calculations of interest on the
      Class
      B Certificates and Class C Certificates and the Class C Interest will be made
      on
      the basis of a 360-day year consisting of twelve 30-day months.

     

    Additional
      Disclosure:
      As
      defined in Section 3.18(a)(v).

     

    Additional
      Disclosure Notification:
      The
      form of notice set forth in Exhibit Q.

     

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 3.18(a)(i).

     

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 3.18(a)(iv).

     

    Adjustable
      Rate Mortgage Loan:
      Each of
      the Mortgage Loans identified in the Mortgage Loan Schedule as having a Mortgage
      Rate that is subject to adjustment.

     

    Adjustment
      Date:
      With
      respect to each Adjustable Rate Mortgage Loan, the first day of the month in
      which the Mortgage Rate of an Adjustable Rate Mortgage Loan changes pursuant
      to
      the related Mortgage Note. The first Adjustment Date following the Cut-off
      Date
      as to each Adjustable Rate Mortgage Loan is set forth in the Mortgage Loan
      Schedule.

     

    Advance:
      An
      advance of delinquent payments of principal and interest in respect of a
      Mortgage Loan required to be made by the Company as provided in Section 6.01(a)
      hereof, by the Master Servicer as provided in Section 6.01(b) hereof and by
      each
      Servicer as provided in the related Servicing Agreement. 

     

    Affected
      Party:
      An
“Affected Party” as defined in the Swap Agreement.

     

    Agreement:
      This
      Pooling and Servicing Agreement and any and all amendments or supplements hereto
      made in accordance with the terms herein.

     

    Amount
      Held for Future Distribution:
      As to
      any Distribution Date and the EMC Mortgage Loans, the aggregate amount held
      in
      the Company’s Protected Account at the close of business on the immediately
      preceding Determination Date on account of (i) all Scheduled Payments or
      portions thereof received in respect of the EMC Mortgage Loans due after the
      related Due Period, (ii) Principal Prepayments received in respect of such
      Mortgage Loans after the last day of the related Prepayment Period, (iii)
      Liquidation Proceeds, Subsequent Recoveries and Insurance Proceeds received
      in
      respect of such Mortgage Loans after the last day of the prior calendar month.
      As to any Distribution Date and the Mortgage Loans serviced by the related
      Servicer, the amount as set forth in the applicable Servicing
      Agreement.

     

    Annual
      Statement of Compliance:
      As
      defined in Section 3.16.

     

    Applied
      Realized Loss Amount:
      With
      respect to any Distribution Date and any Class of Class A, Class M and Class
      B
      Certificates, the sum of the Realized Losses with respect to the Mortgage Loans
      that have been applied in reduction of the Certificate Principal Balance of
      a
      Class of Certificates pursuant to Section 6.05 of this Agreement which have
      not
      previously been reimbursed or reduced by any Subsequent Recoveries applied
      to
      such Applied Realized Loss Amount.

     

    Appraised
      Value:
      With
      respect to any Mortgage Loan originated in connection with a refinancing, the
      appraised value of the Mortgaged Property based upon the appraisal made at
      the
      time of such refinancing or, with respect to any other Mortgage Loan, the lesser
      of (x) the appraised value of the Mortgaged Property based upon the appraisal
      made by a fee appraiser at the time of the origination of the related Mortgage
      Loan, and (y) the sales price of the Mortgaged Property at the time of such
      origination.

     

    Assessment
      of Compliance:
      As
      defined in Section 3.17.

     

    Assignment
      Agreement:
      Shall
      mean any of the GMAC Assignment Agreement or the Homebanc Assignment
      Agreement.

     

    Attestation
      Report:
      As
      defined in Section 3.17.

     

    Attesting
      Party:
      As
      defined in Section 3.17.

     

    Back-Up
      Certification:
      As
      defined in Section 3.18.

     

    Basis
      Risk Shortfall Carry Forward Amount:
      With
      respect to any Distribution Date and any Class of Class A, Class M and Class
      B
      Certificates, an amount equal to the sum of (A) the excess, if any, of (a)
      the
      amount of Current Interest that such Class would have been entitled to receive
      on such Distribution Date had the Pass-Though Rate applicable to such Class
      been
      calculated at a per annum rate equal to lesser of (i) the related One-Month
      LIBOR Pass-Through Rate and (ii) 11.00% per annum, over (b) the amount of
      Current Interest that such Class received on such Distribution Date if the
      Pass-Through Rate is limited to the related Net WAC Cap Rate and (B) the Basis
      Risk Shortfall Carry Forward Amount for the previous Distribution Date not
      previously paid, together with interest thereon at a rate equal to the related
      Pass-Through Rate for the current Distribution Date.

     

    Bankruptcy
      Code:
      Title
      11 of the United States Code.

     

    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 7.06).
      As of the Closing Date, each Class of Regular Certificates (other than the
      Class
      C Certificates) constitutes a Class of Book-Entry Certificates.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a day on which banking
      institutions in the City of New York, New York, Columbia, Maryland, Chicago,
      Illinois, Minneapolis, Minnesota or any city in which the Corporate Trust Office
      of the Trustee or the Securities Administrator or the principal office of the
      Company or the Master Servicer is located are authorized or obligated by law
      or
      executive order to be closed.

     

    Certificate:
      Any one
      of the certificates of any Class executed and authenticated by the Securities
      Administrator in substantially the forms attached hereto as Exhibits A-1 through
      A-6.

     

    Certificate
      Margin:
      With
      respect to the Class I-A Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest I-A, 0.160% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.320% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class II-A Certificates and, for purposes of the definition
      of
“One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest II-A, 0.150% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.300% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-1, 0.440% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.660% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-2, 0.470% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.705% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-3, 0.510% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.765% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-4, 0.610% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.915% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-5, 0.770% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 1.155% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-6, 0.850% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 1.275% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-1 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-1, 1.750% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 2.625% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-2 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-2, 2.500% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 3.750% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-3 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-3, 4.000% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 6.000% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-4 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-4, 3.500% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 5.250% per annum in the case of each
      Distribution Date thereafter.

     

    Certificate
      Notional Amount:
      With
      respect to the Class C Certificates and any Distribution Date, an amount equal
      to the Stated Principal Balance of the Mortgage Loans as of the beginning of
      the
      related Due Period. The initial Certificate Notional Amount of the Class C
      Certificates shall be $258,688,044.14. For federal income tax purposes, the
      Certificate Notional Amount for any Distribution Date shall be an amount equal
      to the Uncertificated Notional Amount for the Class C Interest for such
      Distribution Date

    

    Certificate
      Owner:
      With
      respect to a Book-Entry Certificate, the Person that is the beneficial owner
      of
      such Book-Entry Certificate.

     

    Certificate
      Principal Balance:
      As to
      any Certificate (other than any Class X, Class C and any Class R Certificate)
      and as of any Distribution Date, the Initial Certificate Principal Balance
      of
      such Certificate plus, in the case of a Class A, Class M or Class B Certificate,
      any Subsequent Recoveries added to the Certificate Principal Balance of such
      Certificate pursuant to Section 6.04(b), less the sum of (i) all amounts
      distributed with respect to such Certificate in reduction of the Certificate
      Principal Balance thereof on previous Distribution Dates pursuant to Section
      6.04, and (ii) any Applied Realized Loss Amounts allocated to such Certificate
      on previous Distribution Dates. As to the Class C Certificates and as of any
      Distribution Date, an amount equal to the Uncertificated Principal Balance
      of
      the Class C Interest. 

     

    Certificate
      Register:
      The
      register maintained pursuant to Section 7.02 hereof.

     

    Certificateholder
      or Holder:
      The
      person in whose name a Certificate is registered in the Certificate Register
      (initially, Cede & Co., as nominee for the Depository, in the case of any
      Book-Entry Certificates).

     

    Certification
      Parties:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Certifying
      Person:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Class:
      All
      Certificates bearing the same Class designation as set forth in Section 7.01
      hereof.

     

    Class
      A Principal Distribution Amount:
      For
      any
      Distribution Date, an amount equal to the lesser of (x) the Principal
      Distribution Amount for such Distribution Date and (y) the excess, if any,
      of
      (i) the aggregate Certificate Principal Balance of the Class A Certificates
      immediately prior to such Distribution Date, over (ii) the lesser of (a) the
      product of (1) 43.80% and (2) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (b) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      A Certificates:
      The
      Class I-A Certificates and Class II-A Certificates.

     

    Class
      I-A Certificate:
      Any
      Certificate designated as a “Class I-A Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to the Percentage Interest
      of
      distributions provided for the Class I-A Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      I-A Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the product of the Class A Principal
      Distribution Amount and a fraction, the numerator of which is the Principal
      Funds for Loan Group I for such Distribution Date and the denominator of which
      is the aggregate Principal Funds for Loan Group I and Loan Group II for such
      Distribution Date.

     

    Class
      II-A Certificate:
      Any
      Certificate designated as a “Class II-A Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to the Percentage Interest
      of
      distributions provided for the Class II-A Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      II-A Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the product of the Class A Principal
      Distribution Amount and a fraction, the numerator of which is the Principal
      Funds for Loan Group II for such Distribution Date and the denominator of which
      is the aggregate Principal Funds for Loan Group I and Loan Group II for such
      Distribution Date.

     

    Class
      B Certificates:
      Any of
      the Class B-1, Class B-2, Class B-3 or Class B-4 Certificates.

     

    Class
      B-1 Certificate:
      Any
      Certificate designated as a “Class B-1 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-1 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      B-1 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount, the Class M-3 Principal Distribution Amount, the Class
      M-4
      Principal Distribution Amount, the Class M-5 Principal Distribution Amount
      and
      the Class M-6 Principal Distribution Amount and (y) the excess, if any, of
      (a)
      the sum of (1) the aggregate Certificate Principal Balance of the Class A
      Certificates (after taking into account the distribution of the Class I-A
      Principal Distribution Amount and Class II-A Principal Distribution Amount
      on
      such Distribution Date), (2) the Certificate Principal Balance of the Class
      M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (3) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (5) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (7) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date) and (8) the Certificate Principal Balance of the Class B-1 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 81.50% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during prior calendar month) minus
      the Overcollateralization Floor.

     

    Class
      B-2 Certificate:
      Any
      Certificate designated as a “Class B-2 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      B-2 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount, the Class M-3 Principal Distribution Amount, the Class
      M-4
      Principal Distribution Amount, the Class M-5 Principal Distribution Amount,
      the
      Class M-6 Principal Distribution Amount and the Class B-1 Principal Distribution
      Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class I-A Principal Distribution Amount and
      Class II-A Principal Distribution Amount on such Distribution Date), (2) the
      Certificate Principal Balance of the Class M-1 Certificates (after taking into
      account the distribution of the Class M-1 Principal Distribution Amount on
      such
      Distribution Date), (3) the Certificate Principal Balance of the Class M-2
      Certificates (after taking into account the distribution of the Class M-2
      Principal Distribution Amount on such Distribution Date), (4) the Certificate
      Principal Balance of the Class M-3 Certificates (after taking into account
      the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
      (after taking into account the distribution of the Class M-4 Principal
      Distribution Amount on such Distribution Date), (6) the Certificate Principal
      Balance of the Class M-5 Certificates (after taking into account the
      distribution of the Class M-5 Principal Distribution Amount on such Distribution
      Date), (7) the Certificate Principal Balance of the Class M-6 Certificates
      (after taking into account the distribution of the Class M-6 Principal
      Distribution Amount on such Distribution Date), (8) the Certificate Principal
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount on such Distribution
      Date) and (9) the Certificate Principal Balance of the Class B-2 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 83.80% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      B-3 Certificate:
      Any
      Certificate designated as a “Class B-3 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      B-3 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount, the Class M-3 Principal Distribution Amount, the Class
      M-4
      Principal Distribution Amount, the Class M-5 Principal Distribution Amount,
      the
      Class M-6 Principal Distribution Amount, the Class B-1 Principal Distribution
      Amount, and the Class B-2 Principal Distribution Amount and (y) the excess,
      if
      any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
      Class A Certificates (after taking into account the distribution of the Class
      I-A Principal Distribution Amount and Class II-A Principal Distribution Amount
      on such Distribution Date), (2) the Certificate Principal Balance of the Class
      M-1 Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (3) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (5) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (7) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date), (8) the Certificate Principal Balance of the Class B-1 Certificates
      (after taking into account the distribution of the Class B-1 Principal
      Distribution Amount on such Distribution Date), (9) the Certificate Principal
      Balance of the Class B-2 Certificates (after taking into account the
      distribution of the Class B-2 Principal Distribution Amount on such Distribution
      Date) and (10) the Certificate Principal Balance of the Class B-3 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 86.60% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      B-4 Certificate:
      Any
      Certificate designated as a “Class B-4 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      B-4 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount, the Class M-3 Principal Distribution Amount, the Class
      M-4
      Principal Distribution Amount, the Class M-5 Principal Distribution Amount,
      the
      Class M-6 Principal Distribution Amount, the Class B-1 Principal Distribution
      Amount, the Class B-2 Principal Distribution Amount and the Class B-3 Principal
      Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the
      aggregate Certificate Principal Balance of the Class A Certificates (after
      taking into account the distribution of the Class I-A Principal Distribution
      Amount and Class II-A Principal Distribution Amount on such Distribution Date),
      (2) the Certificate Principal Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal Distribution
      Amount on such Distribution Date), (3) the Certificate Principal Balance of
      the
      Class M-2 Certificates (after taking into account the distribution of the Class
      M-2 Principal Distribution Amount on such Distribution Date), (4) the
      Certificate Principal Balance of the Class M-3 Certificates (after taking into
      account the distribution of the Class M-3 Principal Distribution Amount on
      such
      Distribution Date), (5) the Certificate Principal Balance of the Class M-4
      Certificates (after taking into account the distribution of the Class M-4
      Principal Distribution Amount on such Distribution Date), (6) the Certificate
      Principal Balance of the Class M-5 Certificates (after taking into account
      the
      distribution of the Class M-5 Principal Distribution Amount on such Distribution
      Date), (7) the Certificate Principal Balance of the Class M-6 Certificates
      (after taking into account the distribution of the Class M-6 Principal
      Distribution Amount on such Distribution Date), (8) the Certificate Principal
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount on such Distribution
      Date), (9) the Certificate Principal Balance of the Class B-2 Certificates
      (after taking into account the distribution of the Class B-2 Principal
      Distribution Amount on such Distribution Date), (10) the Certificate Principal
      Balance of the Class B-3 Certificates (after taking into account the
      distribution of the Class B-3 Principal Distribution Amount on such Distribution
      Date) and (11) the Certificate Principal Balance of the Class B-4 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 90.20% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      C Certificate:
      Any
      Certificate designated as a “Class C Certificate” on the face thereof, in the
      form of Exhibit A-4 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class C Certificates herein and evidencing (i)
      a
      Regular Interest in REMIC IV, (ii) the obligation to pay Basis Risk Shortfall
      Carry Forward Amounts, (iii)
      the
      right to receive Class IO Distribution Amounts and (iv) the right to receive
      any
      Prepayment Charge Waiver Amounts.

     

    Class
      C Distribution Amount:
      With
      respect to any Distribution Date, the sum of (i) the Current Interest for the
      Class C Interest for such Distribution Date, (ii) any Overcollateralization
      Release Amount for such Distribution Date and (iii) without duplication, any
      Subsequent Recoveries not distributed to the Class A, Class M and Class B
      Certificates on such Distribution Date; provided, however, that, on any
      Distribution Date after the Distribution Date on which the Certificate Principal
      Balances of the Class A, Class M and Class B Certificates have been reduced
      to
      zero, the Class C Distribution Amount shall include the Overcollateralization
      Amount.

     

    Class
      C Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      Holders of the Class C Certificates, evidencing a Regular Interest in REMIC
      III
      for purposes of the REMIC Provisions.

     

    Class
      IO Distribution Amount:
      As
      defined in Section 4.12 hereof. For purposes of clarity, the Class IO
      Distribution Amount for any Distribution Date shall equal the amount payable
      to
      the Swap Administrator on such Distribution Date pursuant to the first and
      second sentences of Section 4.12(c) in excess of the amount payable on REMIC
      V
      Regular Interest IO on such Distribution Date, all as further provided in
      Section 4.12 hereof.

     

    Class
      IO Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      holders of REMIC V Regular Interest IO, evidencing a Regular Interest in REMIC
      V
      for purposes of the REMIC provisions.

     

    Class
      M Certificates:
      Any of
      the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6
      Certificates.

     

    Class
      M-1 Certificate:
      Any
      Certificate designated as a “Class M-1 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-1 Certificates as set forth herein and
      evidencing
      (i) a Regular Interest in REMIC III, (ii) the right to receive Basis Risk
      Shortfall Carry Forward Amounts and (iii) the obligation to pay Class IO
      Distribution Amounts.

     

    Class
      M-1 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount and Class II-A Principal Distribution Amount
      and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate
      Principal Balance of the Class A Certificates (after taking into account the
      distribution of the Class I-A Principal Distribution Amount and Class II-A
      Principal Distribution Amount on such Distribution Date) and (2) the Certificate
      Principal Balance of the Class M-1 Certificates immediately prior to such
      Distribution Date, over (b) the lesser of (1) the product of (x) 53.20% and
      (y)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month), and (2) the aggregate Stated Principal Balance of the Mortgage
      Loans as of the last day of the related Due Period (after giving effect to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the prior calendar month) minus the Overcollateralization
      Floor.

     

    Class
      M-2 Certificate:
      Any
      Certificate designated as a “Class M-2 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      M-2 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount
      and the Class M-1 Principal Distribution Amount and (y) the excess, if any,
      of
      (a) the sum of (1) the aggregate Certificate Principal Balance of the Class
      A
      Certificates (after taking into account the distribution of the Class I-A
      Principal Distribution Amount and Class II-A Principal Distribution Amount
      on
      such Distribution Date), (2) the Certificate Principal Balance of the Class
      M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date) and (3) the Certificate
      Principal Balance of the Class M-2 Certificates immediately prior to such
      Distribution Date, over (b) the lesser of (1) the product of (x) 62.60% and
      (y)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month), and (2) the aggregate Stated Principal Balance of the Mortgage
      Loans as of the last day of the related Due Period (after giving effect to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the prior calendar month) minus the Overcollateralization
      Floor.

     

    Class
      M-3 Certificate:
      Any
      Certificate designated as a “Class M-3 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      M-3 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount and the Class M-2 Principal
      Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the
      aggregate Certificate Principal Balance of the Class A Certificates (after
      taking into account the distribution of the Class I-A Principal Distribution
      Amount and Class II-A Principal Distribution Amount on such Distribution Date),
      (2) the Certificate Principal Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal Distribution
      Amount on such Distribution Date), (3) the Certificate Principal Balance of
      the
      Class M-2 Certificates (after taking into account the distribution of the Class
      M-2 Principal Distribution Amount on such Distribution Date) and (4) the
      Certificate Principal Balance of the Class M-3 Certificates immediately prior
      to
      such Distribution Date, over (b) the lesser of (1) the product of (x) 66.90%
      and
      (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month), and (2) the aggregate Stated Principal Balance of the Mortgage
      Loans as of the last day of the related Due Period (after giving effect to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the prior calendar month) minus the Overcollateralization
      Floor.

     

    Class
      M-4 Certificate:
      Any
      Certificate designated as a “Class M-4 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      M-4 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount and the Class M-3 Principal Distribution Amount and (y)
      the
      excess, if any, of (a) the sum of (1) the aggregate Certificate Principal
      Balance of the Class A Certificates (after taking into account the distribution
      of the Class I-A Principal Distribution Amount and Class II-A Principal
      Distribution Amount on such Distribution Date), (2) the Certificate Principal
      Balance of the Class M-1 Certificates (after taking into account the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date), (4) the Certificate Principal
      Balance of the Class M-3 Certificates (after taking into account the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date) and (5) the Certificate Principal Balance of the Class M-4 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 71.20% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      M-5 Certificate:
      Any
      Certificate designated as a “Class M-5 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-5 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      M-5 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount, the Class M-3 Principal Distribution Amount and the Class
      M-4 Principal Distribution Amount and (y) the excess, if any, of (a) the sum
      of
      (1) the aggregate Certificate Principal Balance of the Class A Certificates
      (after taking into account the distribution of the Class I-A Principal
      Distribution Amount and Class II-A Principal Distribution Amount on such
      Distribution Date), (2) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (3) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (5) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date) and (6) the Certificate Principal Balance of the Class M-5 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 75.30% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      M-6 Certificate:
      Any
      Certificate designated as a “Class M-6 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-6 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      M-6 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      I-A Principal Distribution Amount, the Class II-A Principal Distribution Amount,
      the Class M-1 Principal Distribution Amount, the Class M-2 Principal
      Distribution Amount, the Class M-3 Principal Distribution Amount, the Class
      M-4
      Principal Distribution Amount and the Class M-5 Principal Distribution Amount
      and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate
      Principal Balance of the Class A Certificates (after taking into account the
      distribution of the Class I-A Principal Distribution Amount and Class II-A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date), (4) the Certificate Principal
      Balance of the Class M-3 Certificates (after taking into account the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
      (after taking into account the distribution of the Class M-4 Principal
      Distribution Amount on such Distribution Date), (6) the Certificate Principal
      Balance of the Class M-5 Certificates (after taking into account the
      distribution of the Class M-5 Principal Distribution Amount on such Distribution
      Date) and (7) the Certificate Principal Balance of the Class M-6 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 78.30% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus the Overcollateralization Floor.

     

    Class
      R Certificate:
      Any of
      the Class R-1, Class R-2, Class R-3 or Class RX Certificates.

     

    Class
      R-1 Certificate:
      Any
      Certificate designated a “Class R-1 Certificate” on the face thereof, in the
      form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC
      I and representing the right to the Percentage Interest of distributions
      provided for the Class R-1 Certificates as set forth herein.

     

    Class
      R-2 Certificate:
      Any
      Certificate designated a “Class R-2 Certificate” on the face thereof, in the
      form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC
      II and representing the right to the Percentage Interest of distributions
      provided for the Class R-2 Certificates as set forth herein.

     

    Class
      R-3 Certificate:
      Any
      Certificate designated a “Class R-3 Certificate” on the face thereof, in the
      form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC
      III and representing the right to the Percentage Interest of distributions
      provided for the Class R-3 Certificates as set forth herein.

     

    Class
      RX Certificate:
      Any
      Certificate designated a “Class RX Certificate” on the face thereof, in the form
      set forth in Exhibit A-5 hereto, evidencing the ownership of the Class R-4
      Interest and Class R-5 Interest and representing the right to the Percentage
      Interest of distributions provided for the Class RX Certificates as set forth
      herein.

     

    Class
      R-4 Interest:
      The
      uncertificated Residual Interest in REMIC IV.

     

    Class
      R-5 Interest:
      The
      uncertificated Residual Interest in REMIC V.

     

    Class
      X Certificate:
      Any
      Certificate designated as a “Class X Certificate” on the face thereof, in the
      form of Exhibit A-6 hereto. 

     

    Closing
      Date:
      January
      16, 2007.

     

    Code:
      The
      Internal Revenue Code of 1986, including any successor or amendatory
      provisions.

     

    Combined
      Loan-to-Value Ratio:
      With
      respect to any Mortgage Loan and as of any date of determination, the fraction
      (expressed as a percentage) the numerator of which is the sum of (i) original
      principal balance of the related Mortgage Loan at such date of determination
      and
      (ii) the unpaid principal balance of the related first lien Mortgage Loan as
      of
      the date of origination of that Mortgage Loan and the denominator of which
      is
      the applicable Appraised Value of the related Mortgaged Property at
      origination.

     

    Commission:
      The
      U.S. Securities and Exchange Commission.

     

    Company:
      EMC.

     

    Company
      Default:
      As
      defined in Section 9.05 hereof.

     

    Company
      Information:
      As
      defined in Section 3.18(b).

     

    Compensating
      Interest:
      With
      respect to any Distribution Date, (i) in the case of the Company or a Servicer,
      an amount, not to exceed the Servicing Fee, to be deposited in the Distribution
      Account by the Company or a Servicer with respect to the payment of a Prepayment
      Interest Shortfall (in the case of the Company, related to a voluntary
      prepayment as described in Section 6.02(a) hereof and in the case of each
      Servicer, related to a prepayment as described in the applicable Servicing
      Agreement) on a Mortgage Loan subject to this Agreement and (ii) in the case
      of
      the Master Servicer, if the Company or a Servicer fails to make such payment,
      an
      amount not to exceed that portion of the Master Servicing Fee payable to the
      Master Servicer to the extent provided in Section 6.02(c) hereof.

     

    Corporate
      Trust Office:
      (i)
      With respect to the Trustee, the designated corporate trust office of the
      Trustee, currently located at Citibank, N.A., 388 Greenwich Street, 14th Floor,
      New York, New York 10013, and (ii) with respect to the Securities Administrator,
      the designated office of the Securities Administrator currently located at
      9062
      Old Annapolis Road, Columbia, Maryland 21045 Attention: Corporate Trust Services
      - SACO 07-1, except for purposes of certificate transfer purposes such term
      shall mean the office or agency of the Securities Administrator located at
      Wells
      Fargo Bank, N.A., Sixth Street and Marquette Avenue, Minneapolis, Minnesota
      55479 Attention: Corporate Trust Services - SACO 07-1, or at such other address
      as the Trustee or Securities Administrator, as applicable, may designate from
      time to time by notice to the Certificateholders, the Depositor, the Trustee,
      the Master Servicer, the Securities Administrator and EMC or at the principal
      corporate trust office of any successor Trustee. 

     

    Corresponding
      Certificate:
      With
      respect to each REMIC II Regular Interest (other than REMIC II Regular Interests
      AA, ZZ, IO, 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX), the Certificate with the
      corresponding designation. With respect to each REMIC III Regular Interest
      (other than the Class C Interest and the Class IO Interest), the related
      Certificate representing an ownership therein.

     

    Credit
      Support Account:
      The
      account established pursuant to Section 4.13.

     

    Cumulative
      Realized Loss Percentage:
      With
      respect to the Certificates and any Distribution Date, the percentage obtained
      by dividing (x) the aggregate Realized Losses on the Mortgage Loans incurred
      since the related Cut-off Date through the end of the related Due Period by
      (y)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the related
      Cut-off Date.

     

    Current
      Interest:
      As of
      any Distribution Date, with respect to the Certificates (other than the Class
      X
      Certificates and the Residual Certificates) and interests of each class (other
      than the Residual Interests), (i) the interest accrued on the Certificate
      Principal Balance, or Certificate Notional Amount or Uncertificated Notional
      Amount, as applicable, during the related Accrual Period at the applicable
      Pass-Through Rate, plus any amount previously distributed with respect to
      interest for such Certificate or interest that has been recovered as a voidable
      preference by a trustee in bankruptcy minus (ii) the sum of (a) any Prepayment
      Interest Shortfall for such Distribution Date, to the extent not covered by
      Compensating Interest and (b) any Relief Act Interest Shortfalls during the
      related Due Period, provided, however, that for purposes of calculating Current
      Interest for any such class, amounts specified in clause (ii) hereof for any
      such Distribution Date shall be allocated first to the Class C Certificates
      and
      the Class C Interest in reduction of amounts otherwise distributable to such
      Certificates and interest on such Distribution Date and then any excess shall
      be
      allocated to each Class of Class A, Class M and Class B Certificates
pro
      rata
      based on
      the respective amounts of interest accrued pursuant to clause (i) hereof for
      each such Class on such Distribution Date.

     

    Current
      Specified Enhancement Percentage: With
      respect to any Distribution Date, the percentage obtained by dividing (x) the
      sum of (i) the aggregate Certificate Principal Balance of the Class M
      Certificates and Class B Certificates and (ii) the Overcollateralization Amount,
      in each case prior to the distribution of the Principal Distribution Amount
      on
      such Distribution Date, by (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the end of the related Due Period (after giving effect
      to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the prior calendar month).

     

    Custodial
      Agreements:
      The
      LaSalle Custodial Agreement or Wells Fargo Custodial Agreement, as applicable.
      

     

    Custodians:
      (i)
      Wells Fargo, or any successor custodian appointed pursuant to the provisions
      hereof and the Wells Fargo Custodial Agreement and (ii) LaSalle, or any
      successor custodian appointed pursuant to the provisions hereof and the LaSalle
      Custodial Agreement.

     

    Cut-off
      Date:
      December 1, 2006.

     

    Cut-off
      Date Principal Balance:
      As to
      any Mortgage Loan, the unpaid principal balance thereof as of the close of
      business on the Cut-off Date after application of all Principal Prepayments
      received prior to the Cut-off Date and scheduled payments of principal due
      on or
      before the Cut-off Date, whether or not received, but without giving effect
      to
      any installments of principal received in respect of Due Dates after the Cut-off
      Date. The aggregate Cut-off Date Principal Balance of the Mortgage Loans is
      $258,688,044.14.

    

    Debt
      Service Reduction:
      With
      respect to any Mortgage Loan, a reduction by a court of competent jurisdiction
      in a proceeding under the Bankruptcy Code in the Scheduled Payment for such
      Mortgage Loan that became final and non-appealable, except such a reduction
      resulting from a Deficient Valuation or any other reduction that results in
      a
      permanent forgiveness of principal.

     

    Defaulting
      Party:
      A
“Defaulting Party” as defined in the Swap Agreement.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
      of the Mortgaged Property in an amount less than the then outstanding
      indebtedness under such Mortgage Loan, or any reduction in the amount of
      principal to be paid in connection with any Scheduled Payment that results
      in a
      permanent forgiveness of principal, which valuation or reduction results from
      an
      order of such court that is final and non-appealable in a proceeding under
      the
      Bankruptcy Code.

     

    Definitive
      Certificates:
      As
      defined in Section 7.06.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan replaced or to be replaced by a Replacement Mortgage
      Loan.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to
      the terms of such Mortgage Loan by the close of business on the day such payment
      is scheduled to be due. A Mortgage Loan is “30 days delinquent” if such payment
      has not been received by the close of business on the corresponding day of
      the
      month immediately succeeding the month in which such payment was due, or, if
      there is no such corresponding day (e.g., as when a 30-day month follows a
      31-day month in which a payment was due on the 31st day of such month), then
      on
      the last day of such immediately succeeding month. Similarly for “60 days
      delinquent,” “90 days delinquent” and so on. This method of determining
      delinquencies is also referred to as the OTS method.

     

    Denomination:
      With
      respect to each Certificate, the amount set forth on the face thereof as the
      “Initial Principal Balance or Initial Notional Amount of this
      Certificate”.

     

    Depositor:
      Bear
      Stearns Asset Backed Securities I LLC, a Delaware limited liability company,
      or
      its successor in interest.

     

    Depositor
      Information:
      As
      defined in Section 3.18(b).

     

    Depository:
      The
      initial Depository shall be The Depository Trust Company (“DTC”), the nominee of
      which is Cede & Co., or any other organization registered as a “clearing
      agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as
      amended. The Depository shall initially be the registered Holder of the
      Book-Entry Certificates. The Depository shall at all times be a “clearing
      corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of
      the State of New York.

     

    Depository
      Agreement:
      With
      respect to the Class of Book-Entry Certificates, the agreement between the
      Issuing Entity and the initial Depository, dated as of the Closing Date,
      substantially in the form of Exhibit H.

     

    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.

     

    Designated
      Depository Institution:
      A
      depository institution (commercial bank, federal savings bank, mutual savings
      bank or savings and loan association) or trust company (which may include the
      Trustee, the Securities Administrator and the Master Servicer), the deposits
      of
      which are fully insured by the FDIC to the extent provided by law.

     

    Determination
      Date:
      With
      respect to any Distribution Date, the 15th
      day of
      the month of such Distribution Date or, if such 15th
      day is
      not a Business Day, the immediately preceding Business Day. 

     

    Distribution
      Account:
      The
      segregated trust account or accounts created and maintained by the Securities
      Administrator pursuant to Section 5.06 in the name of the Trustee for the
      benefit of the Certificateholders, which shall be entitled “Wells Fargo Bank,
      National Association, as Securities Administrator, on behalf of Citibank, N.A.,
      as Trustee, in trust for the registered holders of SACO I Trust 2007-1,
      Mortgage-Backed Certificates, Series 2007-1.” The Distribution Account must be
      an Eligible Account.

     

    Distribution
      Date:
      The
      25th day of each calendar month after the initial issuance of the Certificates,
      or if such 25th day is not a Business Day, the next succeeding Business Day,
      commencing in January 2007.

     

    Distribution
      Report:
      The
      Asset-Backed Issuer Distribution Report pursuant to Section 13 or 15(d) of
      the
      Exchange Act.

     

    Due
      Date:
      As to
      any Mortgage Loan, the date in each month on which the related Scheduled Payment
      is due, as set forth in the related Mortgage Note.

     

    Due
      Period:
      With
      respect to any Distribution Date, the period from and including the second
      day
      of the calendar month preceding the calendar month in which such Distribution
      Date occurs through close of business on the first day of the calendar month
      in
      which such Distribution Date occurs.

     

    EDGAR:
      As
      defined in Section 3.18.

     

    Eligible
      Account:
      Any of
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company, the long-term unsecured debt
      obligations and short-term unsecured debt obligations of which (or, in the
      case
      of a depository institution or trust company that is the principal subsidiary
      of
      a holding company, the debt obligations of such holding company, so long as
      Moody’s is not a Rating Agency) are rated by each Rating Agency in one of its
      two highest long-term and its highest short-term rating categories,
      respectively, at the time any amounts are held on deposit therein, or (ii)
      an
      account or accounts in a depository institution or trust company in which such
      accounts are insured by the FDIC (to the limits established by the FDIC) and
      the
      uninsured deposits in which accounts are otherwise secured such that, as
      evidenced by an Opinion of Counsel delivered to and satisfactory to the Trustee,
      the Securities Administrator and to each Rating Agency, the Certificateholders
      have a claim with respect to the funds in such account or a perfected first
      priority security interest against any collateral (which shall be limited to
      Permitted Investments) securing such funds that is superior to claims of any
      other depositors or creditors of the depository institution or trust company
      in
      which such account is maintained, or (iii) a trust account or accounts
      maintained with the corporate trust department of a federal or state chartered
      depository institution or trust company having capital and surplus of not less
      than $50,000,000, acting in its fiduciary capacity or (iv) any other account
      acceptable to each Rating Agency, as evidenced in writing. Eligible Accounts
      may
      bear interest, and may include, if otherwise qualified under this definition,
      accounts maintained with the Trustee and the Securities
      Administrator.

     

    EMC:
      EMC
      Mortgage Corporation, a Delaware corporation, and its successors and
      assigns.

     

    EMC
      Flow Loans:
      The
      Mortgage Loans purchased by EMC pursuant to a flow loan purchase
      agreement.

     

    EMC
      Mortgage Loans:
      Those
      Mortgage Loans serviced by the Company pursuant to the terms of this
      Agreement.

     

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

     

    ERISA
      Restricted Certificates:
      Any of
      the Class C Certificates and Residual Certificates.

     

    Estimated
      Swap Termination Payment:
      As
      specified in the Swap Agreement.

     

    Event
      of Default:
      As
      defined in Section 9.01 hereof.

     

    Excess
      Cashflow:
      With
      respect to any Distribution Date, an amount, if any, equal to the sum of (a)
      the
      Remaining Excess Spread for such Distribution Date and (b) the
      Overcollateralization Release Amount for such Distribution Date.

     

    Excess
      Liquidation Proceeds:
      To the
      extent not required by law to be paid to the related Mortgagor, the excess,
      if
      any, of any Liquidation Proceeds with respect to a Mortgage Loan over the Stated
      Principal Balance of such Mortgage Loan and accrued and unpaid interest at
      the
      related Mortgage Rate through the last day of the month in which the Mortgage
      Loan has been liquidated.

     

    Exemption:
      Prohibited Transaction Exemption 90-30, as amended from time to
      time.

     

    Excess
      Spread:
      With
      respect to any Distribution Date, the excess, if any, of (i) the Interest Funds
      for such Distribution Date over (ii) the sum of the Current Interest on the
      Class A, Class M and Class B Certificates and Interest Carry Forward Amounts
      on
      the Class A Certificates (other than Interest Carry Forward Amounts paid
      pursuant to Section 6.04(a)(4)(A)), in each case for such Distribution
      Date.

     

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended, and the rules and regulations
      thereunder.

     

    Exchange
      Act Reports:
      Any
      reports required to be filed pursuant to Section 3.18 of this
      Agreement.

     

    Extra
      Principal Distribution Amount:
      With
      respect to any Distribution Date, the lesser of (i) the excess, if any, of
      the
      Overcollateralization Target Amount for such Distribution Date over the
      Overcollateralization Amount for such Distribution Date (after giving effect
      to
      distributions of principal on the Certificates other than any Extra Principal
      Distribution Amount) and (ii) the Excess Spread for such Distribution
      Date.

     

    Fannie
      Mae:
      Fannie
      Mae (formerly, Federal National Mortgage Association), or any successor
      thereto.

     

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

     

    Final
      Certification:
      The
      certification by a Custodian substantially in the form of Exhibit Three to
      the
      related Custodial Agreement.

     

    Final
      Recovery Determination:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by EMC pursuant to or as contemplated
      by
      Section 2.03(d) or Section 11.01), a determination made by the Company pursuant
      to this Agreement or the applicable Servicer pursuant to the related Servicing
      Agreement that all Insurance Proceeds, Liquidation Proceeds and other payments
      or recoveries which the Company or such Servicer, in its reasonable good faith
      judgment, expects to be finally recoverable in respect thereof have been so
      recovered. The Master Servicer shall maintain records, based solely on
      information provided by the Company and each Servicer, of each Final Recovery
      Determination made thereby. 

     

    Fiscal
      Quarter:
      December 1 to February 29 (or the last day in such month), March 1 to May 31,
      June 1 to August 31, or September 1 to November 30, as applicable.

     

    Form
      8-K Disclosure Information:
      The
      meaning set forth in Section 3.18(a)(iii).

     

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

     

    Global
      Certificate:
      Any
      Private Certificate registered in the name of the Depository or its nominee,
      beneficial interests in which are reflected on the books of the Depository
      or on
      the books of a Person maintaining an account with such Depository (directly
      or
      as an indirect participant in accordance with the rules of such
      depository).

     

    GMAC
      Mortgage, LLC or GMACM:
      GMAC
      Mortgage, LLC and any successor thereto.

     

    GMACM
      Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement substantially in the form
      of
      Exhibit R-2, dated as of January 16, 2007, among EMC, the Trustee and GMACM,
      evidencing the assignment of the GMACM Servicing Agreement to the
      Trust.

     

    GMACM
      Loans:
      Those
      Mortgage Loans subject to this Agreement which were purchased by EMC from GMACM
      pursuant to the GMACM Servicing Agreement.

     

    GMACM
      Servicing Agreement:
      The
      Servicing Agreement, dated as of May 1, 2001, as amended by Amendment No. 1,
      dated as of October 1, 2001, Amendment No. 2, dated as of July 31, 2002 and
      Amendment No. 3, dated as of December 20, 2005 substantially in the form of
      Exhibit R-1, between EMC and GMACM.

     

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

     

    Group
      I Principal Distribution Amount:
      With
      respect to any Distribution Date, the product of the Principal Distribution
      Amount and a fraction, the numerator of which is the Principal Funds for Loan
      Group I for such Distribution Date and the denominator of which is the Principal
      Funds for Loan Group I and Loan Group II for such Distribution
      Date.

     

    Group
      II Principal Distribution Amount:
      With
      respect to any Distribution Date, the product of the Principal Distribution
      Amount and a fraction, the numerator of which is the Principal Funds for Loan
      Group II for such Distribution Date and the denominator of which is the
      Principal Funds for Loan Group I and Loan Group II for such Distribution
      Date.

     

    HomeBanc
      Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement substantially in the form
      of
      Exhibit R-4, dated as of January 16, 2007, among EMC, the Trustee and HomeBanc,
      evidencing the assignment of the HomeBanc Servicing Agreement to the
      Trust.

     

    HomeBanc
      Loans:
      Those
      Mortgage Loans subject to this Agreement which were purchased by EMC from
      HomeBanc pursuant to the HomeBanc Servicing Agreement.

     

    HomeBanc
      Servicing Agreement:
      The
      Purchase, Warranties and Servicing Agreement, dated as of January 1, 2004,
      as
      amended by the Amended and Restated Amendment No. 1 to the Purchase, Warranties
      and Servicing Agreement, dated as of January 27, 2006, between the Company
      and
      HomeBanc, the Term Sheets, dated June 30, 2006, September 29, 2006 and May
      30,
      2006, substantially in the form of Exhibit R-3.

     

    Indemnified
      Persons:
      The
      Trustee, the Master Servicer, the Company, the Trust Fund and the Securities
      Administrator and their respective officers, directors, agents and employees
      and, with respect to the Trustee, any separate co-trustee and its officers,
      directors, agents and employees.

     

    Index:
      With
      respect to each Adjustable Rate Mortgage Loan and with respect to each related
      Adjustment Date, the index as specified in the related Mortgage
      Note.

     

    Individual
      Certificate:
      Any
      Private Certificate registered in the name of a Holder other than the Depository
      or its nominee.

     

    Initial
      Certification:
      The
      certification by a Custodian substantially in the form of Exhibit One to the
      related Custodial Agreement.

     

    Initial
      Certificate Principal Balance:
      With
      respect to any Certificate (other than the Class X Certificates), the
      Certificate Principal Balance of such Certificate or any predecessor Certificate
      on the Closing Date.

     

    Institutional
      Accredited Investor:
      Any
      Person meeting the requirements of Rule 501(a)(l), (2), (3) or (7) of Regulation
      D under the Securities Act or any entity all of the equity holders in which
      come
      within such paragraphs.

     

    Insurance
      Policy:
      With
      respect to any Mortgage Loan included in the Trust Fund, any insurance policy,
      including all riders and endorsements thereto in effect with respect to such
      Mortgage Loan, including any replacement policy or policies for any Insurance
      Policies.

     

    Insurance
      Proceeds:
      Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance Policy
      and any other insurance policy covering a Mortgage Loan, to the extent such
      proceeds are payable to the mortgagee under the Mortgage, the Company, the
      related Servicer or the Trustee under the deed of trust and are not applied
      to
      the restoration of the related Mortgaged Property or released to the Mortgagor
      in accordance with the procedures that the Company or the related Servicer
      would
      follow in servicing mortgage loans held for its own account, in each case other
      than any amount included in such Insurance Proceeds in respect of Insured
      Expenses.

     

    Insured
      Expenses:
      Expenses covered by any insurance policy with respect to the Mortgage
      Loans.

     

    Interest
      Carry Forward Amount:
      As of
      any Distribution Date and with respect to each Class of Certificates (other
      than
      the Class C Certificates and the Residual Certificates), the sum of (i) the
      excess of (a) the Current Interest for such Class with respect to such
      Distribution Date and any prior Distribution Dates over (b) the amount actually
      distributed to such Class of Certificates with respect to interest on such
      Distribution Dates and (ii) interest thereon (to the extent permitted by
      applicable law) at the applicable Pass-Through Rate for such Class for the
      related Accrual Period including the Accrual Period relating to such
      Distribution Date.

     

    Interest
      Determination Date:
      Shall
      mean the second LIBOR Business Day preceding the commencement of each Accrual
      Period.

     

    Interest
      Funds:
      With
      respect to each of Loan Group I and Loan Group II any Distribution Date (1)
      the
      sum, without duplication, of (a) all scheduled interest during the related
      Due
      Period with respect to the Mortgage Loans in the related Loan Group less the
      Servicing Fee and the Master Servicing Fee, if any, (b) all Advances relating
      to
      interest with respect to the related Mortgage Loans in the related Loan Group
      made on or prior to the related Distribution Date, (c) all Compensating Interest
      with respect to the Mortgage Loans in the related Loan Group and required to
      be
      remitted by the Company or the Master Servicer pursuant to this Agreement and
      by
      each Servicer pursuant to the related Servicing Agreement with respect to such
      Distribution Date, (d) Liquidation Proceeds and Subsequent Recoveries with
      respect to the Mortgage Loans in the related Loan Group collected during the
      prior calendar month (to the extent such Liquidation Proceeds and Subsequent
      Recoveries relate to interest), (e) all amounts relating to interest with
      respect to each Mortgage Loan in the related Loan Group repurchased by EMC
      pursuant to Sections 2.02 and 2.03 and by EMC pursuant to Section 3.05, in
      each
      case to the extent remitted by the Master Servicer to the Distribution Account
      pursuant to this Agreement and (f) the interest portion of any proceeds received
      from the exercise of an Optional Termination relating to such Loan Group, minus
      (2)(i) all amounts relating to interest required to be reimbursed pursuant
      to
      Sections 5.02 and 5.07 or as otherwise set forth in this Agreement and (ii)
      any
      Net Swap Payment or Swap Termination Payment (not due to a Swap Provider Trigger
      Event and to the extent not paid by the Swap Administrator from any upfront
      payment received pursuant to any replacement interest rate swap agreement that
      may be entered into by the Supplemental Interest Trust Trustee) owed to the
      Swap
      Administrator for payment to the Swap Provider for such Distribution Date and
      any such payments remaining unpaid for any prior Distribution
      Dates.

     

    Interim
      Certification:
      The
      certification by a Custodian substantially in the form of Exhibit Two to the
      related Custodial Agreement.

     

    Issuing
      Entity:
      The
      Trust designated as SACO I Trust 2007-1.

     

    LaSalle:
      LaSalle
      Bank National Association, and any successor in interest.

     

    LaSalle
      Custodial Agreement:
      The
      Custodial Agreement, dated as of January 16, 2007, among the Depositor, EMC,
      as
      Seller, the Master Servicer, the Securities Administrator, the Trustee and
      LaSalle as Custodian relating to the Mortgage Loans identified in such Custodial
      Agreement.

     

    Last
      Scheduled Distribution Date:
      Solely
      for purposes of the face of the Certificates, the Distribution Date in January
      2037. 

     

    Latest
      Possible Maturity Date:
      The
      Distribution Date in the month following the final scheduled maturity date
      of
      the Mortgage Loan in the Trust Fund having the latest scheduled maturity date
      as
      of the Cut-off Date. For purposes of the Treasury regulations under Sections
      860A through 860G of the Code, the latest possible maturity date of each Regular
      Interest issued by REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V shall
      be
      the Latest Possible Maturity Date.

     

    LIBOR
      Business Day:
      Shall
      mean a day on which banks are open for dealing in foreign currency and exchange
      in London and New York City.

     

    Liquidated
      Loan:
      With
      respect to any Distribution Date, a defaulted Mortgage Loan that has been
      liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale
      or other realization as provided by applicable law governing the real property
      subject to the related Mortgage and any security agreements and as to which
      the
      Company or the related Servicer has made a Final Recovery Determination with
      respect thereto.

     

    Liquidation
      Proceeds:
      Amounts, other than Insurance Proceeds, received in connection with the partial
      or complete liquidation of a Mortgage Loan, whether through trustee’s sale,
      foreclosure sale or otherwise, or in connection with any condemnation or partial
      release of a Mortgaged Property and any other proceeds received with respect
      to
      an REO Property, less the sum of related unreimbursed Advances, Servicing Fees
      and Servicing Advances and all expenses of liquidation, including property
      protection expenses and foreclosure and sale costs, including court and
      reasonable attorneys fees.

     

    Loan
      Group:
      Any of
      Loan Group I or Loan Group II.

     

    Loan
      Group I or Group I Mortgage Loans:
      The
      group of Mortgage Loans belonging to Loan Group I included as such on the
      Mortgage Loan Schedule.

     

    Loan
      Group II or Group II Mortgage Loans:
      The
      group of Mortgage Loans belonging to Loan Group II included as such on the
      Mortgage Loan Schedule.

     

    Majority
      Class C Certificateholder:
      The
      Holder of a 50.01% or greater Percentage Interest in the Class C
      Certificates.

     

    Marker
      Rate:
      With
      respect to the Class C Interest and any Distribution Date, a per annum rate
      equal to two (2) times the weighted average of the Uncertificated REMIC II
      Pass-Through Rates for the REMIC II Regular Interests (other than REMIC II
      Regular Interests AA, IO, 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX), with the rate
      on
      each such REMIC II Regular Interest (other than REMIC II Regular Interests
      ZZ)
      subject to a cap equal to the least of (i) the One-Month LIBOR Pass-Through
      Rate
      for the Corresponding Certificate, (ii) 11.00% per annum and (iii) the related
      Net WAC Cap Rate for the REMIC III
      Regular
      Interest the ownership of which is represented by the Corresponding Certificate
      for the purpose of this calculation for such Distribution Date, and with the
      rate on REMIC II Regular Interest ZZ subject to a cap of zero for the purpose
      of
      this calculation; provided, however, that solely for this purpose, the related
      cap with respect to each REMIC II Regular Interest (other than REMIC II Regular
      Interests AA, ZZ, IO, 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX) shall be multiplied
      by
      a fraction, the numerator of which is 30 and the denominator of which is the
      actual number of days in the related Accrual Period.

     

    Master
      Servicer:
      Wells
      Fargo Bank, National Association, in its capacity as master servicer, and its
      successors and assigns or any Successor Master Servicer appointed as herein
      provided.

     

    Master
      Servicer Information:
      As
      defined in Section 3.18.

     

    Master
      Servicing Compensation:
      For any
      Distribution Date, the Master Servicing Fee for such Distribution Date and
      any
      amounts earned on permitted investments in the Distribution
      Account.

     

    Master
      Servicing Fee:
      As to
      each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of
      the
      Master Servicing Fee Rate multiplied by the Stated Principal Balance of such
      Mortgage Loan as of the Due Date in the month preceding the month in which
      such
      Distribution Date occurs.

     

    Master
      Servicing Fee Rate:
      0.0175%
      per annum. 

     

    Master
      Servicing Officer:
      Any
      officer of the Master Servicer responsible for the master servicing of the
      Mortgage Loans.

     

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

     

    Maximum
      Probable Exposure:
      With
      respect to each Distribution Date and the Swap Agreement, the amount calculated
      by the Depositor in accordance with the Seller’s internal risk management
      process in respect of similar instruments, such calculation to be performed
      as
      agreed by the Securities Administrator and the Depositor.

    

    Maximum
      Uncertificated Accrued Interest Deferral Amount:
      With
      respect to any Distribution Date, the excess of (i) accrued interest at the
      Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular
      Interest ZZ for such Distribution Date on a balance equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest ZZ minus the REMIC II
      Overcollateralization Amount, in each case for such Distribution Date, over
      (ii)
      the aggregate amount of Uncertificated Accrued Interest for such Distribution
      Date on the REMIC II Regular Interests (other than REMIC II Regular Interests
      AA, ZZ, IO, 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX), with the rate on each such
      REMIC
      II Regular Interest subject to a cap equal to the least of (x) the One-Month
      LIBOR Pass Through Rate for the Corresponding Certificate, (y) 11.00% per annum
      and (z) the Net WAC Cap Rate for the REMIC III Regular Interest the ownership
      of
      which is represented by the Corresponding Certificate for the purpose of this
      calculation for such Distribution Date; provided, however, that solely for
      this
      purpose, the related cap with respect to each REMIC II Regular Interest (other
      than REMIC II Regular Interests AA, ZZ, IO, 1-Sub, 1-Grp, 2-Sub, 2-Grp and
      XX)
      shall be multiplied by a fraction, the numerator of which is 30 and the
      denominator of which is the actual number of days in the related Accrual
      Period.

     

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

     

    MERS®
      System:
      The
      system of recording transfers of Mortgages electronically maintained by
      MERS.

     

    MIN:
      The
      Mortgage Identification Number for Mortgage Loans registered with MERS on the
      MERS® System.

     

    Minimum
      Mortgage Rate:
      With
      respect to each Adjustable Rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the minimum Mortgage Rate thereunder.

     

    MOM
      Loan:
      With
      respect to any Mortgage Loan, MERS acting as the mortgagee of such Mortgage
      Loan, solely as nominee for the originator of such Mortgage Loan and its
      successors and assigns, at the origination thereof.

     

    Monthly
      Statement:
      The
      statement prepared and delivered by the Securities Administrator pursuant to
      Section 6.06.

     

    Moody’s:
      Moody’s
      Investors Service, Inc., and any successor thereto.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument creating a second lien on or second
      priority ownership interest in an estate in fee simple in real 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 delivered to the related Custodian
      to
      be added to the Mortgage File pursuant to this Agreement and the related
      Custodial Agreement.

     

    Mortgage
      Loan Purchase Agreement:
      The
      Mortgage Loan Purchase Agreement, dated as of January 16, 2007, between EMC
      as
      Seller and the Depositor as purchaser, in the form attached hereto as Exhibit
      L.

     

    Mortgage
      Loan Purchase Price:
      The
      price, calculated as set forth in Section 11.01, to be paid in connection with
      the repurchase of the Mortgage Loans pursuant to Section 11.01.

     

    Mortgage
      Loans:
      Such of
      the mortgage loans transferred and assigned to the Trustee pursuant to the
      provisions hereof, as from time to time are held as a part of the Trust Fund
      (including any REO Property), notwithstanding foreclosure or other acquisition
      of title of the related Mortgaged Property.

     

    Mortgage
      Loan Schedule:
      The
      list of Mortgage Loans (as from time to time amended by the Company or the
      Master Servicer to reflect the deletion of Deleted Mortgage Loans and the
      addition of Replacement Mortgage Loans pursuant to the provisions of this
      Agreement) transferred to the Trustee as part of the Trust Fund and from time
      to
      time subject to this Agreement, the Mortgage Loan Schedule being attached hereto
      as Exhibit B, with respect to the Mortgage Loans and as amended from time to
      time to reflect the repurchase or substitution of Mortgage Loans pursuant to
      this Agreement or the Mortgage Loan Purchase Agreement, as the case may be,
      setting forth the following information with respect to each Mortgage
      Loan:

     

    (a)  the
      city,
      state and zip code of the Mortgaged Property; 

    (b)  the
      property type;

    (c)  the
      Mortgage Interest Rate;

    (d)  the
      Servicing Fee Rate;

    (e)  the
      Master Servicer's Fee Rate;

    (f)  the
      LPMI
      Fee; if applicable;

    (g)  the
      Net
      Rate;

    (h)  the
      maturity date;

    (i)  the
      stated original term to maturity;

    (j)  the
      stated remaining term to maturity;

    (k)  the
      original Principal Balance;

    (l)  the
      first
      payment date;

    (m)  the
      principal and interest payment in effect as of the Cut-off Date;

    (n)  the
      unpaid Principal Balance as of the Cut-off Date;

    (o)  the
      Loan-to-Value Ratio at origination;

    (p)  the
      insurer of any Primary Mortgage Insurance Policy;

    (q)  the
      MIN
      with respect to each MOM Loan;

    (r)  the
      Gross
      Margin, if applicable;

    (s)  the
      next
      Adjustment Date, if applicable;

    (t)  the
      Maximum Mortgage Rate, if applicable;

    (u)  the
      Minimum Mortgage Rate, if applicable;

    (v)  the
      Periodic Rate Cap, if applicable; 

    (w)  the
      Loan
      Group, if applicable;

    (x)  a
      code
      indicating whether the Mortgage Loan is negatively amortizing;

    (y)  which
      Mortgage Loans adjust after an initial fixed-rate period of one, two, three,
      five, seven or ten years or any other period; 

    (z)  the
      Prepayment Charge, if any;

    (aa)  lien
      position (e.g., first lien or second lien);

    (bb)  a
      code
      indicating whether the Mortgage Loan is has a balloon payment;

    (cc)  a
      code
      indicating whether the Mortgage Loan is an interest-only loan; 

    (dd)  the
      interest-only term, if applicable;

    (ee)  the
      Mortgage Loan Seller; and

    (ff)  the
      original amortization term.

    

    Such
      schedule also shall set forth for all of the Mortgage Loans, the total number
      of
      Mortgage Loans, the total of each of the amounts described under (m) and (n)
      above, the weighted average by principal balance as of the Cut-off Date of
      each
      of the rates described under (c) through (h) above, and the weighted average
      remaining term to maturity by unpaid principal balance as of the Cut-off
      Date.

     

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

     

    Mortgage
      Rate:
      With
      respect to each fixed rate Mortgage Loan, the rate set forth in the related
      Mortgage Note. With respect to each Adjustable Rate Mortgage Loan, the annual
      rate at which interest accrues on such Mortgage Loan from time to time in
      accordance with the provisions of the related Mortgage Note, which rate (A)
      as
      of any date of determination until the first Adjustment Date following the
      Cut-off Date shall be the rate set forth in the Mortgage Loan Schedule as the
      Mortgage Rate in effect immediately following the Cut-off Date and (B) as of
      any
      date of determination thereafter shall be the rate as adjusted on the most
      recent Adjustment Date, to equal the sum, rounded to the next highest or nearest
      0.125% (as provided in the Mortgage Note), of the Index, determined as set
      forth
      in the related Mortgage Note, plus the related Gross Margin subject to the
      limitations set forth in the related Mortgage Note. With respect to each
      Mortgage Loan that becomes an REO Property, as of any date of determination,
      the
      annual rate determined in accordance with the immediately preceding sentence
      as
      of the date such Mortgage Loan became an REO Property.

     

    Mortgaged
      Property:
      The
      underlying property securing a Mortgage Loan.

     

    Mortgagor:
      The
      obligors on a Mortgage Note.

     

    Net
      Mortgage Rate:
      As to
      each Mortgage Loan, and at any time, the per annum rate equal to the related
      Mortgage Rate less the sum of (i) the Servicing Fee Rate and (ii) the Master
      Servicing Fee Rate.

     

    Net
      Swap Payment:
      With
      respect to each Distribution Date, the net payment required to be made pursuant
      to the terms of the Swap Agreement by either the Swap Provider or the Swap
      Administrator, which net payment shall not take into account any Swap
      Termination Payment.

     

    Net
      WAC Cap Rate:
      With
      respect to any Distribution Date and the Class I-A Certificates, the excess,
      if
      any, of (A) a per annum rate equal to the product of (x) the weighted average
      of
      the Net Mortgage Rates on the then outstanding Group I Mortgage Loans, weighted
      based on the Stated Principal Balances of such Group I Mortgage Loans as of
      the
      related Due Date prior to giving effect to any reduction in the Stated Principal
      Balances of such Group I Mortgage Loans on such Due Date, and (y) a fraction,
      the numerator of which is 30 and the denominator of which is the actual number
      of days elapsed in the related Accrual Period, over (B) an amount, expressed
      as
      a per annum rate, equal to the sum of (i) the Swap Payment payable to the Swap
      Provider on such Distribution Date and (ii) any Swap Termination Payment not
      due
      to a Swap Provider Trigger Event payable to the Swap Provider (to the extent
      not
      paid by the Swap Administrator from any upfront payment received pursuant to
      any
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee), divided by the aggregate outstanding
      Stated Principal Balance of the Mortgage Loans as of the related Due Date prior
      to giving effect to any reduction in the Stated Principal Balances of such
      Mortgage Loans on such Due Date, multiplied by 12. The Net WAC Cap Rate for
      the
      Class I-A Certificates will be adjusted to an effective rate reflecting the
      accrual of interest on an actual/360 basis. With respect to any Distribution
      Date and the REMIC III Regular Interests the ownership of which is represented
      by the Class I-A Certificates, a per annum rate equal to the weighted average
      (adjusted for the actual number of days elapsed in the related Accrual Period)
      of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest
      1-Grp, weighted on the basis of the Uncertificated Principal Balance of such
      REMIC II Regular Interest immediately prior to such Distribution
      Date.

     

    With
      respect to any Distribution Date and the Class II-A Certificates, the excess,
      if
      any, of (A) a per annum rate equal to the product of (x) the weighted average
      of
      the Net Mortgage Rates on the then outstanding Group II Mortgage Loans, weighted
      based on the Stated Principal Balances of such Group II Mortgage Loans as of
      the
      related Due Date prior to giving effect to any reduction in the Stated Principal
      Balances of such Group II Mortgage Loans on such Due Date, and (y) a fraction,
      the numerator of which is 30 and the denominator of which is the actual number
      of days elapsed in the related Accrual Period, over (B) an amount, expressed
      as
      a per annum rate, equal to the sum of (i) the Swap Payment payable to the Swap
      Provider on such Distribution Date and (ii) any Swap Termination Payment not
      due
      to a Swap Provider Trigger Event payable to the Swap Provider (to the extent
      not
      paid by the Swap Administrator from any upfront payment received pursuant to
      any
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee), divided by the aggregate outstanding
      Stated Principal Balance of the Mortgage Loans as of the related Due Date prior
      to giving effect to any reduction in the Stated Principal Balances of such
      Mortgage Loans on such Due Date, multiplied by 12. The Net WAC Cap Rate for
      the
      Class II-A Certificates will be adjusted to an effective rate reflecting the
      accrual of interest on an actual/360 basis. With respect to any Distribution
      Date and the REMIC III Regular Interests the ownership of which is represented
      by the Class II-A Certificates, a per annum rate equal to the weighted average
      (adjusted for the actual number of days elapsed in the related Accrual Period)
      of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest
      2-Grp, weighted on the basis of the Uncertificated Principal Balance of such
      REMIC II Regular Interest immediately prior to such Distribution
      Date.

     

    With
      respect to any Distribution Date and the Class M Certificates and Class B
      Certificates, the excess, if any, of (A) a per annum rate equal to the product
      of (x) the weighted average of the weighted average of the Net Mortgage Rates
      on
      the then outstanding Mortgage Loans in each Loan Group, weighted in proportion
      to the results of subtracting from the aggregate Stated Principal Balance of
      the
      Mortgage Loans of each such Loan Group as of the related Due Date prior to
      giving effect to any reduction in the Stated Principal Balances of such Mortgage
      Loans on such Due Date the aggregate Certificate Principal Balance of the
      related Class A Certificates, and (y) a fraction, the numerator of which is
      30
      and the denominator of which is the actual number of days elapsed in the related
      Accrual Period, over (B) an amount, expressed as a per annum rate, equal to
      the
      sum of (i) the Swap Payment payable to the Swap Provider on such Distribution
      Date and (ii) any Swap Termination Payment not due to a Swap Provider Trigger
      Event payable to the Swap Provider (to the extent not paid by the Swap
      Administrator from any upfront payment received pursuant to any related
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee), divided by the aggregate outstanding
      Stated Principal Balance of the Mortgage Loans as of the related Due Date prior
      to giving effect to any reduction in the Stated Principal Balances of such
      Mortgage Loans on such Due Date, multiplied by 12. The Net Rate Cap for the
      Class M Certificates and Class B Certificates will be adjusted to an effective
      rate reflecting the accrual of interest on an actual/360 basis. With respect
      to
      any Distribution Date and the REMIC III Regular Interests the ownership of
      which
      is represented by the Class M Certificates and Class B Certificates, a per
      annum
      rate equal to the weighted average (adjusted for the actual number of days
      elapsed in the related Accrual Period) of the Uncertificated REMIC II
      Pass-Through Rates on (a) REMIC II Regular Interest 1-Sub, subject to a cap
      and
      a floor equal to the Uncertificated REMIC II Pass-Through Rate on REMIC II
      Regular Interest 1-Grp and (b) REMIC II Regular Interest 2-Sub, subject to
      a cap
      and a floor equal to the Uncertificated REMIC II Pass-Through Rate on REMIC
      II
      Regular Interest 2-Grp, weighted on the basis of the Uncertificated Principal
      Balances of each such REMIC II Regular Interest immediately prior to such
      Distribution Date.

     

    Non-Book-Entry
      Certificate:
      Any
      Certificate other than a Book-Entry Certificate.

     

    Nonrecoverable
      Advance:
      Any
      portion of an Advance previously made or proposed to be made by the Company
      or
      the Master Servicer pursuant to this Agreement or the related Servicer pursuant
      to the related Servicing Agreement that, in the good faith judgment of the
      Company or the Master Servicer or the related Servicer, will not or, in the
      case
      of a proposed advance, would not, be ultimately recoverable by it from the
      related Mortgagor, related Liquidation Proceeds, Insurance Proceeds or
      otherwise.

     

    Notional
      Amount:
      With
      respect to each Distribution Date and the Swap Agreement, the notional amount
      for the related calculation period as set forth in the related schedule set
      forth in Exhibit N.

     

    Offered
      Certificates:
      Any of
      the Class A, Class M, Class B-1, Class B-2 and Class B-3
      Certificates.

     

    Officer’s
      Certificate:
      A
      certificate (i) signed by the Chairman of the Board, the Vice Chairman of the
      Board, the President, a Vice President (however denominated), an Assistant
      Vice
      President, the Treasurer, the Secretary, or one of the assistant treasurers
      or
      assistant secretaries of the Depositor, the Seller or the Master Servicer (or
      any other officer customarily performing functions similar to those performed
      by
      any of the above designated officers and also to whom, with respect to a
      particular matter, such matter is referred because of such officer’s knowledge
      of and familiarity with a particular subject) or (ii), if provided for in this
      Agreement, signed by a Servicing Officer, as the case may be, and delivered
      to
      the Depositor, the Seller, the Securities Administrator, the Master Servicer
      and/or the Trustee, as the case may be, as required by this
      Agreement.

     

    One-Month
      LIBOR:
      With
      respect to any Accrual Period and the Class A Certificates and Class M
      Certificates, the rate determined by the Securities Administrator on the related
      Interest Determination Date on the basis of the rate for U.S. dollar deposits
      for one month that appears on Telerate Screen Page 3750 as of 11:00 a.m. (London
      time) on such Interest Determination Date. If such rate does not appear on
      such
      page (or such other page as may replace that page on that service, or if such
      service is no longer offered, such other service for displaying One-Month LIBOR
      or comparable rates as may be reasonably selected by the Securities
      Administrator), One-Month LIBOR for the applicable Accrual Period will be the
      Reference Bank Rate. If no such quotations can be obtained by the Securities
      Administrator and no Reference Bank Rate is available, One-Month LIBOR will
      be
      One-Month LIBOR applicable to the preceding Accrual Period. The establishment
      of
      One-Month LIBOR on each Interest Determination Date by the Securities
      Administrator and the Securities Administrator’s calculation of the rate of
      interest applicable to the Class A Certificates and Class M Certificates for
      the
      related Accrual Period shall, in the absence of manifest error, be final and
      binding.

     

    One-Month
      LIBOR Pass-Through Rate:
      With
      respect to each Class A, Class M and Class B Certificate and, for purposes
      of
      the definitions of “Marker Rate”, “Maximum Uncertificated Accrued Interest
      Deferral Amount”, the related REMIC II Regular Interest for which such
      Certificate is the Corresponding Certificate, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be counsel for EMC, the Depositor, the
      Company or the Master Servicer, reasonably acceptable to each addressee of
      such
      opinion; provided that with respect to Section 2.05, 8.05, 8.07 or 12.01, or
      the
      interpretation or application of the REMIC Provisions, such counsel must (i)
      in
      fact be independent of EMC, Depositor, the Company and the Master Servicer,
      (ii)
      not have any direct financial interest in EMC, the Depositor, the Company or
      the
      Master Servicer or in any affiliate of either, and (iii) not be connected with
      EMC, the Depositor, the Company or the Master Servicer as an officer, employee,
      promoter, underwriter, trustee, partner, director or person performing similar
      functions.

     

    Optional
      Termination:
      The
      termination of the Trust created hereunder as a result of the purchase of all
      of
      the Mortgage Loans and any REO Property pursuant to Section 11.01
      hereof.

     

    Optional
      Termination Date:
      The
      Distribution Date on which the aggregate Stated Principal Balance of all of
      the
      Mortgage Loans is equal to or less than 20% of the aggregate Stated Principal
      Balance of all of the Mortgage Loans as of the Cut-off Date.

     

    Original
      Value:
      The
      value of the property underlying a Mortgage Loan based, in the case of the
      purchase of the underlying Mortgaged Property, on the lower of an appraisal
      or
      the sales price of such property or, in the case of a refinancing, on an
      appraisal.

     

    Outstanding:
      With
      respect to the Certificates as of any date of determination, all Certificates
      theretofore executed and authenticated under this Agreement except:

     

    (a) Certificates
      theretofore canceled by the Securities Administrator or delivered to the
      Securities Administrator for cancellation; and

     

    (b) Certificates
      in exchange for which or in lieu of which other Certificates have been executed
      and delivered by the Securities Administrator pursuant to this
      Agreement.

     

    Outstanding
      Mortgage Loan:
      As of
      any date of determination, a Mortgage Loan with a Stated Principal Balance
      greater than zero that was not the subject of a Principal Prepayment in full,
      and that did not become a Liquidated Loan, prior to the end of the related
      Prepayment Period.

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the excess, if any, of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after
      giving effect to scheduled payments of principal due during the related Due
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the prior calendar month) over
      the
      aggregate Certificate Principal Balance of the Certificates (other than the
      Class C Certificates) on such Distribution Date (after taking into account
      the
      payment of principal other than any Extra Principal Distribution Amount on
      such
      Certificates).

     

    Overcollateralization
      Floor:
      With
      respect to the Certificates, an amount equal to 0.50% of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the Cut-off Date.

     

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date, the lesser of (x) the Principal Funds for
      Loan
      Group I and Loan Group II for such Distribution Date and (y) the excess, if
      any,
      of (i) the Overcollateralization Amount for such Distribution Date (assuming
      that 100% of the Principal Funds is applied as a principal payment on such
      Distribution Date) over (ii) the Overcollateralization Target Amount for such
      Distribution Date (with the amount pursuant to clause (y) deemed to be $0 if
      the
      Overcollateralization Amount is less than or equal to the Overcollateralization
      Target Amount on that Distribution Date).

     

    Overcollateralization
      Target Amount:
      With
      respect to any Distribution Date (a) prior to the Stepdown Date, 4.90% of the
      aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date,
      (b) on or after the Stepdown Date and if a Trigger Event is not in effect,
      the
      greater of (i) the lesser of (1) 4.90% of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the Cut-off Date and (2) 9.80% of the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      and (ii) the Overcollateralization Floor or (c) on or after the Stepdown Date
      and if a Trigger Event is in effect, the Overcollateralization Target Amount
      for
      the immediately preceding Distribution Date.

     

    Ownership
      Interest:
      As to
      any Certificate, any ownership 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.

     

    Pass-Through
      Rate:
      With
      respect to the Class A, Class M and Class B Certificates and any Distribution
      Date, a rate per annum equal to the least of (i) the related One-Month LIBOR
      Pass-Through Rate for such Distribution Date, (ii) 11.00% per annum and (iii)
      the related Net WAC Cap Rate for such Distribution Date.

     

    With
      respect to the Class C Interest and any Distribution Date, a rate per annum
      equal to the percentage equivalent of a fraction, the numerator of which is
      the
      sum of the amount determined for each REMIC II Regular Interest (other than
      REMIC II Regular Interest 1-Sub, 1-Grp, 2-Sub, 2-Grp, XX and IO) equal to the
      product of (a) the excess, if any, of the Uncertificated REMIC II Pass-Through
      Rate for such REMIC II Regular Interest over the Marker Rate and (b) a notional
      amount equal to the Uncertificated Principal Balance of such REMIC II Regular
      Interest, and the denominator of which is the aggregate Uncertificated Principal
      Balance of such REMIC II Regular Interests.

     

    With
      respect to the Class C Certificate, the Class C Certificate shall not have
      a
      Pass-Through Rate, but Current Interest for such Certificate and each
      Distribution Date shall be an amount equal to 100% of the amounts distributable
      to the Class C Interest for such Distribution Date.

     

    With
      respect to the Class IO Interest, Class IO Interest shall not have a
      Pass-Through Rate, but Current Interest for such interest and each Distribution
      Date shall be an amount equal to 100% of the amounts distributable to REMIC
      II
      Regular Interest IO for such Distribution Date.

     

    With
      respect to REMIC V Regular Interest IO, REMIC V Regular Interest IO shall not
      have a Pass-Through Rate, but Current Interest for such Regular Interest and
      each Distribution Date shall be an amount equal to 100% of the amounts
      distributable to the Class IO Interest for such Distribution Date.

     

    Pass-Through
      Transfer:
      Any
      transaction involving either (1) a sale or other transfer of mortgage loans
      directly or indirectly to an issuing entity in connection with an issuance
      of
      publicly offered or privately placed, rated or unrated mortgage-backed
      securities or (2) an issuance of publicly offered or privately placed, rated
      or
      unrated securities, the payments on which are determined primarily by reference
      to one or more portfolios of residential mortgage loans.

     

    Percentage
      Interest:
      With
      respect to any Certificate of a specified Class, the Percentage Interest set
      forth on the face thereof or the percentage obtained by dividing the
      Denomination of such Certificate by the aggregate of the Denominations of all
      Certificates of such Class.

     

    Periodic
      Rate Cap:
      With
      respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor,
      the fixed percentage set forth in the related Mortgage Note, which is the
      maximum amount by which the Mortgage Rate for such Mortgage Loan may increase
      or
      decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage
      Rate) on such Adjustment Date from the Mortgage Rate in effect immediately
      prior
      to such Adjustment Date.

     

    Permitted
      Investments:
      At any
      time, any one or more of the following obligations and securities:

     

    (i)  obligations
      of the United States or any agency thereof, provided such obligations are backed
      by the full faith and credit of the United States;

     

    (ii)  general
      obligations of or obligations guaranteed by any state of the United States
      or
      the District of Columbia receiving the highest long-term debt rating of each
      Rating Agency, or such lower rating as will not result in the downgrading or
      withdrawal of the ratings then assigned to the Certificates by each Rating
      Agency, as evidenced in writing;

     

    (iii)  commercial
      or finance company paper which is then receiving the highest commercial or
      finance company paper rating of each Rating Agency, or such lower rating as
      will
      not result in the downgrading or withdrawal of the ratings then assigned to
      the
      Certificates by each Rating Agency, as evidenced in writing;

     

    (iv)  certificates
      of deposit, demand or time deposits, or bankers’ acceptances issued by any
      depository institution or trust company incorporated under the laws of the
      United States or of any state thereof and subject to supervision and examination
      by federal and/or state banking authorities (including the Trustee, the Master
      Servicer and the Securities Administrator in its commercial banking capacity),
      provided that the commercial paper and/or long term unsecured debt obligations
      of such depository institution or trust company are then rated one of the two
      highest long-term and the highest short-term ratings of each Rating Agency
      for
      such securities, or such lower ratings as will not result in the downgrading
      or
      withdrawal of the rating then assigned to the Certificates by each Rating
      Agency, as evidenced in writing;

     

    (v)  demand
      or
      time deposits or certificates of deposit issued by any bank or trust company
      or
      savings institution to the extent that such deposits are fully insured by the
      FDIC;

     

    (vi)  guaranteed
      reinvestment agreements issued by any bank, insurance company or other
      corporation containing, at the time of the issuance of such agreements, such
      terms and conditions as will not result in the downgrading or withdrawal of
      the
      rating then assigned to the Certificates by each Rating Agency, as evidenced
      in
      writing;

     

    (vii)  repurchase
      obligations with respect to any security described in clauses (i) and (ii)
      above, in either case entered into with a depository institution or trust
      company (acting as principal) described in clause (v) above;

     

    (viii)  securities
      (other than stripped bonds, stripped coupons or instruments sold at a purchase
      price in excess of 115% of the face amount thereof) bearing interest or sold
      at
      a discount issued by any corporation incorporated under the laws of the United
      States or any state thereof which, at the time of such investment, have one
      of
      the two highest short term ratings of each Rating Agency (except if the Rating
      Agency is Moody’s, such rating shall be the highest commercial paper rating of
      Moody’s for any such securities), such lower rating as will not result in the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      any
      Rating Agency, as evidenced by a signed writing delivered by each Rating
      Agency;

     

    (ix)  interests
      in any money market fund (including any such fund managed or advised by the
      Master Servicer or the Securities Administrator or any affiliate thereof) which
      at the date of acquisition of the interests in such fund and throughout the
      time
      such interests are held in such fund has the highest applicable short term
      rating by each Rating Agency rating such fund, such lower rating as will not
      result in the downgrading or withdrawal of the ratings then assigned to the
      Certificates by each Rating Agency, as evidenced in writing;

     

    (x)  short
      term investment funds sponsored by any trust company or banking association
      incorporated under the laws of the United States or any state thereof (including
      any such fund managed or advised by the Trustee or the Master Servicer or the
      Securities Administrator or any affiliate thereof) which on the date of
      acquisition has been rated by each Rating Agency in their highest applicable
      rating category or such lower rating as will not result in the downgrading
      or
      withdrawal of the ratings then assigned to the Certificates by each Rating
      Agency, as evidenced in writing; and

     

    (xi)  such
      other investments having a specified stated maturity and bearing interest or
      sold at a discount acceptable to each Rating Agency and will not result in
      the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      each Rating Agency, as evidenced by a signed writing delivered by each Rating
      Agency;

     

    provided,
      that no such instrument shall be a Permitted Investment if such instrument
      (i)
      evidences the right to receive interest only payments with respect to the
      obligations underlying such instrument, (ii) is purchased at a premium or (iii)
      is purchased at a deep discount; provided further that no such instrument shall
      be a Permitted Investment (A) if such instrument evidences principal and
      interest payments derived from obligations underlying such instrument and the
      interest payments with respect to such instrument provide a yield to maturity
      of
      greater than 120% of the yield to maturity at par of such underlying
      obligations, or (B) if it may be redeemed at a price below the purchase price
      (the foregoing clause (B) not to apply to investments in units of money market
      funds pursuant to clause (viii) above); provided further that no amount
      beneficially owned by any REMIC may be invested in investments (other than
      money
      market funds) treated as equity interests for federal income tax purposes,
      unless the Securities Administrator shall receive an Opinion of Counsel, at
      the
      expense of the Securities Administrator, to the effect that such investment
      will
      not adversely affect the status of any such REMIC as a REMIC under the Code
      or
      result in the imposition of a tax on any such REMIC. Permitted Investments
      that
      are subject to prepayment or call may not be purchased at a price in excess
      of
      par.

     

    Permitted
      Transferee:
      Any
      Person (x) other than (i) the United States, any State or political subdivision
      thereof, any possession of the United States or any agency or instrumentality
      of
      any of the foregoing, (ii) a foreign government, International Organization
      or
      any agency or instrumentality of either of the foregoing, (iii) an organization
      (except certain farmers’ cooperatives described in section 521 of the Code) that
      is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
      by section 511 of the Code on unrelated business taxable income) on any excess
      inclusions (as defined in section 860E(c)(1) of the Code) with respect to any
      Residual Certificate, (iv) rural electric and telephone cooperatives described
      in section 1381(a)(2)(C) of the Code or (v) an electing large partnership within
      the meaning of Section 775(a) of the Code, (y) that is a citizen or resident
      of
      the United States, a corporation, partnership (other than a partnership that
      has
      any direct or indirect foreign partners) or other entity (treated as a
      corporation or a partnership for federal income tax purposes), created or
      organized in or under the laws of the United States, any State thereof or the
      District of Columbia, an estate whose income from sources without the United
      States is includible in gross income for United States federal income tax
      purposes regardless of its connection with the conduct of a trade or business
      within the United States, or a trust if a court within the United States is
      able
      to exercise primary supervision over the administration of the trust and one
      or
      more United States persons have authority to control all substantial decisions
      of the trust or if it has a valid election in effect under applicable U.S.
      Treasury regulations to be treated as a United States person and (z) other
      than
      any other Person so designated by the Securities Administrator based upon an
      Opinion of Counsel addressed to the Securities Administrator and the Trustee
      (which shall not be an expense of the Trustee or the Securities Administrator)
      that states that the Transfer of an Ownership Interest in a Residual Certificate
      to such Person may cause REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V
      to
      fail to qualify as a REMIC at any time that any Certificates are Outstanding.
      The terms “United States,” “State” and “International Organization” shall have
      the meanings set forth in section 7701 of the Code or successor provisions.
      A
      corporation will not be treated as an instrumentality of the United States
      or of
      any State or political subdivision thereof for these purposes if all of its
      activities are subject to tax and, with the exception of Freddie Mac, a majority
      of its board of directors is not selected by such government unit.

     

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

     

    Piggyback
      Loan:
      A
      second lien Mortgage Loan originated by the same originator to the same borrower
      at the same time as the first lien Mortgage Loan, each secured by the same
      Mortgaged Property.

     

    Prepayment
      Assumption:
      A
      prepayment rate for the Mortgage Loans of 35% CPR. 

     

    Prepayment
      Charge:
      Any
      prepayment premium, penalty or charge payable by a Mortgagor in connection
      with
      any Principal Prepayment on a Mortgage Loan pursuant to the terms of the related
      Mortgage Note.

     

    Prepayment
      Charge Waiver Amount:
      Any
      amount paid by the Company to the Master Servicer in respect of a waived
      Prepayment Charge pursuant to Section 5.01(a) or by a Servicer to the Master
      Servicer pursuant to the related Servicing Agreement.

     

    Prepayment
      Interest Excess:
      With
      respect to any Distribution Date, for each EMC Mortgage Loan that was the
      subject of a Principal Prepayment in full during the portion of the related
      Prepayment Period occurring between the first day of the calendar month in
      which
      such Distribution Date occurs and the Determination Date of the calendar month
      in which such Distribution Date occurs, an amount equal to interest (to the
      extent received) at the applicable Net Mortgage Rate on the amount of such
      Principal Prepayment for the number of days commencing on the first day of
      the
      calendar month in which such Distribution Date occurs and ending on the last
      date through which interest is collected from the related
      Mortgagor.

     

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a partial Principal Prepayment during the related Prepayment Period, or a
      Principal Prepayment in full during the related Prepayment Period, or that
      became a Liquidated Loan during the prior calendar month, (other than a
      Principal Prepayment in full resulting from the purchase of a Mortgage Loan
      pursuant to Section 2.02, 2.03, 3.05 or 11.01 hereof), the amount, if any,
      by
      which (i) one month’s interest at the applicable Net Mortgage Rate on the Stated
      Principal Balance of such Mortgage Loan immediately prior to such Principal
      Prepayment (or liquidation) or in the case of a partial Principal Prepayment
      on
      the amount of such prepayment (or liquidation proceeds) exceeds (ii) the amount
      of interest paid or collected in connection with such Principal Prepayment
      or
      such liquidation proceeds less the sum of (a) the Master Servicing Fee and
      (b)
      the Servicing Fee.

     

    Prepayment
      Period:
      As to
      any Distribution Date (except the first Distribution Date) and each EMC Mortgage
      Loan, for each Principal Prepayment in full, the period commencing on the 16th
      day of the month prior to the month in which the related Distribution Date
      occurs and ending on the 15th day of the month in which such Distribution Date
      occurs (as to the first Distribution Date and any Mortgage Loan, the period
      commencing on the Cut-off Date and ending on the 15th day of the month in which
      such Distribution Date occurs) and for each partial Principal Prepayment, the
      calendar month prior to the month in which such Distribution Date occurs. As
      to
      any Distribution Date and each Mortgage Loan that is not an EMC Mortgage Loan,
      in accordance with the related Servicing Agreement. 

     

    Principal
      Distribution Amount:
      With
      respect to any Distribution Date, an amount equal to (x) the sum of (1) the
      Principal Funds for Loan Group I and Loan Group II such Distribution Date and
      (2) any Extra Principal Distribution Amount for such Distribution Date minus
      (y)
      the amount of any Overcollateralization Release Amount for such Distribution
      Date.

     

    Principal
      Funds:
      With
      respect to each of Loan Group I and Loan Group II and any Distribution Date,
      (1)
      the sum, without duplication, of (a) all scheduled principal collected on the
      Mortgage Loans in the related Loan Group during the related Due Period, (b)
      all
      Advances relating to principal with respect to the Mortgage Loans in the related
      Loan Group made on or before the Distribution Date, (c) Principal Prepayments
      exclusive of prepayment charges or penalties collected on the Mortgage Loans
      in
      the related Loan Group during the related Prepayment Period, (d) the Stated
      Principal Balance of each Mortgage Loan in the related Loan Group that was
      repurchased by EMC pursuant to Sections 2.02, 2.03 and by EMC pursuant to
      Section 3.05, (e) the aggregate of all Substitution Adjustment Amounts on the
      Mortgage Loans in the related Loan Group for the related Determination Date
      in
      connection with the substitution of any Mortgage Loans pursuant to Section
      2.03(d), (f) all Liquidation Proceeds and Subsequent Recoveries collected on
      the
      Mortgage Loans in the related Loan Group during the prior calendar month (to
      the
      extent such Liquidation Proceeds and Subsequent Recoveries relate to principal),
      in each case to the extent remitted by the Company or the related Servicer
      to
      the Distribution Account pursuant to this Agreement or the related Servicing
      Agreement and (g) the principal portion of any proceeds received from the
      exercise of a Optional Termination relating to such Loan Group, pursuant to
      Section 11.01, minus (2)(i) all amounts required to be reimbursed pursuant
      to
      Sections 5.02 and 5.07 or as otherwise set forth in this Agreement and (ii)
      any
      Net Swap Payments or Swap Termination Payments (not due to a Swap Provider
      Trigger Event and to the extent not paid by the Swap Administrator from any
      upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust Trustee)
      owed to the Swap Administrator for payment to the Swap Provider for such
      Distribution Date and any such payments remaining unpaid for any prior
      Distribution Dates, in each case to the extent not paid from Interest Funds.
      

     

    Principal
      Prepayment:
      Any
      Mortgagor payment or other recovery of (or proceeds with respect to) principal
      on a Mortgage Loan (including loans purchased or repurchased under Sections
      2.02, 2.03, 3.05 and 11.01 hereof) that is received in advance of its scheduled
      Due Date and is not accompanied by an amount as to interest representing
      scheduled interest due on any date or dates in any month or months subsequent
      to
      the month of prepayment. Partial Principal Prepayments shall be applied by
      the
      Company or the related Servicer, as appropriate, in accordance with the terms
      of
      the related Mortgage Note.

     

    Private
      Certificates:
      Any of
      the Class B-4, Class X, Class C and Residual Certificates.

     

    Prospectus
      Supplement:
      The
      Prospectus Supplement dated January 12, 2007 relating to the public offering
      of
      the Offered Certificates.

     

    Protected
      Account:
      Each
      account established with respect to receipts on the Mortgage Loans and REO
      Property in accordance with Section 5.01 hereof or by the related Servicer
      in
      accordance with the applicable Servicing Agreement. Each Protected Account
      shall
      be an Eligible Account.

     

    PUD:
      A
      Planned Unit Development.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan required to be purchased pursuant to the applicable
      provisions of this Agreement, an amount equal to the sum of (i) 100% of the
      principal remaining unpaid on such Mortgage Loan as of the date of purchase
      (including if a foreclosure has already occurred, the principal balance of
      the
      related Mortgage Loan at the time the Mortgaged Property was acquired), net
      of
      any Servicing Advances and Advances attributable to principal and payable to
      the
      purchaser of the Mortgage Loan if such purchaser is also the Servicer of such
      Mortgage Loan, (ii) accrued and unpaid interest thereon at the Mortgage Rate
      through and including the last day of the month of purchase, net of any portion
      of the Servicing Fee and any Servicing Advances and Advances attributable to
      interest that is payable to the purchaser of the Mortgage Loan if such purchaser
      is also the Servicer of such Mortgage Loan, plus and (iii) any costs and damages
      (if any) incurred by the Trust in connection with any violation of such Mortgage
      Loan of any anti-predatory lending laws.

     

    QIB:
      A
      Qualified Institutional Buyer as defined in Rule 144A promulgated under the
      Securities Act.

     

    Rating
      Agency:
      Each of
      S&P and Moody’s. If any such organization or its successor is no longer in
      existence, “Rating Agency” shall be a nationally recognized statistical rating
      organization, or other comparable Person, designated by the Depositor, notice
      of
      which designation shall be given to the Trustee and the Securities
      Administrator. References herein to a given rating category of each Rating
      Agency shall mean such rating category without giving effect to any
      modifiers.

     

    Realized
      Loss:
      With
      respect to each Mortgage Loan as to which a Final Recovery Determination has
      been made, an amount (not less than zero) equal to (i) the unpaid principal
      balance of such Mortgage Loan as of the commencement of the calendar month
      in
      which the Final Recovery Determination was made, plus (ii) accrued interest
      from
      the Due Date as to which interest was last paid by the Mortgagor or advanced
      through the end of the calendar month in which such Final Recovery Determination
      was made, calculated in the case of each calendar month during such period
      (A)
      at an annual rate equal to the annual rate at which interest was then accruing
      on such Mortgage Loan and (B) on a principal amount equal to the Stated
      Principal Balance of such Mortgage Loan as of the close of business on the
      Distribution Date during such calendar month, minus (iii) the proceeds, if
      any,
      received in respect of such Mortgage Loan during the calendar month in which
      such Final Recovery Determination was made, net of amounts that are payable
      therefrom to the Company pursuant to this Agreement or the related Servicer
      pursuant to the applicable Servicing Agreement which have not been previously
      reimbursed. Any charged off Mortgage Loan will give rise to a Realized Loss
      at
      the time it is charged off, as described in Section 6.01. With respect to each
      Mortgage Loan which is the subject of a Servicing Modification, (a) (1) the
      amount by which the interest portion of a monthly payment or the principal
      balance of such Mortgage Loan was reduced or (2) the sum of any other amounts
      owing under the Mortgage Loan that were forgiven and that constitute Servicing
      Advances that are reimbursable to the Company or the related Servicer, and
      (b)
      any such amount with respect to a monthly payment that was or would have been
      due in the month immediately following the month in which a Principal Prepayment
      or the Purchase Price of such Mortgage Loan is received or is deemed to have
      been received and not paid due to a Servicing Modification.  In addition,
      to the extent the Company, a Servicer or the Master Servicer receives Subsequent
      Recoveries with respect to any Mortgage Loan, the amount of the Realized Loss
      with respect to that Mortgage Loan will be reduced to the extent such recoveries
      are distributed to any Class of Certificates or applied to increase the Excess
      Spread on any Distribution Date.

     

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the unpaid principal balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which
      interest was last paid by the Mortgagor in respect of the related Mortgage
      Loan
      through the end of the calendar month immediately preceding the calendar month
      in which such REO Property was acquired, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on the related Mortgage Loan and (B) on a principal
      amount equal to the Stated Principal Balance of the related Mortgage Loan as
      of
      the close of business on the Distribution Date during such calendar month,
      plus
      (iii) REO Imputed Interest for such REO Property for each calendar month
      commencing with the calendar month in which such REO Property was acquired
      and
      ending with the calendar month in which such Final Recovery Determination was
      made, minus (iv) the aggregate of all unreimbursed Advances and Servicing
      Advances.

     

    With
      respect to each Mortgage Loan which has become the subject of a Deficient
      Valuation, the difference between the principal balance of the Mortgage Loan
      outstanding immediately prior to such Deficient Valuation and the principal
      balance of the Mortgage Loan as reduced by the Deficient Valuation.

     

    With
      respect to each Mortgage Loan which has become the subject of a Debt Service
      Reduction, the portion, if any, of the reduction in each affected Monthly
      Payment attributable to a reduction in the Mortgage Rate imposed by a court
      of
      competent jurisdiction. Each such Realized Loss shall be deemed to have been
      incurred on the Due Date for each affected Monthly Payment.

     

    Record
      Date:
      With
      respect to any Distribution Date and the Class A Certificates and Class M
      Certificates, so long as such Classes of Certificates are Book-Entry
      Certificates, the Business Day preceding such Distribution Date, and otherwise,
      the close of business on the last Business Day of the month preceding the month
      in which such Distribution Date occurs. With respect to any Distribution Date
      and the Class B, Class C, Class X and Residual Certificates, the close of
      business on the last Business Day of the month preceding the month in which
      such
      Distribution Date occurs.

     

    Reference
      Banks:
      Shall
      mean leading banks selected by the Securities Administrator and engaged in
      transactions in Eurodollar deposits in the international Eurocurrency market
      (i)
      with an established place of business in London, (ii) which have been designated
      as such by the Securities Administrator and (iii) which are not controlling,
      controlled by, or under common control with, the Depositor, the Seller or the
      Master Servicer.

     

    Reference
      Bank Rate:
      With
      respect to any Accrual Period shall mean the arithmetic mean, rounded upwards,
      if necessary, to the nearest whole multiple of 0.03125%, of the offered rates
      for United States dollar deposits for one month that are quoted by the Reference
      Banks as of 11:00 a.m., New York City time, on the related Interest
      Determination Date to prime banks in the London interbank market for a period
      of
      one month in an amount approximately equal to the aggregate Certificate
      Principal Balance of the Class A Certificates and Class M Certificates for
      such
      Accrual Period, provided that at least two such Reference Banks provide such
      rate. If fewer than two offered rates appear, the Reference Bank Rate will
      be
      the arithmetic mean, rounded upwards, if necessary, to the nearest whole
      multiple of 0.03125%, of the rates quoted by one or more major banks in New
      York
      City, selected by the Securities Administrator, as of 11:00 a.m., New York
      City
      time, on such date for loans in United States dollars to leading European banks
      for a period of one month in amounts approximately equal to the aggregate
      Certificate Principal Balance of the Class A Certificates and Class M
      Certificates for such Accrual Period.

     

    Regular
      Certificate:
      Any
      Certificate other than a Residual Certificate or a Class X
      Certificate.

     

    Regular
      Interest:
      A
“regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the
      Code.

     

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

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act, as amended, or any similar state or local
      law.

     

    Relief
      Act Interest Shortfall:
      With
      respect to any Distribution Date and any Mortgage Loan, any reduction in the
      amount of interest collectible on such Mortgage Loan for the most recently
      ended
      Due Period as a result of the application of the Relief Act.

     

    Remaining
      Excess Spread:
      With
      respect to any Distribution Date, the Excess Spread less any Extra Principal
      Distribution Amount, in each case for such Distribution Date.

     

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

     

    REMIC
      I:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

    REMIC
      I Regular Interest:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC I issued
      hereunder and designated as a Regular Interest in REMIC I. Each REMIC I Regular
      Interest shall accrue interest at the related Uncertificated REMIC I
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto. The designations for the respective
      REMIC I Regular Interests are set forth in the Preliminary Statement hereto.
      The
      REMIC I Regular Interests consist of the REMIC I Group I Regular Interests
      and
      REMIC I Group II Regular Interests, each as designated in the Preliminary
      Statement hereto.

     

    REMIC
      I Group I Regular Interests:
      REMIC I
      Regular Interest I-1-A through REMIC I Regular Interest I-45-B as designated
      in
      the Preliminary Statement hereto.

     

    REMIC
      I Group II Regular Interests:
      REMIC I
      Regular Interest II-1-A through REMIC I Regular Interest II-45-B as designated
      in the Preliminary Statement hereto.

     

    REMIC
      II:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

    REMIC
      II Interest Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount (subject to adjustment based on
      the
      actual number of days elapsed in the respective Accrual Period) equal to (a)
      the
      product of (i) 50% of the aggregate Stated Principal Balance of the Mortgage
      Loans and the related REO Properties then outstanding and (ii) the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest AA
      minus
      the Marker Rate, divided by (b) 12.

     

    REMIC
      II Marker Allocation Percentage:
      50% of
      any amount payable or loss allocable from the Mortgage Loans, which shall be
      allocated to REMIC II Regular Interest AA, REMIC II Regular Interest ZZ and
      each
      REMIC II Regular Interest for which a Class A, Class M or Class B Certificate
      is
      a Corresponding Certificate.

     

    REMIC
      II Overcollateralization Amount:
      With
      respect to any date of determination, (i) 0.50% of the aggregate Uncertificated
      Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular
      Interest IO) minus (ii) the aggregate Uncertificated Principal Balance of each
      REMIC II Regular Interest for which a Class A, Class M or Class B Certificate
      is
      a Corresponding Certificate, in each case as of such date of
      determination.

     

    REMIC
      II Principal Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to the product of (i) 50%
      of
      the aggregate Stated Principal Balance of the Mortgage Loans and the related
      REO
      Properties then outstanding and (ii) 1 minus a fraction, the numerator of which
      is two (2) times the aggregate Uncertificated Principal Balance of each REMIC
      II
      Regular Interest for which a Class A, Class M or Class B Certificate is a
      Corresponding Certificate and the denominator of which is the aggregate
      Uncertificated Principal Balance of each REMIC II Regular Interest for which
      a
      Class A, Class M or Class B Certificate is a Corresponding Certificate and
      REMIC
      II Regular Interest ZZ.

     

    REMIC
      II Regular Interest:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. Each REMIC II
      Regular Interest shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and (other than REMIC II Regular
      Interest IO) shall be entitled to distributions of principal, subject to the
      terms and conditions hereof, in an aggregate amount equal to its initial
      Uncertificated Principal Balance as set forth in the Preliminary Statement
      hereto. The designations for the respective REMIC II Regular Interests are
      set
      forth in the Preliminary Statement hereto. 

     

    REMIC
      II Required Overcollateralization Amount:
      0.50%
      of the Overcollateralization Target Amount.

     

    REMIC
      II Sub WAC Allocation Percentage:
      50% of
      any amount payable or loss allocable from the Mortgage Loans, which shall be
      allocated to REMIC II Regular Interest 1-Sub, REMIC II Regular Interest 1-Grp,
      REMIC II Regular Interest 2-Sub, REMIC II Regular Interest 2-Grp and REMIC
      II
      Regular Interest XX.

     

    REMIC
      II Subordinated Balance Ratio:
      The
      ratio among the Uncertificated Principal Balances of each REMIC II Regular
      Interest ending with the designation “Sub”, equal to the ratio among, with
      respect to each such REMIC II Regular Interest, the excess of (x) the aggregate
      Stated Principal Balance of the Mortgage Loans in Loan Group I or the Mortgage
      Loans in Loan Group II, as applicable, over (y) the current Certificate
      Principal Balance of the related Class A Certificates.

     

    REMIC
      III:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

    REMIC
      III Regular Interest:
      The
      Class C Interest, Class IO Interest or any Regular Interest in REMIC III the
      ownership of which is represented by any of the Class A, Class M and Class
      B
      Certificates.

     

    REMIC
      IV:
      The
      segregated pool of assets consisting of the Class C Interest conveyed in trust
      to the Trustee, for the benefit of the Holders of the Class C Certificates
      and
      the Class RX Certificate (in respect of the Class R-4 Interest), with respect
      to
      which a separate REMIC election is to be made.

     

    REMIC
      V:
      The
      segregated pool of assets consisting of the Class IO Interest conveyed in trust
      to the Trustee, for the benefit of the holders of REMIC V Regular Interest
      IO
      and the Class RX Certificate (in respect of the Class R-5 Interest), with
      respect to which a separate REMIC election is to be made.

     

    REMIC
      Opinion:
      Shall
      mean an Opinion of Counsel to the effect that the proposed action will not
      cause
      any of REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify
      as a
      REMIC at any time that any Certificates are outstanding.

     

    REMIC
      Provisions:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at Sections 860A through 860G of the Code,
      and
      related provisions, and proposed, temporary and final regulations and published
      rulings, notices and announcements promulgated thereunder, as the foregoing
      may
      be in effect from time to time, as well as provisions of applicable state
      laws.

     

    REMIC
      Regular Interests:
      The
      REMIC I Regular Interests and REMIC II Regular Interests.

     

    Remittance
      Date:
      Shall
      mean (i) with respect to the Company, the day that is two Business Days prior
      to
      each Distribution Date and (ii) with respect to each Servicer, the Business
      Day
      as specified in the related Servicing Agreement.

     

    Remittance
      Report:
      Shall
      mean a report to the Securities Administrator in an electronic format (or by
      such other means as the Master Servicer and the Securities Administrator may
      agree from time to time) containing such data and information, as agreed to
      by
      the Master Servicer and the Securities Administrator such as to permit the
      Securities Administrator to prepare the Monthly Statement to
      Certificateholders.

     

    REO
      Imputed Interest:
      As to
      any REO Property, for any calendar month during which such REO Property was
      at
      any time part of REMIC I, one month’s interest at the applicable Net Mortgage
      Rate on the Stated Principal Balance of such REO Property (or, in the case
      of
      the first such calendar month, of the related Mortgage Loan, if appropriate)
      as
      of the close of business on the Distribution Date in such calendar
      month.

     

    REO
      Property:
      A
      Mortgaged Property acquired by the Company or the related Servicer on behalf
      of
      the Trust Fund through foreclosure or deed-in-lieu of foreclosure in connection
      with a defaulted Mortgage Loan.

     

    Replacement
      Mortgage Loan:
      A
      Mortgage Loan or Mortgage Loans in the aggregate substituted by the Seller
      for a
      Deleted Mortgage Loan, which must, on the date of such substitution, as
      confirmed in a Request for Release, (i) have a Stated Principal Balance, after
      deduction of the principal portion of the Scheduled Payment due in the month
      of
      substitution, not in excess of, and not less than 90% of, the Stated Principal
      Balance of the Deleted Mortgage Loan; (ii) if the Replacement Mortgage Loan
      is a
      fixed rate Mortgage Loan, have a fixed Mortgage Rate not less than or more
      than
      1% per annum higher than the Mortgage Rate of the Deleted Mortgage Loan; (iii)
      have the same or higher credit quality characteristics than that of the Deleted
      Mortgage Loan; (iv) have a Combined Loan-to-Value Ratio no higher than that
      of
      the Deleted Mortgage Loan; (v) have a remaining term to maturity no greater
      than
      (and not more than one year less than) that of the Deleted Mortgage Loan; (vi)
      not permit conversion of the Mortgage Rate from a fixed rate to a variable
      rate;
      (vii) have the same lien priority as the Deleted Mortgage Loan; (viii)
      constitute the same occupancy type as the Deleted Mortgage Loan or be owner
      occupied; (ix) if the Replacement Mortgage Loan is an Adjustable Rate Mortgage
      Loan, have a Maximum Mortgage Rate not less than the Maximum Mortgage Rate
      on
      the Deleted Mortgage Loan, (x) if the Replacement Mortgage Loan is an Adjustable
      Rate Mortgage Loan, have a Minimum Mortgage Rate not less than the Minimum
      Mortgage Rate of the Deleted Mortgage Loan, (xi) if the Replacement Mortgage
      Loan is an Adjustable Rate Mortgage Loan, have a Gross Margin equal to or
      greater than the Gross Margin of the Deleted Mortgage Loan, (xii) if the
      Replacement Mortgage Loan is an Adjustable Rate Mortgage Loan, have a next
      Adjustment Date not more than two months later than the next Adjustment Date
      on
      the Deleted Mortgage Loan, (xiii) comply with each representation and warranty
      set forth in Section 7 of the Mortgage Loan Purchase Agreement and (xiv) the
      Custodian has delivered a Final Certification noting no defects or
      exceptions.

     

    Reportable
      Event:
      The
      meaning set forth in Section 3.18(a)(iii).

     

    Repurchase
      Price:
      With
      respect to each Mortgage Loan, a price equal to (i) the outstanding principal
      balance of such Mortgage Loan, plus (ii) interest on such outstanding principal
      balance at the Mortgage Rate (net of the Servicing Fee Rate) from the last
      date
      through which interest has been paid to the end of the month of repurchase,
      less
      (iii) amounts advanced by the Company, a Servicer or the Master Servicer in
      respect of such repurchased Mortgage Loan which are being held in the
      Distribution Account for remittance to the Securities Administrator plus (iv)
      any costs and damages (if any) incurred by the Trust in connection with any
      violation of such Mortgage Loan of any anti-predatory lending laws.

     

    Request
      for Release:
      The
      Request for Release to be submitted by the Seller, the Company, a Servicer
      or
      the Master Servicer to the respective Custodian substantially in the form of
      Exhibit G hereto or other form attached as an exhibit to the related Custodial
      Agreement. Each Request for Release furnished to the respective Custodian by
      the
      Seller, the Company, a Servicer or the Master Servicer shall be in duplicate
      and
      shall be executed by an officer of such Person or a Servicing Officer (or,
      if
      furnished electronically to the respective Custodian, shall be deemed to have
      been sent and executed by an officer of such Person or a Servicing Officer)
      of
      the Seller, the Company, such Servicer or the Master Servicer, as
      applicable.

     

    Required
      Insurance Policy:
      With
      respect to any Mortgage Loan, any insurance policy that is required to be
      maintained from time to time under this Agreement or the related Servicing
      Agreement.

     

    Reserve
      Fund:
      Shall
      mean the separate trust account created and maintained by the Securities
      Administrator pursuant to Section 4.12 hereof.

     

    Reserve
      Fund Deposit:
      With
      respect to the Reserve Fund, an amount equal to $5,000, which the Depositor
      shall initially deposit into the Reserve Fund pursuant to Section 4.12
      hereof.

    

    Residual
      Certificates:
      The
      Class R-1, Class R-2, Class R-3 and Class RX Certificates (representing
      ownership of the Class R-4 Interest and Class R-5 Interest), each evidencing
      the
      sole class of Residual Interests in the related REMIC.

     

    Residual
      Interest:
      The
      sole class of Residual Interests in a REMIC within the meaning of Section
      860G(a)(2) of the Code.

     

    Responsible
      Officer:
      With
      respect to the Trustee and the Securities Administrator, any Vice President,
      any
      Assistant Vice President, the Secretary, any Assistant Secretary, or any Trust
      Officer in its respective Corporate Trust Office with specific responsibility
      for the transactions contemplated hereby, any other officer customarily
      performing functions similar to those performed by any of the above designated
      officers or other officers of the Trustee or the Securities Administrator as
      specified by the Trustee or the Securities Administrator, respectively, as
      to
      whom, with respect to a particular matter, such matter is referred because
      of
      such officer’s knowledge of and familiarity with the particular
      subject.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any
      successor thereto.

     

    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:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Scheduled
      Payment:
      The
      scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
      to
      principal and/or interest on such Mortgage Loan.

     

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

     

    Securities
      Administrator:
      Wells
      Fargo Bank, National Association, in its capacity as securities administrator,
      transfer agent and paying agent hereunder, and its successors and
      assigns.

     

    Securities
      Administrator Information:
      As
      defined in Section 3.18(b).

     

    Seller:
      EMC in
      its capacity as seller of the Mortgage Loans to the Depositor.

     

    Senior
      Certificates:
      The
      Class A Certificates.

     

    Servicer:
      Any of
      EMC, GMACM or HomeBanc Mortgage Corporation.

     

    Servic(es)(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. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including reasonable legal fees) incurred in the performance by the Servicer
      or
      the Company of their servicing obligations hereunder or under the related
      Servicing Agreement, including, but not limited to, the cost of (i) the
      preservation, restoration and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including foreclosures, and including
      any
      expenses incurred in relation to any such proceedings that result from the
      Mortgage Loan being registered in the MERS® System, (iii) the management and
      liquidation of any REO Property (including, without limitation, realtor’s
      commissions) and (iv) compliance with any obligations under Section 3.07 hereof
      to cause insurance to be maintained.

     

    Servicing
      Agreement:
      Any of
      the GMACM Servicing Agreement or the HomeBanc Servicing Agreement.

     

    Servicing
      Criteria:
      The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
      amended from time to time, or those Servicing Criteria otherwise mutually agreed
      to by EMC, the Master Servicer, the Trustee and the applicable Servicer in
      response to evolving interpretations of Regulation AB and incorporated into
      a
      revised Exhibit O.

     

    Servicing
      Fee:
      As to
      each EMC Mortgage Loan and any Distribution Date, an amount equal to
      1/12th
      of the
      Servicing Fee Rate multiplied by the Stated Principal Balance of such EMC
      Mortgage Loan payable solely from interest collections as of the Due Date in
      the
      month preceding the month in which such Distribution Date occurs. As to each
      Mortgage Loan serviced by the related Servicer and any Distribution Date, an
      amount equal to 1/12th
      of the
      Servicing Fee Rate multiplied by the unpaid principal balance of each such
      mortgage loan payable solely from interest collections, as of the Due Date
      in
      the month preceding the month in which such Distribution Date
      occurs.

     

    Servicing
      Fee Rate:
      0.5000%
      per annum.

     

    Servicing
      Modification:
      With respect to any Mortgage Loan that is in default or, in the reasonable
      judgment of the Company or the Servicer, as to which default is reasonably
      foreseeable, any modification which is effected by the Company or the related
      Servicer in accordance with the terms of this Agreement or the applicable
      Servicing Agreement which results in any change in the outstanding Stated
      Principal Balance, any change in the Mortgage Rate or any extension of the
      term
      of such Mortgage Loan.

     

    Servicing
      Officer:
      Any
      officer of the Company or a Servicer involved in, or responsible for, the
      administration and servicing of the Mortgage Loans (i) in the case of the
      Company, whose name and facsimile signature appear on a list of servicing
      officers furnished to the Master Servicer by the Company on the Closing Date
      pursuant to this Agreement, as such list may from time to time be amended and
      (ii) in the case of each Servicer, as to which evidence reasonably acceptable
      to
      the Master Servicer or the Trustee, of due authorization, by such party has
      been
      furnished from time to time to the Master Servicer or the Trustee.

     

    Significance
      Estimate:
      With
      respect to any Distribution Date, and in accordance with Item 1115 of Regulation
      AB, shall be an amount determined based on the reasonable good-faith estimate
      by
      the Seller or its affiliate of the aggregate Maximum Probable Exposure of the
      outstanding Class A, Class M and Class B Certificates to the Swap Agreement.
      

     

    Significance
      Percentage:
      With
      respect to any Distribution Date, and in accordance with Item 1115 of Regulation
      AB, shall be a percentage equal to the Significance Estimate divided by the
      aggregate outstanding Certificate Principal Balance of the Class A, Class M
      and
      Class B Certificates, prior to the distribution of the Principal Distribution
      Amount on such Distribution Date.

     

    Sixty-Day
      Plus Delinquency Percentage:
      With
      respect to any Distribution Date, is the arithmetic average for each of the
      three successive Distribution Dates ending with the applicable Distribution
      Date
      of the percentage equivalent of a fraction, the numerator of which is the
      aggregate Stated Principal Balance of the Mortgage Loans that are 60 or more
      days delinquent in the payment of principal or interest for the relevant
      Distribution Date, including any Mortgage Loans in foreclosure, REO and Mortgage
      Loans with a related Mortgagor subject to bankruptcy proceedings, and the
      denominator of which is the aggregate Stated Principal Balance of all of the
      Mortgage Loans immediately preceding such Distribution Date.

     

    Seller:
      EMC.

     

    Sponsor:
      EMC
      Mortgage Corporation, in its capacity as sponsor hereunder.

     

    Startup
      Day:
      The
      Startup Day for each REMIC formed hereunder shall be the Closing
      Date.

     

    Stated
      Principal Balance:
      With
      respect to any Mortgage Loan or related REO Property and any Distribution Date,
      the Cut-off Date Principal Balance thereof minus the sum of (i) the principal
      portion of the Scheduled Payments due with respect to such Mortgage Loan during
      each Due Period ending prior to such Distribution Date (and irrespective of
      any
      delinquency in their payment), (ii) all Principal Prepayments with respect
      to
      such Mortgage Loan received prior to or during the related Prepayment Period
      (iii) all Liquidation Proceeds to the extent applied by the Company or the
      related Servicer as recoveries of principal in accordance with Section 3.12
      or
      the applicable Servicing Agreement with respect to such Mortgage Loan, that
      were
      received by the Company or the related Servicer as of the close of business
      on
      the last day of the calendar month immediately preceding such Distribution
      Date
      and (iv) any Realized Losses on such Mortgage Loan incurred during the prior
      calendar month. The Stated Principal Balance of a Liquidated Loan equals
      zero.

     

    Stepdown
      Date:
      The
      earlier to occur of, (I) the first Distribution Date following the Distribution
      Date for which the Certificate Principal Balance for each of the Class A
      Certificates has been reduced to zero, and (II) the later to occur of (a)
the
      Distribution Date in January 2010 or (b) the first Distribution Date on which
      the Current Specified Enhancement Percentage is greater than or equal to
      56.20%.

     

    Subordinated
      Certificates:
      The
      Class M, Class B, Class C and Residual Certificates.

     

    Subsequent
      Recoveries:
      As of
      any Distribution Date, amounts received by the Master Servicer (net of any
      related expenses permitted to be reimbursed pursuant to Section 5.02) or surplus
      amounts held by the Master Servicer, Company and each Servicer to cover
      estimated expenses (including, but not limited to, recoveries in respect of
      the
      representations and warranties made by EMC pursuant to the Mortgage Loan
      Purchase Agreement) specifically related to a Mortgage Loan that was the subject
      of a liquidation or final disposition of any REO Property as of the end of
      the
      prior calendar month that resulted in a Realized Loss.

     

    Subservicing
      Agreement:
      Any
      agreement entered into between the Company and a subservicer with respect to
      the
      subservicing of any Mortgage Loan hereunder by such subservicer.

     

    Substitution
      Adjustment Amount:
      The
      meaning ascribed to such term pursuant to Section 2.03(d).

     

    Successor
      Master Servicer:
      The
      meaning ascribed to such term pursuant to Section 8.06.

     

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 4.12 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Swap Administration Agreement, the Swap Account and REMIC V
      Regular Interest IO. For the avoidance of doubt, the Supplemental Interest
      Trust, the Swap Agreement, the Swap Account and the Swap Administration
      Agreement do not constitute parts of the Trust Fund or any REMIC.

     

    Supplemental
      Interest Trust Trustee:
      Wells
      Fargo Bank, National Association, not in its individual capacity but solely
      in
      its capacity as Supplemental Interest Trust Trustee and any successor thereto,
      and any corporation or national banking association resulting from or surviving
      any consolidation or merger to which it or its successors may be a party and
      any
      successor Supplemental Interest Trust Trustee as may from time to time be
      serving as successor Supplemental Interest Trust Trustee.

     

    Swap
      Account:
      The
      separate trust account created and maintained by the Swap Administrator, and
      held within the Supplemental Interest Trust, pursuant to the Swap Administration
      Agreement.

     

    Swap
      Administrator:
      Wells
      Fargo Bank, National Association, not in its individual capacity, but solely
      as
      securities administrator, acting as swap administrator under the Swap
      Administration Agreement.

     

    Swap
      Administration Agreement:
      The
      Swap Administration Agreement, dated January 16, 2007, pursuant to which the
      Swap Administrator will make payments to the Swap Provider and the Class A,
      Class M and Class B Certificateholders, and certain other payments, as such
      agreement may be amended or supplemented from time to time.

     

    Swap
      Agreement:
      The
      interest rate swap agreement between the Swap Provider and Supplemental Interest
      Trust Trustee, acting as trustee on behalf of the Supplemental Interest Trust,
      together with any schedules, confirmations or other agreements relating thereto,
      attached hereto as Exhibit N.

     

    Swap
      LIBOR:
      For any
      Distribution Date, a per annum rate equal to the Floating Rate Option (as
      defined in the Swap Agreement) for the related Calculation Period (as defined
      in
      the Swap Agreement).

     

    Swap
      Optional Termination Payment:
      As
      defined in Section 11.01.

     

    Swap
      Provider:
      The
      swap provider under the Swap Agreement either (a) entitled to receive payments
      from the Swap Administrator from amounts payable by the Trust Fund under this
      Agreement or (b) required to make payments to the Swap Administrator for
      distribution as provided herein, in either case pursuant to the terms of the
      Swap Agreement, and any successor in interest or assign. Initially, the Swap
      Provider shall be Bear Stearns Financial Products Inc. 

     

    Swap
      Provider Trigger Event:
      With
      respect to any Distribution Date, (i) an Event of Default under the Swap
      Agreement with respect to which the Swap Provider is a Defaulting Party, (ii)
      a
      Termination Event under the Swap Agreement with respect to which the Swap
      Provider is the sole Affected Party, or (iii) an Additional Termination Event
      under the Swap Agreement with respect to which the Swap Provider is the sole
      Affected Party.

     

    Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment to be made by the Swap Administrator to the Swap Provider from
      payments from the Trust Fund, or by the Swap Provider to the Swap Administrator
      for payment to the Trust Fund, as applicable, pursuant to the terms of the
      Swap
      Agreement.

     

    Tax
      Matters Person:
      The
      person designated as “tax matters person” in the manner provided under Treasury
      Regulation Sections 1.860F-4(d) and 301.6231(a)(7)-1T. The holder of the
      greatest Percentage Interest in a Class of Residual Certificates shall be the
      Tax Matters Person for the related REMIC. The Securities Administrator, or
      any
      successor thereto or assignee thereof, shall serve as tax administrator
      hereunder and as agent for the related Tax Matters Person.

     

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

     

    Transfer
      Affidavit:
      As
      defined in Section 7.02(c)(ii).

     

    Trigger
      Event:
      With
      respect to any Distribution Date, a “ Trigger Event” shall have occurred if any
      of the following tests is not satisfied: (i) the Sixty-Day Plus Delinquency
      Percentage is less than 14.23% of the Current Specified Enhancement Percentage,
      or (ii) (A) for any Distribution Date from and including the Distribution Date
      in January 2009 to and including the Distribution Date in December 2009, the
      Cumulative Realized Loss Percentage for such Distribution Date is less than
      2.85% plus an additional 1/12th of 2.85% for each Distribution Date thereafter
      up to and including the Distribution Date in December 2009, (B) for any
      Distribution Date from and including the Distribution Date in January 2010
      to
      and including the Distribution Date in December 2010, the Cumulative Realized
      Loss Percentage for such Distribution Date is less than 5.70% plus an additional
      1/12th of 2.30% for each Distribution Date thereafter up to and including the
      Distribution Date in December 2010, (C) for any Distribution Date from and
      including the Distribution Date in January 2011 to and including the
      Distribution Date in December 2011, the Cumulative Realized Loss Percentage
      for
      such Distribution Date is less than 8.00% plus an additional 1/12th of 1.75%
      for
      each Distribution Date thereafter up to and including the Distribution Date
      in
      December 2011, (D) for any Distribution Date from and including the Distribution
      Date in January 2012 to and including the Distribution Date in December 2012,
      the Cumulative Realized Loss Percentage for such Distribution Date is less
      than
      9.75% plus an additional 1/12th of 0.50% for each Distribution Date thereafter
      up to and including the Distribution Date in December 2012, and (E) for any
      Distribution Date thereafter, the Cumulative Realized Loss Percentage for such
      Distribution Date is less than 10.25%.

     

    Trust:
      As
      defined in Section 2.07.

     

    Trust
      Fund:
      The
      corpus of the trust created hereunder consisting of (i) the Mortgage Loans
      and
      all interest accruing and principal due with respect thereto after the Cut-off
      Date to the extent not applied in computing the Cut-off Date Principal Balance
      thereof; (ii) the Distribution Account maintained by the Securities
      Administrator, the Reserve Fund and the Protected Accounts maintained by the
      Company and each Servicer and all amounts deposited therein pursuant to the
      applicable provisions of this Agreement and the applicable Servicing Agreement;
      (iii) property that secured a Mortgage Loan and has been acquired by
      foreclosure, deed in lieu of foreclosure or otherwise; (iv) the mortgagee’s
      rights under the Insurance Policies with respect to the Mortgage Loans; (v)
      the
      Servicing Agreements and the Assignment Agreements; (vi) the rights under the
      Swap Administration Agreement; (vii) the rights under the Mortgage Loan Purchase
      Agreement; and (viii) all proceeds of the foregoing, including proceeds of
      conversion, voluntary or involuntary, of any of the foregoing into cash or
      other
      liquid property. The Reserve Fund shall constitute an asset of the Trust Fund
      but will not be included in REMIC I, REMIC II, REMIC III, REMIC IV or REMIC
      V.

     

    Trustee:
      Citibank, N.A., a national banking association, as trustee for the benefit
      of
      the Certificateholders under this Agreement, and any successor thereto, and
      any
      corporation or national banking association resulting from or surviving any
      consolidation or merger to which it or its successors may be a party and any
      successor trustee as may from time to time be serving as successor trustee
      hereunder.

     

    Uncertificated
      Accrued Interest:
      With
      respect to each REMIC Regular Interest on each Distribution Date, an amount
      equal to one month’s interest at the related Uncertificated Pass-Through Rate on
      the related Uncertificated Principal Balance or related Uncertificated Notional
      Amount of such REMIC Regular Interest. In each case, Uncertificated Accrued
      Interest will be reduced by any Prepayment Interest Shortfalls and Relief Act
      Interest Shortfalls (allocated to such REMIC Regular Interests as set forth
      in
      Section 1.02).

     

    Uncertificated
      Notional Amount:
      With
      respect to the Class C Interest and any Distribution Date, an amount equal
      to
      the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests
      (other than REMIC II Regular Interest IO) for such Distribution
      Date.

     

    With
      respect to REMIC II Regular Interest IO and each Distribution Date listed below,
      the aggregate Uncertificated Principal Balance of the REMIC I Regular Interests
      ending with the designation “A” listed below:

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interests

            
	
              1

            	
              I-1-A
                through I-45-A and II-1-A through II-45-A

            
	
              2

            	
              I-2-A
                through I-45-A and II-2-A through II-45-A

            
	
              3

            	
              I-3-A
                through I-45-A and II-2-A through II-45-A

            
	
              4

            	
              I-4-A
                through I-45-A and II-2-A through II-45-A

            
	
              5

            	
              I-5-A
                through I-45-A and II-2-A through II-45-A

            
	
              6

            	
              I-6-A
                through I-45-A and II-2-A through II-45-A

            
	
              7

            	
              I-7-A
                through I-45-A and II-2-A through II-45-A

            
	
              8

            	
              I-8-A
                through I-45-A and II-2-A through II-45-A

            
	
              9

            	
              I-9-A
                through I-45-A and II-2-A through II-45-A

            
	
              10

            	
              I-10-A
                through I-45-A and II-10-A through II-45-A

            
	
              11

            	
              I-11-A
                through I-45-A and II-11-A through II-45-A

            
	
              12

            	
              I-12-A
                through I-45-A and II-12-A through II-45-A

            
	
              13

            	
              I-13-A
                through I-45-A and II-13-A through II-45-A

            
	
              14

            	
              I-14-A
                through I-45-A and II-14-A through II-45-A

            
	
              15

            	
              I-15-A
                through I-45-A and II-15-A through II-45-A

            
	
              16

            	
              I-16-A
                through I-45-A and II-16-A through II-45-A

            
	
              17

            	
              I-17-A
                through I-45-A and II-17-A through II-45-A

            
	
              18

            	
              I-18-A
                through I-45-A and II-18-A through II-45-A

            
	
              19

            	
              I-19-A
                through I-45-A and II-19-A through II-45-A

            
	
              20

            	
              I-20-A
                through I-45-A and II-20-A through II-45-A

            
	
              21

            	
              I-21-A
                through I-45-A and II-21-A through II-45-A

            
	
              22

            	
              I-22-A
                through I-45-A and II-22-A through II-45-A

            
	
              23

            	
              I-23-A
                through I-45-A and II-23-A through II-45-A

            
	
              24

            	
              I-24-A
                through I-45-A and II-24-A through II-45-A

            
	
              25

            	
              I-25-A
                through I-45-A and II-25-A through II-45-A

            
	
              26

            	
              I-26-A
                through I-45-A and II-26-A through II-45-A

            
	
              27

            	
              I-27-A
                through I-45-A and II-27-A through II-45-A

            
	
              28

            	
              I-28-A
                through I-45-A and II-28-A through II-45-A

            
	
              29

            	
              I-29-A
                through I-45-A and II-29-A through II-45-A

            
	
              30

            	
              I-30-A
                through I-45-A and II-30-A through II-45-A

            
	
              31

            	
              I-31-A
                through I-45-A and II-31-A through II-45-A

            
	
              32

            	
              I-32-A
                through I-45-A and II-32-A through II-45-A

            
	
              33

            	
              I-33-A
                through I-45-A and II-33-A through II-45-A

            
	
              34

            	
              I-34-A
                through I-45-A and II-34-A through II-45-A

            
	
              35

            	
              I-35-A
                through I-45-A and II-35-A through II-45-A

            
	
              36

            	
              I-36-A
                through I-45-A and II-36-A through II-45-A

            
	
              37

            	
              I-37-A
                through I-45-A and II-37-A through II-45-A

            
	
              38

            	
              I-38-A
                through I-45-A and II-38-A through II-45-A

            
	
              39

            	
              I-39-A
                through I-45-A and II-39-A through II-45-A

            
	
              40

            	
              I-40-A
                through I-45-A and II-40-A through II-45-A

            
	
              41

            	
              I-41-A
                through I-45-A and II-41-A through II-45-A

            
	
              42

            	
              I-42-A
                through I-45-A and II-42-A through II-45-A

            
	
              43

            	
              I-43-A
                through I-45-A and II-43-A through II-45-A

            
	
              44

            	
              I-44-A
                through I-45-A and II-44-A through II-45-A

            
	
              45

            	
              I-45-A
                and II-45-A

            
	
              thereafter

            	
              $0.00

            

    

    

    With
      respect to the Class IO Interest and any Distribution Date, an amount equal
      to
      the Uncertificated Notional Amount of the REMIC II Regular Interest IO. With
      respect to REMIC V Regular Interest IO, an amount equal to the Uncertificated
      Notional Amount of the Class IO Interest.

     

    Uncertificated
      Pass-Through Rate:
      The
      Uncertificated REMIC I Pass-Through Rate or Uncertificated REMIC II Pass-Through
      Rate.

     

    Uncertificated
      Principal Balance:
      The
      amount of REMIC Regular Interests and Class C Interest outstanding as of any
      date of determination. As of the Closing Date, the Uncertificated Principal
      Balance of each REMIC Regular Interest and Class C Interest shall equal the
      amount set forth in the Preliminary Statement hereto as its initial
      uncertificated principal balance. On each Distribution Date, the Uncertificated
      Principal Balance of the REMIC Regular Interests shall be reduced by all
      distributions of principal made on such REMIC Regular Interests on such
      Distribution Date pursuant to Section 6.07 and, if and to the extent necessary
      and appropriate, shall be further reduced on such Distribution Date by Realized
      Losses as provided in Section 6.05, and the Uncertificated Principal Balance
      of
      REMIC II Regular Interest ZZ shall be increased by interest deferrals as
      provided in Section 6.07(c)(1)(ii). The Uncertificated Principal Balance of
      each
      REMIC Regular Interest and Class C Interest shall never be less than zero.
      With
      respect to the Class C Interest as of any date of determination, an amount
      equal
      to the excess, if any, of (A) the then aggregate Uncertificated Principal
      Balance of the REMIC II Regular Interests over (B) the then aggregate
      Certificate Principal Balance of the Class A, Class M and Class B Certificates
      then outstanding.

     

    Uncertificated
      REMIC I Pass-Through Rate:
      With
      respect to each REMIC I Group I Regular Interest ending with the designation
“A”
and any Distribution Date, a per annum rate equal to the weighted average Net
      Mortgage Rate of Loan Group I multiplied by 2, subject to a maximum rate of
      10.2460%. With respect to each REMIC I Group I Regular Interest ending with
      the
      designation “B” and any Distribution Date, the greater of (x) a per annum rate
      equal to the excess, if any, of (1) 2 multiplied by the weighted average Net
      Mortgage Rate of Loan Group I over (2) 10.2460% and (y) 0.00% per annum.

     

    With
      respect to each REMIC I Group II Regular Interest ending with the designation
      “A” and any Distribution Date, a per annum rate equal to the weighted average
      Net Mortgage Rate of Loan Group II multiplied by 2, subject to a maximum rate
      of
      10.2460%. With respect to each REMIC I Group II Regular Interest ending with
      the
      designation “B” and any Distribution Date, the greater of (x) a per annum rate
      equal to the excess, if any, of (1) 2 multiplied by the weighted average Net
      Mortgage Rate of Loan Group II over (2) 10.2460% and (y) 0.00% per annum.

     

    Uncertificated
      REMIC II Pass-Through Rate:
      With
      respect to REMIC II Regular Interest AA, each REMIC II Regular Interest for
      which a Class A, Class M or Class B Certificate is the Corresponding
      Certificate, REMIC II Regular Interest ZZ, REMIC II Regular Interest 1-Sub,
      REMIC II Regular Interest 2-Sub and REMIC II Regular Interest XX, and any
      Distribution Date, a per annum rate equal to the weighted average of (x) the
      Uncertificated REMIC I Pass-Through Rates for the REMIC I Regular Interests
      ending with the designation “B” for such Distribution Date and (y) the rates
      listed below for the REMIC I Regular Interests ending with the designation
“A”
for such Distribution Date, in each case weighted on the basis of the
      Uncertificated Principal Balances of each such REMIC I Regular Interest for
      such
      Distribution Date:

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1

            	
              I-1-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              2

            	
              I-2-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-2-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              3

            	
              I-3-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-3-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              4

            	
              I-4-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-4-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              5

            	
              I-5-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-5-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              6

            	
              I-6-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-6-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              7

            	
              I-7-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-7-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              8

            	
              I-8-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-8-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              9

            	
              I-9-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-9-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              10

            	
              I-10-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-10-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              11

            	
              I-11-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-11-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              12

            	
              I-12-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-12-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              13

            	
              I-13-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-13-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              14

            	
              I-14-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-14-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              15

            	
              I-15-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-15-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              16

            	
              I-16-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-16-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              17

            	
              I-17-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-17-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              18

            	
              I-18-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-18-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              19

            	
              I-19-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-19-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              20

            	
              I-20-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-20-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              21

            	
              I-21-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-21-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              22

            	
              I-22-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-22-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              23

            	
              I-23-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-23-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              24

            	
              I-24-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-24-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              25

            	
              I-25-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-25-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              26

            	
              I-26-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-26-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              27

            	
              I-27-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-27-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              28

            	
              I-28-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-28-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              29

            	
              I-29-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-29-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              30

            	
              I-30-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-30-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              31

            	
              I-31-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-31-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              32

            	
              I-32-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-32-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              33

            	
              I-33-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-33-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              34

            	
              I-34-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-34-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              35

            	
              I-35-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-35-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              36

            	
              I-36-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-36-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              37

            	
              I-37-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-37-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              38

            	
              I-38-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-38-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              39

            	
              I-39-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-39-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              40

            	
              I-40-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-40-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              41

            	
              I-41-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-41-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              42

            	
              I-42-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-42-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              43

            	
              I-43-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-43-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate 

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              44

            	
              I-44-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-44-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              45

            	
              I-45-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-45-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              thereafter

            	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    With
      respect to REMIC II Regular Interest 1-Grp and any Distribution Date, a per
      annum rate equal to the weighted average of (x) the Uncertificated REMIC I
      Pass-Through Rates for the REMIC I Group I Regular Interests ending with the
      designation “B” for such Distribution Date and (y) the rates listed below for
      the REMIC I Group I Regular Interests ending with the designation “A” for such
      Distribution Date, in each case, weighted on the basis of the Uncertificated
      Principal Balances of each such REMIC I Regular Interest for such Distribution
      Date:

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1

            	
              I-1-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              2

            	
              I-2-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              3

            	
              I-3-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              4

            	
              I-4-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              5

            	
              I-5-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              6

            	
              I-1-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              7

            	
              I-7-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              8

            	
              I-8-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              9

            	
              I-9-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              10

            	
              I-10-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              11

            	
              I-11-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              12

            	
              I-12-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              13

            	
              I-13-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              14

            	
              I-14-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              15

            	
              I-15-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              16

            	
              I-16-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              17

            	
              I-17-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              18

            	
              I-18-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              19

            	
              I-19-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              20

            	
              I-20-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              21

            	
              I-21-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              22

            	
              I-22-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              23

            	
              I-23-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              24

            	
              I-24-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              25

            	
              I-25-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              26

            	
              I-26-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              27

            	
              I-27-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              28

            	
              I-28-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              29

            	
              I-29-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              30

            	
              I-30-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              31

            	
              I-31-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              32

            	
              I-32-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              33

            	
              I-33-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              34

            	
              I-34-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              35

            	
              I-35-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              36

            	
              I-36-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              37

            	
              I-37-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              38

            	
              I-38-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              39

            	
              I-39-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              40

            	
              I-40-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              41

            	
              I-41-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              42

            	
              I-42-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              43

            	
              I-43-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              44

            	
              I-44-A
                through I-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              45

            	
              I-45-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              thereafter

            	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

     

    With
      respect to REMIC II Regular Interest 2-Grp and any Distribution Date, a per
      annum rate equal to the weighted average of (x) the Uncertificated REMIC I
      Pass-Through Rates for the REMIC I Group II Regular Interests ending with the
      designation “B” for such Distribution Date and (y) the rates listed below for
      the REMIC I Group II Regular Interests ending with the designation “A” for such
      Distribution Date, in each case, weighted on the basis of the Uncertificated
      Principal Balances of each such REMIC I Regular Interest for such Distribution
      Date:

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1

            	
              II-1-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              2

            	
              II-2-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              3

            	
              II-3-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              4

            	
              II-4-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              5

            	
              II-5-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              6

            	
              II-1-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              7

            	
              II-7-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              8

            	
              II-8-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              9

            	
              II-9-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              10

            	
              II-10-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              11

            	
              II-11-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              12

            	
              II-12-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              13

            	
              II-13-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              14

            	
              II-14-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              15

            	
              II-15-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              16

            	
              II-16-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              17

            	
              II-17-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              18

            	
              II-18-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              19

            	
              II-19-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              20

            	
              II-20-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              21

            	
              II-21-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              22

            	
              II-22-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              23

            	
              II-23-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              24

            	
              II-24-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              25

            	
              II-25-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              26

            	
              II-26-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              27

            	
              II-27-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              28

            	
              II-28-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              29

            	
              II-29-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              30

            	
              II-30-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              31

            	
              II-31-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              32

            	
              II-32-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              33

            	
              II-33-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              34

            	
              II-34-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              35

            	
              II-35-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              36

            	
              II-36-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              37

            	
              II-37-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              38

            	
              II-38-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              39

            	
              II-39-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              40

            	
              II-40-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              41

            	
              II-41-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              42

            	
              II-42-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              43

            	
              II-43-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              44

            	
              II-44-A
                through II-45-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              45

            	
              II-45-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              thereafter

            	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

     

    With
      respect to REMIC II Regular Interest IO and any Distribution Date, a per annum
      rate equal to the excess, if any, of (x) the weighted average of the
      Uncertificated REMIC I Pass-Through Rates for the REMIC I Regular Interests
      ending with the designation “A” for such Distribution Date, over (y) 2
      multiplied by Swap LIBOR.

     

    Unpaid
      Realized Loss Amount:
      With
      respect to the Class A Certificates and as to any Distribution Date is the
      excess of Applied Realized Loss Amounts with respect to such Class over the
      sum
      of all distributions in reduction of the Applied Realized Loss Amounts on all
      previous Distribution Dates. Any amounts distributed to the Class A Certificates
      in respect of any Unpaid Realized Loss Amount shall not be applied to reduce
      the
      Certificate Principal Balance of such Class.

     

    Voting
      Rights:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions hereunder. Voting Rights
      shall
      be allocated (i) 92% to the Class A, Class M and Class B Certificates, (ii)
      3%
      to the Class C Certificates until paid in full, (iii) 1% to each of the Class
      X,
      Class R-1, Class R-2, Class R-3 Certificates and Class RX Certificates, with
      the
      allocation among the Certificates (other than the Class X, Class C and Residual
      Certificates) to be in proportion to the Certificate Principal Balance of each
      Class relative to the Certificate Principal Balance of all other such Classes.
      Voting Rights will be allocated among the Certificates of each such Class in
      accordance with their respective Percentage Interests.

     

    Wells
      Fargo:
      Wells
      Fargo Bank, National Association, and any successor in interest.

     

    Wells
      Fargo Custodial Agreement:
      The
      Custodial Agreement, dated as of January 16, 2007, among the Depositor, EMC,
      as
      Seller, the Master Servicer, the Securities Administrator, the Trustee and
      Wells
      Fargo Bank, National Association as Custodian relating to the Mortgage Loans
      identified in such Custodial Agreement.

     

    Section
      1.02  Allocation
      of Certain Interest Shortfalls. 

     

    For
      purposes of calculating the amount of Current Interest for the Class A, Class
      M,
      Class B and Class C Certificates for any Distribution Date, the aggregate amount
      of any Prepayment Interest Shortfalls (to the extent not covered by payments
      by
      the related Servicer pursuant to the related Servicing Agreement, the Company
      or
      the Master Servicer pursuant to Section 6.02) and any Relief Act Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated first, to the Class C Interest based on, and to the extent
      of, one month’s interest at the then applicable Pass-Through Rate on the
      Uncertificated Notional Amount thereof, and thereafter, among the Class A,
      Class
      M and Class B Certificates, in each case on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Pass-Through Rates on the respective Certificate Principal Balances
      of each such Certificate.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Group I Regular Interests for any Distribution Date, the aggregate
      amount of any Prepayment Interest Shortfalls (to the extent not covered by
      payments by the related Servicer pursuant to the related Servicing Agreement
      or
      the Master Servicer pursuant to Section 6.02) and any Relief Act Interest
      Shortfalls incurred in respect of Loan Group I for any Distribution Date shall
      be allocated first, to REMIC I Group I Regular Interests ending with the
      designation “B”, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest, and then, to REMIC
      I
      Group I Regular Interests ending with the designation “A”, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest. For purposes of
      calculating the amount of Uncertificated Accrued Interest for the REMIC I Group
      II Regular Interests for any Distribution Date, the aggregate amount of any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      Master Servicer pursuant to Section 6.02) and any Relief Act Interest Shortfalls
      incurred in respect of Loan Group II for any Distribution Date shall be
      allocated first, to REMIC I Group II Regular Interests ending with the
      designation “B”, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest, and then, to REMIC
      I
      Group II Regular Interests ending with the designation “A”, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest. 

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC II Regular Interests (other than REMIC II Regular Interest IO) for any
      Distribution Date, (i) the REMIC II Marker Allocation Percentage of the
      aggregate amount of any Prepayment Interest Shortfalls (to the extent not
      covered by payments by the Master Servicer pursuant to Section 6.02) and any
      Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for
      any
      Distribution Date shall be allocated first, to Uncertificated Accrued Interest
      payable to REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up
      to
      an aggregate amount equal to the REMIC II Interest Loss Allocation Amount,
      98%
      and 2%, respectively, and thereafter, among REMIC II Regular Interest AA, each
      REMIC II Regular Interest for which a Class A, Class M or Class B Certificate
      is
      the Corresponding Certificate and REMIC II Regular Interest ZZ, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC II Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC II Regular Interest, and (ii) the REMIC
      II
      Sub WAC Allocation Percentage of the aggregate amount of any Prepayment Interest
      Shortfalls (to the extent not covered by payments by the Master Servicer
      pursuant to Section 6.02) and any Relief Act Interest Shortfalls incurred in
      respect of the Mortgage Loans for any Distribution Date shall be allocated
      to
      Uncertificated Accrued Interest payable to REMIC II Regular Interest 1-Sub,
      REMIC II Regular Interest 1-Grp, REMIC II Regular Interest 2-Sub, REMIC II
      Regular Interest 2-Grp and REMIC II Regular Interest XX, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC II Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC II Regular Interest.

     

    

    
      
        
          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ARTICLE
      II

     

    CONVEYANCE
      OF TRUST FUND

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01  Conveyance
      of Trust Fund.

     

    Pursuant
      to the Mortgage Loan Purchase Agreement, the Seller sold, transferred, assigned,
      set over and otherwise conveyed to the Depositor, without recourse, all the
      right, title and interest of the Seller in and to the assets sold by it in
      the
      Trust Fund.

     

    EMC
      has
      entered into this Agreement in consideration for the purchase of the Mortgage
      Loans by the Depositor pursuant to the Mortgage Loan Purchase Agreement and
      has
      agreed to take the actions specified herein.

     

    The
      Depositor, concurrently with the execution and delivery hereof, hereby sells,
      transfers, assigns, sets over and otherwise conveys to the Trustee for the
      use
      and benefit of the Certificateholders, without recourse, all the right, title
      and interest of the Depositor in and to the Trust Fund.

     

    In
      connection with such sale, the Depositor has delivered to, and deposited with,
      or caused to be delivered to and deposited with, the Trustee or the related
      Custodian, as its agent, the following documents or instruments with respect
      to
      each Mortgage Loan so assigned: (i) the original Mortgage Note, including any
      riders thereto, endorsed without recourse (A) in blank or to order of “Citibank,
      N.A., as Trustee for Certificateholders of SACO I Trust 2007-1, Mortgage-Backed
      Certificates, Series 2007-1,” or (B) in the case of a loan registered on the
      MERS system, in blank and showing an unbroken chain of endorsements from the
      original payee thereof to the Person endorsing it to the Trustee, (ii) the
      original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the
      presence of the MIN and language indicating that such Mortgage Loan is a MOM
      Loan, which shall have been recorded (or, for Mortgage Loans other than the
      EMC
      Flow Loans, if the original is not available, a copy), with evidence of such
      recording indicated thereon (or if clause (x) in the proviso below applies,
      shall be in recordable form), (iii) unless the Mortgage Loan is either a MOM
      Loan or has been assigned in the name of MERS®, the assignment (either an
      original or a copy, which may be in the form of a blanket assignment if
      permitted in the jurisdiction in which the Mortgaged Property is located) to
      the
      Trustee of the Mortgage with respect to each Mortgage Loan in the name of
“Citibank, N.A., as Trustee for Certificateholders of SACO I Trust 2007-1,
      Mortgage-Backed Certificates, Series 2007-1,” which shall have been recorded (or
      if clause (x) in the proviso below applies, shall be in recordable form), (iv)
      an original or a copy of all intervening assignments of the Mortgage, if any,
      with evidence of recording thereon, (v) with respect to any Mortgage Loan (other
      than any Piggyback Loan), the original policy of title insurance or
      mortgagee’s certificate of title insurance or commitment or binder for title
      insurance or,
      in
      the event such original title policy has not been received from the title
      insurer, such title policy will be delivered within one year of the Closing
      Date
      or, in the event such original title policy is unavailable, a photocopy of
      such
      title policy or, in lieu thereof, a current lien search on the related Mortgaged
      Property; and with respect to any Piggyback Loan, the original policy of
      title insurance or mortgagee’s certificate of title insurance or commitment or
      binder for title insurance issued as to the related first lien Mortgage Loan
      or, in lieu thereof, a lien search on the related Mortgaged Property that
      was conducted in connection with the related first lien Mortgage Loan and (vi)
      originals or copies of all available assumption, modification or substitution
      agreements, if any; provided, however, that in lieu of the foregoing, the Seller
      may deliver the following documents, under the circumstances set forth below:
      (x) in lieu of the original Mortgage (other than the Mortgages related to the
      EMC Flow Loans), assignment thereof to the Trustee or intervening assignments
      thereof have been delivered or are being delivered to recording offices for
      recording and have not been returned in time to permit their delivery as
      specified above, the Depositor may deliver, or cause to be delivered, a true
      copy thereof with a certification by such Seller or the title company issuing
      the commitment for title insurance, on the face of such copy, substantially
      as
      follows: “Certified to be a true and correct copy of the original, which has
      been transmitted for recording”; (y) in lieu of the original Mortgage (other
      than the Mortgages related to the EMC Flow Loans), assignment to the Trustee
      or
      in blank or intervening assignments thereof, if the applicable jurisdiction
      retains the originals of such documents (as evidenced by a certification from
      the Depositor to such effect) the Depositor may deliver, or cause to be
      delivered, photocopies of such documents containing an original certification
      by
      the judicial or other governmental authority of the jurisdiction where such
      documents were recorded; and (z) in lieu of the Mortgage Notes relating to
      the
      Mortgage Loans identified in the list set forth in Exhibit I, the Depositor
      may
      deliver, or cause to be delivered, a lost note affidavit and indemnity and
      a
      copy of the original note, if available; and provided, further, however, that
      in
      the case of Mortgage Loans which have been prepaid in full after the Cut-off
      Date and prior to the Closing Date, the Depositor, in lieu of delivering the
      above documents, may deliver, or cause to be delivered, to the Trustee and
      the
      related Custodian a certification of a Servicing Officer to such effect and
      in
      such case shall deposit all amounts paid in respect of such Mortgage Loans,
      in
      the Distribution Account on the Closing Date. In the case of the documents
      referred to in clause (x) above, the Depositor shall deliver, or cause to be
      delivered, such documents to the Trustee or the related Custodian promptly
      after
      they are received. EMC shall cause, at its expense, the Mortgage and intervening
      assignments, if any, and to the extent required in accordance with the
      foregoing, the assignment of the Mortgage to the Trustee to be submitted for
      recording promptly after the Closing Date; provided that EMC need not cause
      to
      be recorded (a) any assignment in any jurisdiction under the laws of which,
      as
      evidenced by an Opinion of Counsel addressed to the Trustee delivered by EMC
      to
      the Trustee, the Custodians and each Rating Agency, the recordation of such
      assignment is not necessary to protect the Trustee’s interest in the related
      Mortgage Loan or (b) if MERS is identified on the Mortgage or on a properly
      recorded assignment of the Mortgage as the mortgagee of record solely as nominee
      for the related Seller and its successors and assigns. In the event that either
      Seller, the Depositor or the Master Servicer or the Securities Administrator
      gives written notice to the Trustee that a court has recharacterized the sale
      of
      the Mortgage Loans as a financing, EMC shall submit or cause to be submitted
      for
      recording as specified above each such previously unrecorded assignment to
      be
      submitted for recording as specified above at the expense of the Trust. In
      the
      event a Mortgage File is released to the Company or the related Servicer as
      a
      result of such Person having completed a Request for Release, the related
      Custodian shall, if not so completed, complete the assignment of the related
      Mortgage in the manner specified in clause (iii) above.

     

    In
      connection with the assignment of any Mortgage Loan registered on the MERS®
System, EMC further agrees that it will cause, at EMC’s own expense, within 30
      days after the Closing Date, the MERS® System to indicate that such Mortgage
      Loans have been assigned by EMC to the Depositor and by the Depositor to the
      Trustee in accordance with this Agreement for the benefit of the
      Certificateholders by including (or deleting, in the case of Mortgage Loans
      which are repurchased in accordance with this Agreement) in such computer files
      (a) the code in the field which identifies the specific Trustee and (b) the
      code
      in the field “Pool Field” which identifies the series of the Certificates issued
      in connection with such Mortgage Loans. EMC further agrees that it will not,
      and
      will not permit the Company or the Master Servicer to, and the Master Servicer
      agrees that it will not, alter the codes referenced in this paragraph with
      respect to any Mortgage Loan during the term of this Agreement unless and until
      such Mortgage Loan is repurchased in accordance with the terms of this Agreement
      or the Mortgage Loan Purchase Agreement.

     

    All
      original documents relating to the Mortgage Loans that are not delivered to
      the
      Trustee or the related Custodian on its behalf are and shall be held by or
      on
      behalf of the Seller or the Depositor, as the case may be, in trust for the
      benefit of the Trustee on behalf of the Certificateholders. Any such original
      document delivered to or held by the Depositor, shall be delivered promptly
      to
      the Custodian on the Trustee’s behalf. 

     

    Whenever
      it is provided for in this Agreement that any document, evidence or information
      relating to a Mortgage Loan to be included in a Mortgage File be delivered
      or
      supplied to the Trustee, such delivery or supply shall be made to the
      appropriate Custodian pursuant to the related Custodial Agreement.

     

    Section
      2.02  Acceptance
      of the Mortgage Loans. 

     

    (a)  Based
      on
      the Initial Certification received by it from the related Custodian, the Trustee
      acknowledges receipt of, subject to the further review and exceptions reported
      by the related Custodian pursuant to the procedures described below, the
      documents (or certified copies thereof) delivered to the Trustee or the related
      Custodian on its behalf pursuant to Section 2.01 and declares that it holds
      and
      will continue to hold directly or through a custodian those documents and any
      amendments, replacements or supplements thereto and all other assets of the
      Trust Fund delivered to it in trust for the use and benefit of all present
      and
      future Holders of the Certificates. On the Closing Date, the Trustee or the
      related Custodian on its behalf will deliver one or more Initial Certifications,
      each in the form of Exhibit One to the Custodial Agreement, to the parties
      indicated on such exhibit confirming whether or not it has received the Mortgage
      File for each Mortgage Loan, but without review of such Mortgage File, except
      to
      the extent necessary to confirm whether such Mortgage File contains the original
      Mortgage Note or a lost note affidavit and indemnity in lieu thereof. No later
      than 90 days after the Closing Date, the Trustee or the related Custodian on
      its
      behalf shall, for the benefit of the Certificateholders, review each Mortgage
      File delivered to it and execute and deliver to EMC and the Master Servicer
      and,
      if reviewed by the related Custodian, to the Trustee, one or more Interim
      Certifications, each substantially in the form of Exhibit Two to the related
      Custodial Agreement. In conducting such review, the Trustee or the related
      Custodian on its behalf will ascertain whether all required documents have
      been
      executed and received and whether those documents relate, determined on the
      basis of the Mortgagor name, original principal balance and loan number, to
      the
      Mortgage Loans identified in Exhibit B to this Agreement, as supplemented
      (provided, however, that with respect to those documents described in subclauses
      (iv) and (vi) of Section 2.01, such obligations shall extend only to documents
      actually delivered pursuant to such subclauses). In performing any such review,
      the Trustee and the related Custodian may conclusively rely on the purported
      due
      execution and genuineness of any such document and on the purported genuineness
      of any signature thereon. If the Trustee or the related Custodian on its behalf
      finds any document constituting part of the Mortgage File not to have been
      executed or received, or to be unrelated to the Mortgage Loans identified in
      Exhibit B or to appear to be defective on its face, the Trustee or the related
      Custodian on its behalf shall include such information in the exception report
      attached to the Interim Certification. EMC shall correct or cure any such defect
      or, if prior to the end of the second anniversary of the Closing Date, EMC
      may
      substitute for the related Mortgage Loan a Replacement Mortgage Loan, which
      substitution shall be accomplished in the manner and subject to the conditions
      set forth in Section 2.03 or shall deliver to the Securities Administrator
      and
      the Trustee an Opinion of Counsel addressed to the Trustee to the effect that
      such defect does not materially or adversely affect the interests of the
      Certificateholders in such Mortgage Loan within 90 days from the date of notice
      from the Trustee of the defect and if EMC fails to correct or cure the defect
      or
      deliver such opinion within such period, EMC will, subject to Section 2.03,
      purchase such Mortgage Loan at the Purchase Price; provided, however, that
      if
      such defect relates solely to the inability of EMC to deliver the Mortgage,
      assignment thereof to the Trustee, or intervening assignments thereof with
      evidence of recording thereon because such documents have been submitted for
      recording and have not been returned by the applicable jurisdiction, EMC shall
      not be required to purchase such Mortgage Loan if EMC delivers such documents
      promptly upon receipt, but in no event later than 360 days after the Closing
      Date.

     

    (b)  No
      later
      than 180 days after the Closing Date, the Trustee or the related Custodian
      on
      its behalf will review, for the benefit of the Certificateholders, the Mortgage
      Files and will execute and deliver or cause to be executed and delivered to
      EMC,
      and the Master Servicer and, if reviewed by the related Custodian, to the
      Trustee, one or more Final Certifications, each substantially in the form of
      Exhibit Three to the related Custodial Agreement. In conducting such review,
      the
      Trustee or the related Custodian on its behalf will ascertain whether each
      document required to be recorded has been returned from the recording office
      with evidence of recording thereon and the Trustee or the related Custodian
      on
      its behalf has received either an original or a copy thereof, as required in
      Section 2.01 (provided, however, that with respect to those documents described
      in subclauses (iv) and (vi) of Section 2.01, such obligations shall extend
      only
      to documents actually delivered pursuant to such subclauses). If the Trustee
      or
      the related Custodian on its behalf finds any document with respect to a
      Mortgage Loan has not been received, or to be unrelated, determined on the
      basis
      of the Mortgagor name, original principal balance and loan number, to the
      Mortgage Loans identified in Exhibit B or to appear defective on its face,
      the
      Trustee or the related Custodian on its behalf shall note such defect in the
      exception report attached to the Final Certification and shall promptly notify
      EMC. EMC shall correct or cure any such defect or, if prior to the end of the
      second anniversary of the Closing Date, EMC may substitute for the related
      Mortgage Loan a Replacement Mortgage Loan, which substitution shall be
      accomplished in the manner and subject to the conditions set forth in Section
      2.03 or shall deliver to the Trustee and the Securities Administrator an Opinion
      of Counsel addressed to the Trustee and the Securities Administrator to the
      effect that such defect does not materially or adversely affect the interests
      of
      Certificateholders in such Mortgage Loan within 90 days from the date of notice
      from the Trustee of the defect and if EMC is unable within such period to
      correct or cure such defect, or to substitute the related Mortgage Loan with
      a
      Replacement Mortgage Loan or to deliver such opinion, EMC shall, subject to
      Section 2.03, purchase such Mortgage Loan at the Purchase Price; provided,
      however, that if such defect relates solely to the inability of EMC to deliver
      the Mortgage, assignment thereof to the Trustee or intervening assignments
      thereof with evidence of recording thereon, because such documents have not
      been
      returned by the applicable jurisdiction, EMC shall not be required to purchase
      such Mortgage Loan, if EMC delivers such documents promptly upon receipt, but
      in
      no event later than 360 days after the Closing Date. Notwithstanding anything
      to
      the contrary, the Trustee shall have no responsibility with respect to the
      custody or review of Mortgage Files, all of which shall be performed by the
      related Custodian pursuant to the related Custodial Agreement, and the Trustee
      is hereby authorized and directed to enter into each such Custodial Agreement.
      Performance by the Custodians of their obligations under the respective
      Custodial Agreement shall satisfy all responsibilities for custody and review
      of
      Mortgage Files hereunder. The Trustee shall have no liability for the failure
      of
      the Custodians to perform their respective obligations under the related
      Custodial Agreement.

     

    (c)  In
      the
      event that a Mortgage Loan is repurchased by EMC in accordance with subsections
      2.02(a) or (b) above or Section 2.03, EMC shall remit the applicable Purchase
      Price to the Securities Administrator for deposit in the Distribution Account
      and shall provide written notice to the Securities Administrator and the Trustee
      detailing the components of the Purchase Price, signed by a Servicing Officer.
      Upon deposit of the Purchase Price in the Distribution Account and upon receipt
      of a Request for Release with respect to such Mortgage Loan, the related
      Custodian will release to EMC the related Mortgage File and the Trustee shall
      execute and deliver all instruments of transfer or assignment, without recourse,
      representation or warranty furnished to it by the related Seller, as are
      necessary to vest in EMC title to and rights under the Mortgage Loan. Such
      purchase shall be deemed to have occurred on the date on which the deposit
      into
      the Distribution Account was made. The Securities Administrator shall promptly
      use its best efforts to notify each Rating Agency of such repurchase in
      accordance with Section 12.05. The obligation of EMC to cure, repurchase or
      substitute for any Mortgage Loan as to which a defect in a constituent document
      exists shall be the sole remedies respecting such defect available to the
      Certificateholders or to the Trustee on their behalf.

     

    (d)  EMC
      shall
      deliver to the Trustee or the related Custodian on its behalf, and Trustee
      agrees to accept the Mortgage Note and other documents constituting the Mortgage
      File with respect to any Replacement Mortgage Loan, which the Trustee or the
      related Custodian will review as provided in subsections 2.02(a) and 2.02(b),
      provided, that the Closing Date referred to therein shall instead be the date
      of
      delivery of the Mortgage File with respect to each Replacement Mortgage
      Loan.

     

    Section
      2.03  Representations,
      Warranties and Covenants of the Company, the Master Servicer, and EMC as
      Seller. 

     

    (a)  The
      Company hereby represents and warrants to the Master Servicer, the Depositor,
      the Securities Administrator and the Trustee as follows, as of the Closing
      Date:

     

    (i)  It
      is
      duly organized and is validly existing and in good standing under the laws
      of
      the State of Delaware and is duly authorized and qualified to transact any
      and
      all business contemplated by this Agreement to be conducted by it in any state
      in which a Mortgaged Property related to an EMC Mortgage Loan is located or
      is
      otherwise not required under applicable law to effect such qualification and,
      in
      any event, is in compliance with the doing business laws of any such state,
      to
      the extent necessary to ensure its ability to enforce each EMC Mortgage Loan,
      to
      service the EMC Mortgage Loans in accordance with the terms of the Mortgage
      Loan
      Purchase Agreement and this Agreement and to perform any of its other
      obligations under this Agreement in accordance with the terms hereof or
      thereof.

     

    (ii)  It
      has
      the full corporate power and authority to service each Mortgage Loan, and to
      execute, deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      corporate action on its part the execution, delivery and performance of this
      Agreement, assuming the due authorization, execution and delivery hereof by
      the
      other parties hereto or thereto, as applicable, constitutes its legal, valid
      and
      binding obligation, enforceable against it in accordance with its terms, except
      that (a) the enforceability hereof 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.

     

    (iii)  The
      execution and delivery of this Agreement, the servicing of the Mortgage Loans
      by
      it under this Agreement, the consummation of any other of the transactions
      contemplated by this Agreement, and the fulfillment of or compliance with the
      terms hereof and thereof are in its ordinary course of business and will not
      (A)
      result in a breach of any term or provision of its charter or by-laws or (B)
      conflict with, result in a breach, violation or acceleration of, or result
      in a
      default under, the terms of any other material agreement or instrument to which
      it is a party or by which it may be bound, or (C) constitute a violation of
      any
      statute, order or regulation applicable to it of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it; and
      it
      is not in breach or violation of any material indenture or other material
      agreement or instrument, or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it which breach or violation may materially impair its ability
      to perform or meet any of its obligations under this Agreement.

     

    (iv)  It
      is an
      approved servicer of conventional mortgage loans for Fannie Mae and Freddie
      Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

     

    (v)  No
      litigation is pending or, to the best of its knowledge, threatened, against
      it
      that would materially and adversely affect (a) the execution, delivery or
      enforceability of this Agreement (b) its ability to service the EMC Mortgage
      Loans, (c) to perform any of its other obligations under this Agreement in
      accordance with the terms hereof, (d) its business operations, financial
      conditions, or properties or assets owned by it, or (e) its ability to carry
      on
      its business as now conducted.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated hereby
      or thereby, or if any such consent, approval, authorization or order is
      required, it has obtained the same.

     

    (vii)  The
      servicing practices used by the Company in respect of each Mortgage Loan have
      been, and will continue to be, compliant in all material respects with
      applicable laws and regulations.

     

    (viii)  As
      of the Closing Date and except as has been otherwise disclosed to the Master
      Servicer and the Depositor, or disclosed in any public filing: (1) no default
      or
      servicing related performance trigger has occurred as to any other Pass-Through
      Transfer due to any act or failure to act of the Company; (2) no material
      noncompliance with applicable servicing criteria as to any other Pass-Through
      Transfer has occurred, been disclosed or reported by the Company; (3) the
      Company has not been terminated as servicer in a residential mortgage loan
      Pass-Through Transfer, either due to a servicing default or to application
      of a
      servicing performance test or trigger; (4) no material changes to the Company’s
      servicing policies and procedures for similar loans have occurred in the
      preceding three years outside of the normal changes warranted by regulatory
      and
      product type changes in the portfolio; (5) there are no aspects of the Company’s
      financial condition that could have a material adverse impact on the performance
      by the Company of its obligations hereunder; (6) there are no legal proceedings
      pending, or known to be contemplated by governmental authorities, against the
      Company that could be material to investors in the securities issued in such
      Pass-Through Transfer; and (7) there are no affiliations, relationships or
      transactions relating to the Company of a type that are described under Item
      1119 of Regulation AB.

     

    (ix)  If
      so requested by the Depositor or the Master Servicer on any date, the Company
      shall, within five Business Days following such request, confirm in writing
      the
      accuracy of the representations and warranties set forth in clause (a)(viii)
      of
      this Section or, if any such representation and warranty is not accurate as
      of
      the date of such request, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party.

     

    (x)  As
      a condition to the succession to the Company or any subservicer as servicer
      or
      subservicer under this Agreement by any Person (i) into which the Company or
      such subservicer may be merged or consolidated, or (ii) which may be appointed
      as a successor to the Company or any subservicer, the Company shall provide
      to
      the Master Servicer and the Depositor, at least 15 calendar days prior to the
      effective date of such succession or appointment, (x) written notice to the
      Master Servicer and the Depositor of such succession or appointment and (y)
      in
      writing and in form and substance reasonably satisfactory to the Master Servicer
      and the Depositor, all information reasonably requested by the Master Servicer
      or the Depositor in order to comply with its reporting obligation under Item
      6.02 of Form 8-K with respect to any class of asset-backed
      securities.

     

    (xi)  With
      respect to each Group II Mortgage Loan, information regarding the Mortgagor
      credit files related to such Mortgage Loan has been and will continue to be
      furnished to credit reporting agencies in compliance with the provisions of
      the
      Fair Credit Reporting Act and the applicable implementing
      regulations.

     

    (xii)  In
      connection with the Group II Mortgage Loans, the Master Servicer shall not
      collect any prepayment premium in any instance when the mortgage debt is
      accelerated through foreclosure sale or other payment as the result of the
      mortgagor’s default under the terms of the security instrument.

     

    (b)  Wells
      Fargo Bank, National Association, in its capacity as Master Servicer and
      Securities Administrator hereby represents and warrants to the Seller, the
      Depositor and the Trustee as follows, as of the Closing Date:

     

    (i)  It
      is a
      national banking association duly formed, validly existing and in good standing
      under the laws of the United States of America and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by the Master Servicer and the Securities Administrator in any state
      in which a Mortgaged Property is located or is otherwise not required under
      applicable law to effect such qualification and, in any event, is in compliance
      with the doing business laws of any such state, to the extent necessary to
      ensure its ability to enforce each Mortgage Loan, to master service the Mortgage
      Loans in accordance with the terms of this Agreement and to perform any of
      its
      other obligations under this Agreement in accordance with the terms hereof
      or
      thereof;

     

    (ii)  It
      has
      the full corporate power and authority to execute, deliver and perform, and
      to
      enter into and consummate the transactions contemplated by this Agreement and
      has duly authorized by all necessary corporate action on its part the execution,
      delivery and performance of this Agreement; and this Agreement, assuming the
      due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes its legal, valid and binding obligation, enforceable against it
      in
      accordance with its terms, except that (a) the enforceability hereof 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.

     

    (iii)  The
      execution and delivery of this Agreement by it, the consummation of any other
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in its ordinary course of business and
      will
      not (A) result in a material breach of any term or provision of its charter
      or
      by-laws or (B) materially conflict with, result in a material breach, violation
      or acceleration of, or result in a material default under, the terms of any
      other material agreement or instrument to which it is a party or by which it
      may
      be bound, or (C) constitute a material violation of any statute, order or
      regulation applicable to it of any court, regulatory body, administrative agency
      or governmental body having jurisdiction over it; and it is not in breach or
      violation of any material indenture or other material agreement or instrument,
      or in violation of any statute, order or regulation of any court, regulatory
      body, administrative agency or governmental body having jurisdiction over it
      which breach or violation may materially impair its ability to perform or meet
      any of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending or, to the best of its knowledge, threatened, against
      it
      that would materially and adversely affect the execution, delivery or
      enforceability of this Agreement or its ability to perform any of its other
      obligations under this Agreement in accordance with the terms
      hereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated
      hereby, or if any such consent, approval, authorization or order is required,
      it
      has obtained the same.

     

    (c)  EMC
      (in
      its capacity as Seller) hereby represents and warrants to the Depositor and
      the
      Trustee as follows, as of the Closing Date:

     

    (i)  EMC
      is
      duly organized as a Delaware corporation and is validly existing and in good
      standing under the laws of the State of Delaware and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by EMC in any state in which a Mortgaged Property is located or is
      otherwise not required under applicable law to effect such qualification and,
      in
      any event, is in compliance with the doing business laws of any such state,
      to
      the extent necessary to ensure its ability to enforce each Mortgage Loan, to
      sell the Mortgage Loans in accordance with the terms of the Mortgage Loan
      Purchase Agreement and to perform any of its other obligations under this
      Agreement in accordance with the terms hereof.

     

    (ii)  EMC
      has
      the full corporate power and authority to sell each Mortgage Loan, and to
      execute, deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      corporate action on the part of EMC the execution, delivery and performance
      of
      this Agreement, assuming the due authorization, execution and delivery hereof
      by
      the other parties hereto or thereto, as applicable, constitutes a legal, valid
      and binding obligation of EMC, enforceable against EMC in accordance with its
      terms, except that (a) the enforceability hereof 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.

     

    (iii)  The
      execution and delivery of this Agreement by EMC, the sale of the Mortgage Loans
      by EMC under the Mortgage Loan Purchase Agreement, the consummation of any
      other
      of the transactions contemplated by this Agreement, and the fulfillment of
      or
      compliance with the terms hereof and thereof are in the ordinary course of
      business of EMC and will not (A) result in a material breach of any term or
      provision of the charter or by-laws of EMC or (B) conflict with, result in
      a
      breach, violation or acceleration of, or result in a default under, the terms
      of
      any other material agreement or instrument to which EMC is a party or by which
      it may be bound, or (C) constitute a violation of any statute, order or
      regulation applicable to EMC of any court, regulatory body, administrative
      agency or governmental body having jurisdiction over EMC; and EMC is not in
      breach or violation of any material indenture or other material agreement or
      instrument, or in violation of any statute, order or regulation of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over it which breach or violation may materially impair EMC’s ability to perform
      or meet any of its obligations under this Agreement.

     

    (iv)  EMC
      is an
      approved Seller of conventional mortgage loans for Fannie Mae and Freddie Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

     

    (v)  No
      litigation is pending or, to the best of EMC’s knowledge, threatened, against
      EMC that would materially and adversely affect the execution, delivery or
      enforceability of this Agreement or the ability of EMC to sell the Mortgage
      Loans or to perform any of its other obligations under this Agreement in
      accordance with the terms hereof or thereof.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by EMC of, or
      compliance by EMC with, this Agreement or the consummation of the transactions
      contemplated hereby, or if any such consent, approval, authorization or order
      is
      required, EMC has obtained the same.

     

    (vii)  With
      respect to each Mortgage Loan as of the Closing Date (or such other date as
      may
      be specified in Section 7 of the Mortgage Loan Purchase Agreement), EMC hereby
      remakes and restates each of the representations and warranties set forth in
      Section 7 of the Mortgage Loan Purchase Agreement to the Depositor and the
      Trustee to the same extent as if fully set forth herein.

     

    (d)  Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty set forth in the Mortgage Loan Purchase Agreement with respect to
      the
      Mortgage Loans that materially and adversely affects the interests of the
      related Certificateholders in any Mortgage Loan, the party discovering such
      breach shall give prompt written notice thereof to the other parties. Any breach
      of a representation or warranty contained in clauses (c), (q) and (s) of Section
      7 of the Mortgage Loan Purchase Agreement in respect of a Group II Mortgage
      Loan
      and clauses (z) through (ll) of Section 7 of the Mortgage Loan Purchase
      Agreement shall be deemed to materially adversely affect the interests of the
      related Certificateholders. EMC, in its capacity as Seller, hereby covenants
      with respect to the representations and warranties set forth in the Mortgage
      Loan Purchase Agreement with respect to the Mortgage Loans, that within 90
      days
      of the discovery of a breach of any representation or warranty set forth therein
      that materially and adversely affects the interests of the Certificateholders
      in
      any Mortgage Loan, it shall cure such breach in all material respects and,
      if
      such breach is not so cured, (i) if such 90 day period expires prior to the
      second anniversary of the Closing Date, remove such Mortgage Loan (a “Deleted
      Mortgage Loan”) from the Trust Fund and substitute in its place a Replacement
      Mortgage Loan, in the manner and subject to the conditions set forth in this
      Section; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans from
      the Trustee at the Purchase Price in the manner set forth below; provided that
      any such substitution pursuant to (i) above or repurchase pursuant to (ii)
      above
      shall not be effected prior to the delivery to the Trustee and the Securities
      Administrator of an Opinion of Counsel if required by Section 2.05 hereof and
      any such substitution pursuant to (i) above shall not be effected prior to
      the
      additional delivery to the applicable Custodian of a Request for Release. The
      Seller shall, or cause the related Servicer to, furnish to the Securities
      Administrator and the Trustee the Officer’s Certificate required under Section
      2.03(e) relating to such cure. If the Trustee has received (or has given, as
      the
      case may be) written notice of such a breach of a representation or warranty,
      the Trustee shall give prompt written notice to the Master Servicer, the
      Securities Administrator and the Seller, if within 90 days of its receipt (or
      giving, as the case may be) of such notice of breach, the Trustee does not
      receive an Officer’s Certificate as described in the preceding sentence
      certifying as to the cure of such breached representation or warranty. The
      Trustee shall give prompt written notice to the parties hereto of EMC’s failure
      to cure such breach as set forth in the preceding sentence. EMC shall promptly
      reimburse the Master Servicer and the Trustee for any expenses reasonably
      incurred by the Master Servicer or the Trustee in respect of enforcing the
      remedies for such breach. To enable the Master Servicer to amend the Mortgage
      Loan Schedule, EMC shall, unless it cures such breach in a timely fashion
      pursuant to this Section 2.03, promptly notify the Master Servicer and Trustee
      whether it intends either to repurchase, or to substitute for, the Mortgage
      Loan
      affected by such breach. With respect to the representations and warranties
      with
      respect to the Mortgage Loans that are made to the best of EMC’s knowledge, if
      it is discovered by any of the Depositor, the Master Servicer, EMC, the
      Securities Administrator 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, notwithstanding EMC’s
      lack of knowledge with respect to the substance of such representation or
      warranty, EMC (in its capacity as Seller) shall nevertheless be required to
      cure, substitute for or repurchase the affected Mortgage Loan in accordance
      with
      the foregoing.

     

    With
      respect to any Replacement Mortgage Loan or Loans, EMC (in its capacity as
      Seller) shall deliver to the Trustee or the related Custodian on its behalf
      for
      the benefit of the Certificateholders such documents and agreements as are
      required by Section 2.01. No substitution will be made in any calendar month
      after the Determination Date for such month. Notwithstanding the foregoing,
      such
      substitution must be done within two years of the Closing Date. Scheduled
      Payments due with respect to Replacement Mortgage Loans in the Due Period
      related to the Distribution Date on which such proceeds are to be distributed
      shall not be part of the Trust Fund and will be retained by EMC (in its capacity
      as Seller). For the month of substitution, distributions to Certificateholders
      will include the Scheduled Payment due on any Deleted Mortgage Loan for the
      related Due Period and thereafter EMC (in its capacity as Seller) shall be
      entitled to retain all amounts received in respect of such Deleted Mortgage
      Loan. The Seller shall amend the Mortgage Loan Schedule for the benefit of
      the
      Certificateholders to reflect the removal of each such Deleted Mortgage Loan
      and
      the substitution of the Replacement Mortgage Loan or Loans and the Seller shall
      deliver the amended Mortgage Loan Schedule to the Trustee, the Master Servicer,
      the Securities Administrator, the Trustee and the related Custodian. Upon such
      substitution, the Replacement Mortgage Loan or Loans shall be subject to the
      terms of this Agreement in all respects, and EMC shall be deemed to have made
      with respect to such Replacement Mortgage Loan or Loans, as of the date of
      substitution, the representations and warranties set forth in Section 7 or
      Section 8 of the Mortgage Loan Purchase Agreement with respect to such Mortgage
      Loan. Upon any such substitution and the deposit into the Distribution Account
      of the amount required to be deposited therein in connection with such
      substitution as described in the following paragraph and receipt by the related
      Custodian of a Request for Release for such Mortgage Loan, the related Custodian
      shall release to EMC the Mortgage File relating to such Deleted Mortgage Loan
      and held for the benefit of the Certificateholders and the Trustee shall execute
      and deliver at EMC’s direction such instruments of transfer or assignment as
      have been prepared by EMC, in each case without recourse, representation or
      warranty as shall be necessary to vest in EMC, or its respective designee,
      title
      to the Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant
      to this Section 2.03.

     

    For
      any
      month in which EMC substitutes one or more Replacement Mortgage Loans for a
      Deleted Mortgage Loan, the Master Servicer will determine the amount (if any)
      by
      which the aggregate principal balance of all the Replacement Mortgage Loans
      as
      of the date of substitution is less than the Stated Principal Balance (after
      application of the principal portion of the Scheduled Payment due in the month
      of substitution) of such Deleted Mortgage Loan. An amount equal to the aggregate
      of such deficiencies, described in the preceding sentence for any Distribution
      Date (such amount, the “Substitution Adjustment Amount”) shall be deposited into
      the Distribution Account, by EMC upon its delivering such Replacement Mortgage
      Loan on the Determination Date for the Distribution Date relating to the
      Prepayment Period during which the related Mortgage Loan became required to
      be
      purchased or replaced hereunder.

     

    In
      the
      event that EMC (in its capacity as Seller) shall have repurchased a Mortgage
      Loan, the Purchase Price therefor shall be deposited into the Distribution
      Account maintained by the Securities Administrator, on the Determination Date
      for the Distribution Date in the month following the month during which EMC
      became obligated to repurchase or replace such Mortgage Loan and upon such
      deposit of the Purchase Price, the delivery of an Opinion of Counsel if required
      by Section 2.05 and the receipt of a Request for Release, the related Custodian
      shall release the related Mortgage File held for the benefit of the
      Certificateholders to EMC, and the Trustee shall execute and deliver at such
      Person’s direction the related instruments of transfer or assignment prepared by
      EMC, in each case without recourse, representation or warranty, as shall be
      necessary to transfer title from the Trustee for the benefit of the
      Certificateholders and transfer the Trustee’s interest to EMC to any Mortgage
      Loan purchased pursuant to this Section 2.03. It is understood and agreed that
      the obligation under this Agreement of EMC to cure, repurchase or replace any
      Mortgage Loan as to which a breach has occurred and is continuing shall
      constitute the sole remedies against EMC (in its capacity as Seller) respecting
      such breach available to the Certificateholders, the Depositor or the
      Trustee.

     

    (e)  In
      connection with any repurchase or substitution of a Mortgage Loan or the cure
      of
      a breach of a representation or warranty set forth in Section 7 of the Mortgage
      Loan Purchase Agreement pursuant to this Section 2.03, the Seller shall, or
      cause the related Servicer to, promptly furnish to the Securities Administrator
      and the Trustee an Officer’s Certificate, signed by a duly authorized officer of
      the Seller or the related servicer, as the case may be, to the effect that
      such
      repurchase, substitution or cure has been made in accordance with the terms
      and
      conditions of this Agreement and that all conditions precedent to such
      repurchase, substitution or cure have been satisfied, including the delivery
      to
      the Securities Administrator of the Purchase Price or Substitution Adjustment
      Amount, as applicable, for deposit into the Distribution Account, together
      with
      copies of any Opinion of Counsel required to be delivered pursuant to this
      Agreement and the related Request for Release, on which the Securities
      Administrator and the Trustee may rely. Solely for purposes of the Securities
      Administrator providing an Assessment of Compliance, upon receipt of such
      documentation, the Securities Administrator shall approve such repurchase,
      substitution or cure, as applicable, and which approval shall consist solely of
      the Securities Administrator’s receipt of such documentation and deposits. It is
      understood and agreed that the obligation under this Agreement of the Seller
      to
      cure the breach of a representation or warranty set forth in Section 7 of the
      Mortgage Loan Purchase Agreement or to repurchase or replace any Mortgage Loan
      as to which a breach has occurred and is continuing shall constitute the sole
      remedies against the Seller respecting such breach available to
      Certificateholders, the Depositor or the Trustee.

     

    (f)  The
      representations and warranties set forth in this Section 2.03 hereof shall
      survive delivery of the respective Mortgage Loans and Mortgage Files to the
      Trustee or the related Custodian for the benefit of the
      Certificateholders.

     

    Section
      2.04  Representations
      and Warranties of the Depositor. 

     

    The
      Depositor hereby represents and warrants to the Master Servicer, the Securities
      Administrator and the Trustee as follows, as of the date hereof and as of the
      Closing Date:

     

    (i)  The
      Depositor is duly organized and is validly existing as a limited liability
      company in good standing under the laws of the State of Delaware and has full
      power and authority necessary to own or hold its properties and to conduct
      its
      business as now conducted by it and to enter into and perform its obligations
      under this Agreement.

     

    (ii)  The
      Depositor has the full power and authority to execute, deliver and perform,
      and
      to enter into and consummate the transactions contemplated by, this Agreement
      and has duly authorized, by all necessary corporate action on its part, the
      execution, delivery and performance of this Agreement; and this Agreement,
      assuming the due authorization, execution and delivery hereof by the other
      parties hereto, constitutes a legal, valid and binding obligation of the
      Depositor, enforceable against the Depositor in accordance with its terms,
      subject, as to enforceability, to (i) bankruptcy, insolvency, reorganization,
      moratorium and other similar laws affecting creditors’ rights generally and (ii)
      general principles of equity, regardless of whether enforcement is sought in
      a
      proceeding in equity or at law.

     

    (iii)  The
      execution and delivery of this Agreement by the Depositor, the consummation
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof and thereof are in the ordinary course of
      business of the Depositor and will not (A) result in a material breach of any
      term or provision of the certificate of formation or limited liability company
      agreement of the Depositor or (B) materially conflict with, result in a material
      breach, violation or acceleration of, or result in a material default under,
      the
      terms of any other material agreement or instrument to which the Depositor
      is a
      party or by which it may be bound or (C) constitute a material violation of
      any
      statute, order or regulation applicable to the Depositor of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over the Depositor; and the Depositor is not in breach or violation of any
      material indenture or other material agreement or instrument, or in violation
      of
      any statute, order or regulation of any court, regulatory body, administrative
      agency or governmental body having jurisdiction over it which breach or
      violation may materially impair the Depositor’s ability to perform or meet any
      of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending, or, to the best of the Depositor’s knowledge, threatened,
      against the Depositor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Depositor
      to
      perform its obligations under this Agreement in accordance with the terms hereof
      or thereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Depositor
      of, or compliance by the Depositor with this Agreement or the consummation
      of
      the transactions contemplated hereby or thereby, or if any such consent,
      approval, authorization or order is required, the Depositor has obtained the
      same.

     

    (vi) The
      Depositor 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 Depositor was required to file such reports) and it has been subject to
      such
      filing requirement for the past 90 days. 

    

    The
      Depositor hereby represents and warrants to the Trustee as of the Closing Date,
      following the transfer of the Mortgage Loans to it by the Seller, the Depositor
      had good title to the Mortgage Loans and the related Mortgage Notes were subject
      to no offsets, claims, defenses or counterclaims.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.04 shall survive delivery of the Mortgage Files to the Trustee or
      the
      related Custodian for the benefit of the Certificateholders. Upon discovery
      by
      the Depositor or the Trustee of a breach of such representations and warranties,
      the party discovering such breach shall give prompt written notice to the others
      and to each Rating Agency.

     

    Section
      2.05  Delivery
      of Opinion of Counsel in Connection with Substitutions and
      Repurchases. 

     

    (a)  Notwithstanding
      any contrary provision of this Agreement, with respect to any Mortgage Loan
      that
      is not in default or as to which default is not reasonably foreseeable, no
      repurchase or substitution pursuant to Sections 2.02 or 2.03 shall be made
      unless EMC delivers to the Trustee and the Securities Administrator an Opinion
      of Counsel, addressed to the Trustee and the Securities Administrator, to the
      effect that such repurchase or substitution would not (i) result in the
      imposition of the tax on “prohibited transactions” of REMIC I, REMIC II, REMIC
      III, REMIC IV or REMIC V or contributions after the Closing Date, as defined
      in
      Sections 860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any
      of
      REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify as a REMIC
      at any time that any Certificates are outstanding. Any Mortgage Loan as to
      which
      repurchase or substitution was delayed pursuant to this paragraph shall be
      repurchased or the substitution therefor shall occur (subject to compliance
      with
      Sections 2.02 or 2.03) upon the earlier of (a) the occurrence of a default
      or a
      default becoming reasonably foreseeable with respect to such Mortgage Loan
      and
      (b) receipt by the Trustee of an Opinion of Counsel addressed to the Trustee
      and
      the Securities Administrator to the effect that such repurchase or substitution,
      as applicable, will not result in the events described in clause (i) or clause
      (ii) of the preceding sentence.

     

    (b)  Upon
      discovery by the Depositor, the Seller, the Custodians or the Master Servicer
      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
      promptly (and in any event within 5 Business Days of discovery) give written
      notice thereof to the other parties and the Trustee and the Securities
      Administrator. In connection therewith, EMC shall either (i) substitute, if
      the
      conditions in Section 2.03 with respect to substitutions are satisfied, a
      Replacement Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase
      the
      affected Mortgage Loan within 90 days of such discovery in the same manner
      as it
      would a Mortgage Loan for a breach of representation or warranty in accordance
      with Section 2.03. The Trustee shall reconvey to EMC the Mortgage Loan to be
      released pursuant hereto (and the related Custodian shall deliver the related
      Mortgage File) 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
      in
      accordance with Section 2.03.

     

    Section
      2.06  Countersignature
      and Delivery of Certificates. 

     

    (a)  The
      Trustee acknowledges the sale, transfer and assignment to it of the Trust Fund
      and, concurrently with such transfer and assignment, and the Securities
      Administrator has executed, countersigned and delivered, to or upon the order
      of
      the Depositor, the Certificates in authorized denominations evidencing the
      entire ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund
      and exercise the rights referred to above for the benefit of all present and
      future Holders of the Certificates and to perform the duties set forth in this
      Agreement in accordance with its terms.

     

    (b)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the REMIC
      I Regular Interests and the other assets of REMIC II for the benefit of the
      holders of the REMIC II Regular Interests and the Class R-2 Certificates. The
      Trustee acknowledges receipt of the REMIC I Regular Interests (which are
      uncertificated) and the other assets of REMIC II and declares that it holds
      and
      will hold the same in trust for the exclusive use and benefit of the holders
      of
      the REMIC II Regular Interests and the Class R-2 Certificates.

     

    (c)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the REMIC
      II Regular Interests and the other assets of REMIC III for the benefit of the
      holders of the Regular Certificates (other than the Class C Certificates),
      the
      Class C Interest, the Class IO Interest and the Class R-3 Certificates. The
      Trustee acknowledges receipt of the REMIC II Regular Interests (which are
      uncertificated) and the other assets of REMIC III and declares that it holds
      and
      will hold the same in trust for the exclusive use and benefit of the holders
      of
      the Regular Certificates (other than the Class C Certificates), the Class C
      Interest, the Class IO Interest and the Class R-3 Certificates.

     

    (d)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      C Interest for the benefit of the Holders of the Class C Certificates and Class
      RX Certificates (in respect of the Class R-4 Interest). The Trustee acknowledges
      receipt of the Class C Interest (which is uncertificated) and declares that
      it
      holds and will hold the same in trust for the exclusive use and benefit of
      the
      Holders of the Class C Certificates and Class RX Certificates (in respect of
      the
      Class R-4 Interest).

     

    (e)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      IO Interest for the benefit of the holders of the REMIC V Regular Interest
      IO
      and Class RX Certificates (in respect of the Class R-5 Interest). The Trustee
      acknowledges receipt of the Class IO Interest (which is uncertificated) and
      declares that it holds and will hold the same in trust for the exclusive use
      and
      benefit of the holders of the REMIC V Regular Interest IO and Class RX
      Certificates (in respect of the Class R-5 Interest).

     

    Section
      2.07  Purposes
      and Powers of the Trust.

     

    The
      purpose of the common law trust, created hereunder (the “Trust”), is to engage
      in the following activities:

     

    (a)  acquire
      and hold the Mortgage Loans and the other assets of the Trust Fund and the
      proceeds therefrom for the benefit of the Certificateholders;

     

    (b)  to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage Loans and
      the other assets of the Trust Fund;

     

    (c)  to
      make
      distributions on the Certificates;

     

    (d)  to
      engage
      in those activities that are necessary, suitable or convenient to accomplish
      the
      foregoing or are incidental thereto or connected therewith; and

     

    (e)  subject
      to compliance with this Agreement, to engage in such other activities as may
      be
      required in connection with conservation of the Trust Fund and the making of
      distributions to the Certificateholders.

     

    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 while any Certificate
      is outstanding.

     

    ARTICLE
      III

    ADMINISTRATION
      AND SERVICING OF EMC MORTGAGE LOANS BY THE COMPANY

     

    Section
      3.01  The
      Company. 

     

    The
      Company shall service and administer the EMC Mortgage Loans in accordance with
      this Agreement and with customary and usual standards of practice of prudent
      mortgage loan servicers in the respective states in which the related Mortgaged
      Properties are located. In connection with such servicing and administration,
      the Company shall have full power and authority, acting alone and/or through
      subservicers as provided in Section 3.03, to do or cause to be done any and
      all
      things that it may deem necessary or desirable and consistent with the terms
      of
      this Agreement and customary servicing practices in connection with such
      servicing and administration, including but not limited to, the power and
      authority, subject to the terms hereof (i) to execute and deliver, on behalf
      of
      the Certificateholders and the Trustee, customary consents or waivers and other
      instruments and documents, (ii) to consent to transfers of any related Mortgaged
      Property and assumptions of the Mortgage Notes and related Mortgages (but only
      in the manner provided herein), (iii) to collect any Insurance Proceeds and
      other Liquidation Proceeds or Subsequent Recoveries, and (iv) subject to Section
      3.12, to effectuate foreclosure or other conversion of the ownership of the
      Mortgaged Property securing any EMC Mortgage Loan; provided that the Company
      shall take no action that is inconsistent with or prejudices the interests
      of
      the Trust Fund, or the Certificateholders or this Agreement in any EMC Mortgage
      Loan or the rights and interests of the Depositor, the Master Servicer or the
      Trustee under this Agreement.

     

    Without
      limiting the generality of the foregoing, the Company, in its own name or in
      the
      name of the Trust, the Depositor or the Trustee, is hereby authorized and
      empowered by the Trust, the Depositor and the Trustee, when the Company believes
      it appropriate in its reasonable judgment, to execute and deliver, on behalf
      of
      the Trustee, the Depositor, the Certificateholders or any of them, any and
      all
      instruments of satisfaction or cancellation, or of partial or full release
      or
      discharge and all other comparable instruments, with respect to the EMC Mortgage
      Loans, and with respect to the related Mortgaged Properties held for the benefit
      of the Certificateholders. The Company shall prepare and deliver to the
      Depositor and/or the Trustee such documents requiring execution and delivery
      by
      any or all of them as are necessary or appropriate to enable the Company to
      service and administer the EMC Mortgage Loans. Upon receipt of such documents,
      the Depositor and/or the Trustee shall execute such documents and deliver them
      to the Company.

     

    In
      accordance with the standards of the first paragraph of this Section 3.01,
      the
      Company shall advance or cause to be advanced funds as necessary for the purpose
      of effecting the payment of taxes and assessments on the Mortgaged Properties
      relating to the EMC Mortgage Loans, which advances shall be reimbursable in
      the
      first instance from related collections from the Mortgagors pursuant to Section
      5.04, and further as provided in Section 5.02. All costs incurred by the
      Company, if any, in effecting the timely payments of taxes and assessments
      on
      the Mortgaged Properties relating to the EMC Mortgage Loans and related
      insurance premiums shall not, for the purpose of calculating monthly
      distributions to the Certificateholders, be added to the Stated Principal
      Balance under the related EMC Mortgage Loans, notwithstanding that the terms
      of
      such Mortgage Loans so permit.

     

    If
      the
      Mortgage relating to a Mortgage Loan had a lien senior to the Mortgage Loan
      on
      the related Mortgaged Property as of the Cut-off Date, then the Company may
      consent to the refinancing of the prior senior lien, provided that the following
      requirements are met:

     

    (i)  the
      resulting Combined Loan-to-Value Ratio of such Mortgage Loan is no higher than
      the Combined Loan-to-Value Ratio prior to such refinancing; and

     

    (ii)  the
      interest rate, or, in the case of an adjustable rate existing senior lien,
      the
      maximum interest rate, for the loan evidencing the refinanced senior lien is
      no
      more than 2.0% higher than the interest rate or the maximum interest rate,
      as
      the case may be, on the loan evidencing the existing senior lien immediately
      prior to the date of such refinancing; and

     

    (iii)  the
      loan
      evidencing the refinanced senior lien is not subject to negative
      amortization.

     

    The
      Trustee shall furnish the Company and each Servicer and the Master Servicer
      with
      any powers of attorney and other documents in form as provided to it necessary
      or appropriate to enable the Company and each Servicer and Master Servicer
      to
      service and administer the related Mortgage Loans and REO Property, 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 Servicing
      Agreement and this Agreement.

     

    Section
      3.02  Due-on-Sale
      Clauses; Assumption Agreements. 

     

    (a)  Except
      as
      otherwise provided in this Section 3.02, when any property subject to a Mortgage
      has been or is about to be conveyed by the Mortgagor, the Company shall to
      the
      extent that it has knowledge of such conveyance, enforce any due-on-sale clause
      contained in any Mortgage Note or Mortgage, to the extent permitted under
      applicable law and governmental regulations, but only to the extent that such
      enforcement will not adversely affect or jeopardize coverage under any Required
      Insurance Policy. Notwithstanding the foregoing, the Company is not required
      to
      exercise such rights with respect to an EMC Mortgage Loan if the Person to
      whom
      the related Mortgaged Property has been conveyed or is proposed to be conveyed
      satisfies the terms and conditions contained in the Mortgage Note and Mortgage
      related thereto and the consent of the mortgagee under such Mortgage Note or
      Mortgage is not otherwise so required under such Mortgage Note or Mortgage
      as a
      condition to such transfer. In the event that the Company is prohibited by
      law
      from enforcing any such due-on-sale clause, or if coverage under any Required
      Insurance Policy would be adversely affected, or if nonenforcement is otherwise
      permitted hereunder, the Company is authorized, subject to Section 3.02(b),
      to
      take or enter into an assumption and modification agreement from or with the
      person to whom such property has been or is about to be conveyed, pursuant
      to
      which such person becomes liable under the Mortgage Note and, unless prohibited
      by applicable state law, the Mortgagor remains liable thereon, provided that
      the
      Mortgage Loan shall continue to be covered (if so covered before the Company
      enters such agreement) by the applicable Required Insurance Policies. The
      Company, subject to Section 3.02(b), is also authorized with the prior approval
      of the insurers under any Required Insurance Policies to enter into a
      substitution of liability agreement with such Person, pursuant to which the
      original Mortgagor is released from liability and such Person is substituted
      as
      Mortgagor and becomes liable under the Mortgage Note. Notwithstanding the
      foregoing, the Company shall not be deemed to be in default under this Section
      3.02(a) by reason of any transfer or assumption that the Company reasonably
      believes it is restricted by law from preventing.

     

    (b)  Subject
      to the Company’s duty to enforce any due-on-sale clause to the extent set forth
      in Section 3.02(a), in any case in which a Mortgaged Property has been conveyed
      to a Person by a Mortgagor, and such Person is to enter into an assumption
      agreement or modification agreement or supplement to the Mortgage Note or
      Mortgage that requires the signature of the Trustee, or if an instrument of
      release signed by the Trustee is required releasing the Mortgagor from liability
      on the related EMC Mortgage Loan, the Company shall prepare and deliver or
      cause
      to be prepared and delivered to the Trustee for signature and shall direct,
      in
      writing, the Trustee to execute the assumption agreement with the Person to
      whom
      the Mortgaged Property is to be conveyed and such modification agreement or
      supplement to the Mortgage Note or Mortgage or other instruments as are
      reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage
      or otherwise to comply with any applicable laws regarding assumptions or the
      transfer of the Mortgaged Property to such Person. In connection with any such
      assumption, no material term of the Mortgage Note (including, but not limited
      to, the Mortgage Rate, the amount of the Scheduled Payment and any other term
      affecting the amount or timing of payment on the EMC Mortgage Loan) may be
      changed. In addition, the substitute Mortgagor and the Mortgaged Property must
      be acceptable to the Company in accordance with its servicing standards as
      then
      in effect. The Company shall notify the Trustee that any such substitution
      or
      assumption agreement has been completed by forwarding to the Trustee the
      original (and to the Master Servicer a copy) of such substitution or assumption
      agreement, which in the case of the original shall be added to the related
      Mortgage File and shall, for all purposes, be considered a part of such Mortgage
      File to the same extent as all other documents and instruments constituting
      a
      part thereof. Any fee collected by the Company for entering into an assumption
      or substitution of liability agreement will be retained by the Company as
      additional servicing compensation.

     

    Section
      3.03  Subservicers. 

     

    The
      Company shall perform all of its servicing responsibilities hereunder or may
      cause a subservicer to perform any such servicing responsibilities on its
      behalf, but the use by the Company of a subservicer shall not release the
      Company from any of its obligations hereunder and the Company shall remain
      responsible hereunder for all acts and omissions of each subservicer as fully
      as
      if such acts and omissions were those of the Company. The Company shall pay
      all
      fees of each subservicer from its own funds, and a subservicer’s fee shall not
      exceed the Servicing Fee payable to the Company hereunder.

     

    At
      the
      cost and expense of the Company, without any right of reimbursement from its
      Protected Account, the Company shall be entitled to terminate the rights and
      responsibilities of a subservicer and arrange for any servicing responsibilities
      to be performed by a successor subservicer; provided, however, that nothing
      contained herein shall be deemed to prevent or prohibit the Company, at the
      Company’s option, from electing to service the related Mortgage Loans itself. In
      the event that the Company’s responsibilities and duties under this Agreement
      are terminated pursuant to Section 9.01, the Company shall at its own cost
      and
      expense terminate the rights and responsibilities of each subservicer effective
      as of the date of termination of the Company. The Company shall pay all fees,
      expenses or penalties necessary in order to terminate the rights and
      responsibilities of each subservicer from the Company’s own funds without
      reimbursement from the Trust Fund.

     

    Notwithstanding
      the foregoing, the Company shall not be relieved of its obligations hereunder
      and shall be obligated to the same extent and under the same terms and
      conditions as if it alone were servicing and administering the EMC Mortgage
      Loans. The Company shall be entitled to enter into an agreement with a
      subservicer for indemnification of the Company by the subservicer and nothing
      contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    Any
      subservicing agreement and any other transactions or services relating to the
      EMC Mortgage Loans involving a subservicer shall be deemed to be between such
      subservicer and the Company alone, and neither the Master Servicer nor the
      Trustee shall have any obligations, duties or liabilities with respect to such
      subservicer including any obligation, duty or liability of either the Master
      Servicer or the Trustee to pay such subservicer’s fees and expenses. For
      purposes of remittances to the Securities Administrator pursuant to this
      Agreement, the Company shall be deemed to have received a payment on an EMC
      Mortgage Loan when a subservicer has received such payment.

     

    Section
      3.04  Documents,
      Records and Funds in Possession of the Company to Be Held for
      Trustee. 

     

    Notwithstanding
      any other provisions of this Agreement, the Company shall transmit to the
      Trustee or the related Custodian on behalf of the Trustee as required by this
      Agreement all documents and instruments in respect of an EMC Mortgage Loan
      coming into the possession of the Company from time to time and shall account
      fully to the Master Servicer for any funds received by the Company or that
      otherwise are collected by the Company as Liquidation Proceeds, Insurance
      Proceeds or Subsequent Recoveries in respect of any such Mortgage Loan. All
      Mortgage Files and funds collected or held by, or under the control of, the
      Company in respect of any EMC Mortgage Loans, whether from the collection of
      principal and interest payments or from Liquidation Proceeds, Insurance Proceeds
      or Subsequent Recoveries, including but not limited to, any funds on deposit
      in
      the Protected Account maintained by the Company, shall be held by the Company
      for and on behalf of the Trustee and shall be and remain the sole and exclusive
      property of the Trustee, subject to the applicable provisions of this Agreement.
      The Company also agrees that it shall not create, incur or subject any Mortgage
      File or any funds that are deposited in the Protected Account maintained by
      the
      Company or the Distribution Account or in any Escrow Account, or any funds
      that
      otherwise are or may become due or payable to the Trustee for the benefit of
      the
      Certificateholders, to any claim, lien, security interest, judgment, levy,
      writ
      of attachment or other encumbrance, or assert by legal action or otherwise
      any
      claim or right of set off against any Mortgage File or any funds collected
      on,
      or in connection with, an EMC Mortgage Loan, except, however, that the Company
      shall be entitled to set off against and deduct from any such funds any amounts
      that are properly due and payable to the Company under this
      Agreement.

     

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

     

    Section
      3.05  Optional
      Purchase of Certain Mortgage Loans. 

     

    With
      respect to any Mortgage Loan which as of the first day of a Fiscal Quarter
      is
      delinquent in payment by 90 days or more or is an REO Property, EMC shall have
      the right to purchase any such Mortgage Loan or REO Property from the Trust
      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 Fiscal 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 Fiscal Quarter. This
      right
      may be assigned by EMC to a third party, including a holder of a Class of
      Certificates.

     

    If
      at any time EMC remits to the Securities Administrator a payment for deposit
      in
      the Distribution
      Account covering the amount of the Purchase Price for such a Mortgage Loan,
      and
      EMC provides to the Master Servicer and Trustee an Officer’s Certificate 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
      prepared and delivered to the Trustee, at the request of EMC, without recourse,
      representation or warranty, to EMC which shall succeed to all 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. EMC will thereupon own such Mortgage, and all such security
      and documents, free of any further obligation to the Trustee or the
      Certificateholders with respect thereto.

     

    Section
      3.06  Release
      of Mortgage Files. 

     

    (a)  Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      the Company or the related 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 Company or the related
      Servicer (pursuant to the Servicing Agreement), as applicable, will (or if
      the
      Company or the related Servicer does not, the Master Servicer may), promptly
      furnish to the Custodian, on behalf of the Trustee, two copies of a
      certification substantially in the form of Exhibit G hereto signed by a
      Servicing Officer or Master Servicing Officer (as applicable) or in a mutually
      agreeable electronic format which will, in lieu of a signature on its face,
      originate from a Servicing Officer or Master 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
      Protected Account maintained by the Company pursuant to Article V or by the
      related Servicer pursuant to the applicable Servicing Agreement have been or
      will be so deposited) and shall request that the Custodian, on behalf of the
      Trustee, deliver to the Company or the related Servicer or the Master Servicer
      the related Mortgage File. Upon receipt of such certification and request,
      the
      Custodian, on behalf of the Trustee, shall promptly release the related Mortgage
      File to the Company or the related Servicer or the Master Servicer and the
      Trustee and Custodian shall have no further responsibility with regard to such
      Mortgage File. Upon any such payment in full, the Company, the Master Servicer
      or the related Servicer (as applicable) 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,
      representation or warranty) 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 Protected Account.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with this Agreement and the Servicing Agreement, as
      applicable, the Trustee shall execute such documents as shall be prepared and
      furnished to the Trustee by the Company, 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 related Custodian, on behalf of the
      Trustee, shall, pursuant to the related Custodial Agreement, upon the request
      of
      the Company, a Servicer or the Master Servicer, and delivery to the related
      Custodian, on behalf of the Trustee, of two copies of a request for release
      signed by a Servicing Officer or Master Servicing Officer, as applicable,
      substantially in the form of Exhibit G (or in a mutually agreeable electronic
      format which will, in lieu of a signature on its face, originate from a
      Servicing Officer or Master Servicing Officer, as applicable), release the
      related Mortgage File held in its possession or control to the Company, the
      related Servicer or the Master Servicer, as applicable. Such trust receipt
      shall
      obligate the Company, the related Servicer or the Master Servicer to return
      the
      Mortgage File to the Custodian on behalf of the Trustee, when the need therefor
      by such Person no longer exists unless the Mortgage Loan shall be liquidated,
      in
      which case, upon receipt of a certificate of a Servicing Officer or Master
      Servicing Officer, as applicable similar to that hereinabove specified, the
      Mortgage File shall be released by the Custodian, on behalf of the Trustee,
      to
      the Company, the related Servicer or the Master Servicer.

     

    Section
      3.07  Maintenance
      of Hazard Insurance. 

     

    The
      Company shall cause to be maintained, for each EMC Mortgage Loan, hazard
      insurance on buildings upon, or comprising part of, the Mortgaged Property
      against loss by fire, hazards of extended coverage and such other hazards as
      are
      customary in the area where the related Mortgaged Property is located with
      an
      insurer which is licensed to do business in the state where the related
      Mortgaged Property is located. Each such policy of standard hazard insurance
      shall contain, or have an accompanying endorsement that contains, a standard
      mortgagee clause. The Company shall also cause flood insurance to be maintained
      on property acquired upon foreclosure or deed in lieu of foreclosure of any
      EMC
      Mortgage Loan, to the extent described below. Pursuant to Section 5.01, any
      amounts collected by the Company under any such policies (other than the amounts
      to be applied to the restoration or repair of the related Mortgaged Property
      or
      property thus acquired or amounts released to the Mortgagor in accordance with
      the Company’s normal servicing procedures) shall be deposited in the Protected
      Account maintained by the Company. Any cost incurred by the Company in
      maintaining any such insurance shall not, for the purpose of calculating monthly
      distributions to the Certificateholders or remittances to the Securities
      Administrator for their benefit, be added to the principal balance of the
      Mortgage Loan, notwithstanding that the terms of the EMC Mortgage Loan so
      permit. Such costs shall be recoverable by the Company out of late payments
      by
      the related Mortgagor or out of Liquidation Proceeds to the extent permitted
      by
      Section 5.02. It is understood and agreed that no earthquake or other additional
      insurance is to be required of any Mortgagor or maintained on property acquired
      in respect of a Mortgage other than pursuant to such applicable laws and
      regulations as shall at any time be in force and as shall require such
      additional insurance. If the Mortgaged Property is located at the time of
      origination of the related EMC Mortgage Loan in a federally designated special
      flood hazard area and such area is participating in the national flood insurance
      program, the Company shall cause flood insurance to be maintained with respect
      to such EMC Mortgage Loan. Such flood insurance shall be in an amount equal
      to
      the least of (i) the Stated Principal Balance of the related EMC Mortgage Loan,
      (ii) minimum amount required to compensate for damage or loss on a replacement
      cost basis or (iii) the maximum amount of such insurance available for the
      related Mortgaged Property under the Flood Disaster Protection Act of 1973,
      as
      amended.

     

    In
      the
      event that the Company shall obtain and maintain a blanket policy insuring
      against hazard losses on all of the EMC Mortgage Loans, it shall conclusively
      be
      deemed to have satisfied its obligations as set forth in the first sentence
      of
      this Section 3.07, it being understood and agreed that such policy may contain
      a
      deductible clause on terms substantially equivalent to those commercially
      available and maintained by comparable servicers. If such policy contains a
      deductible clause, the Company shall, in the event that there shall not have
      been maintained on the related Mortgaged Property a policy complying with the
      first sentence of this Section 3.07, and there shall have been a loss that
      would
      have been covered by such policy, deposit in the Protected Account maintained
      by
      the Company the amount not otherwise payable under the blanket policy because
      of
      such deductible clause. Such deposit shall be from the Company’s own funds
      without reimbursement therefor. In connection with its activities as
      administrator and servicer of the EMC Mortgage Loans, the Company agrees to
      present, on behalf of itself and the Trustee for the benefit of the
      Certificateholders claims under any such blanket policy.

     

    Section
      3.08  Presentment
      of Claims and Collection of Proceeds. 

     

    The
      Company shall prepare and present on behalf of the Trustee and the
      Certificateholders all claims under the Required Insurance Policies relating
      to
      the EMC Mortgage Loans 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 Required Insurance Policies. Any
      proceeds disbursed to the Company in respect of such Required Insurance Policies
      shall be promptly deposited in the Protected Account maintained by the Company
      upon receipt, except that any amounts that are to be applied upon receipt to
      the
      repair or restoration of the related Mortgaged Property, which repair or
      restoration the owner of such Mortgaged Property or EMC, as applicable, has
      agreed to make as a condition precedent to the presentation of its claims on
      the
      related EMC Mortgage Loan under the applicable Insurance Policy, need not be
      so
      deposited (or remitted). 

     

    Section
      3.09  Books
      and
      Records.

     

    The
      Company shall be responsible for maintaining, and shall maintain, a complete
      set
      of books and records for the EMC Mortgage Loans which shall be appropriately
      identified in the Company’s computer system to clearly reflect the ownership of
      the EMC Mortgage Loans by the Trust. In particular, the Company shall maintain
      in its possession, available for inspection by the Master Servicer, the
      Securities Administrator and the Trustee and shall deliver to the Master
      Servicer, the Securities Administrator and the Trustee upon demand, evidence
      of
      compliance with all federal, state and local laws, rules and regulations. The
      Trustee, the Securities Administrator and the Master Servicer, and any
      governmental or regulatory agency with jurisdiction over the Trustee, the
      Securities Administrator or the Master Servicer, as applicable, shall have
      the
      right, upon reasonable advance notice to the Company, to inspect and examine
      the
      books and records of the Company. To the extent that original documents are
      not
      required for purposes of realization of Liquidation Proceeds or Insurance
      Proceeds, documents maintained by the Company may be in the form of microfilm
      or
      microfiche or such other reliable means of recreating original documents,
      including, but not limited to, optical imagery techniques so long as the Company
      complies with the requirements of Accepted Servicing Practices. During the
      term
      of this Agreement, the Company shall, upon reasonable advance notice, make
      available a Servicing Officer to the Master Servicer for answering questions
      and
      responding to inquiries. 

     

    The
      Company shall maintain with respect to each EMC Mortgage Loan and shall make
      available for inspection by the Master Servicer, the Securities Administrator
      and the Trustee the related servicing file during the time such EMC Mortgage
      Loan is subject to this Agreement and thereafter in accordance with applicable
      law.

     

    Payments
      on the Mortgage Loans, including any payoffs, made in accordance with the
      related Mortgage File will be entered in the Company’s set of books and records
      no more than two business days after receipt and identification, and allocated
      to principal or interest as specified in the related Mortgage File.

     

    Section
      3.10  Custodians
      to Retain Possession of Certain Insurance Policies and Documents.

     

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

     

    Section
      3.11  Fidelity
      Bond, Errors and Omissions Insurance. 

     

    The
      Company shall maintain, at its own expense, a blanket fidelity bond and an
      errors and omissions insurance policy, with broad coverage with responsible
      companies on all officers, employees or other persons acting in any capacity
      with regard to the EMC Mortgage Loans and who handle funds, money, documents
      and
      papers relating to the EMC Mortgage Loans. The fidelity bond and errors and
      omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond
      and shall protect and insure the Company against losses, including forgery,
      theft, embezzlement, fraud, errors and omissions and negligent acts of such
      persons. Such fidelity bond shall also protect and insure the Company against
      losses in connection with the failure to maintain any insurance policies
      required pursuant to this Agreement and the release or satisfaction of an EMC
      Mortgage Loan which is not in accordance with Accepted Servicing Practices.
      No
      provision of this Section 3.11 requiring the fidelity bond and errors and
      omissions insurance shall diminish or relieve the Company from its duties and
      obligations as set forth in this Agreement. The minimum coverage under any
      such
      bond and insurance policy shall be at least equal to the corresponding amounts
      required by Accepted Servicing Practices. The Company shall deliver to the
      Master Servicer annually (together with the Company’s Annual Statement of
      Compliance required under Section 3.16 hereof) a certificate from the surety
      and
      the insurer as to the existence of the fidelity bond and errors and omissions
      insurance policy (along with a copy of such policy then in effect) and shall
      obtain a statement from the surety and the insurer that such fidelity bond
      or
      insurance policy shall in no event be terminated or materially modified without
      thirty days prior written notice to the Master Servicer and the Trustee. The
      Company shall notify the Master Servicer, the Securities Administrator and
      the
      Trustee in writing within five business days of receipt of notice that such
      fidelity bond or insurance policy will be, or has been, materially modified
      or
      terminated. The Trustee for the benefit of the Certificateholders must be named
      as loss payees on the fidelity bond and as additional insured on the errors
      and
      omissions policy.

     

    The
      Company shall provide to the Master Servicer and the Depositor evidence of
      the
      authorization of the person signing any certification or statement, copies
      or
      other evidence of fidelity bond and errors and omissions insurance, financial
      information and reports, and such other information related to the Company
      or
      any subservicer engaged by it or the Company’s or such subservicer’s performance
      hereunder or under the related Subservicing Agreement as may be reasonably
      requested by the Master Servicer or the Depositor.

     

    Section
      3.12  Realization
      Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds
      and
      Realized Losses; Repurchases of Certain Mortgage Loans. 

     

    (a)  The
      Company shall use reasonable efforts to foreclose upon or otherwise comparably
      convert the ownership of properties securing such of the EMC Mortgage Loans
      as
      come into and continue in default and as to which no satisfactory arrangements
      can be made for collection of delinquent payments. In connection with such
      foreclosure or other conversion, the Company shall follow such practices and
      procedures as it shall deem necessary or advisable and as shall be normal and
      usual in its general mortgage servicing activities and the requirements of
      the
      insurer under any Required Insurance Policy; provided that the Company shall
      not
      be required to expend its own funds in connection with any foreclosure or
      towards the restoration of any property unless it shall determine (i) that
      such
      restoration and/or foreclosure will increase the proceeds of liquidation of
      the
      EMC Mortgage Loan after reimbursement to itself of such expenses and (ii) that
      such expenses will be recoverable to it through Insurance Proceeds or
      Liquidation Proceeds (respecting which it shall have priority for purposes
      of
      withdrawals from the Protected Account maintained by the Company pursuant to
      Section 5.02). If the Company reasonably believes that Liquidation Proceeds
      with
      respect to any such EMC Mortgage Loan would not be increased as a result of
      such
      foreclosure or other action, such EMC Mortgage Loan will be charged-off and
      will
      become a Liquidated Loan. The Company will give notice of any such charge-off
      and related Final Recovery Determination to the Trustee and the Master Servicer
      pursuant to Section 5.03. The Company shall be responsible for all other costs
      and expenses incurred by it in any such proceedings; provided that such costs
      and expenses shall be Servicing Advances and that it shall be entitled to
      reimbursement thereof from the proceeds of liquidation of the related Mortgaged
      Property, as contemplated in Section 5.02. If the Company has knowledge that
      a
      Mortgaged Property that the Company is contemplating acquiring in foreclosure
      or
      by deed- in-lieu of foreclosure is located within a one-mile radius of any
      site
      with environmental or hazardous waste risks known to the Company, the Company
      will, prior to acquiring the related Mortgaged Property, consider such risks
      and
      only take action in accordance with its established environmental review
      procedures. 

     

    With
      respect to any REO Property relating to an EMC Mortgage Loan, the deed or
      certificate of sale shall be taken in the name of the Trustee for the benefit
      of
      the Certificateholders (or the Trustee’s nominee on behalf of the
      Certificateholders). The Trustee’s name shall be placed on the title to such REO
      Property solely as the Trustee hereunder and not in its individual capacity.
      The
      Company shall ensure that the title to such REO Property references this
      Agreement and the Trustee’s capacity hereunder. Pursuant to its efforts to sell
      such REO Property, the Company shall either itself or through an agent selected
      by the Company protect and conserve such REO Property in the same manner and
      to
      such extent as is customary in the locality where such REO Property is located
      and may, incident to its conservation and protection of the interests of the
      Certificateholders, rent the same, or any part thereof, as the Company deems
      to
      be in the best interest of the Company and the Certificateholders for the period
      prior to the sale of such REO Property. The Company shall prepare for and
      deliver to the Trustee, the Master Servicer and the Securities Administrator
      a
      statement with respect to each such REO Property that has been rented showing
      the aggregate rental income received and all expenses incurred in connection
      with the management and maintenance of such REO Property at such times as is
      necessary to enable the Securities Administrator to comply with the reporting
      requirements of the REMIC Provisions. The net monthly rental income, if any,
      from such REO Property shall be deposited in the Protected Account maintained
      by
      the Company no later than the close of business on each Determination Date.
      The
      Company shall perform the tax reporting and withholding related to foreclosures,
      abandonments and cancellation of indebtedness income as specified by Sections
      1445, 6050J and 6050P of the Code by preparing and filing such tax and
      information returns, as may be required.

     

    In
      the
      event that the Trust Fund acquires any Mortgaged Property as aforesaid or
      otherwise in connection with a default or reasonably foreseeable default on
      an
      EMC Mortgage Loan, the Company shall dispose of such Mortgaged Property prior
      to
      three years after its acquisition by the Trust Fund or, at the expense of the
      Trust Fund, request more than 60 days prior to the day on which such three-year
      period would otherwise expire, an extension of the three-year grace period
      unless the Trustee and the Securities Administrator shall have been supplied
      with an Opinion of Counsel addressed to the Trustee and the Securities
      Administrator (such opinion not to be an expense of the Trustee or the
      Securities Administrator) to the effect that the holding by the Trust Fund
      of
      such Mortgaged Property subsequent to such three-year period will not result
      in
      the imposition of taxes on “prohibited transactions” of REMIC I, REMIC II, REMIC
      III, REMIC IV or REMIC V as defined in Section 860F of the Code or cause any
      of
      REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify as a REMIC
      at any time that any Certificates are outstanding, in which case the Trust
      Fund
      may continue to hold such Mortgaged Property (subject to any conditions
      contained in such Opinion of Counsel). Notwithstanding any other provision
      of
      this Agreement, no Mortgaged Property acquired by the Trust Fund shall be rented
      (or allowed to continue to be rented) or otherwise used for the production
      of
      income by or on behalf of the Trust Fund in such a manner or pursuant to any
      terms that would (i) cause such Mortgaged Property to fail to qualify as
“foreclosure property” within the meaning of Section 860G(a)(8) of the Code or
      (ii) subject any of REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to the
      imposition of any federal, state or local income taxes on the income earned
      from
      such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless
      the Company has agreed to indemnify and hold harmless the Trust Fund with
      respect to the imposition of any such taxes.

     

    The
      decision of the Company to foreclose on a defaulted EMC Mortgage Loan shall
      be
      subject to a determination by the Company that the proceeds of such foreclosure
      would exceed the costs and expenses of bringing such a proceeding. The income
      earned from the management of any Mortgaged Properties acquired through
      foreclosure or other judicial proceeding, net of reimbursement to the Company
      for expenses incurred (including any property or other taxes) in connection
      with
      such management and net of unreimbursed Servicing Fees, Advances, Servicing
      Advances and any management fee paid or to be paid with respect to the
      management of such Mortgaged Property, shall be applied to the payment of
      principal of, and interest on, the related defaulted EMC Mortgage Loans (with
      interest accruing as though such Mortgage Loans were still current) and all
      such
      income shall be deemed, for all purposes in the Agreement, to be payments on
      account of principal and interest on the related Mortgage Notes and shall be
      deposited into the Protected Account maintained by the Company. To the extent
      the income received during a Prepayment Period is in excess of the amount
      attributable to amortizing principal and accrued interest at the related
      Mortgage Rate on the related EMC Mortgage Loan, such excess shall be considered
      to be a partial Principal Prepayment for all purposes hereof.

     

    The
      Liquidation Proceeds from any liquidation of a related EMC Mortgage Loan, net
      of
      any payment to the Company as provided above, shall be deposited in the
      Protected Account upon
      receipt and made available on
      the
      next succeeding Determination Date following receipt thereof for distribution
      on
      the related Distribution Date, except that any Excess Liquidation Proceeds
      shall
      be retained by the Company as additional servicing compensation.

     

    The
      proceeds of any Liquidated Loan, as well as any recovery resulting from a
      partial collection of related Liquidation Proceeds or any income from a an
      REO
      Property, will be applied in the following order of priority: first, to
      reimburse the Company and the Master Servicer for any related unreimbursed
      Servicing Advances, Master Servicing Fees and Servicing Fees, pursuant to
      Section 5.02 or this Section 3.12; second, to reimburse the Company and the
      Master Servicer for any unreimbursed Advances, pursuant to Section 5.02 or
      this
      Section 3.12; third, to accrued and unpaid interest (to the extent no Advance
      has been made for such amount) on the EMC Mortgage Loan or related REO Property,
      at the Net Mortgage Rate to the first day of the month in which such amounts
      are
      required to be distributed; and fourth, as a recovery of principal of the EMC
      Mortgage Loan.

     

    (b)  On
      each
      Determination Date, the Company shall determine the respective aggregate amounts
      of Excess Liquidation Proceeds and Realized Losses, if any, for the prior
      calendar month. 

     

    (c)  The
      Company has no intent to foreclose on any EMC Mortgage Loan based on the
      delinquency characteristics as of the Closing Date; provided, that the foregoing
      does not prevent the Company from initiating foreclosure proceedings on any
      date
      hereafter if the facts and circumstances of such EMC Mortgage Loans including
      delinquency characteristics in the Company’s discretion so warrant such
      action.

     

    Section
      3.13  Servicing
      Compensation. 

     

    As
      compensation for its activities hereunder, the Company shall be entitled to
      retain or withdraw from the Protected Account out of each payment of interest
      on
      an EMC Mortgage Loan included in the Trust Fund an amount equal to the Servicing
      Fee.

     

    Additional
      servicing compensation in the form of any Excess Liquidation Proceeds,
      assumption fees, other ancillary income, late payment charges, all Prepayment
      Interest Excess on any EMC Mortgage Loan, all income and gain net of any losses
      realized from Permitted Investments with respect to funds in or credited to
      the
      Protected Account maintained by the Company shall be retained by the Company
      to
      the extent not required to be deposited in the Protected Account maintained
      by
      the Company pursuant to Section 5.02. The Company shall be required to pay
      all
      expenses incurred by it in connection with its servicing activities hereunder
      (including payment of any premiums for hazard insurance, as required by Section
      3.07) and shall not be entitled to reimbursement therefor except as specifically
      provided in Section 5.02.

     

    Section
      3.14  REO
      Property. 

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related EMC Mortgage Loan, the deed or certificate of sale shall be issued
      to
      the Trustee, or to its nominee, on behalf of the Certificateholders. The Company
      shall sell any such REO Property as expeditiously as possible and in accordance
      with the provisions of this Agreement. Pursuant to its efforts to sell such
      REO
      Property, the Company shall protect and conserve such REO Property in the manner
      and to the extent required herein, 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
      Company shall deposit all funds collected and received in connection with the
      operation of any REO Property in respect of any EMC Mortgage Loan into the
      Protected Account maintained by the Company.

     

    (c)  The
      Company and the Master Servicer (as applicable), upon the final disposition
      of
      any REO Property in respect of any EMC Mortgage Loan, shall be entitled to
      reimbursement for any related unreimbursed Advances, unreimbursed Servicing
      Advances, Servicing Fees and Master Servicing Fees from Liquidation Proceeds
      received in connection with the final disposition of such REO Property;
      provided, that any such unreimbursed Advances, unreimbursed Servicing Advances,
      Servicing Fees or Master Servicing Fees as well as any unpaid Servicing Fees
      and
      Master 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.

     

    Section
      3.15  Liquidation
      Reports. 

     

    Upon
      the
      foreclosure of any Mortgaged Property relating to an EMC Mortgage Loan or the
      acquisition thereof by the Trust Fund pursuant to a deed-in-lieu of foreclosure,
      the Company shall submit a liquidation report to the Master Servicer containing
      such information as shall be mutually acceptable to the Company and the Master
      Servicer with respect to such Mortgaged Property.

     

    Section
      3.16  Annual
      Statement as to Compliance. 

     

    The
      Company as a Servicer, the Master Servicer and the Securities Administrator
      shall deliver (or otherwise make available) to the Depositor and the Securities
      Administrator not later than March 15th of each calendar year beginning in
      2008,
      an Officer’s Certificate (an “Annual Statement of Compliance”) stating, as to
      each signatory thereof, that (i) a review of the activities of each such party
      during the preceding calendar year and of its performance under this Agreement
      or other applicable servicing agreement has been made under such officer’s
      supervision and (ii) to the best of such officer’s knowledge, based on such
      review, such party has fulfilled all of its obligations under this Agreement
      or
      other applicable servicing agreement in all material respects throughout such
      year, or, if there has been a failure to fulfill any such obligation in any
      material respect, specifying each such failure known to such officer and the
      nature and status of the cure provisions thereof. Such Annual Statement of
      Compliance shall contain no restrictions or limitations on its use. The Master
      Servicer shall enforce the obligations of each Servicer, to the extent set
      forth
      in the related Servicing Agreement, to deliver a similar Annual Statement of
      Compliance by that Servicer to the Depositor and the Securities Administrator
      as
      described above as and when required with respect to the Master Servicer. In
      the
      event that certain servicing responsibilities with respect to any Mortgage
      Loan
      have been delegated by the Company, the Master Servicer, the Securities
      Administrator or a Servicer to a subservicer or subcontractor, each such entity
      shall cause such subservicer or subcontractor (and with respect to each
      Servicer, the Master Servicer shall enforce the obligation of such Servicer
      to
      the extent required under the related Servicing Agreement) to deliver a similar
      Annual Statement of Compliance by such subservicer or subcontractor to the
      Depositor and the Securities Administrator as described above as and when
      required with respect to the Master Servicer or the related Servicer (as the
      case may be).

     

    Failure
      of the Company to comply with this Section 3.16 (including with respect to
      the
      timeframes required herein) shall be deemed a Company Default, and the Master
      Servicer shall, in addition to whatever rights the Master Servicer may have
      under this Agreement and at law or equity or to damages, including injunctive
      relief and specific performance, upon notice immediately terminate all of the
      rights and obligations of the Company under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. Failure of the Master Servicer to comply with this Section 3.16 (including
      with respect to the timeframes required herein) shall be deemed an Event of
      Default, and at the written direction of the Depositor the Trustee shall, in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same. Failure
      of the Securities Administrator to comply with this Section 3.16 (including
      with
      respect to the timeframes required in this Section) which failure results in
      a
      failure to timely file the related Form 10-K, shall be deemed a default and
      the
      Trustee at the written direction of the Depositor shall, in addition to whatever
      rights the Trustee may have under this Agreement and at law or equity or to
      damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Securities
      Administrator under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Securities Administrator for the
      same.
      This paragraph shall supersede any other provision in this Agreement or any
      other agreement to the contrary.

     

    In
      the
      event the Company, the Master Servicer, the Securities Administrator or any
      subservicer or subcontractor engaged by either such party is terminated or
      resigns pursuant to the terms of the Agreement, or any other applicable
      agreement in the case of a subservicer or subcontractor, as the case may be,
      such party shall provide an Annual Statement of Compliance pursuant to this
      Section 3.16 or to the related section of such other applicable agreement,
      as
      the case may be, as to the performance of its obligations with respect to the
      period of time it was subject to this Agreement or any other applicable
      agreement, as the case may be notwithstanding any such termination or
      resignation.

     

    Section
      3.17  Assessments
      of Compliance and Attestation Reports. 

     

    Pursuant
      to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
      AB,
      each of the Company as a Servicer, the Master Servicer, the Securities
      Administrator and the Custodian (to the extent set forth in this Section) (each,
      an “Attesting Party”) at its own expense shall deliver (or otherwise make
      available) to the Master Servicer, the Securities Administrator and the
      Depositor on or before March 15th of each calendar year beginning in 2008,
      a
      report regarding such Attesting Party’s assessment of compliance (an “Assessment
      of Compliance”) with the Servicing Criteria during the preceding calendar year.
      The Assessment of Compliance, as set forth in Regulation AB, must contain the
      following:

     

    (a) A
      statement by an authorized officer of such Attesting Party of its authority
      and
      responsibility for assessing compliance with the Servicing Criteria applicable
      to the related Attesting Party;

     

    (b) A
      statement by an authorized officer that such Attesting Party used the Servicing
      Criteria attached as Exhibit N hereto, and which will also be attached to the
      Assessment of Compliance, to assess compliance with the Servicing Criteria
      applicable to the related Attesting Party;

     

    (c) An
      assessment by such officer of the related Attesting Party’s compliance with the
      applicable Servicing Criteria for the period consisting of the preceding
      calendar year, including disclosure of any material instance of noncompliance
      with respect thereto during such period, which assessment shall be based on
      the
      activities such Attesting Party performs with respect to asset-backed securities
      transactions taken as a whole involving the related Attesting Party, that are
      backed by the same asset type as the Mortgage Loans;

     

    (d) A
      statement that a registered public accounting firm has issued an attestation
      report on the related Attesting Party’s Assessment of Compliance for the period
      consisting of the preceding calendar year; and

     

    (e) A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
      the related Attesting Party, which statement shall be based on the activities
      such Attesting Party performs with respect to asset-backed securities
      transactions taken as a whole involving such Attesting Party, that are backed
      by
      the same asset type as the Mortgage Loans.

     

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on
      Exhibit N hereto which are indicated as applicable to the related Attesting
      Party.

     

    On
      or
      before March 15th of each calendar year beginning in 2008, each Attesting Party
      shall furnish to the Master Servicer, the Depositor and the Securities
      Administrator a report (an “Attestation Report”) by a registered public
      accounting firm that attests to, and reports on, the Assessment of Compliance
      made by the related Attesting Party, as required by Rules 13a-18 and 15d-18
      of
      the Exchange Act and Item 1122(b) of Regulation AB, which Attestation Report
      must be made in accordance with standards for attestation reports issued or
      adopted by the Public Company Accounting Oversight Board. 

     

    The
      Master Servicer shall enforce the obligation of each Servicer to deliver to
      the
      Securities Administrator, the Master Servicer and the Depositor an Assessment
      of
      Compliance and Attestation Report as and when provided in the related Servicing
      Agreement. Each of the Company, the Master Servicer and the Securities
      Administrator shall cause, and the Master Servicer shall enforce the obligation
      (as and when provided in the related Servicing Agreement) of each Servicer
      to
      cause, any subservicer and each subcontractor (to the extent such subcontractor
      is determined by the Company, the Master Servicer or the Securities
      Administrator, as applicable, to be “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB) that is engaged by the
      Company, such Servicer, the Master Servicer or the Securities Administrator,
      as
      applicable, to deliver to the Securities Administrator, the Master Servicer
      and
      the Depositor an Assessment of Compliance and Attestation Report as and when
      provided above. Such Assessment of Compliance, as to any subservicer or
      subcontractor, shall at a minimum address the applicable Servicing Criteria
      specified on Exhibit N hereto which are indicated as applicable to any “primary
      servicer” to the extent such subservicer or subcontractor is performing any
      servicing function for the party who engages it and to the extent such party
      is
      not itself addressing the Servicing Criteria related to such servicing function
      in its own Assessment of Compliance. The Securities Administrator shall confirm
      that each of the Assessments of Compliance delivered to it, taken as a whole,
      address all of the Servicing Criteria and taken individually address the
      Servicing Criteria for each party as set forth in Exhibit N and notify the
      Depositor of any exceptions. Notwithstanding the foregoing, as to any
      subcontractor, an Assessment of Compliance is not required to be delivered
      unless it is required as part of a Form 10-K with respect to the Trust
      Fund.

     

    In
      addition, for the avoidance of doubt and without duplication, the Company as
      a
      Servicer shall (and shall cause each subservicer engaged by it to) provide
      the
      following information to the Depositor and the Securities Administrator: (A)
      any
      Company Default hereunder and any subservicer event of default under the terms
      of the related Subservicing Agreement, (B) any merger, consolidation or sale
      of
      substantially all of the assets of the Company or, to the best of the Company’s
      knowledge, any such subservicer, and (C) the Company’s entry into an agreement
      with a subservicer to perform or assist in the performance of any of the
      Company’s obligations as Servicer. 

     

    In
      addition, the Company as a Servicer, shall cause each subservicer engaged by
      it
      to provide the following information to the Depositor and the Securities
      Administrator, to the extent applicable, within the timeframes that the Company
      would otherwise have to provide such information:

     

    (A) any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B) material
      breaches of pool asset representations or warranties or transaction covenants
      (Item 1121(a)(12) of Regulation AB); and

     

    (C) information
      regarding new asset-backed securities issuances backed by the same pool assets,
      any pool asset changes (such as, additions, substitutions or repurchases),
      and
      any material changes in origination, underwriting or other criteria for
      acquisition or selection of pool assets (Item 1121(a)(14) of Regulation
      AB).

     

    The
      Custodian shall deliver to the Master Servicer, the Securities Administrator
      and
      the Depositor an Assessment of Compliance and Attestation Report, as and when
      provided above, which shall at a minimum address each of the Servicing Criteria
      specified on Exhibit N hereto which are indicated as applicable to a
“custodian”. Notwithstanding the foregoing, an Assessment of Compliance or
      Attestation Report is not required to be delivered by any Custodian unless
      it is
      required as part of a Form 10-K with respect to the Trust Fund.

     

    Failure
      of the Company to comply with this Section 3.17 (including with respect to
      the
      timeframes required herein) shall be deemed a Company Default, and the Master
      Servicer shall, in addition to whatever rights the Master Servicer may have
      under this Agreement and at law or equity or to damages, including injunctive
      relief and specific performance, upon notice immediately terminate all of the
      rights and obligations of the Company under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. Failure of the Master Servicer to comply with this Section 3.17 (including
      with respect to the timeframes required herein) shall constitute an Event of
      Default, and at the written direction of the Depositor the Trustee shall, in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same (but
      subject to the Master Servicer’s rights to payment of any Master Servicing
      Compensation and reimbursement of all amounts for which it is entitled to be
      reimbursed prior to the date of termination). Failure of the Securities
      Administrator to comply with this Section 3.17 (including with respect to the
      timeframes required in this Section) which failure results in a failure to
      timely file the related Form 10-K, shall constitute a default and at the written
      direction of the Depositor the Trustee shall, in addition to whatever rights
      the
      Trustee may have under this Agreement and at law or equity or to damages,
      including injunctive relief and specific performance, upon notice immediately
      terminate all of the rights and obligations of the Securities Administrator
      under this Agreement and in and to the Mortgage Loans and the proceeds thereof
      without compensating the Securities Administrator for the same (but subject
      to
      the Securities Administrator’s right to reimbursement of all amounts for which
      it is entitled to be reimbursed prior to the date of termination). This
      paragraph shall supersede any other provision in this Agreement or any other
      agreement to the contrary.

     

    In
      the
      event the Company, the Master Servicer, the Custodian, the Securities
      Administrator or any subservicer or subcontractor engaged by any such party
      is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of the Agreement, the Custodial Agreement, or any other applicable
      agreement in the case of a subservicer or subcontractor, as the case may be,
      such party shall provide an Assessment of Compliance and cause to be provided
      an
      Attestation Report pursuant to this Section 3.17 or to the related section
      of
      such other applicable agreement, as the case may be, notwithstanding any such
      termination, assignment or resignation.

     

    Section
      3.18  Reports
      Filed with Securities and Exchange Commission.

     

    (a)  (i)
      (A)
      Within 15 days after each Distribution Date (subject to permitted exceptions
      under the Exchange Act), the Securities Administrator shall, in accordance
      with
      industry standards, prepare and file with the Commission via the Electronic
      Data
      Gathering and Retrieval System (“EDGAR”), a Distribution Report on Form 10-D,
      signed by the Master Servicer, with a copy of the Monthly Statement to be
      furnished by the Securities Administrator to the Certificateholders for such
      Distribution Date attached thereto; provided that, the Securities Administrator
      shall have received no later than five (5) calendar days after the related
      Distribution Date, all information required to be provided to the Securities
      Administrator as described in clause (a)(iv) below. Any disclosure that is
      in
      addition to the Monthly Statement and 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 P to the Securities Administrator and the Depositor, pursuant
      to the paragraph immediately below, and approved for inclusion by the Depositor,
      and the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure absent
      such reporting (other than in the case where the Securities Administrator is
      the
      reporting party as set forth in Exhibit P) and approval.

     

    (B) Within
      five (5) calendar days after the related Distribution Date, (i) the parties
      set
      forth in Exhibit P shall be required to provide, and the Master Servicer shall
      enforce the obligation of each Servicer (to the extent provided in the related
      Servicing Agreement) to provide, pursuant to Section 3.18(a)(iv) below, to
      the
      Securities Administrator and the Depositor, to the extent known by a responsible
      officer thereof, in EDGAR-compatible format, or in such other format as
      otherwise agreed upon by the Securities Administrator and the Depositor and
      such
      party, the form and substance of any Additional Form 10-D Disclosure, if
      applicable, 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-D
      Disclosure on Form 10-D. The Depositor shall 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 on Form 10-D
      pursuant to this Section.

     

    (C) After
      preparing the Form 10-D, the Securities Administrator shall forward
      electronically a copy of the Form 10-D to the Depositor (in the case of any
      Additional 10-D Disclosure and otherwise if requested by the Depositor) and
      the
      Master Servicer for review. Within two Business Days after receipt of such
      copy,
      but no later than the 12th calendar day after the Distribution Date (provided
      that, the Securities Administrator forwards a copy of the Form 10-D no later
      than the 10th 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, 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. No later than the 13th calendar day after the related Distribution Date,
      a
      duly authorized officer of the Master Servicer shall sign the Form 10-D and,
      in
      the case where the Master Servicer and the Securities Administrator are not
      affiliated, return an electronic or fax copy of such signed Form 10-D (with
      an
      original executed hard copy to follow by overnight mail) to the Securities
      Administrator. 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 shall follow the
      procedures set forth in Section 3.18(a)(v)(B). Promptly (but no later than
      one
      (1) Business Day) after filing with the Commission, the Securities Administrator
      shall make available on its internet website identified in Section 6.06 a final
      executed copy of each Form 10-D filed by the Securities Administrator. The
      signing party at the Master Servicer can be contacted as set forth in Section
      12.05. 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 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 the representations in Section 2.04(vi) and in
      any
      such notice in preparing, executing and/or filing any such report. The parties
      to this Agreement acknowledge that the performance by the Master Servicer and
      the Securities Administrator of their respective duties under Sections
      3.18(a)(i) and (v) 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 such Sections. 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 a party’s failure to deliver, on a timely basis, any
      information from such party needed to prepare, arrange for execution or file
      such Form 10-D, not resulting from its own negligence, bad faith or willful
      misconduct. 

     

    (ii) (A)
      Within four (4) Business Days after the occurrence of an event requiring
      disclosure on Form 8-K (each such event, a “Reportable Event”), the Securities
      Administrator shall prepare and file, on behalf of the Trust, at the direction
      of the Depositor, any 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 on Form 8-K (“Form 8-K Disclosure
      Information”) shall be, pursuant to the paragraph immediately below, reported by
      the parties set forth on Exhibit P to the Securities Administrator and the
      Depositor and directed and approved for inclusion 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 absent such reporting (other than in the case where
      the
      Securities Administrator is the reporting party as set forth in Exhibit P)
      and
      approval.

     

    (B) For
      so
      long as the Trust is subject to the Exchange Act reporting requirements, (i)
      no
      later than the close of business on the 2nd Business Day after the occurrence
      of
      a Reportable Event the parties set forth in Exhibit P shall be required pursuant
      to Section 3.18(a)(iv) below to provide, and the Master Servicer shall enforce
      the obligation of each Servicer (to the extent provided in the related Servicing
      Agreement) to provide, to the Securities Administrator and the Depositor, to
      the
      extent known by a responsible officer thereof, in EDGAR-compatible format,
      or in
      such other form as otherwise agreed upon by the Securities Administrator and
      the
      Depositor and such party, the form and substance of any Form 8-K Disclosure
      Information, if applicable, and (ii) the Depositor shall approve, as to form
      and
      substance, or disapprove, as the case may be, the inclusion of the Form 8-K
      Disclosure Information on Form 8-K. The Depositor shall 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
      on Form 8-K pursuant to this Section. 

     

    (C) After
      preparing the Form 8-K, the Securities Administrator shall forward
      electronically a copy of the Form 8-K to the Depositor and the Master Servicer
      for review. No later than the close of business New York City time on the 3rd
      Business Day after the Reportable Event, or in the case where the Master
      Servicer and Securities Administrator are affiliated, no later than noon New
      York City time on the 4th Business Day after the Reportable Event, a duly
      authorized officer of the Master Servicer shall sign the Form 8-K and, in the
      case where the Master Servicer and the Securities Administrator are not
      affiliated, return an electronic or fax copy of such signed Form 8-K (with
      an
      original executed hard copy to follow by overnight mail) to the Securities
      Administrator. Promptly, but no later than the close of business on the 3rd
      Business Day after the Reportable Event (provided that, the Securities
      Administrator forwards a copy of the Form 8-K no later than noon New York time
      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, 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. 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 shall follow the procedures
      set forth in Section 3.18(a)(v)(B). Promptly (but no later than one (1) Business
      Day) after filing with the Commission, the Securities Administrator shall,
      make
      available on its internet website a final executed copy of each Form 8-K filed
      by the Securities Administrator. The signing party at the Master Servicer can
      be
      contacted as set forth in Section 12.05. The parties to this Agreement
      acknowledge that the performance by Master Servicer and the Securities
      Administrator of their respective duties under this Section 3.18(a)(ii) 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 3.18(a)(ii). 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 8-K, where such failure results from a party’s
      failure to deliver, on a timely basis, any information from such party needed
      to
      prepare, arrange for execution or file such Form 8-K, not resulting from its
      own
      negligence, bad faith or willful misconduct.

     

    (iii) (A)
      On or
      prior to the 90th day after the end of each fiscal year of the Trust 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 2008, 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, (I) an annual
      compliance statement for the Company as a Servicer, the Master Servicer, each
      Servicer, the Securities Administrator and any subservicer or subcontractor,
      as
      applicable, as described under Section 3.16, (II)(A) the annual reports on
      assessment of compliance with Servicing Criteria for the Company as a Servicer,
      each Servicer, the Master Servicer, each subservicer and subcontractor
      participating in the servicing function, the Securities Administrator and the
      Custodian, as described under Section 3.17, and (B) if any such report on
      assessment of compliance with Servicing Criteria described under Section 3.17
      identifies any material instance of noncompliance, disclosure identifying such
      instance of noncompliance, or if any such report on assessment of compliance
      with Servicing Criteria described under Section 3.17 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 the Company, each Servicer, the Master
      Servicer, the Securities Administrator, each subservicer, each subcontractor,
      as
      applicable, and the Custodian, as described under Section 3.17, and (B) if
      any
      registered public accounting firm attestation report described under Section
      3.17 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(a)(iii)(D) below (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 reported by the parties set forth
      on Exhibit P to the Securities Administrator and the Depositor and, pursuant
      to
      the paragraph immediately below, approved for inclusion by the Depositor, and
      the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-K Disclosure absent
      such reporting (other than in the case where the Securities Administrator is
      the
      reporting party as set forth in Exhibit P) and approval.

     

    (B) No
      later
      than March 15th of each year that the Trust is subject to the Exchange Act
      reporting requirements, commencing in 2008, (i) the parties set forth in Exhibit
      P shall be required to provide, and the Master Servicer shall enforce the
      obligation of each Servicer (to the extent provided in the related Servicing
      Agreement) to provide, pursuant to Section 3.18(a)(iv) below to the Securities
      Administrator and the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible format, or in such other format as otherwise agreed
      upon by the Securities Administrator and the Depositor and such party, the
      form
      and substance of any Additional Form 10-K Disclosure, if applicable, 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
      Depositor shall 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 on Form 10-K pursuant to this
      Section.

     

    (C) After
      preparing the Form 10-K, the Securities Administrator shall forward
      electronically a copy of the Form 10-K to the Depositor (only in the case where
      such Form 10-K includes Additional Form 10-K Disclosure and otherwise if
      requested by the Depositor) and the Master Servicer for review. Within three
      Business Days after receipt of such copy, but no later than March 25th (provided
      that, the Securities Administrator forwards a copy of the Form 10-K no later
      than the third Business Day prior to 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, 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. No later than the close
      of business Eastern Standard time on the 4th Business Day prior to the 10-K
      Filing Deadline, an officer of the Master Servicer in charge of the master
      servicing function shall sign the Form 10-K and, in the case where the Master
      Servicer and the Securities Administrator are unaffiliated, return an electronic
      or fax copy of such signed Form 10-K (with an original executed hard copy to
      follow by overnight mail) to the Securities Administrator. 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 Section
      3.18(a)(v)(B). Promptly (but no later than one (1) Business Day) after filing
      with the Commission, the Securities Administrator shall make available on its
      internet website a final executed copy of each Form 10-K filed by the Securities
      Administrator. The signing party at the Master Servicer can be contacted as
      set
      forth in Section 12.05. 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 shall notify the Securities Administrator in writing, no later than
      March 15th of each year in which the Trust is subject to the requirements of
      the
      Exchange Act 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 the representations in Section 2.04(vi) and in any such notice in
      preparing, executing and/or filing any such report. The parties to this
      Agreement acknowledge that the performance by the Master Servicer and the
      Securities Administrator of their respective duties under Sections 3.18(a)(iv)
      and (v) related to the timely preparation, execution and filing of Form 10-K
      is
      contingent upon such parties strictly observing all applicable deadlines in
      the
      performance of their duties under such Sections and Sections 3.16 and Section
      3.17. 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-K, where such failure results from the failure of any party hereto to deliver
      on a timely basis, any information needed to prepare, arrange for execution
      or
      file such Form 10-K. 

     

    (D) Each
      Form
      10-K shall include a certification (the “Sarbanes-Oxley Certification”) required
      to be included therewith pursuant to the Sarbanes-Oxley Act which shall be
      signed by the Certifying Person and delivered to the Securities Administrator no
      later than March 15th of each year in which the Trust is subject to the
      reporting requirements of the Exchange Act. The Master Servicer shall cause
      any
      Servicer, and any subservicer or subcontractor engaged by it to, provide to
      the
      Person who signs the Sarbanes-Oxley Certification (the “Certifying Person”), by
      March 10th of each year in which the Trust is subject to the reporting
      requirements of the Exchange Act (or such other date specified in the related
      Servicing Agreement) and otherwise within a reasonable period of time upon
      request, a certification (each, a “Back-Up Certification”), in the form attached
      hereto as Exhibit K, 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. In addition, the Company as a Servicer and, in the case
      where the Master Servicer and Securities Administrator are not affiliated,
      the
      Securities Administrator shall sign a Back-Up Certification substantially in
      the
      form of Exhibit V; provided, however, that the Company and the Securities
      Administrator shall not be required to undertake an analysis of any accountant’s
      report attached as an exhibit to the Form 10-K. An 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 as set forth in Section 12.05.

     

    (iv) With
      respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
      or any Form 8-K Disclosure Information (collectively, the “Additional
      Disclosure”) relating to the Trust Fund, the Securities Administrator’s
      obligation to include such Additional Information in the applicable Exchange
      Act
      report is subject to receipt from the entity that is indicated in Exhibit P
      as
      the responsible party for providing that information, if other than the
      Securities Administrator, as and when required as described in Section
      3.18(a)(i) through (iii) above. Such Additional Disclosure shall be accompanied
      by a notice substantially in the form of Exhibit P. Each of the Company as
      a
      Servicer, the Master Servicer, the Seller, the Securities Administrator and
      the
      Depositor hereby agrees to notify and provide, and the Master Servicer shall
      enforce the obligation (to the extent provided in the related Servicing
      Agreement) of each Servicer to notify and provide, to the extent known to the
      Company as a Servicer, the Master Servicer, the Seller, the Securities
      Administrator and the Depositor all Additional Disclosure relating to the Trust
      Fund, with respect to which such party is indicated in Exhibit P as the
      responsible party for providing that information. The Depositor shall be
      responsible for any reasonable fees and expenses assessed or incurred by the
      Securities Administrator in connection with including any Additional Disclosure
      information pursuant to this Section.

     

    So
      long
      as the Depositor is subject to the filing requirements of the Exchange Act
      with
      respect to the Trust Fund, the Trustee shall notify the Securities Administrator
      and the Depositor of any bankruptcy or receivership with respect to the Trustee
      or of any proceedings of the type described under Item 1117 of Regulation AB
      that have occurred as of the related Due Period, together with a description
      thereof, no later than the date on which such information is required of other
      parties hereto as set forth under this Section 3.18. In addition, the Trustee
      shall notify the Securities Administrator and the Depositor of any affiliations
      or relationships that develop after the Closing Date between the Trustee and
      the
      Depositor, the Seller, the Securities Administrator, the Master Servicer or
      the
      Custodian of the type described under Item 1119 of Regulation AB, together
      with
      a description thereof, no later than March 15 of each year that the trust is
      subject to the Exchange Act reporting requirements, commencing in 2008. Should
      the identification of any of the Depositor, the Seller, the Securities
      Administrator, the Master Servicer or the Custodian change, the Depositor shall
      promptly notify the Trustee.

     

    (v) (A)
      On or
      prior to January 30th of the first year in which the Securities Administrator
      is
      able to do so under applicable law, 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. 

     

    (B) 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 shall
      promptly notify the Depositor and the Master Servicer. In the case of Form
      10-D
      and 10-K, the Depositor, the Master Servicer and the Securities Administrator
      shall cooperate to prepare and file a Form 12b-25 and a 10-DA and 10-KA 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
      relates to any Additional Disclosure, the Securities Administrator shall notify
      the Depositor and the parties affected thereby and such parties will cooperate
      to prepare any necessary Form 8-K, 10-DA or 10-KA. Any Form 15, Form 12b-25
      or
      any amendment to Form 8-K, 10-D or 10-K shall be signed by an appropriate
      officer of the Master Servicer. The parties hereto acknowledge that the
      performance by the Master Servicer and the Securities Administrator of their
      respective duties under this Section 3.18(a)(v) 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 the Master Servicer and the Depositor
      timely performing their 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
      Form 8-K, 10-D or 10-K, where such failure results from a party’s failure to
      deliver, on a timely basis, any information from such party needed to prepare,
      arrange for execution or file such Form 15, Form 12b-25 or any amendments to
      Form 8-K, 10-D or 10-K.

     

    The
      Depositor agrees to promptly furnish to the Securities Administrator, from
      time
      to time upon request, such further information, reports and financial statements
      within its control related to this Agreement, the Mortgage Loans as the
      Securities Administrator reasonably deems appropriate to prepare and file all
      necessary reports with the Commission. The Securities Administrator shall have
      no responsibility to file any items other than those specified in this Section
      3.18; provided, however, the Securities Administrator shall cooperate with
      the
      Depositor in connection with any additional filings with respect to the Trust
      Fund as the Depositor deems necessary under the Exchange Act. Fees and expenses
      incurred by the Securities Administrator in connection with this Section 3.18
      shall not be reimbursable from the Trust Fund.

     

    (b) The
      Securities Administrator shall indemnify and hold harmless, the Company, the
      Depositor and the Master Servicer and each of its officers, directors and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon a breach of the Securities
      Administrator’s obligations under Sections 3.16, 3.17 and 3.18 or the Securities
      Administrator’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Securities Administrator shall indemnify and hold
      harmless the Depositor and the Master Servicer and each of their respective
      officers, directors and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments and other costs and expenses arising out of or based upon
      (i)
      any untrue statement or alleged untrue statement of any material fact contained
      in any Back-Up Certification, any Annual Statement of Compliance, any Assessment
      of Compliance or any Additional Disclosure provided by the Securities
      Administrator on its behalf or on behalf of any subservicer or subcontractor
      engaged by the Securities Administrator pursuant to Section 3.16, 3.17 or 3.18
      (the “Securities Administrator Information”), or (ii) any omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein, in light of the circumstances in
      which
      they were made, not misleading; provided, by way of clarification, that this
      paragraph shall be construed solely by reference to the Securities Administrator
      Information and not to any other information communicated in connection with
      the
      Certificates, without regard to whether the Securities Administrator Information
      or any portion thereof is presented together with or separately from such other
      information.

     

    The
      Depositor shall indemnify and hold harmless the Securities Administrator and
      the
      Master Servicer and each of its officers, directors and affiliates from and
      against any losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon a breach of the obligations of the Depositor under
      Sections 3.16, 3.17 and 3.18 or the Depositor’s negligence, bad faith or willful
      misconduct in connection therewith. In addition, the Depositor shall indemnify
      and hold harmless the Master Servicer, the Securities Administrator and each
      of
      their respective officers, directors and affiliates from and against any losses,
      damages, penalties, fines, forfeitures, reasonable and necessary legal fees
      and
      related costs, judgments and other costs and expenses arising out of or based
      upon (i) any untrue statement or alleged untrue statement of any material fact
      contained in any Additional Disclosure provided by the Depositor that is
      required to be filed pursuant to this Section 3.18 (the “Depositor
      Information”), or (ii) any omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances in which they were made, not misleading;
      provided, by way of clarification, that this paragraph shall be construed solely
      by reference to the Depositor Information that is required to be filed and
      not
      to any other information communicated in connection with the Certificates,
      without regard to whether the Depositor Information or any portion thereof
      is
      presented together with or separately from such other information.

     

    The
      Master Servicer shall indemnify and hold harmless the Company, the Securities
      Administrator and the Depositor and each of its respective officers, directors
      and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon a breach of the
      obligations of the Master Servicer under Sections 3.16, 3.17 and 3.18 or the
      Master Servicer’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Master Servicer shall indemnify and hold harmless
      the Depositor and each of its officers, directors and affiliates from and
      against any losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in any Annual Statement of Compliance,
      any Assessment of Compliance or any Additional Disclosure provided by the Master
      Servicer on its behalf or on behalf of any subservicer or subcontractor engaged
      by the Master Servicer pursuant to Section 3.16, 3.17 or 3.18 (the “Master
      Servicer Information”), or (ii) any omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein, in light of the circumstances in which they were made,
      not
      misleading; provided, by way of clarification, that this paragraph shall be
      construed solely by reference to the Master Servicer Information and not to
      any
      other information communicated in connection with the Certificates, without
      regard to whether the Master Servicer Information or any portion thereof is
      presented together with or separately from such other information.

     

    The
      Company shall indemnify and hold harmless the Depositor, the Securities
      Administrator and the Master Servicer and each of its officers, directors and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon a breach of the obligations of the
      Company under Sections 3.16, 3.17 and 3.18 or the Company’s negligence, bad
      faith or willful misconduct in connection therewith including any failure by
      the
      Company to identify any subcontractor “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB. In addition, the Company
      shall
      indemnify and hold harmless the Depositor and the Master Servicer and each
      of
      their respective officers, directors and affiliates and the Master Servicer
      from
      and against any losses, damages, penalties, fines, forfeitures, reasonable
      and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in any Back-Up Certification, any
      Annual Statement of Compliance, any Assessment of Compliance or any Additional
      Disclosure provided by the Company on its behalf or on behalf of any subservicer
      or subcontractor pursuant to Section 3.16, 3.17 or 3.18 (the “Company
      Information”), (ii) any breach by the Company of a representation, warranty or
      covenant set forth in Section 2.03(a)(vii) and Section 2.03(b)(i-iii) and (iii)
      any omission or alleged omission to state therein a material fact required
      to be
      stated therein or necessary to make the statements therein, in light of the
      circumstances in which they were made, not misleading; provided, by way of
      clarification, that this paragraph shall be construed solely by reference to
      the
      Company Information and not to any other information communicated in connection
      with the Certificates, without regard to whether the Company Information or
      any
      portion thereof is presented together with or separately from such other
      information.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Company, the Depositor, the Securities Administrator or the Master
      Servicer, as applicable, then the defaulting party, in connection with any
      conduct for which it is providing indemnification under this Section 3.18(b),
      agrees that it shall contribute to the amount paid or payable by the other
      parties as a result of the losses, claims, damages or liabilities of the other
      party in such proportion as is appropriate to reflect the relative fault and
      the
      relative benefit of the respective parties. 

     

    The
      indemnification provisions set forth in this Section 3.18(b) shall survive
      the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    (c) Failure
      of the Company to comply with this Section 3.18 (including with respect to
      the
      timeframes required herein) shall be deemed a Company Default, and the Master
      Servicer shall, in addition to whatever rights the Master Servicer may have
      under this Agreement and at law or equity or to damages, including injunctive
      relief and specific performance, upon notice immediately terminate all of the
      rights and obligations of the Company under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. Failure of the Master Servicer to comply with this Section 3.18 (including
      with respect to the timeframes required herein) shall, constitute an Event
      of
      Default, and at the written direction of the Depositor the Trustee shall, in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same (but
      subject to the Master Servicer rights to payment of any Master Servicing
      Compensation and reimbursement of all amounts for which it is entitled to be
      reimbursed prior to the date of termination). Failure of the Securities
      Administrator to comply with this Section 3.18 (including with respect to the
      timeframes required in this Section) which failure results in a failure to
      timely file the related Form 10-K, shall, constitute a default and at the
      written direction of the Depositor the Trustee shall, in addition to whatever
      rights the Trustee may have under this Agreement and at law or equity or to
      damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Securities
      Administrator under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Securities Administrator for the
      same
      (but subject to the Securities Administrator’s right to reimbursement of all
      amounts for which it is entitled to be reimbursed prior to the date of
      termination). This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary. In connection with the
      termination of the Master Servicer or the Securities Administrator pursuant
      to
      this Section 3.18(d), the Trustee shall be entitled to reimbursement of all
      costs and expenses associated with such termination to the extent set forth
      in
      Section 10.05. Notwithstanding anything to the contrary in this Agreement,
      no
      Event of Default by the Master Servicer or default by the Securities
      Administrator shall have occurred with respect to any failure to properly
      prepare, execute and/or timely file any report on Form 8-K, Form 10-D or Form
      10-K, any Form 15 or Form 12b-25 or any amendments to Form 8-K, 10-D or 10-K,
      where such failure results from any party’s inability or failure to deliver, on
      a timely basis, any information from such party needed to prepare, arrange
      for
      execution or file any such report, Form or amendment, and does not result from
      its own negligence, bad faith or willful misconduct.

     

    In
      the
      case of any failure of performance described above, the Company shall promptly
      reimburse the Depositor, the Master Servicer and the Securities Administrator
      for all costs reasonably incurred by each such party in order to obtain the
      information, report, certification, accountants’ letter or other material not
      delivered pursuant to this Section 3.18 as required by the Company, any
      subservicer or any subcontractor.

     

    (d) Notwithstanding
      the provisions of Section 11.01, this Section 3.18 may be amended without the
      consent of the Certificateholders.

     

    (e)  Any
      report, notice or notification to be delivered by the Company, the Master
      Servicer or the Securities Administrator to the Depositor pursuant to this
      Section 3.18, may be delivered via email to RegABNotifications@bear.com or,
      in
      the case of a notification, telephonically by calling Reg AB Compliance Manager
      at 212-272-7525.

     

    Section
      3.19  Intention
      of the Parties and Interpretation. 

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.16, 3.17
      and
      3.18 of this Agreement is to facilitate compliance by the Seller, the Depositor
      and the Master Servicer with the provisions of Regulation AB. 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 reasonable requests made by the Seller, the
      Depositor, the Master Servicer or the Securities Administrator for delivery
      of
      additional or different information as the Seller, the Depositor, the Master
      Servicer or the Securities Administrator may determine in good faith is
      necessary to comply with the provisions of Regulation AB, and (d) no amendment
      of this Agreement shall be required to effect any such changes in the
      obligations of the parties to this transaction as are necessary to accommodate
      evolving interpretations of the provisions of Regulation AB.

     

    

     

    ARTICLE
      IV

    MASTER
      SERVICING OF MORTGAGE LOANS BY MASTER SERVICER

     

    Section
      4.01  Master
      Servicer.

     

    The
      Master Servicer shall, beginning on the Closing Date, supervise, monitor and
      oversee the obligation of the Company and the Servicers to service and
      administer their respective Mortgage Loans in accordance with the terms of
      this
      Agreement and the related Servicing Agreement, respectively 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. In performing its
      obligations hereunder, the Master Servicer shall act in a manner consistent
      with
      Accepted Master Servicing Practices. Furthermore, the Master Servicer shall
      oversee and consult with the Company and the Servicers as necessary from
      time-to-time to carry out the Master Servicer’s obligations hereunder, shall
      receive and review certain reports, information and other data provided to
      the
      Master Servicer by the Company and the Servicers and shall enforce the
      obligations, conditions and covenants of the Company and Servicers to the extent
      set forth in this Agreement and the related Servicing Agreement, respectively.
      The Master Servicer shall monitor the Company and the Servicers’ servicing
      activities with respect to each related Mortgage Loan, reconcile the results
      of
      such monitoring with such information described in the previous sentence and
      received by the Master Servicer on a monthly basis and coordinate corrective
      adjustments to the Company’s, the Servicers’ and Master Servicer’s records, and
      based on such reconciled and corrected information, the Master Servicer shall
      provide such information to the Securities Administrator as shall be necessary
      in order for it to prepare the statements specified in Section 6.06 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 Company and the Servicers pursuant to this Agreement and
      the
      applicable Servicing Agreement, respectively. The Master Servicer shall be
      entitled to conclusively rely on the Mortgage Loan data provided by the Company
      and the Servicers and shall have no liability for any errors in such Mortgage
      Loan data.

     

    In
      addition to the foregoing, in connection with a modification of any Mortgage
      Loan by a Servicer, if the Master Servicer is unable to enforce the obligations
      of the Servicer with respect to such modification, the Master Servicer shall
      notify the Depositor of such Servicer’s failure to comply with the terms of the
      Servicing Agreement or this Agreement. If the Servicing Agreement or this
      Agreement (in the case of the Company, as Servicer) 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 Servicing Agreement or this
      Agreement (in the case of the Company, as Servicer) and that any conditions
      to
      such modification set forth in the Servicing Agreement or this Agreement have
      been satisfied. Furthermore, if the Servicing Agreement or this Agreement (in
      the case of the Company, as Servicer) 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 Servicing Agreement or this
      Agreement (in the case of the Company, as Servicer), 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.

     

    The
      Master Servicer, the Trustee or
      the
      related Custodian on its behalf and
      the
      Securities Administrator shall provide access to the records and documentation
      in possession of the Master Servicer, the Trustee or the related Custodian
      on
      its behalf or the Securities Administrator regarding the related Mortgage Loans
      and REO Property 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 Master
      Servicer, the Trustee, the Custodians or the Securities Administrator; provided,
      however, that, unless otherwise required by law, neither the Master Servicer,
      the Trustee, the Custodians nor the Securities Administrator shall 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 Master Servicer,
      the Trustee, the Custodians and the Securities Administrator 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 Master Servicer’s, the Trustee’s, the Custodians’ or the Securities
      Administrator’s actual costs.

     

    The
      Trustee shall execute and deliver to the Company, each Servicer or the Master
      Servicer, as applicable, 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 security instrument;
      (iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any
      other rights or remedies provided by the Mortgage Note or security instrument
      or
      otherwise available at law or equity.

     

    Section
      4.02  Monitoring
      of Company and Servicers. 

     

    (a) In
      the
      review of the Company’s and the Servicers’ activities, the Master Servicer may
      rely upon the Annual Statement of Compliance of the Company and the Servicers
      with regard to such Person’s compliance with the terms of this Agreement or the
      applicable Servicing Agreement; provided that no such reliance will relieve
      the
      Master Servicer of its obligations pursuant to this Agreement. In the event
      that
      the Master Servicer, in its judgment, determines that the Company or the related
      Servicer should be terminated in accordance with this Agreement or the
      applicable Servicing Agreement, or that a notice should be sent pursuant to
      this
      Agreement or the applicable 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 Trustee and the Certificateholders,
      shall enforce the obligations of the Company under this Agreement and of the
      Servicers under the related Servicing Agreement, and shall, in the event that
      the Company or a Servicer fails to perform its obligations in accordance with
      this Agreement or the applicable Servicing Agreement, subject to the preceding
      paragraph, terminate the rights and obligations of such Person thereunder and
      act as servicer of the related Mortgage Loans or to instruct the Trustee to
      enter into a new servicing agreement with a successor servicer selected by
      the
      Master Servicer; provided, however, it is understood and acknowledged by the
      parties hereto that there shall be a period of transition (not to exceed 90
      days) before the actual servicing functions can be fully transferred to such
      successor servicer; provided further, if a Servicer or the Company has failed
      to
      advance or failed to make a payment so that the Master Servicer has had to
      advance its own funds, then the Master Servicer may terminate such Servicer
      or
      the Company. Such enforcement, including, without limitation, the legal
      prosecution of claims, termination of the applicable Servicing Agreement 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, subject to its right of reimbursement pursuant to the provisions of
      this Agreement or the applicable Servicing Agreement, 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 the Company or a Servicer, appointment of a successor servicer
      or
      the transfer and assumption of servicing by the Master Servicer with respect
      to
      this Agreement or the applicable 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
      Company or a Servicer as a result of an alleged or actual breach of contract
      or
      an event of default by such Person 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 this Agreement or
      the
      applicable Servicing Agreement) are not fully and timely reimbursed by the
      Company or the terminated Servicer, the Master Servicer shall be entitled to
      reimbursement of such costs and expenses from the Distribution
      Account.

     

    (d) The
      Master Servicer shall require the Company and each Servicer to comply with
      the
      remittance requirements and other obligations set forth in this Agreement or
      the
      applicable Servicing Agreement, as applicable.

     

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

     

    Section
      4.03  Fidelity
      Bond.

     

    The
      Master Servicer, at its expense, shall (i) 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 or (ii) self insure if Wells
      Fargo Bank maintains with any Rating Agency the equivalent of a long term
      unsecured debt rating of “A”. The errors and omissions insurance policy and the
      fidelity bond referred to in (i) above shall be in such form and amount
      generally acceptable for entities serving as master servicers.

     

    Section
      4.04  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 XI 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 Trustee and the
      Securities Administrator, 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 and Liquidation Proceeds, and (iv) to effectuate 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 applicable Servicing Agreement, as applicable; provided, however, that
      the Master Servicer shall not (and, consistent with its responsibilities under
      Section 4.02, shall not permit the Company or a 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 cause REMIC I, REMIC II, REMIC III, REMIC
      IV or
      REMIC V to fail to qualify as a REMIC or result in the imposition of a tax
      upon
      the Trust Fund (including but not limited to the tax on prohibited transactions
      as defined in Section 860F(a)(2) of the Code and the tax on contributions to
      a
      REMIC set forth in Section 860G(d) of the Code) 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, or failure to take action, will
      not
      cause REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify
      as a
      REMIC or result in the imposition of a tax upon REMIC I, REMIC II, REMIC III,
      REMIC IV or REMIC V, as the case may be. 

     

    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,
      the
      Company or the Servicers). 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 Trustee or that the
      Trustee 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 in the appointment of a co-trustee pursuant to Section 10.11
      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.

     

    Section
      4.05  Due-on-Sale
      Clauses; Assumption Agreements.

     

    To
      the
      extent provided in this Agreement or the applicable Servicing Agreement, to
      the
      extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
      Servicer shall enforce
      the obligation of
      the
      Company and each Servicer to enforce such clauses in accordance with this
      Agreement or 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 this Agreement or the applicable Servicing Agreement, and,
      as a
      consequence, a Mortgage Loan is assumed, the original Mortgagor may be released
      from liability in accordance with this Agreement or the applicable Servicing
      Agreement.

     

    Section
      4.06  Documents,
      Records and Funds in Possession of Master Servicer, Company and Servicer To
      Be
      Held for Trustee.

     

    (a) The
      Master Servicer shall transmit and the Company or a Servicer (to the extent
      required by this Agreement or the related Servicing Agreement) shall transmit
      to
      the Trustee or Custodian such documents and instruments coming into the
      possession of such Person from time to time as are required by the terms hereof,
      or in the case of each Servicer, the related Servicing Agreement, to be
      delivered to the Trustee or Custodian. Any funds received by the Master
      Servicer, the Company or by a Servicer in respect of any Mortgage Loan or which
      otherwise are collected by the Master Servicer, the Company or by a Servicer
      as
      Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan
      shall
      be held for the benefit of the Trustee and the Certificateholders subject to
      the
      Master Servicer’s right to retain or withdraw from the Distribution Account, the
      Master Servicing Compensation and other amounts provided in this Agreement,
      and
      to the right of the Company and a Servicer to retain its Servicing Fee and
      other
      amounts as provided in this Agreement or the applicable Servicing Agreement.
      The
      Master Servicer shall, and (to the extent provided in this Agreement or the
      applicable Servicing Agreement) shall enforce the obligation of the Company
      and
      each Servicer to, provide access to information and documentation regarding
      the
      Mortgage Loans to the Trustee, and their respective 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 or Insurance
      Proceeds, shall be held by the Master Servicer for and on behalf of the Trustee
      and the Certificateholders and shall be and remain the sole and exclusive
      property of the Trustee; provided, however, that the Master Servicer, the
      Company and the 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, the Company or the Servicers under this Agreement or the related
      Servicing Agreement.

     

    Section
      4.07  Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall (to the extent provided in this Agreement and the related
      Servicing Agreement) enforce the obligation of the Company or each Servicer
      to,
      prepare and present on behalf of the Trustee 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 the Company or the Servicers
      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 that are to be applied upon receipt to the repair or
      restoration of the related Mortgaged Property, which repair or restoration
      the
      owner of such Mortgaged Property or EMC, as applicable, has agreed to make
      as a
      condition precedent to the presentation of its claims on the related EMC
      Mortgage Loan under the applicable Insurance Policy, need not be so deposited
      (or remitted).

     

    Section
      4.08  Realization
      Upon Defaulted Mortgage Loans.

     

    The
      Master Servicer shall enforce any obligation of the Company and the Servicers
      (to the extent set forth under this Agreement and the related Servicing
      Agreement, as applicable) 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 this Agreement or the applicable Servicing Agreement, as
      applicable.

     

    Section
      4.09  Compensation
      of the Master Servicer.

     

    The
      Master Servicer shall be entitled to the Master Servicing Fee on each
      Distribution Date as compensation for the performance of its obligations
      hereunder. The Master Servicer will also be entitled to all income realized
      from
      any investment of funds in the Distribution Account for the performance of
      its
      activities hereunder. 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.

     

    Section
      4.10  REO
      Property.

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related Mortgage Loan, the deed or certificate of sale shall be issued to the
      Trustee, or to its nominee, on behalf of the related Certificateholders. The
      Master Servicer shall, to the extent provided in this Agreement and the related
      Servicing Agreement, as applicable, cause the Company and each Servicer to
      sell
      any REO Property as expeditiously as possible and in accordance with the
      provisions of this Agreement and the applicable Servicing Agreement, as
      applicable. The Master Servicer shall enforce any obligations of the Company
      or
      the related Servicer to protect and conserve, such REO Property in the manner
      and to the extent required by this Agreement or 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 this Agreement and the
      applicable Servicing Agreement, as applicable, enforce the obligation of the
      Company and each Servicer, as applicable, to deposit all funds collected and
      received in connection with the operation of any REO Property in the related
      Protected Account.

     

    (c)  The
      Master Servicer and the Company or the related 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
      Monthly 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 this Agreement or 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 Company or the related Servicer as
      provided above shall be deposited in the Protected Account on or prior to the
      Determination Date in the month following receipt thereof and be remitted by
      wire transfer in immediately available funds to the Securities Administrator
      for
      deposit into the related Distribution Account on the next succeeding Remittance
      Date.

     

    Section
      4.11  UCC. 

     

    EMC
      shall
      file any financing statements, continuation statements or amendments thereto
      required by any change in the Uniform Commercial Code.

     

    Section
      4.12   Reserve
      Fund; Payments to and from Swap Administrator; Supplemental Interest
      Trust. 

     

    (a)  As
      of the
      Closing Date, the Supplemental Interest Trust shall be established and
      maintained in the name of the Supplemental Interest Trust Trustee, as a separate
      trust, the corpus of which shall be held by the Supplemental Interest Trust
      Trustee, for the benefit of the Holders of the Class A, Class M and Class B
      Certificates and the Swap Provider. The Supplemental Interest Trust shall hold
      the Swap Agreement, the Swap Administration Agreement, the Swap Account and
      REMIC V Regular Interest IO. The
      Swap
      Account shall be an Eligible Account, and funds on deposit therein shall be
      held
      separate and apart from, and shall not be commingled with, any other moneys,
      including, without limitation, other moneys of the Securities Administrator
      held
      pursuant to this Agreement. Amounts in the Swap Account shall, at the written
      direction of the Majority Class C Certificateholder, be invested in Permitted
      Investments that mature no later than the Business Day prior to the next
      succeeding Distribution Date. All net income and gain from such investments
      shall be distributed to the Majority Class C Certificateholder, not as a
      distribution in respect of any interest in any REMIC, on such Distribution
      Date.
      In the absence of written instructions to the Securities Administrator, amounts
      on deposit in the Swap Account shall remain uninvested. All amounts earned
      on
      amounts on deposit in the Swap Account shall be taxable to the Majority Class
      C
      Certificateholder. Any losses on such investments shall be deposited in the
      Swap
      Account by the Majority Class C Certificateholder out of its own funds
      immediately as realized. In performing its duties hereunder and under the Swap
      Agreement and the rights in respect of the Swap Administration Agreement, the
      Supplemental Interest Trust Trustee shall be entitled to the same rights,
      protections and indemnities as provided to the Securities Administrator
      hereunder.

     

    (b)  On
      or
      before the Closing Date, the Securities Administrator shall establish a Reserve
      Fund on behalf of the Holders of the Certificates (other than the Class X
      Certificates). On the Closing Date, the Depositor shall cause an amount equal
      to
      the Reserve Fund Deposit to be deposited into the Reserve Fund. The Reserve
      Fund
      must be an Eligible Account. The Reserve Fund shall be titled “Reserve Fund,
      Wells Fargo Bank, National Association, as Securities Administrator on behalf
      of
      Citibank, N.A. as Trustee for the benefit of holders of SACO I Trust 2007-1,
      Mortgage-Backed Certificates, Series 2007-1, Certificates”. The Securities
      Administrator shall deposit in the Reserve Fund all payments received from
      the
      Swap Administrator that are payable to the Trust Fund pursuant to the Swap
      Administration Agreement. On each Distribution Date, the Securities
      Administrator shall remit such amounts received from the Swap Administrator
      to
      the Holders of the Class A, Class M and Class B Certificates in the manner
      provided in clause (d) below. In addition, on each Distribution Date as to
      which
      there is a Basis Risk Shortfall Carry Forward Amount payable to any Class of
      Class A, Class M or Class B Certificates, the Securities Administrator shall
      deposit the amounts distributable pursuant to clauses (C) and (D) of Section
      6.04(a)(4) into the Reserve Fund, and the Securities Administrator has been
      directed by the Class C Certificateholder to distribute any amounts then on
      deposit in the Reserve Fund to the Holders of the Class A, Class M or Class
      B
      Certificates in respect of the Basis Risk Shortfall Carry Forward Amounts for
      each such Class in the priorities set forth in clauses (C) and (D) of Section
      6.04(a)(4). Any amount paid to the Holders of Class A, Class M or Class B
      Certificates from amounts distributable pursuant to clauses (C) and (D) of
      Section 6.04(a)(4) pursuant to the preceding sentence in respect of Basis Risk
      Shortfall Carry Forward Amounts shall be treated as distributed to the Majority
      Class C Certificateholder in respect of the Class C Certificates and paid by
      the
      Majority Class C Certificateholder to the Holders of the Class A, Class M and
      Class B Certificates, as applicable. Any payments to the Holders of the Class
      A,
      Class M and Class B Certificates in respect of Basis Risk Shortfall Carry
      Forward Amounts, whether pursuant to the second preceding sentence or pursuant
      to clause (d) below, shall not be payments with respect to a Regular Interest
      in
      a REMIC within the meaning of Section 860G(a)(1) of the Code.

     

    (c)  Net
      Swap
      Payments and Swap Termination Payments (other than Swap Termination Payments
      resulting from a Swap Provider Trigger Event and to the extent not paid by
      the
      Swap Administrator on behalf of the Supplemental Interest Trust Trustee from
      any
      upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust Trustee)
      payable by the Swap Administrator, on behalf of the Supplemental Interest Trust
      Trustee, to the Swap Provider pursuant to the Swap Agreement shall be deducted
      from Interest Funds, and to the extent of any such remaining amounts due, from
      Principal Funds, prior to any distributions to the Certificateholders. On or
      before each Distribution Date, such amounts shall be remitted to the Swap
      Administrator, and deposited into the Swap Account, first to make any Net Swap
      Payment owed to the Swap Provider pursuant to the Swap Agreement for such
      Distribution Date and for prior Distribution Dates, if any, and second to make
      any Swap Termination Payment (not due to a Swap Provider Trigger Event and
      to
      the extent not paid by the Swap Administrator on behalf of the Supplemental
      Interest Trust Trustee from any upfront payment received pursuant to any
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee) owed to the Swap Provider pursuant to
      the
      Swap Agreement for such Distribution Date and for prior Distribution Dates,
      if
      any. For federal income tax purposes, such amounts paid to the Supplemental
      Interest Trust on each Distribution Date shall first be deemed paid to the
      Supplemental Interest Trust in respect of REMIC V Regular Interest IO to the
      extent of the amount distributable on such REMIC V Regular Interest IO on such
      Distribution Date, and any remaining amount shall be deemed paid to the
      Supplemental Interest Trust in respect of a Class IO Distribution Amount. Any
      Swap Termination Payment triggered by a Swap Provider Trigger Event owed to
      the
      Swap Provider pursuant to the Swap Agreement will be subordinated to
      distributions to the Holders of the Class A, Class M and Class B Certificates,
      and the Swap Administrator shall pay the amount set forth in Section 6.04(a)(4)
      to the Swap Provider. In addition, the Swap Administrator shall remit to the
      Swap Provider any Swap Optional Termination Payment paid as part of the Mortgage
      Loan Purchase Price and remitted to the Supplemental Interest Trust pursuant
      to
      Section 11.01.

     

    (d)  On
      or
      before each Distribution Date, Net Swap Payments payable by the Swap Provider
      pursuant to the Swap Agreement to the Swap Administrator, on behalf of the
      Supplemental Interest Trust Trustee, will be deposited by the Swap
      Administrator, acting on behalf of the Supplemental Interest Trust Trustee,
      into
      the Swap Account pursuant to the Swap Administration Agreement. The Swap
      Administrator shall, to the extent provided in the Swap Administration
      Agreement, remit amounts on deposit in the Swap Account to the Securities
      Administrator for deposit into the Reserve Fund. On each Distribution Date,
      to
      the extent required, the Securities Administrator shall withdraw such amounts
      from the Reserve Fund to distribute to the Certificates in the following order
      of priority:

     

    (i)  first,
      to the
      Class A Certificates, on a pro rata basis, to pay (a) Current Interest and
      any
      Interest Carry Forward Amount for each such Class to the extent due to the
      interest portion of a Realized Loss, in each case to the extent not fully paid
      pursuant to Section 6.04(a)(1) and (b) any Unpaid Realized Loss Amounts for
      such
      Class;

     

    (ii)  second,
      sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class
      M-6, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that order,
      to pay Current Interest to the extent not fully paid pursuant to Section
      6.04(a)(1) and any Interest Carry Forward Amount, in each case to the extent
      due
      to the interest portion of a Realized Loss;

     

    (iii)  third,
      to pay,
      first, to the Class A Certificates, any Basis Risk Shortfall Carry Forward
      Amount for each such Class for such Distribution Date, on a pro rata basis,
      based on the entitlement of each such Class, and second, sequentially, to the
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1,
      Class B-2, Class B-3 and Class B-4 Certificates, in that order, any Basis Risk
      Shortfall Carry Forward Amounts for each such Class for such Distribution Date;
      and

     

    (iv)  fourth,
      to pay
      as principal to the Class A, Class M and Class B Certificates as part of the
      Extra
      Principal Distribution Amount
      payable
      under Section 6.04(a)(2) until the Overcollateralization Target Amount has
      been
      reached, to the extent not paid from Excess Cashflow pursuant to Section
      6.04(a)(4) for such Distribution Date. For the avoidance of doubt, any amounts
      distributable pursuant to this clause (iv) shall be limited to rebuilding
      overcollateralization related to Loan to the extent overcollateralization has
      been reduced through Realized Losses related to Loan.

     

    (e)  The
      Reserve Fund is an “outside reserve fund” within the meaning of Treasury
      Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but
      not
      an asset of any REMIC. The Securities Administrator on behalf of the Trust
      shall
      be the nominal owner of the Reserve Fund. The Majority Class C Certificateholder
      shall be the beneficial owner of the Reserve Fund, subject to the power of
      the
      Securities Administrator on behalf of the Securities Administrator to transfer
      amounts under Section 6.04. Amounts in the Reserve Fund shall, at the written
      direction of the Majority Class C Certificateholder to the Securities
      Administrator, be invested in Permitted Investments that mature no later than
      the Business Day prior to the next succeeding Distribution Date. All net income
      and gain from such investments shall be distributed to the Majority Class C
      Certificateholders, not as a distribution in respect of any interest in any
      REMIC, on such Distribution Date. In the absence of written instructions to
      the
      Securities Administrator, amounts on deposit in the Reserve Fund shall remain
      uninvested. All amounts earned on amounts on deposit in the Reserve Fund shall
      be taxable to the Majority Class C Certificateholder. Any losses on such
      investments shall be deposited in the Reserve Fund by the Majority Class C
      Certificateholder out of its own funds immediately as realized. The
      Swap
      Account, which is created and maintained by the Swap Administrator pursuant
      to
      the Swap Administration Agreement, is an “outside reserve fund” within the
      meaning of Treasury Regulation Section 1.860G-2(h) and shall not be an asset
      of
      any REMIC created hereunder. The beneficial owner of the Swap Account is
      identified, and other matters relating to the Swap Account are addressed, in
      the
      Swap Administration Agreement.

     

    (f)  The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class C, the Class X and Class R Certificates) as having entered into a notional
      principal contract with respect to the Holders of the Class C Certificates.
      Pursuant to each such notional principal contract, all Holders of Certificates
      (other than the Class C, Class X and Class R Certificates) shall be treated
      as
      having agreed to pay, on each Distribution Date, to the Holder of the Class
      C
      Certificates an aggregate amount equal to the excess, if any, of (i) the amount
      payable on such Distribution Date on the REMIC III Regular Interest
      corresponding to such Class of Certificates over (ii) the amount payable on
      such
      Class of Certificates on such Distribution Date (such excess, a “Class IO
      Distribution Amount”). A Class IO Distribution Amount payable from interest
      collections shall be allocated pro
      rata
      among
      such Certificates based on the excess of, with respect to each such Certificate,
      (i) the amount of interest otherwise payable to the REMIC III Regular Interest
      relating to such Certificate over (ii) the amount of interest payable to such
      Certificate at a per annum rate equal to the related Net WAC Cap Rate, and
      a
      Class IO Distribution Amount payable from principal collections shall be
      allocated to the most subordinate Class of Regular Certificates with an
      outstanding principal balance to the extent of such balance. In addition,
      pursuant to such notional principal contract, the Holder of the Class C
      Certificates shall be treated as having agreed to pay Basis Risk Shortfall
      Carry
      Forward Amounts with respect to the Holders of the Certificates (other than
      the
      Class C, Class X and Class R Certificates) in accordance with the terms of
      this
      Agreement. Any payments to the Certificates from amounts deemed received in
      respect of this notional principal contract shall not be payments with respect
      to a Regular Interest in a REMIC within the meaning of Code Section 860G(a)(1).
      However, any payment from the Certificates (other than the Class C, Class X
      and
      Class R Certificates) of a Class IO Distribution Amount shall be treated for
      tax
      purposes as having been received by the Holders of such Certificates in respect
      of their interests in REMIC III and as having been paid by such Holders to
      the
      Swap Administrator pursuant to the notional principal contract. Thus, each
      Certificate (other than the Class R Certificates and Class X Certificates)
      shall
      be treated as representing not only ownership of a Regular Interest in REMIC
      III, but also ownership of an interest in, and obligations with respect to,
      a
      notional principal contract.

     

    (g)  Upon
      a
      Swap Early Termination other than in connection with the Optional Termination
      of
      the Trust, the Swap Administrator, pursuant to the Swap Administration
      Agreement, will use reasonable efforts to appoint a successor swap provider
      selected by the Depositor to enter into a new interest rate swap agreement
      on
      terms substantially similar to the Swap Agreement, with a successor swap
      provider meeting all applicable eligibility requirements. If the Swap
      Administrator receives a Swap Termination Payment from the Swap Provider in
      connection with such Swap Early Termination, the Swap Administrator will apply
      such Swap Termination Payment to any upfront payment required to appoint the
      successor swap provider. If the Swap Administrator is required to pay a Swap
      Termination Payment to the Swap Provider in connection with such Swap Early
      Termination, the Swap Administrator will apply any upfront payment received
      from
      the successor swap provider to pay such Swap Termination Payment. If the Swap
      Administrator is unable to appoint a successor swap provider within 30 days
      of
      the Swap Early Termination, then the Swap Administrator will deposit any Swap
      Termination Payment received from the original Swap Provider into a separate,
      non-interest bearing reserve account and will, on each subsequent Distribution
      Date, withdraw from the amount then remaining on deposit in such reserve account
      an amount equal to the Net Swap Payment, if any, that would have been paid
      to
      the Swap Administrator by the original Swap Provider calculated in accordance
      with the terms of the original Swap Agreement, and distribute such amount to
      the
      Holders of the Class A, Class M and Class B Certificates or for such other
      purpose specified in the Swap Administration Agreement in accordance with the
      terms thereof.

     

    (h)  In
      the
      event that the Swap Provider fails to perform any of its obligations under
      the
      Swap Agreement (including, without limitation, its obligation to make any
      payment or transfer collateral), or breaches any of its representations and
      warranties thereunder, or in the event that an Event of Default, Termination
      Event, or Additional Termination Event (each as defined in the Swap Agreement)
      occurs with respect to the Swap Agreement, the Supplemental Interest Trust
      Trustee shall immediately, but no later than the next Business Day following
      such failure, breach, or occurrence, notify the Depositor and send any notices
      and make any demands, on behalf of the Supplemental Interest Trust, in
      accordance with the Swap Agreement.

     

    (i)  In
      the
      event that the Swap Provider’s obligations are guaranteed by a third party under
      a guaranty relating to the Swap Agreement (such guaranty the “Guaranty” and such
      third party the “Guarantor”), then to the extent that the Swap Provider fails to
      make any payment by the close of business on the day it is required to make
      payment under the terms of the Swap Agreement, the Supplemental Interest Trust
      Trustee shall, as soon as practicable, but no later than two (2) Business Days
      after the Swap Provider’s failure to pay, demand that the Guarantor make any and
      all payments then required to be made by the Guarantor pursuant to such
      Guaranty. The Swap Provider or the Depositor shall promptly provide the
      Supplemental Interest Trust Trustee with a copy of such Guaranty; provided
      that,
      the Supplemental Interest Trust Trustee shall in no event be liable for any
      failure or delay in the performance by the Swap Provider or any Guarantor of
      its
      obligations hereunder or pursuant to the Swap Agreement and the Guaranty, nor
      for any special, indirect or consequential loss or damage of any kind whatsoever
      (including but not limited to lost profits) in connection
      therewith.

     

    (j)  The
      Supplemental Interest Trust Trustee shall cause any replacement swap provider
      to
      provide a copy of the replacement interest rate swap agreement to the
      Depositor.

     

    Section
      4.13  Credit
      Support Account. 

     

    The
      Supplemental Interest Trust Trustee is hereby directed by the Depositor to
      comply with the terms and provisions of the Credit Support Annex and to perform
      the obligations of the Custodian (as defined in the Credit Support Annex).
      

     

    Pursuant
      to and in accordance with the terms and provisions of the Credit Support Annex,
      the Swap Provider may be required to post additional collateral in connection
      with its obligations under the Swap Agreement. In connection with the foregoing,
      on or before the Closing Date, the Supplemental
      Interest Trust Trustee shall
      establish a Credit Support Account on behalf of the Holders of the Class A,
      Class M and Class B Certificates. The Credit Support Account shall be an
      Eligible Account and shall be entitled “Credit Support Account, Wells Fargo
      Bank, National Association, as Supplemental Interest Trust Trustee for the
      benefit of holders of SACO I Trust 2007-1, Mortgage-Backed Certificates, Series
      2007-1.” The Credit Support Account shall be controlled by the Supplemental
      Interest Trust Trustee. Any collateral (whether in the form of cash or
      securities) (the “Posted Collateral”) posted by the Swap Provider to the
      Supplemental Interest Trust Trustee in connection with the Credit Support Annex
      shall be deposited into the Credit Support Account for the benefit of the Class
      A, Class M and Class B Certificates. All collateral and earnings thereon on
      deposit in the Credit Support Account shall be maintained and applied in
      accordance with Credit Support Annex.

     

    If
      the
      Posted Collateral constitutes definitive securities (the “Posted Definitive
      Securities”), the Swap Provider shall deliver, pledge and assign to the
      Supplemental Interest Trust Trustee on behalf of the Holders of the Class A,
      Class M and Class B Certificates, and grant in favor of the Supplemental
      Interest Trust Trustee on behalf of the Holders of the Class A, Class M and
      Class B Certificates, a
      first
      priority security interest in
      all of
      the Swap Provider’s right, title and interest in and such Posted Definitive
      Securities, and all of the Swap Provider’s rights and privileges with respect
      thereto and all proceeds, income and profits thereof and all property received
      in exchange thereof or in substitution therefor. Simultaneously with the
      delivery of any securities which constitute all or a part of the Posted
      Definitive Securities, the Swap Provider shall deliver (i) all instruments
      and
      certificates (if any) representing the Posted Definitive Securities and (ii)
      bond powers or other appropriate assignment documents necessary to transfer
      the
      Posted Definitive Securities duly executed in blank by the Swap Provider. The
      Swap Provider shall promptly deliver to the Supplemental Interest Trust Trustee,
      all additional certificates or other instruments (if any) representing any
      Posted Definitive Securities acquired or received after the date of the transfer
      of the Posted Definitive Securities with a bond power duly executed by the
      Swap
      Provider. If at any time the Supplemental Interest Trust Trustee notifies the
      Swap Provider that the Supplemental Interest Trust Trustee requires additional
      powers endorsed in blank, the Swap Provider shall promptly execute in blank
      and
      deliver the requested power to the Supplemental Interest Trust Trustee. The
      Swap
      Provider hereby constitutes and irrevocably appoints the Supplemental Interest
      Trust Trustee on behalf of the Class
      A,
      Class M and Class B Certificates
      as the
      Swap Provider’s true and lawful attorney-in-fact, to affix to any certificates
      and documents representing the Posted Definitive Securities the bond powers
      delivered with respect thereto, and to transfer or cause the transfer of the
      Posted Definitive Securities, or any part thereof, in accordance with the terms
      of the Credit Support Annex. The
      power
      of attorney granted pursuant to this Agreement and all authority hereby
      conferred are granted and conferred solely to protect the interest in the Posted
      Definitive Securities and shall not impose any duty upon the Supplemental
      Interest Trust Trustee to exercise any power. This
      power of attorney shall be irrevocable until the Posted Definitive Securities
      are released to the Swap Provider under the Credit Support Annex.

     

    If
      the
      Posted Collateral consists of book-entry securities, the Swap Provider shall
      provide evidence that the records of DTC or such depository show the
      Supplemental Interest Trust Trustee on behalf of the Class A, Class M and Class
      B Certificates as the beneficial ownership of such Posted
      Collateral.

     

    To
      the
      extent the Supplemental Interest Trust Trustee is required to return any of
      the
      Posted Collateral to the Swap Provider under the terms of the Credit Support
      Annex, the Supplemental Interest Trust Trustee shall return such collateral
      in
      accordance with the terms of the Credit Support Annex.

     

    The
      Supplemental Interest Trust Trustee on behalf of the Trust shall be the nominal
      owner of the Credit Support Account. The Swap Provider shall be the beneficial
      owner of the Credit Support Account. Cash collateral posted by the Swap Provider
      in accordance with the Credit Support Annex shall, at the written direction
      of
      the Swap Provider to the Supplemental Interest Trust Trustee, be invested in
      Permitted Investments that mature no later than the Business Day prior to the
      next succeeding Distribution Date. All net income and gain from such investments
      and from interest earned on any securities remitted by the Swap Provider to
      the
      Supplemental Interest Trust Trustee in connection with the Credit Support Annex
      shall be distributed to the Swap Provider, on such Distribution Date. In the
      absence of written instructions to the Supplemental Interest Trust Trustee,
      amounts on deposit in the Credit Support Account shall remain uninvested. All
      amounts earned on amounts on deposit in the Credit Support Account shall be
      taxable to the Swap Provider. Any losses on such investments shall be deposited
      in the Credit Support Account by the Swap Provider out of its own funds
      immediately as realized.

     

    Section
      4.14  Tax
      Treatment of Class IO Distribution Amounts in the Event of Resecuritization
      of
      Class A, Class M or Class B Certificates. 

     

    In
      the
      event that any Class A, Class M or Class B Certificate is resecuritized in
      a
      REMIC (the “Resecuritization REMIC”), for federal income tax purposes, (i)
      payments on the REMIC III Regular Interest corresponding to such Class A, Class
      M or Class B Certificate shall, for the avoidance of doubt, be deemed to include
      the related Class IO Distribution Amount, and (ii) to the extent provided in
      the
      operative documents for the Resecuritization REMIC, (a) payments on the “regular
      interests” issued by the Resecuritization REMIC shall be deemed to include in
      the aggregate such Class IO Distribution Amount, and (b) such Class IO
      Distribution Amount shall be deemed paid to the Holder of the Class C
      Certificates pursuant to a notional principal contract entered into by the
      holders of one or more “regular interests” issued by the Resecuritization REMIC
      (“Resecuritization Holders”) and the Holder of the Class C Certificates. In such
      event, Class IO Distribution Amounts deemed paid by Resecuritization Holders
      under clause (b) of the immediately preceding sentence shall be paid on behalf
      of such holders pursuant to Section 4.12(c) hereof.

     

    Section
      4.15  Standard
      Hazard Insurance and Flood Insurance Policies. 

     

    (a)  For
      each
      Mortgage Loan, the Master Servicer shall enforce any obligation of the Company
      and the related Servicer under this Agreement or the related Servicing Agreement
      to maintain or cause to be maintained standard fire and casualty insurance
      and,
      where applicable, flood insurance, all in accordance with the provisions of
      this
      Agreement or the related Servicing Agreement. It is understood and agreed that
      such insurance shall be with insurers meeting the eligibility requirements
      set
      forth in this Agreement and the related 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 Sections 5.01 and 5.04 any amounts collected by the Company, the Servicers
      or
      the Master Servicer, or by the Company or the Servicers, 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 this Agreement or the Servicing Agreements) shall be deposited
      by the Company in its Protected Account or by the related Servicer or the Master
      Servicer into the Distribution Account, subject to withdrawal pursuant to
      Sections 5.02, 5.04 and 5.05, as applicable. Any cost incurred by the Master
      Servicer, the Company or the related 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, the Company
      or the related Servicer pursuant to Sections 5.02, 5.04 and 5.05, as
      applicable.

     

    ARTICLE
      V

    ACCOUNTS

     

    Section
      5.01  Collection
      of Mortgage Loan Payments; Protected Account. 

     

    (a)  The
      Company shall make reasonable efforts in accordance with customary and usual
      standards of practice of prudent mortgage lenders in the respective states in
      which the Mortgaged Properties related to the EMC Mortgage Loans are located
      to
      collect all payments called for under the terms and provisions of the EMC
      Mortgage Loans to the extent such procedures shall be consistent with this
      Agreement and the terms and provisions of any related Required Insurance Policy.
      Consistent with the foregoing, the Company may in its discretion (i) waive
      any
      late payment charge and (ii) extend the Due Dates for payments due on a Mortgage
      Note related to an EMC Mortgage Loan for a period not greater than 125 days,
      provided that, EMC shall not extend the payment date of any Mortgage Loan beyond
      the date of its final maturity date. In the event of any such arrangement,
      the
      Company shall make Advances on the related EMC Mortgage Loan during the
      scheduled period in accordance with the amortization schedule of such EMC
      Mortgage Loan without modification thereof by reason of such arrangements,
      and
      shall be entitled to reimbursement therefor in accordance with Section 6.01.
      The
      Company shall not be required to institute or join in litigation with respect
      to
      collection of any payment (whether under a Mortgage, Mortgage Note or otherwise
      or against any public or governmental authority with respect to a taking or
      condemnation) if it reasonably believes that enforcing the provision of the
      Mortgage or other instrument pursuant to which such payment is required is
      prohibited by applicable law. In addition, if (x) an EMC Mortgage Loan is in
      default or default is reasonably foreseeable, the Company may also waive, modify
      or vary any term of any EMC Mortgage Loan or
      consent to the postponement of strict compliance with any such term or in any
      manner grant indulgence to any mortgagor, including without limitation, to
      (1)
      capitalize any amounts owing on the EMC Mortgage Loan by adding such amount
      to
      the outstanding principal balance of the EMC Mortgage Loan, (2) defer such
      amounts to a later date or the final payment date of such Mortgage Loan, (3)
      extend the maturity of any such EMC Mortgage Loan, but in no instance past
      the
      date on which the final payment is due on the latest maturing Mortgage Loan
      as
      of the Cut-off Date, and/or (4) reduce the related Mortgage Rate (subject to
      clause (y) below), provided that, in the Company’s determination, such waiver,
      modification, postponement or indulgence is not materially adverse to the
      interests of the Certificateholders (taking into account any estimated Realized
      Loss that might result absent such action), or (y)
      the
      Company delivers to the Trustee, Securities Administrator and Master Servicer
      a
      certification addressed to the Trustee and the Securities Administrator, based
      on the advice of counsel or certified public accountants, in either case, that
      have a national reputation with respect to taxation of REMICs, that a
      modification of such EMC Mortgage Loan will not result in the imposition of
      taxes on or disqualify from REMIC status any of REMIC I, REMIC II, REMIC III,
      REMIC IV or REMIC V, the Company may if it reasonably believes that undertaking
      such actions would be in the best interest of the Certificateholders, (A) amend
      the related Mortgage Note to reduce the Mortgage Rate applicable thereto,
      provided that such reduced Mortgage Rate shall in no event be lower than 5.00%
      with respect to any EMC Mortgage Loan and (B) amend any Mortgage Note related
      to
      an EMC Mortgage Loan to extend the maturity thereof; provided that, EMC shall
      not extend the payment date of any Mortgage Loan beyond its final maturity
      date.

     

    In
      accordance with the standards of the first paragraph of Section 3.01, the
      Company shall not waive (or permit a sub-servicer to waive) any Prepayment
      Charge related to an EMC Mortgage Loan unless: (i) the enforceability thereof
      shall have been limited by bankruptcy, insolvency, moratorium, receivership
      and
      other similar laws relating to creditors’ rights generally, (ii) the enforcement
      thereof is illegal, or any local, state or federal agency has threatened legal
      action if the prepayment penalty is enforced, (iii) the mortgage debt has been
      accelerated in connection with a foreclosure or other involuntary payment or
      (iv) such waiver is standard and customary in servicing similar Mortgage Loans
      and relates to a default or a reasonably foreseeable default and would, in
      the
      reasonable judgment of the Company, maximize recovery of total proceeds taking
      into account the value of such Prepayment Charge and the related EMC Mortgage
      Loan. If a Prepayment Charge is waived, but does not meet the standards
      described above, then the Company is required to pay the amount of such waived
      Prepayment Charge, for the benefit of the Class C Certificates, by remitting
      such amount to the Master Servicer by the Remittance Date.
      Payments
      of such waived charges shall not be payments in respect of any Regular
      Interest.

     

    (b)  The
      Company shall establish and maintain a Protected Account (which shall at all
      times be an Eligible Account) with a depository institution in the name of
      the
      Company for the benefit of the Trustee on behalf of the Certificateholders
      and
      designated “EMC Mortgage Corporation, as servicer on behalf of Citibank, N.A.,
      as Trustee, for the benefit of the certificateholders, in trust for registered
      Holders of SACO I Trust 2007-1, Mortgage-Backed Certificates, Series 2007-1”.
      The Company shall deposit or cause to be deposited into the Protected Account
      on
      a daily basis within two Business Days of receipt and identification, except
      as
      otherwise specifically provided herein, the following payments and collections
      remitted by subservicers or received by it in respect of the EMC Mortgage Loans
      subsequent to the Cut-off Date (other than in respect of principal and interest
      due on the EMC Mortgage Loans on or before the Cut-off Date) and the following
      amounts required to be deposited hereunder:

     

    (i)  all
      payments on account of principal, including Principal Prepayments, on the EMC
      Mortgage Loans;

     

    (ii)  all
      payments on account of interest on the EMC Mortgage Loans net of the related
      Servicing Fee permitted under Section 3.13, if any;

     

    (iii)  all
      Liquidation Proceeds, Subsequent Recoveries and Insurance Proceeds with respect
      to any EMC Mortgage Loans, other than proceeds to be applied to the restoration
      or repair of the Mortgaged Property or released to the Mortgagor in accordance
      with the Company’s normal servicing procedures;

     

    (iv)  any
      amount required to be deposited by the Company pursuant to Section 5.01(c)
      in
      connection with any losses on Permitted Investments;

     

    (v)  any
      amounts required to be deposited by the Company pursuant to Section
      3.07;

     

    (vi)  any
      Prepayment Charges collected on the EMC Mortgage Loans; and

     

    (vii)  any
      other
      amounts required to be deposited hereunder.

     

    The
      foregoing requirements for deposit by the Company
      into the Protected Account shall be exclusive, it being understood and agreed
      that, without limiting the generality of the foregoing, payments in the nature
      of late payment charges or assumption fees, if collected, need not be deposited
      by the Company. In the event that the Company shall deposit any amount not
      required to be deposited and not otherwise subject to withdrawal pursuant to
      Section 5.02, it may at any time withdraw or direct the institution maintaining
      the Protected Account, to withdraw such amount from the Protected Account,
      any
      provision herein to the contrary notwithstanding. Such withdrawal or direction
      may be accomplished by delivering written notice thereof to the institution
      maintaining the Protected Account, that describes the amounts deposited in
      error
      in the Protected Account. The Company shall maintain adequate records with
      respect to all withdrawals made pursuant to this Section. Reconciliations will
      be prepared for the Protected Account within 45 calendar days after the bank
      statement cut-off date. All funds deposited in the Protected Account shall
      be
      held in trust for the Certificateholders until withdrawn in accordance with
      Section 5.02.

     

    (c)  The
      institution that maintains the Protected Account shall invest the funds in
      the
      Protected Account, in the manner directed by the Company,
      in
      Permitted Investments which shall mature not later than the Business Day
      immediately preceding the Remittance Date and shall not be sold or disposed
      of
      prior to its maturity. All such Permitted Investments shall be made in the
      name
      of the Trustee, for the benefit of the Certificateholders. All income and gain
      net of any losses realized from any such investment shall be for the benefit
      of
      the Company
      as
      servicing compensation and shall be remitted to it monthly as provided herein.
      The amount of any losses incurred in the Protected Account in respect of any
      such investments shall be deposited by the Company
      into the
      Protected Account, out of the Company’s
      own
      funds.

     

    (d)  The
      Company
      shall
      give at least 30 days advance notice to the Trustee, the Securities
      Administrator, the Seller, the Master Servicer, each Rating Agency and the
      Depositor of any proposed change of location of the Protected Account prior
      to
      any change thereof.

     

    (e)  In
      the
      event that the Master Servicer and Securities Administrator are no longer
      affiliated, the Master Servicer shall establish and maintain an account separate
      from the Distribution Account into which any funds remitted by the Company
      and
      Servicers will be deposited. No later than noon New York time on the Business
      Day prior to each Distribution Date, the Master Servicer shall remit any such
      funds to the Paying Agent for deposit in the Distribution Account. The Master
      Servicer shall make the following permitted withdrawals and transfers from
      such
      account:

     

    (i) The
      Master Servicer will, from time to time on demand of the Company, a Servicer
      or
      the Securities Administrator, make or cause to be made such withdrawals or
      transfers from the account as the Master Servicer has designated for such
      transfer or withdrawal pursuant to this Agreement and the related Servicing
      Agreement. The Master Servicer may clear and terminate the account pursuant
      to
      Section 11.01 and remove amounts from time to time deposited in
      error.

     

    (ii) On
      an
      ongoing basis, the Master Servicer shall withdraw from the account (i) any
      expenses, costs and liabilities recoverable by the Trustee, the Master Servicer
      or the Securities Administrator or the Custodian pursuant to Sections 4.03,
      8.04
      and 10.05 and (ii) any amounts payable to the Master Servicer as set forth
      in
      Section 4.14; provided, however, that the Master Servicer shall be obligated
      to
      pay from its own funds any amounts which it is required to pay under Section
      8.03(a).

     

    (iii) In
      addition, on or before each Business Day prior to each Distribution Date, the
      Master Servicer shall deposit in the Distribution Account (or remit to the
      Trustee for deposit therein) any Monthly Advances required to be made by the
      Master Servicer with respect to the Mortgage Loans.

     

    (iv) No
      later
      than noon New York time on each Business Day prior to each Distribution Date,
      the Master Servicer will transfer all Available Funds on deposit in the account
      with respect to the related Distribution Date to the Paying Agent for deposit
      in
      the Distribution Account.

     

    Section
      5.02  Permitted
      Withdrawals From the Protected Account. 

     

    (a)  The
      Company
      may from
      time to time make withdrawals from the Protected Account for the following
      purposes:

     

    (i)  to
      pay
      itself (to the extent not previously paid to or withheld by the Company),
      as
      servicing compensation in accordance with Section 3.13, that portion of any
      payment of interest that equals the Servicing Fee for the period with respect
      to
      which such interest payment was made, and, as additional servicing compensation,
      those other amounts set forth in Section 3.13;

     

    (ii)  to
      reimburse the Company
      for
      Advances made by it with respect to the Mortgage Loans, provided, however,
      that
      the Company’s
      right
      of reimbursement pursuant to this subclause (ii) shall be limited to amounts
      received on particular EMC Mortgage Loan(s) (including, for this purpose,
      Liquidation Proceeds and Insurance Proceeds and Subsequent Recoveries) that
      represent late recoveries of payments of principal and/or interest on such
      particular EMC Mortgage Loan(s) in respect of which any such Advance was
      made;

     

    (iii)  to
      reimburse the Company
      for any
      previously made portion of a Servicing Advance or an Advance made by the
Company
      that, in
      the good faith judgment of the Company,
      will
      not be ultimately recoverable by it from the related Mortgagor, any related
      Liquidation Proceeds, Insurance Proceeds or otherwise (a “Nonrecoverable
      Advance”), to the extent not reimbursed pursuant to clause (ii) or clause
      (v);

     

    (iv)  to
      pay
      the Company
      any
      unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing
      Advances, provided, however, that the Company’s
      right
      to reimbursement for Servicing Advances pursuant to this subclause (v) with
      respect to any Mortgage Loan shall be limited to amounts received on particular
      Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds, Insurance
      Proceeds, Subsequent Recoveries and purchase and repurchase proceeds) that
      represent late recoveries of the payments for which such Servicing Advances
      were
      made;

     

    (v)  to
      pay to
      EMC (in its capacity as Seller), the Depositor or itself, as applicable, with
      respect to each EMC Mortgage Loan or property acquired in respect thereof that
      has been purchased pursuant to Section 2.02, 2.03 or 3.05 of this Agreement,
      all
      amounts received thereon and not taken into account in determining the related
      Stated Principal Balance of such repurchased EMC Mortgage Loan;

     

    (vi)  to
      pay
      any expenses recoverable by the Company
      pursuant
      to Section 8.04 of this Agreement;

     

    (vii)  to
      withdraw pursuant to Section 5.01 any amount deposited in the Protected Account
      and not required to be deposited therein; and

     

    (viii)  to
      clear
      and terminate the Protected Account upon termination of this Agreement pursuant
      to Section 11.01 hereof.

     

    In
      addition, no later than 1:00 p.m. New York City time on the Remittance Date,
      the
      Company shall withdraw from the Protected Account and remit to the Securities
      Administrator the
      amount required to be withdrawn therefrom pursuant to Section 5.05
      hereof.

     

    With
      respect to any remittance received by the Securities
      Administrator from
      EMC
      after the date on which such remittance was due, EMC shall pay to the
Securities
      Administrator interest
      on any such late payment at an annual rate equal to the Prime Rate, adjusted
      as
      of the date of each change, plus two percentage points, but in no event greater
      than the maximum amount permitted by applicable law. Such interest shall be
      remitted to the Master Servicer on the date such late payment is made and shall
      cover the period commencing with the day following the date on which such
      remittance was due and ending with the Business Day on which such remittance
      is
      made, both inclusive. The payment by EMC of any such interest shall not be
      deemed an extension of time for payment or a waiver of any Event of Default
      with
      respect to EMC. Such interest shall be remitted along with the distribution
      payable on the next succeeding Remittance Date. The payment by EMC of any such
      interest shall not be deemed an extension of time for payment or a waiver of
      any
      Event of Default with respect to EMC.

     

    The
      Company
      shall
      keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan
      basis, for the purpose of justifying any withdrawal from the Protected Account
      pursuant to subclauses (i), (ii), (iv), (v) and (vi) above. Prior to making
      any
      withdrawal from the Protected Account pursuant to subclause (iii), the Company
      shall deliver to the Master Servicer an Officer’s Certificate of a Servicing
      Officer indicating the amount of any previous Advance or Servicing Advance
      determined by the Company to be a Nonrecoverable Advance and identifying the
      related EMC Mortgage Loan(s), and their respective portions of such
      Nonrecoverable Advance.

     

    Section
      5.03  Reports
      to the Master Servicer.

     

    (a)
       On
      or before the tenth calendar day of each month, the Company shall furnish to
      the
      Master Servicer electronically in a format acceptable to the Master Servicer
      loan accounting reports in the investor’s assigned loan number order to document
      the payment activity on each EMC Mortgage Loan on an individual mortgage loan
      basis and containing the data required by the forms attached hereto as Exhibit
      S, Exhibit T and Exhibit U or in a format mutually agreed upon between the
      Company and the Master Servicer. 

     

    Section
      5.04  Collection
      of Taxes; Assessments and Similar Items; Escrow Accounts. 

     

    With
      respect to each EMC Mortgage Loan, to the extent required by the related
      Mortgage Note, the Company shall establish and maintain one or more accounts
      (each, an “Escrow Account”) and deposit and retain therein all collections from
      the Mortgagors (or Servicing Advances by the Company) for the payment of taxes,
      assessments, hazard insurance premiums or comparable items for the account
      of
      the Mortgagors. Nothing herein shall require the Company to compel a Mortgagor
      to establish an Escrow Account in violation of applicable law.

     

    Withdrawals
      of amounts so collected from the Escrow Accounts may be made only to effect
      timely payment of taxes, assessments, hazard insurance premiums, condominium
      or
      PUD association dues, or comparable items, to reimburse the Company out of
      related collections for any payments made with respect to each EMC Mortgage
      Loan
      pursuant to Section 3.01 (with respect to taxes and assessments and insurance
      premiums) and Section 3.07 (with respect to hazard insurance), to refund to
      any
      Mortgagors for any EMC Mortgage Loans any sums as may be determined to be
      overages, to pay interest, if required by law or the terms of the related
      Mortgage or Mortgage Note, to such Mortgagors on balances in the Escrow Account
      or to clear and terminate the Escrow Account at the termination of this
      Agreement in accordance with Section 11.01 thereof. The Escrow Account shall
      not
      be a part of the Trust Fund.

     

    Section
      5.05  Protected
      Accounts. 

     

    (a) The
      Master Servicer shall enforce the obligation of the Company and each Servicer
      to
      establish and maintain a Protected Account in accordance with this Agreement
      and
      the related 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 one Business Day (or as of such other time specified in the applicable
      Servicing Agreement) of receipt and identification all collections of principal
      and interest on any Mortgage Loan and with respect to any REO Property received
      by the Company or the related Servicer, including Principal Prepayments,
      Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries, and advances
      made from the Company’s or the related Servicer’s own funds (less servicing
      compensation as permitted by this Agreement or the applicable Servicing
      Agreement) and all other amounts to be deposited in the Protected Accounts.
      Each
      of the Company and the Servicers are hereby authorized to make withdrawals
      from
      and deposits to the related Protected Account for purposes required or permitted
      by this Agreement. To the extent provided in this Agreement or the applicable
      Servicing Agreement, the Protected Account shall be held in a Designated
      Depository Institution and segregated on the books of such institution in the
      name of the Company or the related Servicer, as applicable on behalf of the
      Trustee for the benefit of Certificateholders.

     

    (b) To
      the
      extent provided in this Agreement or the applicable Servicing Agreement, amounts
      on deposit in a Protected Account may be invested in Permitted Investments
      in
      the name of the Trustee for the benefit of Certificateholders and, except as
      provided in the preceding paragraph, not commingled with any other funds, such
      Permitted Investments to mature, or to be subject to redemption or withdrawal,
      no later than the date on which such funds are required to be withdrawn for
      deposit in the Distribution Account, and shall be held until required for such
      deposit. The income earned from Permitted Investments made pursuant to this
      Section 5.05 shall be paid to the Company or the Servicers under this Agreement
      or the related Servicing Agreement, and the risk of loss of moneys required
      to
      be distributed to the Certificateholders resulting from such investments shall
      be borne by and be the risk of the Company or the Servicers, as the case may
      be.
      The Company or the Servicer (to the extent provided in this Agreement or the
      applicable Servicing Agreement) shall deposit the amount of any such loss in
      the
      Protected Account within two Business Days of receipt of notification of such
      loss but not later than the second Business Day prior to the Distribution Date
      on which the moneys so invested are required to be distributed to the
      Certificateholders.

     

    (c) To
      the
      extent provided in this Agreement or the applicable Servicing Agreement and
      subject to this Article V, on or before 1:00 p.m. New York City time on each
      Remittance Date, the Company or the related Servicer shall withdraw or shall
      cause to be withdrawn from its Protected Account 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):

     

    (i) Scheduled
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Company or the related Servicer pursuant to this Agreement or the
      applicable Servicing Agreement which were due on or before the related Due
      Date,
      net of the amount thereof comprising the Servicing Fees;

     

    (ii) Full
      Principal Prepayments received by the related Servicer (as described in the
      applicable Servicing Agreement) and Full Principal Prepayments received by
      the
      Company with respect to such Mortgage Loans in the related Prepayment Period,
      with scheduled interest for the related Due Period less the Servicing Fee and
      the Master Servicing Fee, if any; 

     

    (iii) Liquidation
      Proceeds received by the Company or the related Servicer with respect to such
      Mortgage Loans in the prior calendar month, with scheduled interest for the
      related Due Deriod less the Servicing Fee and the Master Servicing Fee, if
      any
      net of the amount thereof comprising the Servicing Fees;

     

    (iv) Partial
      Principal Prepayments received by the Company or the related Servicer for such
      Mortgage Loans in the related Prepayment Period, together with any related
      payments of Compensating Interest;

     

    (v) Any
      amount to be used as an Advance; and

     

    (vi) The
      amount of any Prepayment Charges collected with respect to the Mortgage Loans
      and the amount of any Prepayment Charges paid by the Company or the related
      Servicer in connection with the waiver of a Prepayment Charge in a manner that
      is not permitted under this Agreement or the applicable Servicing
      Agreement.

     

    (d) Withdrawals
      may be made from a Protected Account by the Company as described in Section
      5.02
      hereof and by the Master Servicer or the related Servicer only to make
      remittances as provided in Section 5.05(c), 5.06 and 5.07; to reimburse the
      Master Servicer or the related 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 11.01. As provided in Sections 5.05(c)
      and
      5.06(b) certain amounts otherwise due to the Company or the related Servicer
      may
      be retained by the Company or the Related Servicer and need not be deposited
      in
      the Distribution Account.

     

    Section
      5.06  Distribution
      Account. 

     

    (a)  The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Certificateholders, the Distribution Account
      as
      a segregated trust account or accounts. The Distribution Account shall be an
      Eligible Account. The Master Servicer or Servicer, as the case may be, will
      remit to the Securities Administrator for deposit in the Distribution Account
      the following amounts:

     

    (i)  any
      Advance and any Compensating Interest Payments;

     

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

     

    (iii)  the
      Repurchase Price with respect to any Mortgage Loans purchased by the Seller
      pursuant to Section 2.02 or 2.03, the Repurchase Price with respect to any
      Mortgage Loans purchased by EMC pursuant to Section 3.05, and all proceeds
      of
      any Mortgage Loans or property acquired with respect thereto repurchased by
      the
      Seller or its designee pursuant to Section 11.01;

     

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

     

    (v)  any
      other
      amounts received by or on behalf of the Master Servicer or the Trustee 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
      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 late payment charges or assumption,
      tax service, statement account or payoff, substitution, satisfaction, release
      and other like fees and charges, 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
      Distribution Account shall constitute a trust account of the Trust Fund
      segregated on the books of the Securities Administrator and held by the
      Securities Administrator 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 Securities Administrator
      (whether made directly, or indirectly through a liquidator or receiver of the
      Securities Administrator. The amount at any time credited to the Distribution
      Account may be, as directed by the Master Servicer, held either uninvested
      in a
      trust or deposit account of the Securities Administrator with no liability
      for
      interest or other compensation thereof, except as otherwise agreed in writing
      with the Master Servicer, or invested in the name of the Trustee, in such
      Permitted Investments as may be selected by the Master Servicer on such
      direction which mature not later than the Business Day next preceding the
      succeeding Distribution Date, except if such Permitted Investment is an
      obligation of or is managed by the institution that maintains such fund or
      account, then such Permitted Investment shall mature not later than such
      Distribution Date. Permitted Investments in respect of the Distribution Account
      shall not be sold or disposed of prior to their maturity. All investment
      earnings on amounts on deposit in the Distribution Account or benefit from
      funds
      uninvested therein from time to time shall be for the account of the Master
      Servicer. The Master Servicer shall be permitted to receive distribution of
      any
      and all investment earnings from the Distribution Account on each Distribution
      Date. If there is any loss on a Permitted Investment or demand deposit, the
      Master Servicer shall deposit the amount of the loss in the Distribution
      Account. 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 Certificateholders shall be entitled to the priorities
      afforded to such a trust account (in addition to a claim against the estate
      of
      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.

     

    Section
      5.07  Permitted
      Withdrawals and Transfers from the Distribution Account. 

     

    (a)  The
      Securities Administrator will from time to time make or cause to be made such
      withdrawals or transfers from the Distribution Account as are designated for
      such transfer or withdrawal pursuant to this Agreement and the applicable
      Servicing Agreement (limited in the case of amounts due the Master Servicer
      to
      those not withdrawn from the Distribution Account in accordance with the terms
      of this Agreement; provided that the Securities Administrator shall not be
      responsible for such determination and may rely on the Master Servicer’s
      instructions under this Section 5.07):

     

    (i)  to
      reimburse the Master Servicer, the Company or the related Servicer for any
      unreimbursed Advance or Servicing Advance of its own funds pursuant to this
      Agreement or the applicable Servicing Agreement, such right of the Master
      Servicer, the Company or the related Servicer to reimbursement pursuant to
      this
      subclause (i) being limited to amounts received on a particular Mortgage Loan
      (including, for this purpose, the Repurchase 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
      or
      Servicing Advance was made;

     

    (ii)  to
      reimburse the Master Servicer, the Company or the related Servicer from
      Insurance Proceeds or Liquidation Proceeds relating to a particular Mortgage
      Loan for unreimbursed amounts expended by the Master Servicer, the Company
      or
      the related 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, the Company or the related 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, the Company or the related Servicer from Liquidation Proceeds from
      a
      particular Mortgage Loan for Liquidation Expenses incurred with respect to
      such
      Mortgage Loan; provided that the Master Servicer shall not be entitled to
      reimbursement for Liquidation Expenses with respect to a Mortgage Loan to the
      extent that (i) any amounts with respect to such Mortgage Loan were paid as
      Excess Liquidation Proceeds pursuant to clause (x) of this Subsection (a) to
      the
      Master Servicer; and (ii) such Liquidation Expenses were not included in the
      computation of such Excess Liquidation Proceeds;

     

    (iv)  to
      reimburse the Master Servicer, the Company or the related Servicer for any
      Advance or Servicing Advance, after a Realized Loss has been allocated with
      respect to the related Mortgage Loan if the Advance or Servicing Advance has
      not
      been reimbursed pursuant to clauses (i) through (iii);

     

    (v)  to
      pay
      the Master Servicer as set forth in Section 4.09;

     

    (vi)  to
      reimburse the Master Servicer for expenses, costs and liabilities incurred
      by
      and reimbursable to it pursuant to Sections 4.02, 8.04(c) and (d) and 12.02
      or
      otherwise reimbursable to it pursuant to this Agreement;

     

    (vii)  to
      pay to
      the Master Servicer, as additional master servicing compensation, any Excess
      Liquidation Proceeds to the extent not retained by the Company or the related
      Servicer;

     

    (viii)  to
      reimburse or pay the Company or the related Servicer any such amounts as are
      due
      thereto under this Agreement or the applicable Servicing Agreement and have
      not
      been retained by or paid to the Company or the related Servicer, to the extent
      provided herein and in the applicable Servicing Agreement;

     

    (ix)  to
      reimburse the Trustee, the Custodian or the Securities Administrator for
      expenses, costs and liabilities incurred by or reimbursable to it pursuant
      to
      this Agreement;

     

    (x)  to
      remove
      amounts deposited in error; 

     

    (xi)  to
      make
      distributions to the Swap Administrator for payment to the Swap Provider as
      provided in this Agreement; and

     

    (xii)  to
      clear
      and terminate the Distribution Account pursuant to Section 11.01.

     

    (b)  The
      Master Servicer shall keep and maintain separate accounting, on a Mortgage
      Loan
      by Mortgage Loan basis, for the purpose of accounting for any reimbursement
      from
      the Distribution Account pursuant to subclauses (i) through (iv), inclusive,
      and
      (vi) 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 5.06.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall distribute the related
      Interest Remittance Amount and Principal Distribution Amount to the extent
      of
      funds on deposit in the Distribution Account to the holders of the related
      Certificates in accordance with Section 6.04.

     

    ARTICLE
      VI

    DISTRIBUTIONS
      AND ADVANCES

     

    Section
      6.01  Advances. 

     

    (a) The
      Company shall make an Advance with respect to any EMC Mortgage Loan and deposit
      such Advance in the Distribution Account no later than 1:00 p.m. Eastern time
      on
      the Remittance Date in immediately available funds. The related Servicer shall
      make an Advance with respect to any Mortgage Loans serviced by it pursuant
      to
      the applicable Servicing Agreement. The Company or the related Servicer, as
      applicable, shall be obligated to make any such Advance only to the extent
      that
      such advance would not be a Nonrecoverable Advance. If the Company or the
      related Servicer shall have determined that it has made a Nonrecoverable Advance
      or that a proposed Advance or a lesser portion of such Advance would constitute
      a Nonrecoverable Advance, the Company or the related Servicer, as the case
      may
      be, shall present an Officer’s Certificate to the Depositor, the Master
      Servicer, each Rating Agency, and the Trustee (i) stating that the Company
      or
      the related Servicer, as applicable, elects not to make an Advance in a stated
      amount and (ii) detailing the reason it deems the advance to be a Nonrecoverable
      Advance. Subject to the Master Servicer’s recoverability determination, in the
      event that a Servicer fails to make a required Advance, the Master Servicer,
      as
      successor servicer, shall be required to remit the amount of such Advance to
      the
      Distribution Account.

     

    Notwithstanding
      any requirement in this section to the contrary, the Company or the related
      Servicer shall discontinue making advances with respect to any Mortgage Loan
      that becomes 60 days Delinquent without delivering an Officer’s Certificate. In
      addition, subject to Section 4.08 of the Agreement, the Company or the related
      Servicer must charge off a Mortgage Loan at the time such Mortgage Loan, as
      applicable, becomes 180 days Delinquent unless the Company or the related
      Servicer reasonably believes that it may be able to obtain a net recovery
      through foreclosure proceedings or other conversion of the related Mortgage
      Loan. Once a Mortgage Loan is charged off, the Company or the related Servicer
      shall not be entitled to any additional Servicing Fee for such Mortgage Loan,
      except to the extent of any unpaid Servicing Fees and expenses which shall
      be
      reimbursable from any recoveries on such Mortgage Loan, and the Mortgage Loan
      shall be treated as a Liquidated Loan giving rise to a Realized Loss. If the
      Company or the related Servicer determines that a significant net recovery
      is
      possible through foreclosure proceedings or other disposition of the related
      Mortgage Loan that becomes 60 days Delinquent, the Company or the related
      Servicer may continue making advances on such Mortgage Loan. To
      the extent the Company or the related Servicer, as applicable, determines that
      a
      proposed Advance would not be a Nonrecoverable Advance and in its sole
      discretion reinstates and subsequently makes additional Advances for such
      Mortgage Loan, such Advances shall be reimbursable from any Subsequent
      Recoveries or as otherwise provided for in this Agreement.

     

    Unless
      specific Subsequent Recoveries are anticipated, as applicable, on a particular
      Mortgage Loan that is charged off as described in the preceding paragraph or
      the
      applicable Servicing Agreement, such charged off Mortgage Loan will be released
      from the Trust Fund, and will be transferred to the Class X Certificateholders.
      If any Subsequent Recoveries are anticipated on such charged off Mortgage Loans,
      the release of such Mortgage Loan from the Trust Fund will be delayed until
      the
      Distribution Date after receipt of such Subsequent Recoveries. After the release
      of any charged off Mortgage Loan, the Class X Certificateholders will be
      entitled to any amounts subsequently received in respect of any such released
      Mortgage Loans, subject to any fees or expenses owed to the Master Servicer.
      Such Class X Certificateholder may designate any servicer to service any such
      released mortgage loan and the Class X Certificateholder may sell any such
      released Mortgage Loan to a third party. To the extent the servicing of such
      released Mortgage Loan is not transferred from the Company or the related
      Servicer, the servicing of such released Mortgage Loan and the fees therefor
      shall be governed by this Agreement or the applicable Servicing Agreement,
      as
      applicable. 

     

    In
      lieu
      of making all or a portion of such Advance from its own funds, the Company
      may
      (i) cause to be made an appropriate entry in its records relating to the
      Protected Account that any Amounts Held for Future Distribution has been used
      by
      the Company in discharge of its obligation to make any such Advance and (ii)
      transfer such funds from the Protected Account to the Distribution Account.
      Any
      funds so applied and transferred shall be replaced by the Company by depositing
      such amount in the Distribution Account no later than the close of business
      on
      the Remittance Date immediately preceding the Distribution Date on which such
      funds are required to be distributed pursuant to this Agreement.

     

    The
      Company shall be entitled to be reimbursed from the Protected Account for all
      Advances of its own funds made pursuant to this Section as provided in Section
      5.02. The obligation to make Advances with respect to any EMC Mortgage Loan
      shall continue until such EMC Mortgage Loan is paid in full or the related
      Mortgaged Property or related REO Property has been liquidated or until the
      purchase or repurchase thereof (or substitution therefor) from the Trust Fund
      pursuant to any applicable provision of this Agreement, except as otherwise
      provided in this Section 6.01.

     

    (b) If
      the
      Scheduled 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 Company or the related Servicer was required to make an Advance pursuant
      to
      this Agreement or the applicable Servicing Agreement exceeds the amount
      deposited in the Distribution Account which shall be used for an Advance with
      respect to such Mortgage Loan, the Master Servicer will deposit in the
      Distribution Account not later than the Business Day prior to the Distribution
      Date an amount equal to such required Advance to the extent not otherwise paid
      by the related Servicer, net of the 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 Company or the related Servicer is required to do so under this Agreement
      or
      the applicable Servicing Agreement, as applicable. If applicable, on the
      Business Day prior to the related Distribution Date, the Master Servicer shall
      present an Officer’s Certificate to the Trustee (i) stating that the Master
      Servicer elects not to make an Advance in a stated amount and (ii) detailing
      the
      reason it deems the advance to be nonrecoverable. The Master Servicer may rely
      on any non-recoverability determination of the Company or the related
      Servicer.

     

    Subject
      to and in accordance with the provisions of Article IX hereof, in the event
      the
      Master Servicer fails to make such Advance, then the Trustee, as Successor
      Master Servicer, shall be obligated to make such Advance, subject to the
      provisions of this Section 6.01.

     

    Section
      6.02  Compensating
      Interest Payments. 

     

    (a)  In
      the
      event that there is a Prepayment Interest Shortfall arising from a voluntary
      Principal Prepayment in part or in full by the Mortgagor with respect to any
      EMC
      Mortgage Loan, the Company shall, to the extent of the Servicing Fee for such
      Distribution Date, remit to the Master Servicer for deposit into the
      Distribution Account, as a reduction of the Servicing Fee for such Distribution
      Date, no later than the close of business on the Remittance Date immediately
      preceding such Distribution Date, an amount equal to such Prepayment Interest
      Shortfall; and in case of such deposit, the Company shall not be entitled to
      any
      recovery or reimbursement from the Depositor, the Trustee, the Seller, the
      Master Servicer, the Securities Administrator, the Trust Fund or the
      Certificateholders.

     

    (b)  The
      Master Servicer shall enforce the obligation of the Company or the related
      Servicer under this Agreement or the applicable Servicing Agreement to remit
      any
      required Compensating Interest to the Distribution Account on the Remittance
      Date.

     

    (c)  The
      Master Servicer shall be required to remit the amount of any such Prepayment
      Interest Shortfalls required to be paid by the related Servicer pursuant to
      Section 6.02(a), to the extent of the Master Servicing Compensation for such
      Distribution Date, in the event the Company or the related Servicer fails to
      do
      so.

     

    Section
      6.03  REMIC
      Distributions.

     

    On
      each Distribution Date, the Securities Administrator shall be deemed to have
      allocated distributions to the REMIC Regular Interests and the REMIC III Regular
      Interests in accordance with Section 6.07 hereof.

     

    Section
      6.04  Distributions. 

     

    (a)  Subject
      to Section 4.12(c), on each Distribution Date, an amount equal to the Interest
      Funds for each Loan Group and Principal Funds for each Loan Group for such
      Distribution Date shall be withdrawn by the Securities Administrator to the
      extent of any such funds in the Distribution Account and distributed in the
      following order of priority:

     

    (1)  Interest
      Funds shall be distributed in the following manner and order of
      priority:

     

    (A)  From
      Interest Funds in respect of:

     

    (i) Loan
      Group I, to the Class I-A Certificates, the Current Interest and any Interest
      Carry Forward Amount for such Class; and 

     

    (ii) Loan
      Group II, to the Class II-A Certificates, the Current Interest and any Interest
      Carry Forward Amount for such Class;

     

    (B)  From
      Interest Funds in respect of:

     

    (i)  Loan
      Group I, to the Class II-A Certificates, the remaining Current Interest, if
      any,
      and the remaining Interest Carry Forward Amount, if any, for such Class, in
      each
      case to the extent not paid pursuant to clause (1)(A)(ii) above;

     

    (ii)  Loan
      Group II, to the Class I-A Certificates, the remaining Current Interest, if
      any,
      and the remaining Interest Carry Forward Amount, if any, for such Class, in
      each
      case to the extent not paid pursuant to clause (1)(A)(i) above;

     

    (C)  From
      remaining Interest Funds in respect of both Loan Groups, sequentially, to the
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1,
      Class B-2, Class B-3 and Class B-4 Certificates, in that order, the Current
      Interest for each such Class.

     

    Any
      Excess Spread to the extent necessary to meet a level of overcollateralization
      equal to the Overcollateralization Target Amount will be the Extra Principal
      Distribution Amount and will be included as part of the Principal Distribution
      Amount. Any Remaining Excess Spread together with any Overcollateralization
      Release Amount will be applied as Excess Cashflow and distributed pursuant
      to
      clauses (a)(4)(A) through (H) below.

     

    On
      any
      Distribution Date, any Relief Act Interest Shortfalls and any related Prepayment
      Interest Shortfalls to the extent not covered by Compensating Interest will
      be
      allocated as set forth in the definition of “Current Interest”
herein.

     

    (2)  Principal
      Funds, including any Extra Principal Distribution Amount, shall be distributed
      in the following manner and order of priority:

     

    (A)  For
      each
      Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger
      Event is in effect:

     

    (i)  To
      the
      Class A Certificates, the Principal Distribution Amount for such Distribution
      Date to be distributed as follows:

     

    (1)  From
      the
      Group I Principal Distribution Amount for such Distribution Date, to the Class
      I-A Certificates, until the Certificate Principal Balance thereof is reduced
      to
      zero; and

     

    (2)  From
      the
      Group II Principal Distribution Amount for such Distribution Date, to the Class
      II-A Certificates, until the Certificate Principal Balance thereof is reduced
      to
      zero;

     

    (ii)  To
      the
      Class M-1 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (iii)  To
      the
      Class M-2 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (iv)  To
      the
      Class M-3 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (v)  To
      the
      Class M-4 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (vi)  To
      the
      Class M-5 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (vii)  To
      the
      Class M-6 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; 

     

    (viii)  To
      the
      Class B-1 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; 

     

    (ix)  To
      the
      Class B-2 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; 

     

    (x)  To
      the
      Class B-3 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; and

     

    (xi)  To
      the
      Class B-4 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero.

     

    (B)  For
      each
      Distribution Date on or after the Stepdown Date, so long as a Trigger Event
      is
      not in effect:

     

    (i)  To
      the
      Class A Certificates, the Principal Distribution Amount for such Distribution
      Date to be distributed as follows:

     

    (1)  From
      the
      Group I Principal Distribution Amount for such Distribution Date, to the Class
      I-A Certificates, the Class I-A Principal Distribution Amount for such
      Distribution Date, until the Certificate Principal Balance thereof is reduced
      to
      zero; and

     

    (2)  From
      the
      Group II Principal Distribution Amount for such Distribution Date, to the Class
      II-A Certificates, the Class II-A Principal Distribution Amount for such
      Distribution Date, until the Certificate Principal Balance thereof is reduced
      to
      zero;

     

    (ii)  To
      the
      Class M-1 Certificates, from any remaining Principal
      Distribution Amount for such Distribution Date, the Class M-1 Principal
      Distribution Amount, until the Certificate Principal Balance thereof is reduced
      to zero;

     

    (iii)  To
      the
      Class M-2 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-2 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (iv)  To
      the
      Class M-3 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-3 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (v)  To
      the
      Class M-4 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-4 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (vi)  To
      the
      Class M-5 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-5 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (vii)  To
      the
      Class M-6 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-6 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (viii)  To
      the
      Class B-1 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-1 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero; 

     

    (ix)  To
      the
      Class B-2 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-2 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (x)  To
      the
      Class B-3 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-3 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero; and

     

    (xi)  To
      the
      Class B-4 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-4 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero.

     

    (3)  Notwithstanding
      the provisions of clauses (2)(A) and (B) above, if on any Distribution Date
      the
      Class A Certificates related to a Loan Group are no longer outstanding, the
      pro
      rata
      portion
      of the Group I Principal Distribution Amount or Group II Principal Distribution
      Amount, as applicable, or the Class I-A Principal Distribution Amount or Class
      II-A Principal Distribution Amount, as applicable, otherwise allocable to such
      Class A Certificates will be allocated to the remaining Classes of Class A
      Certificates pro
      rata
      in the
      same manner and order of priority described above.

     

    (4)  Any
      Excess Cashflow shall be distributed in the following manner and order of
      priority:

     

    (A)  to
      the
      Class A Certificates, (a) first,
      any
      remaining Interest Carry Forward Amount due with respect to each such Class
      to
      the extent not fully paid pursuant to clause (a)(1) above and Section 4.12(d)
      and (b) second,
      any
      Unpaid Realized Loss Amount for each such Class for such Distribution Date,
      pro
      rata,
      in
      accordance with the Applied Realized Loss Amount allocated to each such Class
      to
      the extent not fully paid pursuant to Section 4.12(d);

     

    (B)  from
      any
      remaining Excess Cashflow, sequentially, to the Class M-1, Class M-2, Class
      M-3,
      Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class
      B-4
      Certificates, in that order, an amount equal to the Interest Carry Forward
      Amount for each such Class for such Distribution Date, to the extent not fully
      paid pursuant to Section 4.12(d);

     

    (C)  from
      any
      remaining Excess Cashflow otherwise distributable to the Class C Interest and
      the Class C Certificates, to the Reserve Fund, (i) first, to pay to the Classes
      of Class A Certificates any Basis Risk Shortfall Carry Forward Amount for such
      Classes for such Distribution Date, if any, on a pro
      rata
      basis,
      based on the amount of the Basis Risk Shortfall Carry Forward Amount for each
      such Class, to the extent not fully paid pursuant to Section 4.12(d) and to
      the
      extent such amount exceeds the amounts then on deposit in the Reserve Fund,
      and
      (ii) second, to maintain a balance in the Reserve Fund equal to the Reserve
      Fund
      Deposit;

     

    (D)  from
      any
      remaining Excess Cashflow otherwise distributable to the Class C Interest and
      the Class C Certificates, to the Reserve Fund, (i) first, to pay to the Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class
      B-2, Class B-3 and Class B-4 Certificates, sequentially in that order, any
      Basis
      Risk Shortfall Carry Forward Amount for each such Class for such Distribution
      Date,
      if any,
to
      the
      extent not fully paid pursuant to Section 4.12(d) and to the extent such amount
      exceeds the amounts then on deposit in the Reserve Fund, and (ii) second, to
      maintain a balance in the Reserve Fund equal to the Reserve Fund
      Deposit;

     

    (E)  from
      any
      remaining Excess Cashflow, first, to the Class A Certificates, on a pro
      rata
      basis,
      based on the entitlement of each such Class, and then sequentially to the Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class
      B-2, Class B-3 and Class B-4 Certificates, in that order, the amount of Relief
      Act Shortfalls and any Prepayment Interest Shortfalls allocated to such Classes
      of Certificates, to the extent not previously reimbursed;

     

    (F)  from
      any
      remaining Excess Cashflow, to the Swap Administrator for payment to the Swap
      Provider, any Swap Termination Payments due to a Swap Provider Trigger Event
      owed by the Trust Fund (to the extent not paid by the Swap Administrator from
      any upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust
      Trustee);

     

    (G)  from
      any
      remaining Excess Cashflow, to the Class C Interest and Class C Certificates,
      an
      amount equal to the Class C Distribution Amount reduced by amounts distributed
      in clauses (C) and (D) above; and

     

    (H)  from
      any
      remaining Excess Cashflow to each of the Class R-1, Class R-2, Class R-3 and
      Class RX Certificates, based on the related REMIC in which such amounts
      remain.

     

    On
      each
      Distribution Date, all amounts in respect of Prepayment Charges shall be
      distributed to the Holders of the Class C Certificates, provided that such
      distributions shall not be in reduction of the principal balance thereof.

     

    In
      addition, notwithstanding the foregoing clause (a)(2), to the extent a Class
      IO
      Distribution Amount is payable from principal collections, Principal
      Distribution Amounts will be deemed paid to the most subordinate Class of
      Regular Certificates, until the Certificate Principal Balance thereof has been
      reduced to zero, and such amount will be paid pursuant to Section
      4.12(f).

     

    In
      addition, notwithstanding the foregoing, on any Distribution Date after the
      Distribution Date on which the Certificate Principal Balance of a Class of
      Class
      A, Class M or Class B Certificates has been reduced to zero, that Class of
      Certificates will be retired and will no longer be entitled to distributions,
      including distributions in respect of Prepayment Interest Shortfalls or Basis
      Risk Shortfall Carry Forward Amounts.

     

    (b)  In
      addition to the foregoing distributions, with respect to any Subsequent
      Recoveries, the Company or the related Servicer, as applicable, shall deposit
      such funds into the Protected Account pursuant to Section 5.01(b)(iii) or the
      applicable Servicing Agreement. If, after taking into account such Subsequent
      Recoveries, the amount of a Realized Loss is reduced, the amount of such
      Subsequent Recoveries will be applied to increase the Certificate Principal
      Balance of the related Class of Certificates with the highest payment priority
      to which Realized Losses have been allocated, but not by more than the amount
      of
      Realized Losses previously allocated to that Class of Certificates pursuant
      to
      Section 6.05; provided, however, to the extent that no reductions to a
      Certificate Principal Balance of any Class of Certificates currently exists
      as
      the result of a prior allocation of a Realized Loss, such Subsequent Recoveries
      will be applied as Excess Cashflow. The amount of any remaining Subsequent
      Recoveries will be applied to increase the Certificate Principal Balance of
      the
      Class of Certificates with the next highest payment priority, up to the amount
      of such Realized Losses previously allocated to that Class of Certificates
      pursuant to Section 6.05, and so on. Holders of such Certificates will not
      be
      entitled to any payment in respect of Current Interest on the amount of such
      increases for any Interest Accrual Period preceding the Distribution Date on
      which such increase occurs. Any such increases shall be applied to the
      Certificate Principal Balance of each Certificate of such Class in accordance
      with its respective Percentage Interest.

     

    (c)  Subject
      to Section 11.02 hereof respecting the final distribution, on each Distribution
      Date the Securities Administrator shall make distributions to each
      Certificateholder of record on the preceding Record Date either by wire transfer
      in immediately available funds to the account of such Holder at a bank or other
      entity having appropriate facilities therefor, if such Holder has so notified
      the Securities Administrator at least 5 Business Days prior to the related
      Record Date, or, if not, by check mailed by first class mail to such
      Certificateholder at the address of such Holder appearing in the Certificate
      Register. Notwithstanding the foregoing, but subject to Section 11.02 hereof
      respecting the final distribution, distributions with respect to Certificates
      registered in the name of a Depository shall be made to such Depository in
      immediately available funds.

     

    (d)  Prior
      to
      each Distribution Date, or if the Master Servicer and the Securities
      Administrator are no longer affiliated, on or before 5:00 p.m. Eastern time
      on
      the fifth Business Day immediately preceding each Distribution Date, the Master
      Servicer shall deliver a report to the Securities Administrator in the form
      of a
      computer readable magnetic tape (or by such other means as the Master Servicer
      and the Securities Administrator may agree from time to time) containing such
      data and information, as agreed to by the Master Servicer and the Securities
      Administrator such as to permit the Securities Administrator to prepare the
      Monthly Statement to Certificateholders and to direct the Securities
      Administrator in writing to make the required distributions for the related
      Distribution Date (the “Remittance Report”).

     

    Section
      6.05  Allocation
      of Realized Losses. 

     

    (a)  All
      Realized Losses on the Mortgage Loans shall be allocated by the Securities
      Administrator on each Distribution Date as follows: first, to Excess Spread
      as
      part of the payment in respect of the Extra Principal Distribution Amount for
      such Distribution Date; second, to the Class C Interest and Class C
      Certificates, until the Certificate Principal Balance or Uncertificated
      Principal Balance thereof, as applicable, has been reduced to zero; third,
      to
      the Class B-4 Certificates, until the Certificate Principal Balance thereof
      has
      been reduced to zero; fourth, to the Class B-3 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; fifth, to the
      Class B-2 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; seventh, to the Class M-6
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal
      Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero; tenth,
      to the Class M-3 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero; eleventh, to the Class M-2 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; twelfth, to
      the
      Class M-1 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; thirteenth, to the related Class of Class A Certificates,
      until
      the Certificate Principal Balance thereof has been reducted to zero, and
      fourteenth, to the unrelated Class of Class A Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero. All Realized
      Losses to be allocated to the Certificate Principal Balances of all Classes
      on
      any Distribution Date shall be so allocated after the actual distributions
      to be
      made on such date as provided above. All references above to the Certificate
      Principal Balance of any Class of Certificates shall be to the Certificate
      Principal Balance of such Class immediately prior to the relevant Distribution
      Date, before reduction thereof by any Realized Losses, in each case to be
      allocated to such Class of Certificates, on such Distribution Date.

     

    (b)  Any
      allocation of Realized Losses to a Class of Certificates or the Class C Interest
      on any Distribution Date shall be made by reducing the Certificate Principal
      Balance or Uncertificated Principal Balance thereof by the amount so allocated;
      any allocation of Realized Losses to the Excess Spread shall be made by reducing
      the amount otherwise payable in respect of the Class C Interest and the Class
      C
      Certificates pursuant to clause (G) of Section 6.04(a)(4). 

     

    Once
      Realized Losses have been allocated to a Class of Class A, Class M or Class
      B
      Certificates, such amounts with respect to such Certificates will no longer
      accrue interest nor will such amounts in respect of interest be reinstated
      thereafter. 

     

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

     

    (c) (i) All
      Realized Losses on the Mortgage Loans in Loan Group I shall be allocated on
      each
      Distribution Date to REMIC I Regular Interest I-1-A through REMIC I Regular
      Interest I-45-B, starting with the lowest numerical denomination until the
      Uncertificated Principal Balance of each such REMIC I Regular Interest has
      been
      reduced to zero, provided that, for REMIC I Group I Regular Interests with
      the
      same numerical denomination, such Realized Losses shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests. All Realized Losses on the Mortgage Loans in
      Loan Group II shall be allocated on each Distribution Date to REMIC I Regular
      Interest II-1-A through REMIC I Regular Interest II-45-B, starting with the
      lowest numerical denomination until the Uncertificated Principal Balance of
      each
      such REMIC I Regular Interest has been reduced to zero, provided that, for
      REMIC
      I Group II Regular Interests with the same numerical denomination, such Realized
      Losses shall be allocated pro
      rata
      between
      such REMIC I Regular Interests. 

     

    (ii) The
      REMIC
      II Marker Percentage of all Realized Losses on the Mortgage Loans shall be
      allocated on each Distribution Date to the following REMIC II Regular Interests
      in the following specified percentages: first, to Uncertificated Accrued
      Interest payable to REMIC II Regular Interest AA and REMIC II Regular Interest
      ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation
      Amount (without duplication of shortfalls allocated pursuant to Section 1.02),
      98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances
      of REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an
      aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00%
      and 2.00%, respectively; third, to the Uncertificated Principal Balances of
      REMIC II Regular Interest AA, REMIC II Regular Interest B-4 and REMIC II Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Principal Balance of REMIC II Regular Interest B-4 has been reduced to zero;
      fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest
      AA, REMIC II Regular Interest B-3 and REMIC II Regular Interest ZZ, 98.00%,
      1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of
      REMIC II Regular Interest B-3 has been reduced to zero; fifth, to the
      Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II
      Regular Interest B-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-1 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Principal Balance of REMIC II Regular Interest B-1 has been
      reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest M-6 has been reduced to zero; eighth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC
      II
      Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been
      reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II
      Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest M-3 has been reduced to zero; eleventh,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC
      II
      Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been
      reduced to zero; thirteenth, to the Uncertificated Principal Balance of REMIC
      II
      Regular Interest II-AA, 98.00%, to the Uncertificated Principal Balances of
      the
      related REMIC III Regular Interests I-A and II-A, 1.00% on a pro
      rata
      basis,
      and to the Uncertificated Principal Balance of REMIC III Regular Interest II-ZZ,
      1.00%, until the Uncertificated Principal Balances of such REMIC III Regular
      Interests I-A and II-A have been reduced to zero; and fourteenth, to the
      Uncertificated Principal Balance of REMIC III Regular Interest II-AA, 98.00%,
      to
      the Uncertificated Principal Balances of the unrelated REMIC III Regular
      Interests I-A and II-A,1.00% on a pro
      rata
      basis,
      and to the Uncertificated Principal Balance of REMIC III Regular Interest II-ZZ,
      1.00%, until the Uncertificated Principal Balances of such REMIC III Regular
      Interests I-A and II-A have been reduced to zero.

     

    (iii) The
      REMIC
      II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans
      shall be allocated on each Distribution Date after all distributions have been
      made on each Distribution Date first, so as to keep the Uncertificated Principal
      Balance of each REMIC II Regular Interest ending with the designation “Grp”
equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans
      in the related Loan Group; second, to each REMIC II Regular Interest ending
      with
      the designation “Sub”, so that the Uncertificated Principal Balance of each such
      REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate
      Stated Principal Balance of the Mortgage Loans in the related Loan Group over
      (y) the current Certificate Principal Balance of the Class A Certificates
      related to such Loan Group (except that if any such excess is a larger number
      than in the preceding distribution period, the least amount of Realized Losses
      shall be applied to such REMIC II Regular Interests such that the REMIC II
      Subordinated Balance Ratio is maintained); and third, to REMIC II Regular
      Interest XX.

     

    Section
      6.06  Monthly
      Statements to Certificateholders. 

     

    (a)  Not
      later
      than each Distribution Date, the Securities Administrator shall prepare and
      make
      available to each Holder of Certificates, the Trustee, the Swap Provider, the
      Master Servicer and the Depositor a statement setting forth for the
      Certificates:

     

    (i)  the
      applicable record dates, accrual periods, determination dates for calculating
      distributions and general distribution dates;

     

    (ii)  the
      total
      cash flows received and the general sources thereof;

     

    (iii)  the
      amount, if any, of fees or expenses accrued and paid, with an identification
      of
      the payee and the general purpose of such fees including the related amount
      of
      the Servicing Fees paid to or retained by the Company or the related Servicer
      for the related Due Period;

     

    (iv)  the
      amount of the related distribution to Holders of the Class A, Class M and Class
      B Certificates (by class) allocable to principal, separately identifying (A)
      the
      aggregate amount of any Principal Prepayments included therein, (B) the
      aggregate of all scheduled payments of principal included therein and (C) the
      Extra Principal Distribution Amount (if any);

     

    (v)  the
      amount of such distribution to Holders of the Class A, Class M and Class B
      Certificates allocable to interest and the portion thereof (if any), provided
      by
      the Swap Agreement and the amount of coverage remaining;

     

    (vi)  the
      Interest Carry Forward Amounts and any Basis Risk Shortfall Carry Forward
      Amounts for the Class A, Class M and Class B Certificates (if any);

     

    (vii)  the
      Pass-Through Rate for each Class of Class A, Class M and Class B Certificates
      with respect to the current Accrual Period, and, if applicable, whether such
      Pass-Through Rate was limited by the related Net
      WAC
      Cap Rate;

     

    (viii)  the
      Certificate Principal Balance of the Class A, Class M and Class B Certificates
      before and after giving effect (i) to all distributions allocable to principal
      on such Distribution Date and (ii) the allocation of any Applied Realized Loss
      Amounts for such Distribution Date;

     

    (ix)  the
      number and Stated Principal Balance of all the Mortgage Loans for such
      Distribution Date, together with updated pool composition information including
      the following: weighted average mortgage rate and weighted average remaining
      term;

     

    (x)  the
      aggregate amount of Advances included in the distribution on such Distribution
      Date (including the general purpose of such Advances), the aggregate amount
      of
      unreimbursed Advances as of the end of the Due Period, and the general source
      of
      funds for reimbursements;

     

    (xi)  the
      number and aggregate Stated Principal Balance of the Mortgage Loans (A)
      Delinquent, exclusive of Mortgage Loans in foreclosure, (1) 30 days Delinquent,
      (2) 60 days Delinquent and (3) 90 days or more Delinquent, (B) in foreclosure
      and Delinquent (1) 30 days Delinquent, (2) 60 days Delinquent and (3) 90 days
      or
      more Delinquent, in each case as of the close of business on the last day of
      the
      calendar month preceding such Distribution Date and (C) in bankruptcy and
      delinquent (1) 30 days Delinquent, (2) 60 days Delinquent and (3) 90 days or
      more Delinquent, in each case as of the close of business on the last day of
      the
      calendar month preceding such Distribution Date;

     

    (xii)  the
      amount of, if any, of excess cashflow or excess spread and the application
      of
      such excess cashflow;

     

    (xiii)  with
      respect to any Mortgage Loan that was liquidated during the preceding calendar
      month, the aggregate Stated Principal Balance of, and Realized Loss on, such
      Mortgage Loans as of the end of the prior calendar month;

     

    (xiv)  whether
      a
      Trigger Event exists;

     

    (xv)  information
      on loss, delinquency or other tests used for determining early amortization,
      liquidation, stepdowns or other performance triggers as more completely
      described in the prospectus supplement and whether the trigger was
      met;

     

    (xvi)  the
      total
      number and principal balance of any real estate owned or REO Properties as
      of
      the end of the prior calendar month;

     

    (xvii)  the
      cumulative Realized Losses through the end of the preceding month;

     

    (xviii)  the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Class C Certificates allocable to Prepayment Charges;

     

    (xix)  the
      Sixty-Day Plus Delinquency Percentage

     

    (xx)  if
      applicable, material modifications, extensions or waivers to Mortgage Loan
      terms, fees, penalties or payments during the preceding calendar month or that
      have become material over time;

     

    (xxi)  material
      breaches of Mortgage Loan representations or warranties or transaction
      covenants; 

     

    (xxii)  the
      amount of the Prepayment Charges remitted by the master servicer and the amount
      on deposit in
      the
      reserve fund; 

     

    (xxiii)  the
      amount of any Net Swap Payment payable to the Trust, any Net Swap Payment
      payable to the Swap Provider, any Swap Termination Payment payable to the Trust
      and any Swap Termination Payment payable to the Swap Provider;

     

    (xxiv)  information
      regarding any new issuance of securities backed by the same asset pool, any
      pool
      asset changes, such as additions or removals of Mortgage Loans from the Trust
      Fund, if applicable; 

     

    (xxv)  any
      material changes in the solicitation, credit-granting, underwriting,
      origination, acquisition or Mortgage Loan selection criteria or procedures,
      as
      applicable, used to originate, acquire or select Mortgage Loans for the Trust
      Fund; and

     

    (xxvi)  each
      Mortgage Loan that has been released to the Class X Certificateholder pursuant
      to Section 5.01.

     

    The
      Depositor covenants that if there is a material change in the solicitation,
      credit-granting, underwriting, origination, acquisition or Mortgage Loan
      selection criteria or procedures, as applicable, used to originate, acquire
      or
      select Mortgage Loans for the Trust Fund that it will notify the Securities
      Administrator five calendar days before each Distribution Date, and if no such
      notification occurs, the Securities Administrator has no obligation to report
      with respect to (xxv). The Depositor covenants to the Securities Administrator
      that there will be no new issuance of securities backed by the same asset pool,
      so the Securities Administrator will only be responsible in (xxiv) above for
      reporting any pool asset changes, such as additions or removals of Mortgage
      Loans from the Trust Fund.

     

    The
      foregoing information and reports shall be prepared and determined by the
      Securities Administrator based solely on Mortgage Loan data provided to the
      Securities Administrator by the Master Servicer (in a format agreed to by the
      Securities Administrator and the Master Servicer) no later than four (4)
      Business Days (or at a time and date as is mutually agreed upon by the
      Securities Administrator and the Master Servicer), prior to the Distribution
      Date. In preparing or furnishing the foregoing information, the Securities
      Administrator shall be entitled to rely conclusively on the accuracy of the
      information or data regarding the Mortgage Loans and the related REO Property
      that has been provided to the Securities Administrator by the Master Servicer,
      and the Securities Administrator shall not be obligated to verify, recompute,
      reconcile or recalculate any such information or data. The Securities
      Administrator shall be entitled to conclusively rely on the Mortgage Loan data
      provided by the Master Servicer and shall have no liability for any errors
      in
      such Mortgage Loan data. 

     

    The
      Securities Administrator will make such statement (and, at its option, any
      additional files containing the same information in an alternative format)
      available each month to the parties hereto, the Certificateholders and each
      Rating Agency via the Securities Administrator’s internet website. The
      Securities Administrator’s internet website shall initially be located at
      www.ctslink.com.
      Assistance in using the website can be obtained by calling the Securities
      Administrator at (301) 815-6600. 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 Securities Administrator and indicating such. The
      Securities Administrator shall have the right to change the way such statements
      are distributed in order to make such distribution more convenient and/or more
      accessible to the above parties and the Securities Administrator shall provide
      timely and adequate notification to all above parties regarding any such
      changes.

     

    As
      a
      condition to access the Securities Administrator’s internet website, the
      Securities Administrator may require registration and the acceptance of a
      disclaimer. The Securities Administrator will not be liable for the
      dissemination of information in accordance with this Agreement.

     

    (b)  The
      Securities Administrator’s responsibility for making the above information
      available to the Certificateholders is limited to the availability, timeliness
      and accuracy of the information derived from the Master Servicer, the Company
      and the Servicer. The Securities Administrator will make available a copy of
      each statement provided pursuant to this Section 6.06 to each Rating Agency
      on
      its website at www.ctslink.com.

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall cause to be furnished upon written request to each Person
      who at any time during the calendar year was a Certificateholder, a statement
      containing the information set forth in clauses (a)(v) and (a)(vi) of this
      Section 6.06 aggregated for such calendar year or applicable portion thereof
      during which such Person was a Certificateholder. Such obligation of the
      Securities Administrator shall be deemed to have been satisfied to the extent
      that substantially comparable information shall be provided by the Securities
      Administrator pursuant to any requirements of the Code as from time to time
      in
      effect.

     

    (d)  The
      Securities Administrator shall furnish quarterly to the Holders of the Residual
      Certificates each applicable Form 1066Q and shall respond promptly to written
      requests made not more frequently than quarterly by any Holder of a Residual
      Certificate with respect to the following matters:

     

    (i) The
      original projected principal and interest cash flows on the Closing Date on
      each
      class of Regular Interests and Residual Interests created hereunder and on
      the
      related Mortgage Loans, based on the Prepayment Assumption;

     

    (ii) The
      projected remaining principal and interest cash flows as of the end of any
      calendar quarter with respect to each class of Regular Interests and Residual
      Interests created hereunder and the related Mortgage Loans, based on the
      Prepayment Assumption;

     

    (iii) The
      applicable Prepayment Assumption and any interest rate assumptions used in
      determining the projected principal and interest cash flows described
      above;

     

    (iv) The
      original issue discount (or, in the case of the Mortgage Loans, market discount)
      or premium accrued or amortized through the end of such calendar quarter with
      respect to each class of Regular Interests or Residual Interests created
      hereunder and to the related Mortgage Loans, together with each constant yield
      to maturity used in computing the same;

     

    (v) The
      treatment of losses realized with respect to the related Mortgage Loans or
      the
      Regular Interests created hereunder, including the timing and amount of any
      cancellation of indebtedness income of a REMIC with respect to such Regular
      Interests or bad debt deductions claimed with respect to the related Mortgage
      Loans;

     

    (vi) The
      amount and timing of any non-interest expenses of a REMIC; and

     

    (vii) Any
      taxes
      (including penalties and interest) imposed on the REMIC, including, without
      limitation, taxes on “prohibited transactions,” “contributions” or “net income
      from foreclosure property” or state or local income or franchise
      taxes.

     

    The
      information pursuant to clauses (i), (ii), (iii) and (iv) above shall be
      provided by the Depositor pursuant to Section 10.12.

     

    Section
      6.07  REMIC
      Designations and REMIC Distributions. 

     

    (a)  The
      Securities Administrator on behalf of the Trustee shall elect that each of
      REMIC
      I, REMIC II, REMIC III, REMIC IV and REMIC V shall be treated as a REMIC under
      Section 860D of the Code. Any inconsistencies or ambiguities in this Agreement
      or in the administration of this Agreement shall be resolved in a manner that
      preserves the validity of such REMIC elections. The assets of REMIC I shall
      include the Mortgage Loans and all interest owing in respect of and principal
      due thereon, the Distribution Account, the Protected Accounts maintained by
      the
      Company and the related Servicer, any REO Property, any proceeds of the
      foregoing and any other assets related to the Mortgage Loans subject to this
      Agreement (other than the Reserve Fund, any Prepayment Charge Waiver Amounts
      and, for the avoidance of doubt, the Supplemental Interest Trust, the Swap
      Agreement, the Swap Account, the Credit Support Account and any rights or
      obligations in respect of the Swap Administration Agreement). The REMIC I
      Regular Interests shall constitute the assets of REMIC II. The REMIC II Regular
      Interests shall constitute the assets of REMIC III. The Class C Interest shall
      constitute the assets of REMIC IV. The Class IO Interest shall constitute the
      assets of REMIC V.

     

    (1) On
      each
      Distribution Date, the following amounts with respect to Loan Group I, in the
      following order of priority, shall be distributed by REMIC I to REMIC II on
      account of the REMIC I Group I Regular Interests or withdrawn from the
      Distribution Account and distributed to the Holders of the Class R-1
      Certificates, as the case may be:

     

    (i) from
      Interest Funds and Principal Funds for Loan Group I, in each case determined
      without regard to the related clause (2)(ii) of the definitions thereof, to
      holders of each of the REMIC I Regular Interests I-1-A through I-45-B,
pro
      rata,
      in an
      amount equal to (A) the Uncertificated Accrued Interest for such REMIC I Regular
      Interests for such Distribution Date, plus (B) any amounts payable in respect
      thereof remaining unpaid from previous Distribution Dates;

     

    (ii) to
      the
      extent of Interest Funds and Principal Funds for Loan Group I, in each case
      determined without regard to the related clause (2)(ii) of the definitions
      thereof, remaining after the distribution made pursuant to clause (i) above,
      to
      REMIC I Regular Interests I-1-A through I-45-B, starting with the lowest
      numerical denomination, until the Uncertificated Principal Balances of each
      such
      REMIC I Regular Interest is reduced to zero; provided that, for REMIC I Group
      I
      Regular Interests with the same numerical denomination, such payments of
      principal shall be allocated pro
      rata
      between
      such REMIC I Regular Interests; and

     

    (iii) any
      remaining amount to the Holders of the Class R-1 Certificates.

     

    (2) On
      each
      Distribution Date, the following amounts with respect to Loan Group II, in
      the
      following order of priority, shall be distributed by REMIC I to REMIC II on
      account of the REMIC I Group II Regular Interests or withdrawn from the
      Distribution Account and distributed to the Holders of the Class R-1
      Certificates, as the case may be:

     

    (i) from
      Interest Funds and Principal Funds for Loan Group II, in each case determined
      without regard to the related clause (2)(ii) of the definitions thereof, to
      holders of each of the REMIC I Regular Interests II-1-A through II-45-B,
pro
      rata,
      in an
      amount equal to (A) the Uncertificated Accrued Interest for such REMIC I Regular
      Interests for such Distribution Date, plus (B) any amounts payable in respect
      thereof remaining unpaid from previous Distribution Dates;

     

    (ii) to
      the
      extent of Interest Funds and Principal Funds for Loan Group II, in each case
      determined without regard to the related clause (2)(ii) of the definitions
      thereof, remaining after the distribution made pursuant to clause (i) above,
      to
      REMIC I Regular Interests II-1-A through II-45-B, starting with the lowest
      numerical denomination, until the Uncertificated Principal Balances of each
      such
      REMIC I Regular Interest is reduced to zero; provided that, for REMIC I Group
      II
      Regular Interests with the same numerical denomination, such payments of
      principal shall be allocated pro
      rata
      between
      such REMIC I Regular Interests; and

     

    (iii) any
      remaining amount to the Holders of the Class R-1 Certificates.

     

    (3) On
      each
      Distribution Date, amounts representing Prepayment Charges on the Mortgage
      loans
      shall be deemed distributed to the REMIC I Regular Interests, pro
      rata, provided
      that such amounts shall not reduce the Uncertificated Principal Balances of
      the
      REMIC I Regular Interests. 

     

    (c) (1) On
      each
      Distribution Date, the following amounts with respect to all Loan Groups, in
      the
      following order of priority, shall be distributed by REMIC II to REMIC III
      on
      account of the REMIC II Regular Interests or withdrawn from the Distribution
      Account and distributed to the Holders of the Class R-2 Certificates, as the
      case may be:

     

    (i)  from
      Interest Funds and Principal Funds for all Loan Groups, in each case determined
      without regard to the related clause (2)(ii) of the definitions thereof, to
      the
      holders of REMIC II Regular Interest IO, in an amount equal to (A) the
      Uncertificated Accrued Interest for such REMIC II Regular Interest for such
      Distribution Date, plus (B) any amounts in respect thereof remaining unpaid
      from
      previous Distribution Dates; 

     

    (ii)  to
      the
      extent of the REMIC II Marker Allocation Percentage of the Interest Funds and
      Principal Funds for all Loan Groups, in each case determined without regard
      to
      the related clause (2)(ii) of the definitions thereof, remaining after the
      distribution pursuant to clause (i), to the holders of each REMIC II Regular
      Interest (other than REMIC II Regular Interest 1-Sub, 1-Grp, 2-Sub, 2-Grp,
      XX
      and IO), pro
      rata,
      in an
      amount equal to (A) the Uncertificated Accrued Interest for such REMIC II
      Regular Interest for such Distribution Date, plus (B) any amounts in respect
      thereof remaining unpaid from previous Distribution Dates. Amounts payable
      as
      Uncertificated Accrued Interest in respect of REMIC II Regular Interest ZZ
      shall
      be reduced when the REMIC II Overcollateralization Amount is less than the
      REMIC
      II Required Overcollateralization Amount, by the lesser of (x) the amount of
      such difference and (y) the Maximum Uncertificated Accrued Interest Deferral
      Amount, and such amount will be payable to the holders of each REMIC II Regular
      Interest for which a Class A, Class M or Class B Certificate is the
      Corresponding Certificate in the same proportion as the Extra Principal
      Distribution Amount is allocated to the Corresponding Certificates for each
      such
      REMIC II Regular Interest, and the Uncertificated Principal Balance of REMIC
      II
      Regular Interest ZZ shall be increased by such amount;

     

    (iii) to
      the
      extent of the REMIC II Sub WAC Allocation Percentage of the Interest Funds
      and
      Principal Funds for all Loan Groups, in each case, determined without regard
      to
      the related clause (2)(ii) of the definitions thereof, remaining after the
      distribution pursuant to clause (i), to the holders of REMIC II Regular Interest
      1-Sub, REMIC II Regular Interest 1-Grp, REMIC II Regular Interest 2-Sub, REMIC
      II Regular Interest 2-Grp and REMIC II Regular Interest XX, pro
      rata,
      an
      amount equal to (A) the Uncertificated Accrued Interest for such Distribution
      Date, plus (B) any amounts in respect thereof remaining unpaid from previous
      Distribution Dates;

     

    (iv) to
      the
      holders of REMIC II Regular Interests (other than REMIC II Regular Interest
      IO)
      in an amount equal to the REMIC II Marker Allocation Percentage of the remainder
      of the Interest Funds and Principal Funds for all Loan Groups, in each case
      determined without regard to the related clause (2)(ii) of the definitions
      thereof, for such Distribution Date after the distributions made pursuant to
      clauses (i), (ii) and (iii) above, allocated as follows:

     

    (A)  98%
      of
      such remainder to the holders of REMIC II Regular Interest AA, until the
      Uncertificated Principal Balance of such REMIC II Regular Interest is reduced
      to
      zero;

     

    (B)  2%
      of
      such remainder, first, to the holders of each REMIC II Regular Interest for
      which a Class A, Class M or Class B Certificate is the Corresponding
      Certificate, in an aggregate amount equal to 1% of and in the same proportion
      as
      principal payments are allocated to the Corresponding Certificates for each
      such
      REMIC II Regular Interest, until the Uncertificated Principal Balances of such
      REMIC II Regular Interests are reduced to zero; and second, to the holders
      of
      REMIC II Regular Interest ZZ, until the Uncertificated Principal Balance of
      such
      REMIC II Regular Interest is reduced to zero; and

     

    (C) any
      remaining amount to the Holders of the Class R-2 Certificates; and

     

    (v) to
      the
      holders of REMIC II Regular Interest 1-Sub, REMIC II Regular Interest 1-Grp,
      REMIC II Regular Interest 2-Sub, REMIC II Regular Interest 2-Grp and REMIC
      II
      Regular Interest XX, in an amount equal to the REMIC II Sub WAC Allocation
      Percentage of the remainder of the Interest Funds and Principal Funds for all
      Loan Groups, in each case determined without regard to the related clause
      (2)(ii) of the definitions thereof, after the distributions made pursuant to
      clauses (i), (ii) and (iii) above, first, so as to keep the Uncertificated
      Principal Balance of each REMIC II Regular Interest ending with the designation
      “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage
      Loans in the related Loan Group; second, to each REMIC II Regular Interest
      ending with the designation “Sub”, so that the Uncertificated Principal Balance
      of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x)
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      Loan
      Group over (y) the current Certificate Principal Balance of the Class A
      Certificates related to such Loan Group (except that if any such excess is
      a
      larger number than in the preceding distribution period, the least amount of
      principal shall be distributed to such REMIC II Regular Interests such that
      the
      REMIC II Subordinated Balance Ratio is maintained); third, to REMIC II Regular
      Interest XX, until the Uncertificated Principal Balance of such REMIC II Regular
      Interest is reduced to zero; and fourth, any remaining amount to the Holders
      of
      the Class R-2 Certificates.

     

    (2) On
      each
      Distribution Date, 100% of the Prepayment Charges deemed distributed on the
      REMIC I Regular Interests shall be distributed, pro
      rata, to
      the
      holders of the REMIC II Regular Interests (other than REMIC II Regular Interest
      IO), provided that such amounts shall not reduce the Uncertificated Principal
      Balances of the REMIC II Regular Interests.

     

    (d) On
      each
      Distribution Date, interest shall be deemed payable from REMIC III to the
      holders of each REMIC III Regular Interest the ownership of which is represented
      by the Class A, Class M and Class B Certificates at a pass-through rate equal
      to
      the lesser of (i) the Pass-Through Rate for the Corresponding Certificate
      determined without regard to the related Net WAC Cap Rate and (ii) the Net
      WAC
      Cap Rate for the REMIC III Regular Interest the ownership of which is
      represented by the Corresponding Certificate for such Distribution Date, in
      each
      case on a principal balance equal to the Certificate Principal Balance of the
      Corresponding Certificate for such Distribution Date. For the avoidance of
      doubt, principal shall be payable to, and shortfalls, losses and prepayments
      shall be allocable to, the REMIC III Regular Interests the ownership of which
      is
      represented by the Class A, Class M and Class B Certificates as such amounts
      are
      payable and allocable to the Corresponding Certificates. 

     

    (e) On
      each
      Distribution Date, an amount equal to the aggregate amount distributed pursuant
      to Sections 6.04(a)(4)(C), (D) and (G) on such date shall be deemed distributed
      from REMIC III to REMIC IV in respect of the Class C Distribution Amount
      distributable to the Class C Interest, and 100% of the Prepayment Charges deemed
      distributed on the REMIC II Regular Interests shall be deemed distributed from
      REMIC III to REMIC IV in respect of the Class C Interest.

     

    (f) On
      each
      Distribution Date, 100% of the amounts deemed distributed on REMIC II Regular
      Interest IO on such date shall be deemed distributed by REMIC III to REMIC
      V in
      respect of the Class IO Interest. Such amounts shall be deemed distributed
      by
      REMIC V in respect of REMIC V Regular Interest IO for deposit into the
      Supplemental Interest Trust.

     

    

    ARTICLE
      VII

    THE
      CERTIFICATES

     

    Section
      7.01  The
      Certificates. 

     

    The
      Certificates shall be substantially in the forms attached hereto as Exhibits
      A-1
      through A-6. The Certificates shall be issuable in registered form, in the
      minimum dollar denominations, integral dollar multiples in excess thereof
      (except that one Certificate of each Class may be issued in a different amount
      which must be in excess of the applicable minimum dollar denomination) and
      aggregate dollar denominations as set forth in the following table:

     

    
      	
              Class

            	
              Minimum

              Denomination

            	
              Integral

              Multiple
                in

              Excess
                of

              Minimum

            	
              Original

              Certificate

              Principal
                Balance or Notional Amount

            
	
              I-A

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              135,568,000.00

            
	
              II-A

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              50,429,000.00

            
	
              M-1

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              12,158,000.00

            
	
              M-2

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              12,158,000.00

            
	
              M-3

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              5,562,000.00

            
	
              M-4

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              5,562,000.00

            
	
              M-5

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              5,303,000.00

            
	
              M-6

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              3,880,000.00

            
	
              B-1

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              4,139,000.00

            
	
              B-2

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              2,975,000.00

            
	
              B-3

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              3,622,000.00

            
	
              B-4

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	
              $

            	
              4,656,000.00

            
	
              C

            	 	
              10%

            	
              $

            	
              1%

            	
              $

            	
              12,676,044.14
                (1) 
                

            
	
              X

            	 	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              R-1

            	 	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              R-2

            	 	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              R-3

            	 	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              RX

            	 	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            

    

     

    (1) This
      is a
      Notional Amount.

     

    

    The
      Class
      X Certificates will be issued as a single Certificate and will not have a have
      Certificate Principal Balance. The Certificates shall be executed by manual
      or
      facsimile signature on behalf of the Securities Administrator by an authorized
      officer. 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 Securities Administrator shall bind the Securities Administrator,
      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 authentication and delivery. No
      Certificate shall be entitled to any benefit under this Agreement, or be valid
      for any purpose, unless there appears on such Certificate the countersignature
      of the Securities Administrator by manual signature, and such countersignature
      upon any Certificate shall be conclusive evidence, and the only evidence, that
      such Certificate has been duly countersigned and delivered hereunder. All
      Certificates shall be dated the date of their countersignature. On the Closing
      Date, the Securities Administrator shall authenticate the Certificates to be
      issued at the written direction of the Depositor, or any affiliate
      thereof.

     

    The
      Depositor shall provide, or cause to be provided, to the Securities
      Administrator on a continuous basis, an adequate inventory of Certificates
      to
      facilitate transfers.

     

    Section
      7.02  Certificate
      Register; Registration of Transfer and Exchange of Certificates.

     

    (a)  The
      Securities Administrator shall maintain, or cause to be maintained in accordance
      with the provisions of Section 7.09 hereof, a Certificate Register for the
      Trust
      Fund in which, subject to the provisions of subsections (b) and (c) below and
      to
      such reasonable regulations as it may prescribe, the Securities Administrator
      shall provide for the registration of Certificates and of Transfers and
      exchanges of Certificates as herein provided. Upon surrender for registration
      of
      Transfer of any Certificate, the Securities Administrator shall authenticate
      and
      deliver, in the name of the designated transferee or transferees, one or more
      new Certificates of the same Class and of like aggregate Percentage
      Interest.

     

    At
      the option of a Certificateholder, Certificates may be exchanged for other
      Certificates of the same Class in authorized denominations and evidencing the
      same aggregate Percentage Interest upon surrender of the Certificates to be
      exchanged at the office or agency of the Securities
      Administrator.
      Whenever any Certificates are so surrendered for exchange, the Securities
      Administrator
      shall execute, authenticate, and deliver the Certificates that the
      Certificateholder making the exchange is entitled to receive. Every Certificate
      presented or surrendered for registration of Transfer or exchange shall be
      accompanied by a written instrument of Transfer in form satisfactory to the
      Securities
      Administrator
      duly executed by the holder thereof or his attorney duly authorized in
      writing.

     

    No
      service charge to the Certificateholders shall be made for any registration
      of
      Transfer or exchange of Certificates, but 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 may be required.

     

    All
      Certificates surrendered for registration of Transfer or exchange shall be
      canceled and subsequently destroyed by the Securities
      Administrator
      in accordance with the Securities
      Administrator’s
      customary procedures.

     

    (b)  Subject
      to Section 7.07 and, in the case of any Global Certificate or Private
      Certificate upon the satisfaction of the conditions set forth below, upon
      surrender for registration of transfer of any Certificate at any office or
      agency of the Securities Administrator maintained for such purpose, the
      Securities Administrator shall sign, countersign and shall deliver, in the
      name
      of the designated transferee or transferees, a new Certificate of a like Class
      and aggregate Percentage Interest, but bearing a different number.

     

    (c)  Subject
      to Section 7.02(g), so long as a Global Certificate of such Class is outstanding
      and is held by or on behalf of the Depository, transfers of beneficial interests
      in such Global Certificate, or transfers by Holders of Individual Certificates
      of such Class to transferees that take delivery in the form of beneficial
      interests in the Global Certificate, may be made only in accordance with this
      Section 7.02(c) and in accordance with the rules of the Depository:

     

    (i)  In
      the
      case of a beneficial interest in the Global Certificate being transferred to
      an
      Institutional Accredited Investor, such transferee shall be required to take
      delivery in the form of an Individual Certificate or Certificates and the
      Securities Administrator shall register such transfer only upon compliance
      with
      the provisions of Section 7.02(h).

     

    (ii)  In
      the
      case of a beneficial interest in a Class of Global Certificates being
      transferred to a transferee that takes delivery in the form of an Individual
      Certificate or Certificates of such Class, except as set forth in clause (i)
      above, the Securities Administrator shall register such transfer only upon
      compliance with the provisions of Section 7.02(h).

     

    (iii)  In
      the
      case of an Individual Certificate of a Class being transferred to a transferee
      that takes delivery in the form of a beneficial interest in a Global Certificate
      of such Class, the Securities Administrator shall register such transfer if
      the
      transferee has provided the Securities Administrator with a Rule 144A and
      Related Matters Certificate or comparable evidence as to its QIB
      status.

     

    (iv)  No
      restrictions shall apply with respect to the transfer or registration of
      transfer of a beneficial interest in the Global Certificate of a Class to a
      transferee that takes delivery in the form of a beneficial interest in the
      Global Certificate of such Class; provided that each such transferee shall
      be
      deemed to have made such representations and warranties contained in the Rule
      144A and Related Matters Certificate as are sufficient to establish that it
      is a
      QIB.

     

    (d)  Subject
      to Section 7.02(g), an exchange of a beneficial interest in a Global Certificate
      of a Class for an Individual Certificate or Certificates of such Class, an
      exchange of an Individual Certificate or Certificates of a Class for a
      beneficial interest in the Global Certificate of such Class and an exchange
      of
      an Individual Certificate or Certificates of a Class for another Individual
      Certificate or Certificates of such Class (in each case, whether or not such
      exchange is made in anticipation of subsequent transfer, and, in the case of
      the
      Global Certificate of such Class, so long as such Certificate is outstanding
      and
      is held by or on behalf of the Depository) may be made only in accordance with
      this Section 7.02(d) and in accordance with the rules of the
      Depository:

     

    (i)  A
      Holder
      of a beneficial interest in a Global Certificate of a Class may at any time
      exchange such beneficial interest for an Individual Certificate or Certificates
      of such Class.

     

    (ii)  A
      Holder
      of an Individual Certificate or Certificates of a Class may exchange such
      Certificate or Certificates for a beneficial interest in the Global Certificate
      of such Class if such holder furnishes to the Securities Administrator a Rule
      144A and Related Matters Certificate or comparable evidence as to its QIB
      status.

     

    (iii)  A
      Holder
      of an Individual Certificate of a Class may exchange such Certificate for an
      equal aggregate principal amount of Individual Certificates of such Class in
      different authorized denominations without any certification.

     

    (e)  (i)Upon
      acceptance for exchange or transfer of an Individual Certificate of a Class
      for
      a beneficial interest in a Global Certificate of such Class as provided herein,
      the Securities Administrator shall cancel such Individual Certificate and shall
      (or shall request the Depository to) endorse on the schedule affixed to the
      applicable Global Certificate (or on a continuation of such schedule affixed
      to
      the Global Certificate and made a part thereof) or otherwise make in its books
      and records an appropriate notation evidencing the date of such exchange or
      transfer and an increase in the certificate balance of the Global Certificate
      equal to the certificate balance of such Individual Certificate exchanged or
      transferred therefor.

     

    (ii) Upon
      acceptance for exchange or transfer of a beneficial interest in a Global
      Certificate of a Class for an Individual Certificate of such Class as provided
      herein, the Securities Administrator shall (or shall request the Depository
      to)
      endorse on the schedule affixed to such Global Certificate (or on a continuation
      of such schedule affixed to such Global Certificate and made a part thereof)
      or
      otherwise make in its books and records an appropriate notation evidencing
      the
      date of such exchange or transfer and a decrease in the certificate balance
      of
      such Global Certificate equal to the certificate balance of such Individual
      Certificate issued in exchange therefor or upon transfer thereof.

     

    (f)  Any
      Individual Certificate issued in exchange for or upon transfer of another
      Individual Certificate or of a beneficial interest in a Global Certificate
      shall
      bear the applicable legends set forth in Exhibit A-2.

     

    (g)  Subject
      to the restrictions on transfer and exchange set forth in this Section 7.02,
      the
      Holder of any Individual Certificate may transfer or exchange the same in whole
      or in part (in an initial certificate balance equal to the minimum authorized
      denomination set forth in Section 7.01 above or any integral multiple of $1.00
      in excess thereof) by surrendering such Certificate at the Corporate Trust
      Office, or at the office of any transfer agent, together with an executed
      instrument of assignment and transfer satisfactory in form and substance to
      the
      Securities Administrator in the case of transfer and a written request for
      exchange in the case of exchange. The Holder of a beneficial interest in a
      Global Certificate may, subject to the rules and procedures of the Depository,
      cause the Depository (or its nominee) to notify the Securities Administrator
      in
      writing of a request for transfer or exchange of such beneficial interest for
      an
      Individual Certificate or Certificates. Following a proper request for transfer
      or exchange, the Securities Administrator shall, within five Business Days
      of
      such request made at the Corporate Trust Office, sign, countersign and deliver
      at the Corporate Trust Office, to the transferee (in the case of transfer)
      or
      Holder (in the case of exchange) or send by first class mail at the risk of
      the
      transferee (in the case of transfer) or Holder (in the case of exchange) to
      such
      address as the transferee or Holder, as applicable, may request, an Individual
      Certificate or Certificates, as the case may require, for a like aggregate
      Percentage Interest and in such authorized denomination or denominations as
      may
      be requested. The presentation for transfer or exchange of any Individual
      Certificate shall not be valid unless made at the Corporate Trust Office by
      the
      registered Holder in person, or by a duly authorized
      attorney-in-fact.

     

    (h)  No
      Transfer of a Private Certificate shall be made unless such Transfer is made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under the Securities Act and such state securities laws. In the event that
      a
      Transfer is to be made in reliance upon an exemption from the Securities Act
      and
      such laws, in order to assure compliance with the Securities Act and such laws,
      the Certificateholder desiring to effect such Transfer and such
      Certificateholder’s prospective transferee shall each certify to the Trustee and
      the Securities Administrator in writing the facts (or shall be deemed to certify
      in the case of a Book-Entry Certificate) surrounding the Transfer by (x)(i)
      the
      delivery to the Securities Administrator by the Certificateholder desiring
      to
      effect such transfer of a certificate substantially in the form set forth in
      Exhibit D (the “Transferor Certificate”) and (ii) the delivery by the
      Certificateholder’s prospective transferee of (A) a letter in substantially the
      form of Exhibit E (the “Investment Letter”) if the prospective transferee is an
      Institutional Accredited Investor or (B) a letter in substantially the form
      of
      Exhibit F (the “Rule 144A and Related Matters Certificate”) if the prospective
      transferee is a QIB or (y) there shall be delivered to the Trustee and the
      Securities Administrator an Opinion of Counsel addressed to the Trustee and
      the
      Securities Administrator that such Transfer may be made pursuant to an exemption
      from the Securities Act, which Opinion of Counsel shall not be an expense of
      the
      Depositor, the Seller, the Master Servicer, the Securities
      Administrator
      or the
      Trustee; provided,
      however,
      that
      such representation letters will not be required in connection with any transfer
      of any such Certificate by the Depositor to an affiliate of the Depositor and
      the Trustee and the Securities Administrator shall be entitled to conclusively
      rely upon a representation (which, upon the request of the Trustee or the
      Securities Administrator, shall be a written representation) from the Depositor
      of the status of such transferee as an affiliate of the Depositor.
      Notwithstanding the provisions of the immediately preceding sentence, no
      restrictions shall apply with respect to the transfer or registration of
      transfer of a beneficial interest in any Certificate that is a Global
      Certificate of a Class to a transferee that takes delivery in the form of a
      beneficial interest in the Global Certificate of such Class provided that each
      such transferee shall be deemed to have made such representations and warranties
      contained in the Rule 144A and Related Matters Certificate as are sufficient
      to
      establish that it is a QIB. The Securities Administrator shall provide to any
      Holder of a Private Certificate and any prospective transferee designated by
      any
      such Holder, information regarding the Certificates and the Mortgage Loans
      and
      such other information as shall be necessary to satisfy the condition to
      eligibility set forth in Rule 144A(d)(4) for Transfer of any such Certificate
      without registration thereof under the Securities Act pursuant to the
      registration exemption provided by Rule 144A. The Trustee, the Securities
      Administrator and the Master Servicer shall cooperate with the Depositor in
      providing the Rule 144A information referenced in the preceding sentence,
      including providing to the Depositor such information regarding the
      Certificates, the Mortgage Loans and other matters regarding the Trust Fund
      as
      the Depositor shall reasonably request to meet its obligation under the
      preceding sentence. Each Holder of a Private Certificate desiring to effect
      such
      Transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor,
      the Seller, the Securities Administrator and the Master Servicer against any
      liability that may result if the Transfer is not so exempt or is not made in
      accordance with such federal and state laws.

     

    No
      transfer of any Class C Certificate shall be made unless the proposed transferee
      of such Class C Certificate (1) provides to the Securities Administrator the
      appropriate tax certification form that would eliminate any withholding or
      deduction for taxes from amounts payable by the Swap Provider, pursuant to
      the
      Interest Rate Swap Agreement, to the Swap Administrator on behalf of the
      Supplemental Interest Trust (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY,
      W-8EXP or W-8ECI, as applicable (or any successor form thereto), together with
      any applicable attachments) and (2) agrees to update such form (a) upon
      expiration of any such form, (b) as required under then applicable U.S. Treasury
      regulations and (c) promptly upon learning that such form has become obsolete
      or
      incorrect, each as a condition to such transfer. In addition, no transfer of
      any
      Class C Certificate shall be made if such transfer would cause the Supplemental
      Interest Trust to be beneficially owned by two or more persons for federal
      income tax purposes, or continue to be so treated, unless (i) each proposed
      transferee of such Class C Certificate complies with the foregoing conditions
      and (ii) the proposed majority holder of the Class C Certificates (or each
      holder, if there is or would be no majority holder) (A) provides, or causes
      to
      be provided, on behalf of the Supplemental Interest Trust, if applicable, to
      the
      Securities Administrator, the appropriate tax certification form that would
      be
      required from the Supplemental Interest Trust to eliminate any withholding
      or
      deduction for taxes from amounts payable by the Swap Provider, pursuant to
      the
      Interest Rate Swap Agreement, to the Swap Administrator on behalf of the
      Supplemental Interest Trust (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY,
      W-8EXP or W-8ECI, as applicable (or any successor form thereto), together with
      any applicable attachments) and (B) agrees to update such form (x) upon
      expiration of any such form, (y) as required under then applicable U.S. Treasury
      regulations and (z) promptly upon learning that such form has become obsolete
      or
      incorrect. If, under applicable U.S. Treasury regulations, such tax
      certification form may only be signed by a trustee acting on behalf of the
      Supplemental Interest Trust, then the Supplemental Interest Trust Trustee shall
      sign such certification form if so requested by a holder of the Class C
      Certificates. Upon receipt of any tax certification form pursuant to the
      preceding conditions from a holder of any Class C Certificate, the Securities
      Administrator shall forward such tax certification form to the Supplemental
      Interest Trust Trustee. The Supplemental Interest Trust Trustee shall forward
      such tax certification form provided to it to the Swap Provider. Each holder
      of
      a Class C Certificate and each transferee thereof shall be deemed to have
      consented to the Supplemental Interest Trust Trustee forwarding to the Swap
      Provider any tax certification form it has provided and updated in accordance
      with these transfer restrictions.
      Any
      purported sales or transfers of any Class C Certificate to a transferee which
      does not comply with the requirements of this paragraph shall be deemed null
      and
      void under this Agreement.

     

    The
      Securities Administrator shall be entitled to rely conclusively on any
      certificate required by this Section 7.02 to be executed in connection with
      the
      transfer of any Certificate, and shall be entitled to presume conclusively
      the
      continuing accuracy thereof from time to time, in each case without further
      inquiry or investigation.

     

    The
      Securities Administrator shall not be responsible for ascertaining whether
      any
      transfer complies with, or for otherwise monitoring or determining compliance
      with, the requirements or terms of the 1933 Act, applicable state securities
      laws, ERISA or the Code; except that if a Certificate is required by the terms
      of this Section 7.02 to be provided to the Securities Administrator by a
      prospective transferor or transferee, the Securities Administrator shall examine
      the same to determine whether it conforms substantially on its face to the
      applicable requirements of this Section 7.02 and that if an opinion of counsel
      is provided, the Securities Administrator shall examine the same to determine
      whether it meets the requirements hereof.

     

    No
      Transfer of an ERISA Restricted Certificate or Class B-4 Certificate shall
      be
      made at any time unless either (i) the transferee of such Certificate provides
      a
      representation, or is deemed to represent in the case of a Global Certificate,
      to the Securities Administrator acceptable to and in form and substance
      satisfactory to the Securities Administrator to the effect that such transferee
      is not a Plan, or a Person acting on behalf of a Plan or using the assets of
      a
      Plan, or (ii) in the case of any such Certificate presented for registration
      in
      the name of a Plan, or a trustee of a Plan or any other person acting on behalf
      of a Plan, the Securities Administrator shall have received an Opinion of
      Counsel for the benefit of the Trustee, the Securities Administrator and the
      Master Servicer and on which they may rely, satisfactory to the Securities
      Administrator, to the effect that the purchase and holding of such Certificate
      are permissible under applicable law, will not result in any prohibited
      transactions under ERISA or Section 4975 of the Code and will not subject the
      Trustee, the Securities Administrator, the Master Servicer or the Depositor
      to
      any obligation in addition to those expressly undertaken in this Agreement,
      which Opinion of Counsel shall not be an expense of the Trustee, the Securities
      Administrator, the Master Servicer or the Depositor, or (iii) in the case of
      a
      Class B-4 Certificate, the transferee provides a representation, or is deemed
      to
      represent in the case of the Global Certificate, or an opinion of counsel to
      the
      effect that the proposed transfer or holding of such Class B-4 Certificate
      and
      the servicing, management and operation of the Trust and its assets: (I) will
      not result in any prohibited transaction which is not covered under a prohibited
      transaction class exemption (“PTCE”), including but not limited to PTCE 84-14,
      PTCE 91-38, PTCE 90-1, PTCE 95-60 or PTCE 96-23 and (II) will not give rise
      to
      any obligation on the part of the Depositor, the Master Servicer, the Securities
      Administrator or the Trustee in addition to those expressly undertaken in this
      Agreement. Notwithstanding anything else to the contrary herein, any purported
      transfer of an ERISA Restricted Certificate to or on behalf of a Plan without
      the delivery of the Opinion of Counsel as described above shall be void and
      of
      no effect; provided that the restriction set forth in this sentence shall not
      be
      applicable if there has been delivered to the Trustee and the Securities
      Administrator an Opinion of Counsel meeting the requirements of clause (ii)
      of
      the first sentence of this paragraph. Neither the Trustee, the Securities
      Administrator nor the Master Servicer shall be required to monitor, determine
      or
      inquire as to compliance with the transfer restrictions with respect to any
      ERISA Restricted Certificate that is a Book-Entry Certificate, and neither
      the
      Trustee nor the Master Servicer shall have any liability for transfers of any
      such Book-Entry Certificates made through the book-entry facilities of any
      Depository or between or among participants of the Depository or Certificate
      Owners made in violation of the transfer restrictions set forth herein. Neither
      the Trustee, the Securities Administrator nor the Master Servicer shall be
      under
      any liability to any Person for any registration of transfer of any ERISA
      Restricted Certificate that is in fact not permitted by this Section 7.02(h)
      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.

     

    Prior
      to
      the termination of the related Supplemental Interest Trust, no Transfer of
      a
      related Class A Certificate shall be made unless either (i) the Securities
      Administrator shall have received a representation from the transferee of
      such Certificate acceptable to and in form and substance satisfactory to the
      Securities Administrator, or is deemed to represent in the case of a Global
      Certificate, that such transferee is not an employee benefit plan subject to
      Section 406 of ERISA or a plan subject to Section 4975 of the Code (either
      a
      "Plan"), or a Person acting on behalf of a Plan or using the assets a Plan,
      or
      (ii) the transferee provides a representation, or is deemed to represent in
      the
      case of the Global Certificate that (A) such plan is an accredited investor
      within the meaning of the Exemption and (B) the proposed transfer or holding
      of
      such Certificate are eligible for exemptive relief under PTCE 84-14, PTCE 91-38,
      PTCE 90-1, PTCE 95-60 or PTCE 96-23. 

     

    Each
      beneficial owner of a related Class M or Class B Certificate (other than a
      Class B-4 Certificate) or any interest therein shall be deemed to have
      represented, by virtue of its acquisition or holding of that certificate or
      interest therein, that either (i) it is not a Plan or investing with "Plan
      Assets" or (ii) (1) it is an insurance company, (2) the source of funds used
      to
      acquire or hold the certificate or interest therein is an "insurance company
      general account," as such term is defined in PTCE 95-60, and (3) the conditions
      in Section I of PTCE 95-60 have been satisfied.

     

    Neither
      the Trustee, the Securities Administrator nor the Master Servicer will be
      required to monitor, determine or inquire as to compliance with the transfer
      restrictions with respect to the Global Certificates. Any attempted or purported
      transfer of any Certificate in violation of the provisions of this Section
      7.02
      shall be void ab initio and such Certificate shall be considered to have been
      held continuously by the prior permitted Certificateholder. Any transferor
      of
      any Certificate in violation of such provisions, shall indemnify and hold
      harmless the Trustee, the Securities Administrator and the Master Servicer
      from
      and against any and all liabilities, claims, costs or expenses incurred by
      the
      Trustee, the Securities Administrator or the Master Servicer as a result of
      such
      attempted or purported transfer. Neither the Securities Administrator shall
      have
      any liability for transfer of any such Global Certificates in or through
      book-entry facilities of any Depository or between or among Depository
      Participants or Certificate Owners made in violation of the transfer
      restrictions set forth herein. The Securities Administrator shall be entitled,
      but not obligated, to recover from any Holder of any ERISA Restricted
      Certificate that was in fact a Plan or a Person acting on behalf of a Plan
      at
      the time it became a Holder or, at such subsequent time as it became a Plan
      or
      Person acting on behalf of a Plan, all payments made on such ERISA Restricted
      Certificate at and after either such time. Any such payments so recovered by
      the
      Securities Administrator shall be paid and delivered by the Securities
      Administrator to the last preceding Holder of such Certificate that is not
      a
      Plan or Person acting on behalf of a Plan.

     

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

     

    (i)  Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Securities
      Administrator
      of any
      change or impending change in its status as a Permitted Transferee.

     

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

     

    (iii)  Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (A) to obtain a Transfer Affidavit from any other Person to whom
      such Person attempts to Transfer its Ownership Interest in a Residual
      Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such
      Person is acting as nominee, trustee or agent in connection with any Transfer
      of
      a Residual Certificate and (C) not to Transfer its Ownership Interest in a
      Residual Certificate or to cause the Transfer of an Ownership Interest in a
      Residual Certificate to any other Person if it has actual knowledge that such
      Person is not a Permitted Transferee.

     

    (iv)  Any
      attempted or purported Transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section 7.02(i) shall be
      absolutely null and void and shall vest no rights in the purported Transferee.
      If any purported transferee shall become a Holder of a Residual Certificate
      in
      violation of the provisions of this Section 7.02(i), then the last preceding
      Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of registration of Transfer of such Residual
      Certificate. Neither the Securities Administrator nor the Trustee shall be
      under
      liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by Section 7.02(h) and this Section
      7.02(i) or for making any payments due on such Certificate to the Holder thereof
      or taking any other action with respect to such Holder under the provisions
      of
      this Agreement so long as the Transfer was registered after receipt of the
      related Transfer Affidavit. The Securities Administrator shall be entitled
      but
      not obligated to recover from any Holder of a Residual Certificate that was
      in
      fact not a Permitted Transferee at the time it became a Holder or, at such
      subsequent time as it became other than a Permitted Transferee, all payments
      made on such Residual Certificate at and after either such time. Any such
      payments so recovered by the Securities
      Administrator
      shall be
      paid and delivered by the Securities Administrator to the last preceding
      Permitted Transferee of such Certificate.

     

    (v)  The
      Master Servicer shall make available within 60 days of written request from
      the
Securities
      Administrator,
      all
      information necessary to compute any tax imposed under Section 860E(e) of the
      Code as a result of a Transfer of an Ownership Interest in a Residual
      Certificate to any Holder who is not a Permitted Transferee.

     

    The
      restrictions on Transfers of a Residual Certificate set forth in this Section
      7.02(i) shall cease to apply (and the applicable portions of the legend on
      a
      Residual Certificate may be deleted) with respect to Transfers occurring after
      delivery to the Securities Administrator of an Opinion of Counsel addressed
      to
      the Securities Administrator, which Opinion of Counsel shall not be an expense
      of the Trustee, the Securities Administrator, the Seller or the Master Servicer
      to the effect that the elimination of such restrictions, or any Transfer of
      a
      Residual Certificate allowed by such elimination, will not cause REMIC I, REMIC
      II, REMIC III, REMIC IV or REMIC V, as applicable, to fail to qualify as a
      REMIC
      at any time that the Certificates are outstanding or result in the imposition
      of
      any tax on the Trust Fund, a Certificateholder or another Person. Each Person
      holding or acquiring any Ownership Interest in a Residual Certificate hereby
      consents to any amendment of this Agreement that, based on an Opinion of Counsel
      addressed to the Securities Administrator and furnished to the Securities
      Administrator, is reasonably necessary (a) to ensure that the record ownership
      of, or any beneficial interest in, a Residual Certificate is not transferred,
      directly or indirectly, to a Person that is not a Permitted Transferee and
      (b)
      to provide for a means to compel the Transfer of a Residual Certificate that
      is
      held by a Person that is not a Permitted Transferee to a Holder that is a
      Permitted Transferee.

     

    (j)  The
      preparation and delivery of all certificates and opinions referred to above
      in
      this Section 7.02 shall not be an expense of the Trust Fund, the Trustee, the
      Depositor, the Seller, the Securities
      Administrator
      or the
      Master Servicer.

     

    Section
      7.03  Mutilated,
      Destroyed, Lost or Stolen Certificates. 

     

    If
      (a) any mutilated Certificate is surrendered to the Securities Administrator,
      or
      the Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof
      and
      (b) there is delivered to the Securities Administrator such security or
      indemnity as may be required by them to save the Securities Administrator and
      the Trustee harmless, then, in the absence of notice to the Securities
      Administrator that such Certificate has been acquired by a bona fide purchaser,
      the Securities Administrator shall execute, authenticate and deliver, in
      exchange for or in lieu of any such mutilated, destroyed, lost or stolen
      Certificate, a new Certificate of like Class, tenor and Percentage Interest.
      In
      connection with the issuance of any new Certificate under this Section 7.03,
      the
      Securities Administrator 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 Securities
      Administrator) connected therewith. Any replacement Certificate issued pursuant
      to this Section 7.03 shall constitute complete and indefeasible evidence of
      ownership in the Trust Fund, as if originally issued, whether or not the lost,
      stolen or destroyed Certificate shall be found at any time. All Certificates
      surrendered to the Securities Administrator under the terms of this Section
      7.03
      shall be canceled and destroyed by the Securities Administrator in accordance
      with its standard procedures without liability on its part.

     

    Section
      7.04  Persons
      Deemed Owners. 

     

    The
      Securities Administrator, the Trustee and any agent of the Securities
      Administrator, the Trustee may treat the person in whose name any Certificate
      is
      registered as the owner of such Certificate for the purpose of receiving
      distributions as provided in this Agreement and for all other purposes
      whatsoever, and neither the Securities Administrator, the Trustee, nor any
      agent
      of the Securities Administrator or the Trustee shall be affected by any notice
      to the contrary.

     

    Section
      7.05  Access
      to
      List of Certificateholders’ Names and Addresses. 

     

    If
      three or more Certificateholders, or in the case of Book-Entry Certificates,
      Certificate Owners (a) request such information in writing from the Securities
      Administrator, (b) state that such Certificateholders or Certificate Owners
      desire to communicate with other Certificateholders or Certificate Owners with
      respect to their rights under this Agreement or under the Certificates, and
      (c)
      provide a copy of the communication that such Certificateholders or Certificate
      Owners propose to transmit or if the Depositor or the Master Servicer shall
      request such information in writing from the Securities Administrator, then
      the
      Securities Administrator shall, within ten Business Days after the receipt
      of
      such request, provide the Depositor, the Master Servicer or such
      Certificateholders or Certificate Owners at such recipients’ expense the most
      recent list of the Certificateholders of the Trust Fund held by the Securities
      Administrator, if any. The Depositor and every Certificateholder and Certificate
      Owner, by receiving and holding a Certificate, agree that the Securities
      Administrator shall not be held accountable by reason of the disclosure of
      any
      such information as to the list of the Certificateholders hereunder, regardless
      of the source from which such information was derived.

     

    Section
      7.06  Book-Entry
      Certificates. 

     

    The
      Regular Certificates (other than the Class C Certificates), upon original
      issuance, shall be issued in the form of one or more typewritten Certificates
      representing the Book-Entry Certificates, to be delivered to the Depository
      by
      or on behalf of the Depositor. Such Certificates shall initially be registered
      on the Certificate Register in the name of the Depository or its nominee, and
      no
      Certificate Owner of such Certificates will receive a definitive certificate
      representing such Certificate Owner’s interest in such Certificates, except as
      provided in Section 7.08. Unless and until definitive, fully registered
      Certificates (“Definitive Certificates”) have been issued to the Certificate
      Owners of such Certificates pursuant to Section 7.08:

     

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

     

    (b)  the
      Depositor, the Securities
      Administrator
      and the
      Trustee may deal with the Depository and the Depository Participants for all
      purposes (including the making of distributions) as the authorized
      representative of the respective Certificate Owners of such
      Certificates;

     

    (c)  registration
      of the Book-Entry Certificates may not be transferred by the Securities
      Administrator except to another Depository;

     

    (d)  the
      rights of the respective Certificate Owners of such Certificates shall be
      exercised only through the Depository and the Depository Participants and shall
      be limited to those established by law and agreements between the Owners of
      such
      Certificates and the Depository and/or the Depository Participants. Pursuant
      to
      the Depository Agreement, unless and until Definitive Certificates are issued
      pursuant to Section 7.08, the Depository will make book-entry transfers among
      the Depository Participants and receive and transmit distributions of principal
      and interest on the related Certificates to such Depository
      Participants;

     

    (e)  the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants;

     

    (f)  the
      Securities
      Administrator
      may rely
      and shall be fully protected in relying upon information furnished by the
      Depository with respect to its Depository Participants; and

     

    (g)  to
      the
      extent that the provisions of this Section conflict with any other provisions
      of
      this Agreement, the provisions of this Section shall control.

     

    For
      purposes of any provision of this Agreement requiring or permitting actions
      with
      the consent of, or at the direction of, Certificateholders evidencing a
      specified percentage of the aggregate unpaid principal amount of any Class
      of
      Certificates, such direction or consent may be given by Certificate Owners
      (acting through the Depository and the Depository Participants) owning
      Book-Entry Certificates evidencing the requisite percentage of principal amount
      of such Class of Certificates.

     

    The
      Private Certificates shall initially be held in fully registered certificated
      form. If at any time the Holders of all of the Certificates of one or more
      such
      Classes request that the Securities Administrator cause such Class to become
      Global Certificates, the Depositor (with the assistance of the Securities
      Administrator) will take such action as may be reasonably required to cause
      the
      Depository to accept such Class or Classes for trading if it may legally be
      so
      traded. If at anytime there are to be Global Certificates, the Global
      Certificates shall be delivered to the Depository by the Depositor or deposited
      with the Securities Administrator as custodian for the Depository.

     

    All
      transfers by Certificate Owners of such respective Classes of Book-Entry
      Certificates and any Global 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 it represents or of
      brokerage firms for which it acts as agent in accordance with the Depository’s
      normal procedures.

     

    Section
      7.07  Notices
      to Depository. 

     

    Whenever
      any notice or other communication is required to be given to Certificateholders
      of a Class with respect to which Book-Entry Certificates have been issued,
      unless and until Definitive Certificates shall have been issued to the related
      Certificate Owners, the Securities Administrator shall give all such notices
      and
      communications to the Depository.

     

    Section
      7.08  Definitive
      Certificates. 

     

    If,
      after
      Book-Entry Certificates have been issued with respect to any Certificates,
      (a)
      the Depositor or the Depository advises the Securities Administrator that the
      Depository is no longer willing or able to discharge properly its
      responsibilities under the Depository Agreement with respect to such
      Certificates and the Depositor is unable to locate a qualified successor or
      (b)
      the Depositor, with the consent of Depository Participants, advises the
      Securities Administrator that it elects to terminate the book-entry system
      with
      respect to such Certificates through the Depository, then the Securities
      Administrator shall notify all Certificate Owners of such Certificates, through
      the Depository, of the occurrence of any such event and of the availability
      of
      Definitive Certificates to applicable Certificate Owners requesting the same.
      The Depositor shall provide the Securities Administrator with an adequate
      inventory of certificates to facilitate the issuance and transfer of Definitive
      Certificates. Upon surrender to the Securities Administrator of any such
      Certificates by the Depository, accompanied by registration instructions from
      the Depository for registration, the Securities Administrator shall countersign
      and deliver such Definitive Certificates. Neither the Depositor nor the
      Securities Administrator shall be liable for any delay in delivery of such
      instructions and each may conclusively rely on, and shall be protected in
      relying on, such instructions. 

     

    In
      addition, if an Event of Default has occurred and is continuing, each
      Certificate Owner materially adversely affected thereby may at its option
      request a Definitive Certificate evidencing such Certificate Owner’s Voting
      Rights in the related Class of Certificates. In order to make such request,
      such
      Certificate Owner shall, subject to the rules and procedures of the Depository,
      provide the Depository or the related Depository Participant with directions
      for
      the Securities Administrator to exchange or cause the exchange of the
      Certificate Owner’s interest in such Class of Certificates for an equivalent
      Voting Right in fully registered definitive form. Upon receipt by the Securities
      Administrator of instructions from the Depository directing the Securities
      Administrator to effect such exchange (such instructions to contain information
      regarding the Class of Certificates and the Certificate Principal Balance being
      exchanged, the Depository Participant account to be debited with the decrease,
      the registered holder of and delivery instructions for the definitive
      Certificate, and any other information reasonably required by the Securities
      Administrator), (i) the Securities Administrator shall instruct the Depository
      to reduce the related Depository Participant’s account by the aggregate
      Certificate Principal Balance of the definitive Certificate, (ii) the Securities
      Administrator shall execute, authenticate and deliver, in accordance with the
      registration and delivery instructions provided by the Depository, a definitive
      Certificate evidencing such Certificate Owner’s Voting Rights in such Class of
      Certificates and (iii) the Securities Administrator shall execute and
      authenticate a new Book-Entry Certificate reflecting the reduction in the
      Certificate Principal Balance of such Class of Certificates by the amount of
      the
      definitive Certificates.

     

    Section
      7.09  Maintenance
      of Office or Agency. 

     

    The
      Securities Administrator will maintain or cause to be maintained at its expense
      an office or offices or agency or agencies located at Wells Fargo Bank, National
      Association, Sixth Street and Marquette Avenue, Minneapolis, Minnesota
      55479,
      Attn: Corporate Trust Services - SACO 07-1,
      where
      Certificates may be surrendered for registration of transfer or exchange. The
      Securities Administrator initially designates its Corporate Trust Office, as
      the
      office for such purposes. The Securities Administrator will give prompt written
      notice to the Certificateholders of any change in such location of any such
      office or agency.

    

    ARTICLE
      VIII

    THE
      DEPOSITOR, THE COMPANY AND THE MASTER SERVICER

     

    Section
      8.01  Liabilities
      of the Depositor, the Company and the Master Servicer. 

     

    Each
      of
      the Depositor, the Company and 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
      8.02  Merger
      or
      Consolidation of the Depositor, the Company or the Master Servicer. 

     

    (a)  Each
      of
      the Depositor, the Company and the Master Servicer will keep in full force
      and
      effect its existence, rights and franchises as a limited liability company
      under
      the laws of the state of its formation, a corporation under the laws of the
      state of its incorporation or as a national banking association under federal
      law, as applicable, 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 Depositor, the Company or the Master Servicer may be
      merged or consolidated, or any corporation resulting from any merger or
      consolidation to which the Depositor, the Company or the Master Servicer shall
      be a party, or any Person succeeding to the business of the Depositor, the
      Company or the Master Servicer, shall be the successor of the Depositor, the
      Company or 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.

     

    Section
      8.03  Indemnification
      of the Trustee, the Master Servicer and the Securities
      Administrator.

     

    (a)  The
      Master Servicer agrees to indemnify the Indemnified Persons for, and to hold
      them harmless against, any loss, liability or expense (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, any claim or
      legal
      action (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 its 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), the affected Indemnified Person shall have given the Master
      Servicer and EMC written notice thereof promptly after such Person shall have
      with respect to such claim or legal action knowledge thereof; provided, however
      that the failure to give such notice shall not relieve the Master Servicer
      of
      its indemnification obligations hereunder except to the extent the Master
      Servicer is prejudiced thereby. This indemnity shall survive the resignation
      or
      removal of the Trustee, Master Servicer or the Securities Administrator and
      the
      termination of this Agreement.

     

    (b)  The
      Company agrees to indemnify the Indemnified Persons and to hold them harmless
      from and against any and all claims, losses, damages, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      fees
      and expenses that the Indemnified Persons may sustain in any way related to
      (i)
      the failure of the Company to perform in any way its duties hereunder and
      service the EMC Mortgage Loans in strict compliance with the terms of this
      Agreement, (ii) breach of any representation or warranty of the Company
      contained herein or (iii) incurred by reason of the Company’s willful
      misfeasance, bad faith or negligence in the performance of its duties hereunder
      or by reason of reckless disregard of its obligations and duties hereunder.
      The
      Company shall immediately notify the Master Servicer and the Trustee if a claim
      is made by a third party with respect to this Agreement or the EMC Mortgage
      Loans, assume (with the consent of the Master Servicer and the Trustee and
      with
      counsel reasonably satisfactory to the Master Servicer and the Trustee) the
      defense of any such claim and pay all expenses in connection therewith,
      including counsel fees, and promptly pay, discharge and satisfy any judgment
      or
      decree which may be entered against it or any Indemnified Person in respect
      of
      such claim but failure of the Company to give such notice shall not limit its
      obligations hereunder. The Company agrees that it will not enter into any
      settlement of any such claim without the consent of the Indemnified Persons
      unless such settlement includes an unconditional release of such Indemnified
      Persons from all liability that is the subject matter of such claim. The
      provisions of this Section 8.03(b) shall survive termination of this
      Agreement.

     

    (c)  EMC
      will
      indemnify any Indemnified Person for any loss, liability or expense of any
      Indemnified Person not otherwise paid or covered pursuant to subsection (b)
      above. Such indemnification shall survive termination of this
      Agreement.

     

    Section
      8.04  Limitations
      on Liability of the Depositor, the Company, the Master Servicer and
      Others. 

     

    (a)  Subject
      to the obligation of the Company and the Master Servicer to indemnify the
      Indemnified Persons pursuant to Section 8.03, neither the Depositor, the
      Company, the Master Servicer nor any of the directors, officers, employees
      or
      agents of the Depositor, the Company and the Master Servicer shall be under
      any
      liability to the Indemnified Persons, the Trust Fund 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 Depositor, the Company, 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
      Depositor, the Company, the Master Servicer and the Securities Administrator
      and
      any of their respective directors, officers, employees or agents 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
      Depositor, the Company, the Master Servicer, the Securities Administrator,
      the
      Trustee, each Custodian and any director, officer, employee or agent of the
      Depositor, the Company, the Master Servicer, the Securities Administrator,
      the
      Trustee and each Custodian shall be indemnified by the Trust and held harmless
      thereby against any loss, liability or expense (including reasonable legal
      fees
      and disbursements of counsel) incurred on their part that may be sustained
      in
      connection with, arising out of, or related to, any claim or legal action
      (including any pending or threatened claim or legal action) relating to, or
      the
      performance of their obligations under, this Agreement, the GMACM Assignment
      Agreement, the Custodial Agreements, the Certificates or the applicable
      Servicing Agreement, other than (i) in the case of the Company, the Master
      Servicer or the Securities Administrator, any such loss, liability or expense
      related to the Company’s or the Master Servicer’s or Securities Administrator’s
      failure to perform its respective duties in compliance with this Agreement
      or
      (ii) in the case of the Company, the Master Servicer or the Securities
      Administrator, any such loss, liability or expense incurred by reason of the
      Company’s or the Master Servicer’s or the Securities Administrator’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 or under the Custodial Agreement, as applicable, (iii) in the case
      of
      the Trustee, any such loss, liability or expense incurred by reason of the
      Trustee’s willful misfeasance, bad faith or negligence in the performance of its
      duties hereunder, or by reason of its reckless disregard of obligations and
      duties hereunder and (iv) in the case of either Custodian, any such loss,
      liability or expense incurred by reason of such Custodian’s willful misfeasance,
      bad faith or negligence in the performance of its duties under the related
      Custodial Agreement, or by reason of its reckless disregard of obligations
      and
      duties thereunder. Such indemnification shall survive termination of this
      Agreement.

     

    (d)  None
      of
      the Depositor, the Company, the Master Servicer or the Securities Administrator
      shall 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 Certificateholders
      hereunder. In such event, the legal expenses and costs of such action and any
      liability resulting therefrom (except any loss, liability or expense incurred
      by
      reason of willful misfeasance, bad faith or negligence in the performance of
      duties hereunder or by reason of reckless disregard of obligations and duties
      hereunder) shall be expenses, costs and liabilities of the Trust Fund, and
      the
      Master Servicer shall be entitled to be reimbursed therefor out of the
      Distribution Account as provided by Section 5.06. Nothing in this Subsection
      8.04(d) shall affect the Master Servicer’s obligation to master service the
      Mortgage Loans pursuant to Section 4.01.

     

    (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.

     

    (f)  The
      Master Servicer shall not be liable for any acts or omissions of the Company
      or
      the related Servicer.

     

    (g)  The
      Master Servicer may perform any of its duties hereunder or exercise its rights
      hereunder either directly of through Affiliates, agents or
      attorneys.

     

    Section
      8.05  Master
      Servicer and Company Not to Resign.

     

    (a)  Except
      as
      provided in Section 8.07, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except (i) with the prior consent
      of
      the Trustee (which
      consent shall not be unreasonably withheld or delayed)
      or (ii)
      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 Opinion of Counsel, addressed to and 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 9.02 hereof. The Trustee shall notify each
      Rating Agency of the resignation of the Master Servicer.

     

    (b)  The
      Company shall not resign from the obligations and duties hereby imposed on
      it
      except (i) upon the assignment of its servicing duties with respect to all
      or a
      portion of the EMC Mortgage Loans to an institution that is a Fannie Mae and
      Freddie Mac approved seller/servicer in good standing that has a net worth
      of
      not less than $15,000,000 and with the prior written consent of the Master
      Servicer (which consent shall not be unreasonably withheld or delayed) or (ii)
      upon the determination that its duties hereunder are no longer permissible
      under
      applicable law and such incapacity cannot be cured by the Company. Any
      determination permitting the resignation of the Company shall be evidenced
      by an
      Opinion of Counsel to such effect addressed to and delivered, to the Master
      Servicer and the Trustee which Opinion of Counsel shall be in form and substance
      acceptable to the Master Servicer and the Trustee. No appointment of a successor
      to the Company shall be effective hereunder unless (a) the Rating Agencies
      have
      confirmed in writing that such appointment will not result in a downgrade,
      qualification or withdrawal of the then current ratings assigned to the
      Certificates, (b) such successor shall have represented that it is meets the
      eligibility criteria set forth in clause (i) above, and (c) such successor
      has
      agreed to assume the obligations of the Company hereunder to the extent of
      the
      EMC Mortgage Loans to be serviced by such successor. The Company shall provide
      a
      copy of the written confirmation of the Rating Agencies and the agreement
      executed by such successor to the Master Servicer and the Trustee. No such
      resignation shall become effective until a qualified successor or the Master
      Servicer shall have assumed the Company’s responsibilities and obligations
      hereunder. The Company shall notify the Master Servicer, the Trustee and the
      Rating Agencies of the resignation of the Company or the assignment of all
      or a
      portion of its servicing duties hereunder in accordance with this Section
      8.05.

     

    Section
      8.06  Successor
      Master Servicer.

     

    In
      connection with the appointment of any Successor Master Servicer or the
      assumption of the duties of the Master Servicer, EMC or the Trustee may make
      such arrangements for the compensation of such Successor Master Servicer out
      of
      payments on the Mortgage Loans as EMC or the Trustee and such Successor Master
      Servicer shall agree. If the Successor Master Servicer does not agree that
      such
      market value is a fair price, such Successor Master Servicer shall obtain two
      quotations of market value from third parties actively engaged in the servicing
      of single-family mortgage loans. In no event shall the compensation of any
      Successor Master Servicer exceed that permitted the Master Servicer hereunder
      without the consent of all of the Certificateholders.

     

    Section
      8.07  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 and EMC
      may terminate the Master Servicer without cause and select a new Master
      Servicer; provided, however, 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 $15,000,000 (unless otherwise approved by each Rating Agency
      pursuant to clause (ii) below) and meets the eligibility requirements herein
      to
      serve as Master Servicer and Securities Administrator; (c) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by 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
      responsibility, covenant and condition of the Master Servicer and the Securities
      Administrator under this Agreement and each Custodial Agreement from and after
      the effective date of such assumption 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 rating 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, the Securities Administrator and the Trustee; (iii) the Master
      Servicer assigning and selling the master servicing shall deliver to the Trustee
      an Officer’s Certificate and an Opinion of Counsel addressed to the Trustee,
      each stating that all conditions precedent to such action under this Agreement
      have been satisfied and such action is permitted by and complies with the terms
      of this Agreement; and (iv) in the event the Master Servicer is terminated
      without cause by EMC, EMC shall pay, from its own funds and without any right
      of
      reimbursement, the terminated Master Servicer a termination fee equal to 0.25%
      of the aggregate Stated Principal Balance of the Mortgage Loans at the time
      the
      master servicing of the Mortgage Loans is transferred to the successor Master
      Servicer. No such assignment or delegation shall affect any liability of the
      Master Servicer arising prior to the effective date thereof.

     

    

    ARTICLE
      IX

    DEFAULT;
      TERMINATION OF MASTER SERVICER; TERMINATION OF COMPANY

     

    Section
      9.01  Events
      of
      Default. 

     

    “Event
      of Default,” wherever used herein, means any one of the following
      events:

     

    (i)  any
      failure by the Master Servicer to remit to the Securities Administrator any
      amounts received or collected by the Master Servicer in respect of the Mortgage
      Loans and required to be remitted by it hereunder (other than any Advance),
      which failure shall continue unremedied for one Business Day after the date
      on
      which written notice of such failure shall have been given to the Master
      Servicer by the Trustee or the Depositor, or to the Trustee and the Master
      Servicer by the Holders of Certificates evidencing not less than 25% of the
      Voting Rights evidenced by the Certificates; or

     

    (ii)  other
      than with respect to clause (viii) below, any failure by the Master Servicer
      to
      observe or perform in any material respect any other of the covenants or
      agreements on the part of the Master Servicer contained in this Agreement or
      any
      breach of a representation or warranty by the Master Servicer, which failure
      or
      breach shall continue unremedied for a period of 60 days after the date on
      which
      written notice of such failure shall have been given to the Master Servicer
      by
      the Trustee or the Depositor, or to the Trustee and the Master Servicer by
      the
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      evidenced by the Certificates; or

     

    (iii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises for the appointment of a receiver or liquidator 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 or unstayed for a period of 60 consecutive days;
      or

     

    (iv)  the
      Master Servicer shall consent to the appointment of a receiver or liquidator
      in
      any insolvency, readjustment of debt, marshalling of assets and liabilities
      or
      similar proceedings of or relating to the Master Servicer or all or
      substantially all of the property of the Master Servicer; or

     

    (v)  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, or commence a
      voluntary case under, any applicable insolvency or reorganization statute,
      make
      an assignment for the benefit of its creditors, or voluntarily suspend payment
      of its obligations; or

     

    (vi)  the
      Master Servicer assigns or delegates its duties or rights under this Agreement
      in contravention of the provisions permitting such assignment or delegation
      under Sections 8.05 or 8.07;

     

    (vii)  The
      Master Servicer fails to deposit or cause to be deposited in the Distribution
      Account any Advance required to be made by the Master Servicer (other than
      a
      Nonrecoverable Advance) by 5:00 p.m. New York City time on the first Business
      Day preceding the Distribution Date; or

     

    (viii)  failure
      by the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 3.16, 3.17 or 3.18.

     

    If
      an Event of Default shall occur, then, and in each and every such case, so
      long
      as such Event of Default shall not have been remedied, the Trustee may, and
      at
      the written direction of the Holders of Certificates evidencing not less than
      25% of the Voting Rights evidenced by the Certificates the Trustee shall in
      the
      case of any Event of Default described in clauses (i) through (vi) and clause
      (viii) above, by notice in writing to the Master Servicer and the Swap Provider,
      with a copy to each
      Rating
      Agency may,
      terminate all of the rights and obligations (but not the liabilities) of the
      Master Servicer (and the Securities Administrator if the Master Servicer and
      the
      Securities Administrator are the same entity) under this Agreement and in and
      to
      the Mortgage Loans and the proceeds thereof, other than its rights as a
      Certificateholder hereunder. Notwithstanding
      anything to the contrary contained in this Agreement, the Trustee shall only
      terminate the Master Servicer for an Event of Default as described in clause
      (viii) above upon direction from the Depositor. On
      or after the receipt by the Master Servicer of such written notice, all
      authority and power of the Master Servicer (and, if applicable, the Securities
      Administrator) hereunder, whether with respect to the Mortgage Loans or
      otherwise, shall pass to and be vested in the Trustee, or any Successor Master
      Servicer appointed pursuant to Section 9.02 (a “Successor Master Servicer” and,
      if applicable, “Successor Securities Administrator”). Such Successor Master
      Servicer shall thereupon if such Successor Master Servicer is a successor to
      the
      Master Servicer, make any Advance required by Article IV, subject, in the case
      of the Trustee, to Section 9.02. The Trustee is hereby authorized and empowered
      to execute and deliver, on behalf of the terminated Master Servicer and, if
      applicable, the terminated Securities Administrator, 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 or
      assignment of any Mortgage Loans and related documents, or otherwise. Unless
      expressly provided in such written notice, no such termination shall affect
      any
      obligation of the Master Servicer to pay amounts owed pursuant to Article VIII
      or Article X. The Master Servicer and, if applicable, the Securities
      Administrator agrees to cooperate with the Trustee in effecting the termination
      of the Master Servicer’s and, if applicable, the Securities Administrator’s
      responsibilities and rights hereunder, including, without limitation, the
      transfer to the applicable Successor Master Servicer of all cash amounts which
      shall at the time be credited to the Distribution Account maintained pursuant
      to
      Section 5.06, or thereafter be received with respect to the applicable Mortgage
      Loans. The Trustee shall promptly notify each
      Rating
      Agency
      of the occurrence of an Event of Default actually
      known to a Responsible Officer of the Trustee.
      The Securities Administrator shall promptly notify the Trustee in writing of
      the
      occurrence of an Event of Default under clauses (i) or (vii) above.

     

    Notwithstanding
      any termination of the activities of the Master Servicer hereunder, the Master
      Servicer shall be entitled to receive, out of any late collection of a Scheduled
      Payment on a Mortgage Loan that was due prior to the notice terminating the
      Master Servicer’s rights and obligations as Master Servicer hereunder and
      received after such notice, that portion thereof to which the Master Servicer
      would have been entitled pursuant to Section 5.02 and to receive any other
      amounts payable to the Master Servicer hereunder the entitlement to which arose
      prior to the termination of its activities hereunder.

     

    Notwithstanding
      the foregoing, if an Event of Default described in clause (vii) of this Section
      9.01 shall occur, the Trustee shall, at the direction of the Depositor, by
      notice in writing to the Master Servicer, which may be delivered by telecopy,
      immediately terminate 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 Holder of the Certificates or to reimbursement of monthly Advances
      and other advances of its own funds, and the Trustee shall act as provided
      in
      Section 9.02 to carry out the duties of the Master Servicer, including the
      obligation to make any monthly Advance the nonpayment of which was an Event
      of
      Default described in clause (vii) of this Section 9.01. Any such action taken
      by
      the Trustee must be prior to the distribution on the relevant Distribution
      Date.

     

    Section
      9.02  Trustee
      to Act; Appointment of Successor. 

     

    On
      and after the time the Master Servicer receives a notice of termination pursuant
      to Section 9.01 hereof the Trustee shall automatically become the successor
      to
      the Master Servicer with respect to the transactions set forth or provided
      for
      herein and after a transition period (not to exceed 90 days), shall be subject
      to all the responsibilities, duties and liabilities relating thereto placed
      on
      the Master Servicer by the terms and provisions hereof; provided, however,
      that
      the
      Company shall have the right to either (a) immediately assume the duties of
      the
      Master Servicer or (b) select a Successor Master Servicer;
      provided, further, however that, pursuant to Article V hereof, the Trustee
      in
      its capacity as Successor Master Servicer shall be responsible for making any
      Advances required to be made by the Master Servicer immediately upon the
      termination of the Master Servicer and any such Advance shall be made on the
      Distribution Date on which such Advance was required to be made by the
      predecessor Master Servicer. Effective on the date of such notice of
      termination, as compensation therefor, the Trustee shall be entitled to all
      compensation, reimbursement of expenses and indemnification that the Master
      Servicer would have been entitled to if it had continued to act hereunder,
      provided, however, that the Trustee shall not be (i) liable for any acts or
      omissions of the Master Servicer, (ii) obligated to make Advances if it is
      prohibited from doing so under applicable law, (iii) responsible for expenses
      of
      the Master Servicer pursuant to Section 2.03 or (iv) obligated to deposit losses
      on any Permitted Investment directed by the Master Servicer. Notwithstanding
      the
      foregoing, the Trustee may, if it shall be unwilling to so act, or shall, if
      it
      is prohibited by applicable law from making Advances pursuant to Article VI
      or
      if it is otherwise unable to so act, appoint, or petition a court of competent
      jurisdiction to appoint, any established mortgage loan servicing institution
      the
      appointment of which does not adversely affect the then current rating of the
      Certificates by each
      Rating
      Agency
      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. Any Successor Master Servicer shall (i) be an institution that is
      a
      Fannie Mae and Freddie Mac approved seller/servicer in good standing, that
      has a
      net worth of at least $15,000,000, and (ii) be willing to act as successor
      servicer of any Mortgage Loans under this Agreement or the applicable Servicing
      Agreement with respect to which the Company or the related Servicer has been
      terminated as servicer, and shall have executed and delivered to the Depositor
      and the Trustee an agreement accepting such delegation and assignment, that
      contains an assumption by such Person of the rights, powers, duties,
      responsibilities, obligations and liabilities of the Master Servicer (other
      than
      any liabilities of the Master Servicer hereof incurred prior to termination
      of
      the Master Servicer under Section 9.01 or as otherwise set forth herein), with
      like effect as if originally named as a party to this Agreement, provided that
      each Rating Agency shall have acknowledged in writing that its rating of the
      Certificates in effect immediately prior to such assignment and delegation
      will
      not be qualified or reduced as a result of such assignment and delegation.
      If
      the Trustee assumes the duties and responsibilities of the Master Servicer
      in
      accordance with this Section 9.02, the Trustee shall not resign as Master
      Servicer until a Successor Master Servicer has been appointed and has accepted
      such appointment. Pending appointment of a successor to the Master Servicer
      hereunder, the Trustee, unless the Trustee is prohibited by law from so acting,
      shall act in such capacity as hereinabove provided. In connection with such
      appointment and assumption, the Trustee may make such arrangements for the
      compensation of such successor out of payments on Mortgage Loans or otherwise
      as
      it and such successor shall agree; provided that no such compensation unless
      agreed to by the Certificateholders shall be in excess of that permitted the
      Master Servicer hereunder. The Trustee and such successor shall take such
      action, consistent with this Agreement, as shall be necessary to effectuate
      any
      such succession. Neither the Trustee nor any other Successor Master Servicer
      shall be deemed to be in default hereunder by reason of any failure to make,
      or
      any delay in making, any distribution hereunder or any portion thereof or any
      failure to perform, or any delay in performing, any duties or responsibilities
      hereunder, in either case caused by the failure of the Master Servicer and
      the
      Securities Administrator to deliver or provide, or any delay in delivering
      or
      providing, any monies, information, documents or records to it.

     

    The
      costs and expenses of the Trustee in connection with the termination of the
      Master Servicer, appointment of a Successor Master Servicer and, if applicable,
      any transfer of master servicing, including, without limitation, all costs
      and
      expenses associated with the complete transfer of all master servicing data
      and
      the completion, correction or manipulation of such master servicing data as
      may
      be required by the Trustee to correct any errors or insufficiencies in the
      master servicing data or otherwise to enable the Trustee or the Successor Master
      Servicer to master service the Mortgage Loans properly and effectively, to
      the
      extent not previously paid by the terminated Master Servicer, shall be payable
      to the Trustee pursuant to Section 10.05.

     

    Section
      9.03  Notification
      to Certificateholders. 

     

    (a)  Upon
      any
      termination of or appointment of a successor to the Master Servicer, the Trustee
      shall give prompt written notice thereof to Certificateholders, the Swap
      Provider and to each Rating Agency.

     

    (b)  Within
      60
      days after the occurrence of any Event of Default, the Trustee shall transmit
      by
      mail to all Certificateholders and the Swap Provider notice of each such Event
      of Default hereunder actually known to a Responsible Officer of the Trustee,
      unless such Event of Default shall have been cured or waived.

     

    Section
      9.04  Waiver
      of
      Defaults. 

     

    The
      Trustee shall transmit by mail to all Certificateholders and the Swap Provider,
      within 60 days after the occurrence of any Event of Default actually known
      to a
      Responsible Officer of the Trustee, unless such Event of Default shall have
      been
      cured, notice of each such Event of Default hereunder known to the Trustee.
      The
      Holders of Certificates evidencing not less than 51% of the Voting Rights
      may,
      on behalf of all Certificateholders, waive any default by the Master Servicer
      in
      the performance of its obligations hereunder and the consequences thereof,
      except a default in the making of or the causing to be made of any required
      remittances to the Securities Administrator. Upon any such waiver of a past
      default, such default shall be deemed to cease to exist, and any Event of
      Default arising therefrom shall be deemed to have been timely remedied for
      every
      purpose of this Agreement. No such waiver shall extend to any subsequent or
      other default or impair any right consequent thereon except to the extent
      expressly so waived. The Trustee shall give notice of any such waiver to
      each
      Rating
      Agency.

     

    Section
      9.05  Company
      Default.

     

    In
      case one or more of the following events of default by the Company (each, a
      “Company Default”) shall occur and be continuing, that is to say:

     

    (i)  any
      failure by the Company to remit to the Securities Administrator any payment
      including any Advance required to be made under the terms of this Agreement
      on
      any Remittance Date; or

     

    (ii)  failure
      on the part of the Company duly to observe or perform in any material respect
      any other of the covenants or agreements on the part of the Company set forth
      in
      this Agreement (other than Sections 3.16, 3.17 or 3.18) on the part of the
      Company set forth in this Agreement, the breach of which has a material adverse
      effect and which continue unremedied for a period of sixty days (except that
      such number of days shall be fifteen in the case of a failure to pay any premium
      for any insurance policy required to be maintained under this Agreement and
      such
      failure shall be deemed to have a material adverse effect) after the date on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Company by the Master Servicer; or

     

    (iii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      bankruptcy, readjustment of debt, marshaling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against the Company and such decree or order shall have
      remained in force undischarged or unstayed for a period of sixty days;
      or

     

    (iv)  the
      Company shall consent to the appointment of a conservator or receiver or
      liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
      of
      assets and liabilities or similar proceedings of or relating to the Company
      or
      of or relating to all or substantially all of its property; or

     

    (v)  the
      Company shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of any applicable insolvency
      or
      reorganization statute, make an assignment for the benefit of its creditors,
      or
      voluntarily suspend payment of its obligations; or

     

    (vi)  the
      Company attempts to assign its right to servicing compensation hereunder or
      the
      Company attempts to sell or otherwise dispose of all or substantially all of
      its
      property or assets or to assign this Agreement or the servicing responsibilities
      hereunder or to delegate its duties hereunder or any portion thereof except
      as
      otherwise permitted herein; or

     

    (vii)  the
      Company ceases to be qualified to transact business in any jurisdiction where
      it
      is currently so qualified, but only to the extent such non-qualification
      materially and adversely affects the Company’s ability to perform its
      obligations hereunder; or

     

    (viii)  failure
      by the Company to duly perform, within the required time period, its obligations
      under Section 3.16, Section 3.17 or Section 3.18;

     

    then,
      and in each and every such case, so long as a Company Default shall not have
      been remedied, the Master Servicer, by notice in writing to the Company may,
      in
      addition to whatever rights the Master Servicer and the Trustee on behalf of
      the
      Certificateholders may have under Section 8.03 and at law or equity to damages,
      including injunctive relief and specific performance, terminate all the rights
      and obligations of the Company under this Agreement and in and to the EMC
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. On or after the receipt by the Company of such written notice, all
      authority and power of Company under this Agreement, whether with respect to
      the
      EMC Mortgage Loans or otherwise, shall pass to and be vested in the Master
      Servicer after a transition period (not to exceed 90 days). Upon written request
      from the Master Servicer, the Company shall prepare, execute and deliver, any
      and all documents and other instruments, place in the Master Servicer’s
      possession all Mortgage Files relating to the EMC Mortgage Loans, and 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 or assignment of the EMC Mortgage Loans and related documents,
      or
      otherwise, at the Company’s sole expense. The Company agrees to cooperate with
      the Master Servicer in effecting the termination of the Company’s
      responsibilities and rights hereunder, including, without limitation, the
      transfer to such successor for administration by it of all cash amounts which
      shall at the time be credited by the Company to its Protected Account or Escrow
      Account or thereafter received with respect to the EMC Mortgage Loans or any
      related REO Property.

     

    The
      costs and expenses of the Master Servicer in connection with the termination
      of
      the Company, appointment of a successor to the Company, and, if applicable,
      any
      transfer of servicing, including, without limitation, all costs and expenses
      associated with the complete transfer of all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      Master Servicer or other successor to the Company to correct any errors or
      insufficiencies in the servicing data or otherwise to enable the Master Servicer
      or such successor to service the related Mortgage Loans properly and
      effectively, to the extent not previously paid by the terminated Company, shall
      be payable to the Master Servicer or such successor pursuant to Section
      5.07.

     

    Section
      9.06  Waiver
      of
      Company Defaults. 

     

    The
      Master Servicer, may waive only by written notice any default by the Company
      in
      the performance of its obligations hereunder and its consequences. Upon any
      such
      waiver of a past default, such default shall cease to exist, and any Company
      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 default or impair any right consequent thereon except to the extent
      expressly so waived in writing.

     

    

     

    ARTICLE
      X

    CONCERNING
      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    Section
      10.01  Duties
      of
      Trustee and the Securities Administrator. 

     

    (a)  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 as duties of the Trustee and the
      Securities Administrator, respectively. If an Event of Default has occurred
      and
      has not been cured or waived, the Trustee shall exercise such of the rights
      and
      powers vested in it by this Agreement, and the same degree of care and skill
      in
      their exercise, as a prudent person would exercise under the circumstances
      in
      the conduct of such Person’s own affairs.

     

    (b)  Upon
      receipt of all resolutions, certificates, statements, opinions, reports,
      documents, orders or other instruments which are specifically required to be
      furnished to the Trustee or the Securities Administrator pursuant to any
      provision of this Agreement, the Trustee or the Securities Administrator,
      respectively, shall examine them to determine whether they are, on their face,
      in the form required by this Agreement; provided, however, that neither the
      Trustee nor the Securities Administrator shall be responsible for the accuracy
      or content of any resolution, certificate, statement, opinion, report, document,
      order or other instrument furnished by the Master Servicer, the Company or
      pursuant to any provision of this Agreement; provided, further, that neither
      the
      Trustee nor the Securities Administrator shall be responsible for the accuracy
      or verification of any calculation provided to it pursuant to this
      Agreement.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall make monthly distributions
      and the final distribution to the Certificateholders from funds in the
      Distribution Account as provided in Sections 6.04 and 11.01 herein based solely
      on the applicable Remittance Report.

     

    (d)  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 or waiver of all
      such Events of Default which may have occurred with respect to the Trustee
      and
      at all times with respect to the Securities Administrator, 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 their
      respective 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, respectively, 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;

     

    (ii)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity for an error of judgment made in good faith by a Responsible Officer
      or
      Responsible Officers of the Trustee or the Securities Administrator,
      respectively, unless it shall be proved that the Trustee or the Securities
      Administrator, respectively, was negligent in ascertaining the pertinent
      facts;

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith in accordance
      with the directions of the Holders of Certificates evidencing not less than
      25%
      of the aggregate Voting Rights of the Certificates (or such other percentage
      as
      specifically set forth herein), if such action or non-action relates to the
      time, method and place of conducting any proceeding for any remedy available
      to
      the Trustee or the Securities Administrator, respectively, or exercising any
      trust or other power conferred upon the Trustee or the Securities Administrator,
      respectively, under this Agreement;

     

    (iv)  The
      Trustee shall not be required to take notice or be deemed to have notice or
      knowledge of any default or Event of Default unless a Responsible Officer of
      the
      Trustee shall have actual knowledge thereof. In the absence of such knowledge,
      the Trustee may conclusively assume there is no such default or Event of
      Default;

     

    (v)  The
      Securities Administrator shall not in any way be liable by reason of any
      insufficiency in any Account held in the name of Trustee unless it is determined
      by a court of competent jurisdiction in a non-appealable judgment that the
      Securities Administrator’s gross negligence or willful misconduct was the
      primary cause of such insufficiency (except to the extent that the Securities
      Administrator is obligor and has defaulted thereon);

     

    (vi)  The
      Trustee shall not in any way be liable by reason of any insufficiency in any
      Account held in the name of Trustee unless it is determined by a court of
      competent jurisdiction in a non-appealable judgment that the Trustee’s gross
      negligence or willful misconduct was the primary cause of such insufficiency
      (except to the extent that the Trustee is obligor and has defaulted
      thereon);

     

    (vii)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Trustee
      or the Securities Administrator be liable for special, indirect or consequential
      loss or damage of any kind whatsoever (including but not limited to lost
      profits), even if the Trustee or the Securities Administrator, respectively,
      has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action; and

     

    (viii)  None
      of
      the Securities Administrator, the Master Servicer, the Company, the Seller,
      the
      Depositor, the Trustee or the Custodians shall be responsible for the acts
      or
      omissions of the other, it being understood that this Agreement shall not be
      construed to render them partners, joint venturers or agents of one
      another.

     

    Neither
      the Trustee nor the Securities
      Administrator
      shall be required to expend or risk its own funds or otherwise incur financial
      liability in the performance of any of its duties hereunder, or in the exercise
      of any of its rights or powers, if there is reasonable ground for believing
      that
      the repayment of such funds or adequate indemnity against such risk or liability
      is not reasonably 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 or the Company hereunder, GMACM under the
      GMACM Servicing Agreement or HomeBanc under the HomeBanc Servicing Agreement.
      The Trustee is hereby authorized and directed to enter into the GMACM Assignment
      Agreement and the HomeBanc Assignment Agreement.

     

    (e)  All
      funds
      received by the Securities Administrator and required to be deposited in the
      Distribution Account pursuant to this Agreement will be promptly so deposited
      by
      the Securities Administrator.

     

    Section
      10.02  Certain
      Matters Affecting the Trustee and the Securities Administrator. 

     

    (a)  Except
      as
      otherwise provided in Section 10.01:

     

    (i)  The
      Trustee and the Securities Administrator may rely and shall be protected in
      acting or refraining from acting in reliance on any resolution or certificate
      of
      the Depositor, the Seller, the Company or the Master Servicer or the Servicer,
      any certificates of auditors or any other certificate, statement, instrument,
      opinion, report, notice, request, consent, order, appraisal, bond or other
      paper
      or document believed by it to be genuine and to have been signed or presented
      by
      the proper party or parties;

     

    (ii)  The
      Trustee and the Securities Administrator may consult with counsel and any advice
      of such counsel or any Opinion of Counsel shall be full and complete
      authorization and protection with respect to 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 trusts or powers vested in it by this Agreement, other
      than
      its obligation to give notices pursuant to 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, as applicable, security or indemnity
      reasonable to it against the costs, expenses and liabilities which may be
      incurred therein or thereby. Nothing contained herein shall, however, relieve
      the Trustee of the obligation, upon the occurrence of an Event of Default of
      which a Responsible Officer of the Trustee has actual knowledge (which has
      not
      been cured or waived), to exercise such of the rights and powers vested in
      it by
      this Agreement, and to use the same degree of care and skill in their exercise,
      as a prudent person would exercise under the circumstances in the conduct of
      his
      own affairs;

     

    (iv)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity 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)  Neither
      the Trustee nor the Securities Administrator shall 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 document, unless requested in writing to do
      so
      by Holders of Certificates evidencing not less than 25% of the aggregate Voting
      Rights of the Certificates and provided that the payment within a reasonable
      time to the Trustee or the Securities Administrator, as applicable, 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 or the Securities Administrator,
      as applicable, reasonably assured to the Trustee or the Securities
      Administrator, as applicable, by the security afforded to it by the terms of
      this Agreement. The Trustee or the Securities Administrator may require
      reasonable indemnity against such expense or liability as a condition to taking
      any such action. The reasonable expense of every such examination shall be
      paid
      by the Certificateholders requesting the investigation;

     

    (vi)  The
      Trustee and the Securities Administrator may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or through Affiliates,
      agents or attorneys; provided, however, that the Trustee may not appoint any
      paying agent other than the Securities Administrator to perform any paying
      agent
      functions under this Agreement without the express written consent of the Master
      Servicer, which consents will not be unreasonably withheld. Neither the Trustee
      nor the Securities Administrator shall be liable or responsible for the
      misconduct or negligence of any of the Trustee’s or the Securities
      Administrator’s agents or attorneys or paying agent appointed hereunder by the
      Trustee or the Securities Administrator with due care and, when required, with
      the consent of the Master Servicer;

     

    (vii)  Should
      the Trustee or the Securities Administrator deem the nature of any action
      required on its part to be unclear or ambiguous, the Trustee or the Securities
      Administrator, respectively, may require prior to such action that it be
      provided by the Depositor with reasonable further instructions; 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 not be accountable for other
      than
      its negligence or willful misconduct in the performance of any such
      act;

     

    (viii)  Neither
      the Trustee nor the Securities Administrator shall be required to give any
      bond
      or surety with respect to the execution of the trust created hereby or the
      powers granted hereunder, except as provided in Section 10.07; and

     

    (ix)  Neither
      the Trustee nor the Securities Administrator shall have any duty to conduct
      any
      affirmative investigation as to the occurrence of any condition requiring the
      repurchase of any Mortgage Loan by any Person pursuant to this Agreement, or
      the
      eligibility of any Mortgage Loan for purposes of this Agreement.

     

    The
      Securities Administrator is hereby directed by the Depositor, as Supplemental
      Interest Trust Trustee and not in its individual capacity, on or before the
      Closing Date, to enter into the Swap Agreement on behalf of the Supplemental
      Interest Trust for the benefit of the Holders of the Class A, Class M and Class
      B Certificateholders, in the form presented to it by the Depositor. The Swap
      Administrator shall administer to, and hold, and receive and make all payments
      under, the Swap Agreement on behalf of the Supplemental Interest Trust and
      the
      Supplemental Interest Trust Trustee in accordance with its terms and the
      provisions of this Agreement and the Swap Administration Agreement. Neither
      the
      Supplemental Interest Trust Trustee nor the Swap Administrator shall have any
      responsibility for the contents, adequacy or sufficiency of the Swap Agreement,
      including, without limitation, any representations and warranties contained
      therein. The Swap Agreement will be an asset of the Supplemental Interest Trust
      but will not be an asset of any REMIC. Any funds payable by the Supplemental
      Interest Trust under the Swap Agreement to the Swap Agreement Counterparty
      shall
      be paid by the Depositor. Notwithstanding anything to the contrary contained
      herein or in the Swap Agreement, neither the Supplemental Interest Trust Trustee
      nor the Swap Administrator nor the Securities Administrator shall be required
      to
      make any payments to the Swap Agreement Counterparty under the Swap
      Agreement.

     

    (b)  The
      Securities Administrator is hereby directed by the Depositor to execute and
      deliver the Swap Administration Agreement (and any amendments or supplements
      to
      the Swap Administration Agreement as may be requested by the Majority Class
      C
      Certificateholder, regarding the distributions to be made to it or its designees
      thereunder). Amounts payable by the Securities Administrator on any Distribution
      Date to the Swap Administrator shall be paid by the Securities Administrator
      as
      provided herein. The Securities Administrator in its individual capacity shall
      have no responsibility for any of the undertakings, agreements or
      representations with respect to the Swap Agreement or the Swap Administration
      Agreement, including, without limitation, for making any payments
      thereunder.

     

    It
      is
      acknowledged and agreed that the Person serving as Securities Administrator
      hereunder shall also serve as Swap Administrator under the Swap Administration
      Agreement and act as Supplemental Interest Trust Trustee under the Swap
      Agreement. The Securities Administrator, the Swap Administrator and the
      Supplemental Interest Trust Trustee are hereby directed by the Depositor to
      execute and deliver the Swap Administration Agreement (and any amendments or
      supplements to the Swap Administration Agreement as may be requested by the
      Majority Class C Certificateholder, regarding the distributions to be made
      to it
      or its designees thereunder) and the Supplemental Interest Trust Trustee is
      hereby directed to execute and deliver the Swap Agreement and to make the
      representations required therein. The Swap Administrator shall not have any
      liability for any failure or delay in payments to the Trust which are required
      under the Swap Administration Agreement where such failure or delay is due
      to
      the failure or delay of the Swap Provider in making such payment to the Swap
      Administrator. Wells Fargo Bank in its individual capacity and as Swap
      Administrator, the Securities Administrator and the Supplemental Interest Trust
      Trustee shall be entitled to be indemnified and held harmless by the Trust
      from
      and against any and all losses, claims, expenses or other liabilities that
      arise
      by reason of or in connection with the performance or observance by each of
      the
      Swap Administrator, the Securities Administrator and the Supplemental Interest
      Trust Trustee of its duties or obligations under the Swap Agreement or the
      Swap
      Administration Agreement, except to the extent that the same is due to the
      Swap
      Administrator’s, the Securities Administrator’s or the Supplemental Interest
      Trust Trustee’s gross negligence, willful misconduct or fraud. Any Person
      appointed as successor trustee pursuant to Section 9.02 shall also be required
      to serve as successor Swap Administrator and successor supplemental interest
      trust trustee under the Swap Agreement and the Swap Administration
      Agreement.

     

    Section
      10.03  Trustee
      and Securities Administrator Not Liable for Certificates or Mortgage
      Loans. 

     

    The
      recitals contained herein and in the Certificates (other than the signature
      and
      countersignature of the Securities
      Administrator
      on the Certificates) shall be taken as the statements of the Depositor, and
      neither the Trustee nor the Securities Administrator shall have any
      responsibility for their correctness. Neither the Trustee nor the Securities
      Administrator makes any representation as to the validity or sufficiency of,
      the
      Certificates (other than the signature and countersignature of the Securities
      Administrator on the Certificates), any Custodial Agreement or of any Mortgage
      Loan. The Securities Administrator’s signature and countersignature (or
      countersignature of its agent) on the Certificates shall be solely in its
      capacity as Securities Administrator and shall not constitute the Certificates
      an obligation of the Securities Administrator in any other capacity. Neither
      the
      Trustee nor the Securities Administrator shall be accountable for the use or
      application by the Depositor of any of the Certificates or of the proceeds
      of
      such Certificates, or for the use or application of any funds paid to the
      Depositor with respect to the Mortgage Loans. Subject to Section 2.06, neither
      the Trustee nor the Securities Administrator shall be responsible for the
      legality or validity of this Agreement, any Custodial Agreement or any document
      or instrument relating to this Agreement, the validity of the execution of
      this
      Agreement or of any supplement hereto or instrument of further assurance, or
      the
      validity, priority, perfection or sufficiency of the security for the
      Certificates issued hereunder or intended to be issued hereunder. 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 Fund or its ability
      to
      generate the payments to be distributed to Certificateholders, under this
      Agreement. Neither the Securities Administrator nor the Trustee shall be
      responsible 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 Trustee hereunder or to record this
      Agreement.

     

    Section
      10.04  Trustee
      and Securities Administrator May Own Certificates. 

     

    Each
      of the Trustee and the Securities Administrator in its individual capacity
      or in
      any capacity other than as Trustee or the Securities Administrator hereunder
      may
      become the owner or pledgee of any Certificates with the same rights it would
      have if it were not the Trustee or the Securities Administrator, as applicable,
      and may otherwise deal with the parties hereto.

     

    Section
      10.05  Trustee’s
      and Securities Administrator’s Fees and Expenses. 

     

    The
      fees and expenses of the Trustee and the Securities Administrator shall be
      paid
      in accordance with a side letter agreement with the Master Servicer and at
      the
      expense of the Master Servicer. In addition, the Trustee and the Securities
      Administrator will be entitled to recover from the Distribution Account pursuant
      to Section 5.07 all reasonable out-of-pocket expenses, disbursements and
      advances and the expenses of the Trustee and the Securities Administrator,
      respectively, incurred in the course of its respective engagement hereunder,
      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 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 the responsibility of
      the
      Certificateholders or the Trust Fund hereunder. If funds in the Distribution
      Account are insufficient therefor, the Trustee and the Securities Administrator
      shall recover such expenses, disbursements or advances from EMC and EMC hereby
      agrees to pay such expenses, disbursements or advances upon demand. 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.

     

    Section
      10.06  Eligibility
      Requirements for Trustee and Securities Administrator. 

     

    The
      Trustee and any successor Trustee and the Securities Administrator and any
      successor Securities Administrator shall during the entire duration of this
      Agreement be a state bank or trust company or a national banking association
      organized and doing business under the laws of a state or the United States
      of
      America, authorized under such laws to exercise corporate trust powers, having
      a
      combined capital and surplus and undivided profits of at least $50,000,000,
      subject to supervision or examination by federal or state authority and rated
      “Baa2” or higher by Moody’s
      with respect to any outstanding long-term unsecured unsubordinated debt, and,
      in
      the case of a successor Trustee or successor Securities Administrator other
      than
      pursuant to Section 10.10, rated in one of the two highest long-term debt
      categories by each
      Rating
      Agency
      or otherwise acceptable to each
      Rating Agency.
      The Trustee shall not be an Affiliate of the Master Servicer. If the Trustee
      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 10.06 the combined capital and surplus of such
      corporation shall be deemed to be its total equity capital (combined capital
      and
      surplus) as set forth in its most recent report of condition so published.
      In
      case at any time the Trustee or the Securities Administrator, as applicable,
      shall cease to be eligible in accordance with the provisions of this Section
      10.06, the Trustee or the Securities Administrator shall resign immediately
      in
      the manner and with the effect specified in Section 10.08.

     

    Section
      10.07  Insurance. 

     

    The
      Trustee
      and the Securities Administrator, at their own expense,
      shall
      at all times (A) maintain and keep in full force and effect: (i) fidelity
      insurance, (ii) theft of documents insurance and (iii) forgery insurance (which
      may be collectively satisfied by a “Financial Institution Bond” and/or a
“Bankers’ Blanket Bond”) or (B) in the case of the Securities Administrator,
      self insure if Wells Fargo Bank, National Association maintains with any Rating
      Agency the equivalent of a long term unsecured debt rating of “A”. All such
      insurance shall be in amounts, with standard coverage and subject to
      deductibles, as are customary for insurance typically maintained by banks or
      their affiliates which act as custodians for investor-owned mortgage pools.
      A
      certificate of an officer of the Trustee or
      the Securities Administrator
      as to
      the Trustee’s or
      the Securities Administrator’s, respectively,
      compliance with this Section 10.07 shall be furnished to any Certificateholder
      upon reasonable written request.

     

    Section
      10.08  Resignation
      and Removal of Trustee and Securities Administrator. 

     

    The
      Trustee and the Securities Administrator may at any time resign (including,
      in
      the case of the Securities Administrator being affiliated with the Master
      Servicer, in connection with the resignation or termination of the Master
      Servicer) and be discharged from the Trust hereby created by giving written
      notice thereof to the Depositor, the Swap Provider, the Seller, the Securities
      Administrator (or the Trustee, if the Securities Administrator resigns) and
      the
      Master Servicer, with a copy to each
      Rating
      Agency.
      Upon receiving such notice of resignation, the Depositor shall promptly appoint
      a successor trustee or successor securities administrator, as applicable, (and
      in the case of the Securities Administrator’s removal, the Trustee may appoint a
      successor securities administrator) by written instrument, in triplicate, one
      copy of which instrument shall be delivered to each of the resigning trustee
      or
      securities administrator, as applicable, and the successor trustee or securities
      administrator, as applicable. If no successor trustee or successor securities
      administrator shall have been so appointed and have 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.

     

    If
      at any time (i) the Trustee or the Securities Administrator shall cease to
      be
      eligible in accordance with the provisions of Section 10.06 hereof and shall
      fail to resign after written request thereto by the Depositor, (ii) the Trustee
      or the Securities Administrator shall become incapable of acting, or shall
      be
      adjudged as bankrupt or insolvent, or a receiver of the Trustee or the
      Securities Administrator or of its property shall be appointed, or any public
      officer shall take charge or control of the Trustee or the Securities
      Administrator or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation, or (iii)(A) a tax is imposed with respect to the
      Trust Fund by any state in which the Trustee or the Securities Administrator
      or
      the Trust Fund is located, (B) the imposition of such tax would be avoided
      by
      the appointment of a different trustee or securities administrator and (C)
      the
      Trustee or the Securities Administrator, as applicable, fails to indemnify
      the
      Trust Fund against such tax, then the Depositor or the Master Servicer may
      remove the Trustee or the Securities Administrator , as applicable, (and in
      the
      case of the Securities Administrator’s ineligibility, the Trustee may appoint a
      successor securities administrator) and appoint a successor trustee or successor
      securities administrator, as applicable, by written instrument, in multiple
      copies, a copy of which instrument shall be delivered to the Trustee, the
      Securities Administrator, the Master Servicer and the successor trustee or
      successor securities administrator, as applicable.

     

    The
      Holders evidencing at least 51% of the Voting Rights of each Class of
      Certificates may at any time remove the Trustee or Securities Administrator
      and
      appoint a successor trustee or securities administrator by written instrument
      or
      instruments, in multiple copies, signed by such Holders or their
      attorneys-in-fact duly authorized, one complete set of which instruments shall
      be delivered by the successor trustee or successor securities administrator
      to
      each of the Master Servicer, the Trustee or Securities Administrator so removed
      and the successor trustee or securities administrator so appointed. Notice
      of
      any removal of the Trustee or Securities Administrator shall be given to each
      Rating Agency by the related successor.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or securities administrator pursuant to
      any
      of the provisions of this Section 10.08 shall become effective upon acceptance
      of appointment by the successor trustee or securities administrator as provided
      in Section 10.09 hereof.

     

    Section
      10.09  Successor
      Trustee or Securities Administrator. 

     

    Any
      successor trustee or securities administrator appointed as provided in Section
      10.08 hereof shall execute, acknowledge and deliver to the Depositor, to its
      predecessor trustee or predecessor securities administrator, as applicable,
      and
      the Master Servicer 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 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 the like effect as if originally named as trustee or securities
      administrator herein.

     

    No
      successor trustee or securities administrator shall accept appointment as
      provided in this Section 10.09 unless at the time of such acceptance such
      successor trustee or securities administrator shall be eligible under the
      provisions of Section 10.07 hereof and its appointment shall not adversely
      affect the then current rating of the Certificates.

     

    Upon
      acceptance of appointment by a successor trustee or securities administrator
      as
      provided in this Section 10.09, the successor trustee or securities
      administrator shall mail notice of the succession of such trustee or securities
      administrator hereunder to all Holders of Certificates. If the successor trustee
      or securities administrator fails to mail such notice within ten days after
      acceptance of appointment, the Depositor shall cause such notice to be mailed
      at
      the expense of the Trust Fund.

     

    Section
      10.10  Merger
      or
      Consolidation of Trustee or Securities Administrator. 

     

    Any
      corporation, state bank or national banking association into which the Trustee
      or the Securities Administrator may be merged or converted or with which it
      may
      be consolidated or any corporation, state bank or national banking association
      resulting from any merger, conversion or consolidation to which the Trustee
      or
      the Securities Administrator shall be a party, or any corporation, state bank
      or
      national banking association succeeding to substantially all of the corporate
      trust business of the Trustee or of the business of the Securities
      Administrator, shall be the successor of the Trustee or the Securities
      Administrator hereunder, provided that such corporation shall be eligible under
      the provisions of Section 10.06 hereof 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.

     

    Section
      10.11  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 Fund
      or property securing any Mortgage Note may at the time be located, the Master
      Servicer and the Trustee acting jointly shall have the power and shall 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 Fund,
      and
      to vest in such Person or Persons, in such capacity and for the benefit of
      the
      Certificateholders, such title to the Trust Fund or any part thereof, whichever
      is applicable, and, subject to the other provisions of this Section 10.11,
      such
      powers, duties, obligations, rights and trusts as the Master Servicer and the
      Trustee may consider necessary or desirable. If the Master Servicer shall not
      have joined in such appointment within 15 days after the receipt by it of a
      request to do so, or in the case an Event of Default shall have occurred and
      be
      continuing, the Trustee alone shall have the power to make such appointment.
      No
      co-trustee or separate trustee hereunder shall be required to meet the terms
      of
      eligibility as a successor trustee under Section 10.06 and no notice to
      Certificateholders of the appointment of any co-trustee or separate trustee
      shall be required under Section 10.09.

     

    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,
      except for the obligation of the Trustee under this Agreement to advance funds
      on behalf of the Master Servicer, 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 a Trustee hereunder or as a Successor 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 Fund 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;

     

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

     

    (iii)  The
      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 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
      X.
      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
      Master Servicer and 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
      10.12  Tax
      Matters. 

     

    It
      is intended that the Trust Fund shall constitute one or more REMICs, and that
      the affairs of the Trust Fund shall be conducted so that each REMIC formed
      hereunder qualifies as, a “real estate mortgage investment conduit” as defined
      in and in accordance with the REMIC Provisions. In furtherance of such
      intention, the Securities Administrator covenants and agrees that it shall
      act
      as agent for so long as it is also Master Servicer (and the Securities
      Administrator is hereby appointed to act as agent) on behalf of the Trust Fund.
      The Trustee and/or the Securities Administrator, as agent on behalf of the
      Trust
      Fund, shall do or refrain from doing, as applicable, the following: (a) the
      Securities Administrator shall prepare and file, or cause to be prepared and
      filed, in a timely manner, U.S. Real Estate Mortgage Investment Conduit Income
      Tax Returns (Form 1066 or any successor form adopted by the Internal Revenue
      Service) and prepare and file or cause to be prepared and filed with the
      Internal Revenue Service and applicable state or local tax authorities income
      tax or information returns for each taxable year with respect to each such
      REMIC
      containing such information and at the times and in the manner as may be
      required by the Code or state or local tax laws, regulations, or rules, and
      furnish, or cause to be furnished, to Certificateholders the schedules,
      statements or information at such times and in such manner as may be required
      thereby, provided, however, for the avoidance of doubt, the Trustee shall not
      be
      responsible for preparing and filing or causing to be prepared and filed any
      income tax or information returns with respect to the Class X Certificates;
      (b)
      the Securities Administrator shall apply for an employer identification number
      with the Internal Revenue Service via a Form SS-4 or other comparable method
      for
      each REMIC that is or becomes a taxable entity, and within thirty days of the
      Closing Date, furnish or cause to be furnished to the Internal Revenue Service,
      on Forms 8811 or as otherwise may be required by the Code, the name, title,
      address, and telephone number of the Person that the Holders of the Certificates
      may contact for tax information relating thereto, together with such additional
      information as may be required by such Form, and update such information at
      the
      time or times in the manner required by the Code for the Trust Fund; (c) the
      Securities Administrator on behalf of the Trustee shall make, or cause to be
      made elections, on behalf of each REMIC formed hereunder to be treated as a
      REMIC on the federal tax return of such REMIC for its first taxable year (and,
      if necessary, under applicable state law); (d) the Securities Administrator
      shall prepare and forward, or cause to be prepared and forwarded, to the
      Certificateholders and to the Internal Revenue Service and, if necessary, state
      tax authorities, all information returns and reports as and when required to
      be
      provided to them in accordance with the REMIC Provisions, including without
      limitation, the calculation of any original issue discount using the Prepayment
      Assumption; (e) the Securities Administrator shall provide information necessary
      for the computation of tax imposed on the transfer of a Residual Certificate
      to
      a Person that is not a Permitted Transferee, or an agent (including a broker,
      nominee or other middleman) of a Person that is not a Permitted Transferee,
      or a
      pass-through entity in which a Person that is not a Permitted Transferee is
      the
      record holder of an interest (the reasonable cost of computing and furnishing
      such information may be charged to the Person liable for such tax); (f) each
      of
      the Securities Administrator and the Trustee shall, to the extent under its
      control, conduct the affairs of the Trust Fund at all times that any
      Certificates are outstanding so as to maintain the status of each REMIC formed
      hereunder as a REMIC under the REMIC Provisions; (g) neither the
      Trustee nor the Securities Administrator shall knowingly or intentionally take
      any action or omit to take any action that could (i) cause the termination
      of
      the REMIC status of any REMIC formed hereunder or (ii) result in the imposition
      of a tax upon the Trust Fund (including but not limited to the tax on prohibited
      transactions as defined in Section 860F(a)(2) of the Code and the tax on
      contributions to a REMIC set forth in Section 860G(d) of the Code);
      (h) the Securities Administrator shall pay, from the sources specified in this
      Section 10.12, the amount of any federal, state and local taxes, including
      prohibited transaction taxes as described below, imposed on any REMIC formed
      hereunder prior to the termination of the Trust Fund when and as the same shall
      be due and payable (but such obligation shall not prevent the Trustee, the
      Securities Administrator at the written request of the Trustee, or any other
      appropriate Person from contesting any such tax in appropriate proceedings
      and
      shall not prevent the Securities Administrator from withholding payment of
      such
      tax, if permitted by law, pending the outcome of such proceedings); (i) the
      Trustee shall sign or cause to be signed federal, state or local income tax
      or
      information returns or any other document prepared by the Securities
      Administrator pursuant to this Section 10.12 requiring a signature thereon
      by
      the Trustee; (j) the Securities Administrator shall maintain records relating
      to
      each REMIC formed hereunder including but not limited to the income, expenses,
      assets and liabilities of each such REMIC and adjusted basis of the Trust Fund
      property determined at such intervals as may be required by the Code, as may
      be
      necessary to prepare the foregoing returns, schedules, statements or
      information; (k) the Securities Administrator shall, for federal income tax
      purposes, maintain books and records with respect to the REMICs on a calendar
      year and on an accrual basis; (l) none of the Trustee, the Master Servicer
      or
      the Securities Administrator shall enter into any arrangement not otherwise
      provided for in this Agreement by which the REMICs will receive a fee or other
      compensation for services nor permit the REMICs to receive any income from
      assets other than “qualified mortgages” as defined in Section 860G(a)(3) of the
      Code or “permitted investments” as defined in Section 860G(a)(5) of the Code;
      and (l) as and when necessary and appropriate, the Securities Administrator,
      at
      the expense of the Trust Fund, shall represent the Trust Fund in any
      administrative or judicial proceedings relating to an examination or audit
      by
      any governmental taxing authority, request an administrative adjustment as
      to
      any taxable year of any REMIC formed hereunder, enter into settlement agreements
      with any governmental taxing agency, extend any statute of limitations relating
      to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC
      formed hereunder in relation to any tax matter involving any such
      REMIC.

     

    In
      order to enable each of the Trustee and the Securities Administrator to perform
      its duties as set forth herein, the Depositor shall provide, or cause to be
      provided, to the Trustee or the Securities Administrator within 10 days after
      the Closing Date all information or data that the Trustee or the Securities
      Administrator requests in writing and determines to be relevant for tax purposes
      to the valuations and offering prices of the Certificates, including, without
      limitation, the price, yield, prepayment assumption and projected cash flows
      of
      the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
      to the Trustee or the Securities Administrator promptly upon written request
      therefor, any such additional information or data that the Trustee or the
      Securities Administrator may, from time to time, request in order to enable
      the
      Trustee or the Securities Administrator to perform its duties as set forth
      herein. The Depositor hereby indemnifies each of the Trustee and the Securities
      Administrator for any losses, liabilities, damages, claims or expenses of the
      Trustee or the Securities Administrator arising from any errors or
      miscalculations of the Trustee or the Securities Administrator that result
      from
      any failure of the Depositor to provide, or to cause to be provided, accurate
      information or data to the Trustee or the Securities Administrator, as
      applicable, on a timely basis.

     

    In
      the event that any tax is imposed on “prohibited transactions” of any of REMIC
      I, REMIC II, REMIC III, REMIC IV or REMIC V as defined in Section 860F(a)(2)
      of
      the Code, on the “net income from foreclosure property” of the Trust Fund as
      defined in Section 860G(c) of the Code, on any contribution to any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V after the Startup Day pursuant to
      Section 860G(d) of the Code, or any other tax is imposed, including, without
      limitation, any federal, state or local tax or minimum tax imposed upon any
      of
      REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V, and is not paid as otherwise
      provided for herein, such tax shall be paid (i) by the Master Servicer or the
      Securities Administrator, if any such tax arises out of or results from a breach
      by the Master Servicer or the Securities Administrator of any of its obligations
      under this Agreement, provided, however, in no event shall the Master Servicer
      or the Securities Administrator have any liability (1) for any action or
      omission that is taken in accordance with and compliance with the express terms
      of, or which is expressly permitted by the terms of, this Agreement, (2) for
      any
      losses other than arising out of a negligent performance by the Master Servicer
      or the Securities Administrator of its duties and obligations set forth herein,
      or (3) for any special or consequential damages to Certificateholders (in
      addition to payment of principal and interest on the Certificates), (ii) by
      any
      party hereto (other than the Master Servicer or the Securities Administrator)
      to
      the extent any such tax arises out of or results from a breach by such other
      party of any of its obligations under this Agreement or (iii) in all other
      cases, or in the event that any liable party hereto fails to honor its
      obligations under the preceding clauses (i) or (ii), first, with amounts
      otherwise to be distributed to the Class R Certificateholders (pro rata), and
      second, with amounts otherwise to be distributed to the Holders of the following
      other Certificates in the following order of priority: first, to the Class
      B-4
      Certificates, second, to the Class B-3 Certificates, third, to the Class B-2
      Certificates, fourth, to the Class B-1 Certificates, fifth, to the Class M-6
      Certificates, sixth, to the Class M-5 Certificates, seventh, to the Class M-4
      Certificates, eighth, to the Class M-3 Certificates, ninth, to the Class M-2
      Certificates, tenth, to the Class M-1 Certificates, and eleventh, to the Class
      A
      Certificates, on a pro rata basis. Notwithstanding anything to the contrary
      contained herein, to the extent that any taxes described in the preceding
      sentence are payable by the Holder of any such Certificates, the Securities
      Administrator is hereby authorized to retain on any Distribution Date from
      the
      Holders of the Class R Certificates (and, if necessary, second, from the Holders
      of the other relevant Certificates in the priority specified in the preceding
      sentence), funds otherwise distributable to such Holders in an amount sufficient
      to pay such taxes. The Securities Administrator shall include in its Monthly
      Statement amounts allocated to the relevant Certificates, taking into account
      the priorities described in the second preceding sentence. The Securities
      Administrator shall promptly notify in writing the party liable for any such
      tax
      of the amount thereof and the due date for the payment thereof.

     

    The
      Trustee, the Master Servicer and the Securities Administrator each agree that,
      in the event it should obtain any information necessary for the other party
      to
      perform its obligations pursuant to this Section 10.12, it will promptly notify
      and provide such information to such other party.

     

    Notwithstanding
      the foregoing, with respect to the preparation and filing of tax returns in
      the
      event that the right to receive payments in respect of Basis Risk Shortfall
      Carry Forward Amounts could be treated as a partnership among the Holders of
      the
      Class A, Class M, Class B and Class C Certificates, the Securities Administrator
      shall not be required to prepare and file partnership tax returns on behalf
      of
      the Trust Fund or portion thereof unless it receives additional reasonable
      compensation for the preparation of such filings and written notification from
      either an officer or tax counsel for the Depositor recognizing the creation
      of a
      partnership for federal income tax purposes.

     

    Notwithstanding
      any other provision of this Agreement, the Securities Administrator shall comply
      with all federal withholding requirements respecting payments to
      Certificateholders of interest or original issue discount that the Securities
      Administrator reasonably believes are applicable under the Code. The consent
      of
      Certificateholders shall not be required for such withholding. In the event
      the
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    Notwithstanding
      anything to the contrary in this Agreement, the Securities Administrator shall
      not be obligated to perform any tax preparing, filing or reporting in connection
      with the Class X Certificates.

    

    For
      the
      avoidance of doubt, notwithstanding anything stated to the contrary herein,
      none
      of the Supplemental Interest Trust Trustee, the Swap Administrator, the Trustee
      or the Securities Administrator shall have any responsibility for the
      entity-level tax filing or tax preparation of the Supplemental Interest
      Trust.

    

    Section
      10.13  REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC shall exist, the Trustee and the Securities Administrator
      shall act in accordance herewith to assure continuing treatment of such REMIC
      as
      a REMIC, and the Trustee and the Securities Administrator shall comply with
      any
      directions of the Seller, the Company, the related Servicer or the Master
      Servicer to assure such continuing treatment. In furtherance, but not in
      limitation, of the foregoing, neither the Trustee nor the Securities
      Administrator shall (unless otherwise expressly permitted in this Agreement)
      (a)
      sell or 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 pursuant to this Agreement or the Trustee
      and
      the Securities Administrator has received a REMIC Opinion addressed to the
      Securities Administrator and the Trustee prepared at the expense of the Trust
      Fund; (b) other than with respect to a substitution pursuant to the Mortgage
      Loan Purchase Agreement or Section 2.03 of this Agreement, as applicable, accept
      any contribution to any REMIC after the Startup Day without receipt of a REMIC
      Opinion; or (c) acquire any assets for any REMIC other than any REO Property
      after the Startup Day without receipt of a REMIC Opinion.

     

    ARTICLE
      XI

    TERMINATION

     

    Section
      11.01  Termination
      upon Liquidation or Repurchase of all Mortgage Loans. 

     

    (i) Subject
      to Section 11.03, the obligations and responsibilities of the Depositor, the
      Master Servicer, the Securities Administrator, the Seller and the Trustee
      created hereby with respect to the Trust Fund shall terminate upon the earlier
      of (a) the exercise by the Majority Class C Certificateholder of its right
      to
      purchase all of the Mortgage Loans (and REO Properties) remaining in the Trust
      Fund at a price (the “Mortgage Loan Purchase Price”) equal to the sum of (i)
      100% of the Stated Principal Balance of each Mortgage Loan (other than in
      respect of REO Property), (ii) accrued interest thereon at the applicable
      Mortgage Rate to, but not including, the first day of the month of such
      purchase, (iii) the appraised value of any REO Property in the Trust Fund (up
      to
      the Stated Principal Balance of the related Mortgage Loan), such appraisal
      to be
      conducted by an appraiser mutually agreed upon by the related Servicer or the
      Company, as applicable, and the Trustee and (iv) unreimbursed out-of pocket
      costs of the Company, the related Servicer or the Master Servicer, including
      unreimbursed Servicing Advances and the principal portion of any unreimbursed
      Advances made on the Mortgage Loans prior to the exercise of such repurchase
      right (v) any unreimbursed costs and expenses of the Trustee and the Securities
      Administrator payable pursuant to Section 10.05 or of the Custodian pursuant
      to
      the Custodial Agreement and (vi) any
      Swap
      Termination Payment (which shall include any Net Swap Payment payable by the
      Trust Fund for the final Distribution Date) payable to the Swap Provider which
      remains unpaid or which is due to the exercise of such option (the “Swap
      Optional Termination Payment”) and
      (b)
      the later of (i) the maturity or other liquidation (or any Advance with respect
      thereto) of the last Mortgage Loan remaining in the Trust Fund and the
      disposition of all REO Property and (ii) the distribution to Certificateholders
      of all amounts required to be distributed to them pursuant to this Agreement.
      In
      no event shall the Trust Fund created hereby continue beyond the earlier of
      (i)
      the expiration of 21 years from the death of the last survivor of the
      descendants of Joseph P. Kennedy, the late Ambassador of the United States
      to
      the Court of St. James, living on the date hereof and (ii) the Latest Possible
      Maturity Date.

     

    (ii) The
      Majority Class C Certificateholder shall have the right to repurchase all
      Mortgage Loans and REO Properties at any time at which the aggregate Stated
      Principal Balance of all of the Mortgage Loans in the Trust Fund is less than
      or
      equal to 20% of the aggregate Cut-off Date Principal Balance of all of the
      Mortgage Loans. If
      the
      Majority Class C Certificateholder elects to terminate the Trust Fund pursuant
      to this Section 11.01 (such termination, an “Optional Termination”), the
      Majority Class C Certificateholder shall, at least 20
      days
      prior to the last date on which notice of such Optional Termination is required
      to be mailed to the Certificateholders pursuant to Section 11.02(ii), notify
      in
      writing (which may be in electronic format) the Depositor, the Master Servicer,
      the Securities Administrator, the Trustee and the Swap Provider of the final
      Distribution Date on which the Majority Class C Certificateholder intends to
      terminate the Trust Fund. Upon termination of the Trust Fund, the
      Certificateholders shall present and surrender the related Certificates at
      the
      Corporate Office of the Securities Administrator, as further set forth in
      Section 11.02.

    (iii) In
      connection with any Optional Termination, four Business Days prior to the final
      Distribution Date specified in the notice required pursuant to the Section
      11.01(ii), the Securities Administrator shall, no later than 4:00 pm New York
      City time on such day, request from the Swap Provider the amount of the
      Estimated Swap Termination Payment. The Swap Provider shall, no later than
      2:00
      pm on the following Business Day, notify in writing (which may be in electronic
      format) the Securities Administrator of the amount of the Estimated Swap
      Termination Payment, and the Securities Administrator shall promptly on the
      same
      day notify the Majority Class C Certificateholder of the amount of the Estimated
      Swap Termination Payment. 

    

    (iv) Two
      Business Days prior to the final Distribution Date specified in the notice
      required pursuant to Section 11.01(ii), (i) the Majority Class
      C Certificateholder
      shall,
no
      later than 1:00 pm New
      York
      City time on such Business Day, deposit funds in the Distribution Account in
      an
      amount equal to the sum of the Mortgage Loan Purchase Price (other than the
      Swap
      Optional Termination Payment) and the Estimated Swap Termination Payment, and
      (ii) if the Securities Administrator shall have determined that the aggregate
      Stated Principal Balance of all of the Mortgage Loans in the Trust Fund as
      of
      the related Determination Date is less than or equal to 20%
      of the aggregate Cut-off Date Principal Balance of all of the Mortgage
      Loans
      and that
      all other requirements of the Optional Termination have been met, including
      without limitation the deposit required pursuant to the immediately preceding
      clause (i) as well as the requirements specified in Section 11.03, then the
      Securities Administrator shall, on such Business Day, provide written notice
      to
      the Majority Class C Certificateholder, the Depositor, the Master Servicer,
      the
      Custodian and the Swap Provider confirming (a) its receipt of the Mortgage
      Loan
      Purchase Price (other than the Swap Optional Termination Payment) and the
      Estimated Swap Termination Payment and (b) that all other requirements of the
      Optional Termination have been met. Upon the Securities Administrator’s
      providing the notice described in the preceding sentence, the Optional
      Termination shall become irrevocable, the notice to Certificateholders of such
      Optional Termination provided pursuant to Section 11.02(ii) shall become
      unrescindable, the Swap Provider shall determine the Swap Optional Termination
      Payment in accordance with the Swap Agreement, and the Swap Provider shall
      provide to the Securities Administrator written notice of the amount of the
      Swap
      Optional Termination Payment not later than one Business Day prior to the final
      Distribution Date specified in the notice required pursuant to Section
      11.01(ii). 

    

    (v) In
      connection with any Optional Termination, only an amount equal to the Mortgage
      Loan Purchase Price less any Swap Optional Termination Payment shall be made
      available for distribution to the Regular Certificates. Any Estimated Swap
      Termination Payment deposited into the Distribution Account by the Majority
      Class C Certificateholder shall be withdrawn by the Securities Administrator
      from the Distribution Account on the final Distribution Date and distributed
      as
      follows: (i) to the Supplemental Interest Trust for payment to the Swap Provider
      in accordance with Section 4.12(c), an amount equal to the Swap Optional
      Termination Amount calculated pursuant to the Swap Agreement, provided that,
      in
      no event shall the amount distributed to the Swap Provider in respect of the
      Swap Optional Termination Amount exceed the Estimated Swap Termination Payment,
      and (ii) to the Majority Class C Certificateholder, an amount equal to the
      excess, if any, of the Estimated Swap Termination Payment over the Swap Optional
      Termination Payment. The Swap Optional Termination Payment shall not be part
      of
      any REMIC and shall not be paid into any account which is part of any REMIC.
      

    

    (vi) Upon
      receipt by the Custodian of notice from the Securities Administrator pursuant
      to
      Section 11.01(iv) and the receipt by the Custodian of a Request for Release
      therefor, the Custodian shall promptly release to the Master Servicer, as
      applicable the Mortgage Files for the Mortgage Loans and the Trustee shall
      execute and deliver any documents prepared and delivered to it which are
      necessary to transfer any REO Property.

    

    (vii)
       Notwithstanding
      the foregoing, the provisions of Section 8.03 hereof shall survive the
      termination of this Agreement.

     

    Section
      11.02  Final
      Distribution on the Certificates. 

     

    (i) If
      on any
      Determination Date, (i) the Master Servicer determines that there are no
      Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
      than the funds in the Distribution Account, the Master Servicer shall direct
      the
      Securities Administrator to send a final distribution notice promptly to each
      Certificateholder or (ii) the Securities Administrator determines that a Class
      of Certificates shall be retired after a final distribution on such Class,
      the
      Securities Administrator shall notify the related Certificateholders within
      five
      (5) Business Days after such Determination Date that the final distribution
      in
      retirement of such Class of Certificates is scheduled to be made on the
      immediately following Distribution Date. Any final distribution made pursuant
      to
      the immediately preceding sentence shall be made only upon presentation and
      surrender of the Certificates at the Corporate Office of the Securities
      Administrator. 

     

    (ii) Notice
      of any termination of the Trust Fund, specifying the Distribution Date on which
      Certificateholders may surrender their Certificates for payment of the final
      distribution and cancellation, shall be given promptly by the Securities
      Administrator by letter to Certificateholders mailed not later than two Business
      Days after the Determination Date in the month of such final distribution.
      Any
      such notice shall specify (a) the Distribution Date upon which final
      distribution on the Certificates shall be made upon presentation and surrender
      of Certificates at the office therein designated, (b) the amount of such final
      distribution, (c) the location of the office or agency at which such
      presentation and surrender must be made and (d) 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 therein
      specified. The Securities Administrator will give such notice to each Rating
      Agency at the time such notice is given to Certificateholders.

     

    (iii) Upon
      such receipt by the Custodian of a Request for Release therefor, the Custodian
      shall promptly release to the Master Servicer, as applicable the Mortgage Files
      for the Mortgage Loans and the Trustee shall execute and deliver any documents
      prepared and delivered to it which are necessary to transfer any REO
      Property.

     

    (iv) Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall cause to be distributed to Certificateholders of each Class in accordance
      with the Remittance Report the amounts allocable to such Certificates held
      in
      the Distribution Account in the order and priority set forth in Section 6.04
      hereof on the final Distribution Date and in proportion to their respective
      Percentage Interests.

     

    (v) In
      the event that any affected Certificateholders shall not surrender Certificates
      for cancellation within six months after the date specified in the above
      mentioned written notice, 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 six months after the second notice all the applicable
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator may take appropriate steps, or may appoint an agent to take
      appropriate steps, to contact the remaining Certificateholders concerning
      surrender of their Certificates, and the cost thereof shall be paid out of
      the
      funds and other assets that remain a part of the Trust Fund. If within one
      year
      after the second notice all related Certificates shall not have been surrendered
      for cancellation, the related Residual Certificateholders shall be entitled
      to
      all unclaimed funds and other assets of the Trust Fund that remain subject
      hereto.

     

    Section
      11.03  Additional
      Termination Requirements. 

     

    (a) Upon
      exercise by the Majority Class C Certificateholder of its purchase option as
      provided in Section 11.01, the Trust Fund shall be terminated in accordance
      with
      the following additional requirements, unless each of the Trustee and the
      Securities Administrator have been supplied with an Opinion of Counsel addressed
      to the Trustee and the Securities Administrator, at the expense of the Majority
      Class C Certificateholder, to the effect that the failure of the Trust Fund
      to
      comply with the requirements of this Section 11.03 will not (i) result in the
      imposition of taxes on “prohibited transactions” of a REMIC, or (ii) cause a
      REMIC to fail to qualify as a REMIC at any time that any Certificates are
      outstanding:

     

    (1) The
      Majority Class C Certificateholder shall establish a 90-day liquidation period
      for REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V and notify the Trustee
      and Securities Administrator thereof, and the Securities Administrator shall
      in
      turn specify the first day of such period in a statement attached to the tax
      returns for REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V pursuant to
      Treasury Regulation Section 1.860F-1. The Majority Class C Certificateholder
      shall satisfy all the requirements of a qualified liquidation under Section
      860F
      of the Code and any regulations thereunder with respect to each REMIC related
      to
      the terminated Trust Fund, as evidenced by an Opinion of Counsel addressed
      to
      the Securities Administrator and the Trustee obtained at the expense of the
      Majority Class C Certificateholder;

     

    (2) During
      such 90-day liquidation period, and at or prior to the time of making the final
      payment on the Certificates, the Securities Administrator on behalf of the
      Trustee shall sell all of the assets of REMIC I for cash; and

     

    (3) At
      the
      time of the making of the final payment on the Certificates, the Securities
      Administrator shall distribute or credit, or cause to be distributed or
      credited, to the Holders of the Residual Certificates all cash on hand (other
      than cash retained to meet claims), and REMIC I shall terminate at that
      time.

     

    (b) By
      their
      acceptance of the Certificates (other than the Class X Certificates), the
      Holders thereof hereby authorize the adoption of a 90-day liquidation period
      and
      plan of complete liquidation for the each related REMIC, which authorization
      shall be binding upon all successor Certificateholders.

     

    (c) The
      Securities Administrator, as agent for each REMIC, hereby agrees to adopt and
      sign such a plan of complete liquidation meeting the requirements for a
      qualified liquidation under Section 860F of the Code and any regulations
      thereunder upon the written request of the Majority Class C Certificateholder
      and the receipt of the Opinion of Counsel referred to in Section 11.03(a)(1),
      and to take such other action in connection therewith as may be reasonably
      requested by the Majority Class C Certificateholder.

     

    

    

     

    ARTICLE
      XII

    MISCELLANEOUS
      PROVISIONS

     

    Section
      12.01  Amendment.

     

    This
      Agreement may be amended from time to time by parties hereto without the consent
      of any of the Certificateholders to cure any ambiguity, to correct or supplement
      any provisions herein (including to give effect to the expectations of
      investors), to
      comply
      with any changes in the Code, to revise any provisions to reflect the
      obligations of the parties to this Agreement as they relate to Regulation
      AB,
      to change the manner in which the Distribution Account maintained by the
      Securities Administrator or the Protected Account maintained by the Company
      is
      maintained or to make such other provisions with respect to matters or questions
      arising under this Agreement as shall not be inconsistent with any other
      provisions herein if such action shall not, as evidenced by an Opinion of
      Counsel addressed to the Trustee (which opinion shall be an expense of the
      party
      requesting such opinion but in any case shall not be an expense of the Trustee),
      adversely affect in any material respect the interests of any Certificateholder;
      provided that any such amendment shall be deemed not to adversely affect in
      any
      material respect the interests of the Certificateholders and no such Opinion
      of
      Counsel shall be required if the Person requesting such amendment obtains a
      letter from each
      Rating
      Agency
      stating that such amendment would not result in the downgrading or withdrawal
      of
      the respective ratings then assigned to the Certificates.

     

    Notwithstanding
      the foregoing, without the consent of the Certificateholders, the parties hereto
      may at any time and from time to time amend this Agreement to modify, eliminate
      or add to any of its provisions to such extent as shall be necessary or
      appropriate to maintain the qualification of any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V as
      a REMIC under the Code or to avoid or minimize the risk of the imposition of
      any
      tax on any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V pursuant
      to the Code that would be a claim against any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V
      at any time prior to the final redemption of the Certificates, provided that
      the
      Trustee, the Securities Administrator have been provided an Opinion of Counsel
      addressed to the Trustee and the Securities Administrator, which opinion shall
      be an expense of the party requesting such opinion but in any case shall not
      be
      an expense of the Trustee, the Securities Administrator or the Trust Fund,
      to
      the effect that such action is necessary or appropriate to maintain such
      qualification or to avoid or minimize the risk of the imposition of such a
      tax.

     

    This
      Agreement may also be amended from time to time by the parties hereto with
      the
consent
      of Holders of the Certificates evidencing over 50% of the Voting Rights, or,
      if
      applicable, Holders of each Class of Certificates affected thereby, evidencing
      over 50% of the Voting Rights of such Class or Classes,  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 that no such amendment shall (i) reduce
      in any manner the amount of, or delay the timing of, payments required to be
      distributed on any Certificate without the consent of the Holder of such
      Certificate, (ii) cause any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V to
      cease to qualify as a REMIC or (iii) reduce the aforesaid percentages of
      Certificates of each Class the Holders of which are required to consent to
      any
      such amendment without the consent of the Holders of all Certificates of such
      Class then outstanding.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel addressed to the Trustee and the Securities Administrator, which opinion
      shall be an expense of the party requesting such amendment but in any case
      shall
      not be an expense of the Trustee or the Securities Administrator, to the effect
      that such amendment will not (other than an amendment pursuant to clause (ii)
      of, and in accordance with, the preceding paragraph) cause the imposition of
      any
      tax on any of REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V or the
      Certificateholders or cause any of REMIC I, REMIC II, REMIC III, REMIC IV or
      REMIC V to cease to qualify as a REMIC at any time that any Certificates are
      outstanding. Further, nothing in this Agreement shall require the Trustee to
      enter into an amendment without receiving an Opinion of Counsel, satisfactory
      to
      the Trustee (i) that such amendment is permitted and is not prohibited by this
      Agreement and (ii) that all requirements for amending this Agreement (including
      any consent of the applicable Certificateholders) have been complied
      with.

     

    Notwithstanding
      any of the other provisions of this Section 12.01, none of the Depositor, the
      Master Servicer, the Company, the Securities Administrator or the Trustee shall
      enter into any amendment to Section 4.12 or Section 6.04(a)(4)(F) of this
      Agreement without the prior written consent of the Swap Provider, which consent
      shall not be unreasonably withheld, and shall not enter into an amendment that
      has a materially adverse effect on the Swap Provider without the prior written
      consent of the Swap Provider, which consent shall not be unreasonably
      withheld.

    

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Securities Administrator shall furnish written
      notification of the substance of such amendment to each Certificateholder,
      the
      Swap Provider and each
      Rating
      Agency.

     

    It
      shall not be necessary for the consent of Certificateholders under this Section
      to approve the particular form of any proposed amendment, but 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 Trustee may prescribe.

     

    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 of 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. The Master Servicer shall effect such recordation at the Trust’s
      expense upon the request in writing of a Certificateholder, but only if such
      direction is accompanied by an Opinion of Counsel (provided at the expense
      of
      the Certificateholder requesting recordation) to the effect that such
      recordation would materially and beneficially affect the interests of the
      Certificateholders or is required by law.

     

    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 constitute but one and the same
      instrument.

     

    Section
      12.03  Governing
      Law. 

     

    THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN
      SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS).

     

    Section
      12.04  Intention
      of Parties. 

     

    It
      is the express intent of the parties hereto that the conveyance of the Mortgage
      Notes, Mortgages, assignments of Mortgages, title insurance policies and any
      modifications, extensions and/or assumption agreements and private mortgage
      insurance policies relating to the Mortgage Loans by the Seller to the
      Depositor, and by the Depositor to the Trustee be, and be construed as, an
      absolute sale thereof to the Depositor or the Trustee, as applicable. It is,
      further, not the intention of the parties that such conveyance be deemed a
      pledge thereof by each Seller to the Depositor, or by the Depositor to the
      Trustee. However, in the event that, notwithstanding the intent of the parties,
      such assets are held to be the property of the Seller or the Depositor, as
      applicable, or if for any other reason the Mortgage Loan Purchase Agreement
      or
      this Agreement is held or deemed to create a security interest in such assets,
      then (i) the Mortgage Loan Purchase Agreement and this Agreement shall each
      be
      deemed to be a security agreement within the meaning of the Uniform Commercial
      Code of the State of New York and (ii) the conveyance provided for in the
      Mortgage Loan Purchase Agreement from the Seller to the Depositor, and the
      conveyance provided for in this Agreement from the Depositor to the Trustee,
      shall be deemed to be an assignment and a grant by the Seller or the Depositor,
      as applicable, for the benefit of the Certificateholders of a security interest
      in all of the assets that constitute the Trust Fund, whether now owned or
      hereafter acquired.

     

    The
      Depositor for the benefit of the Certificateholders shall, to the extent
      consistent with this Agreement, take such actions as may be necessary to ensure
      that, if this Agreement were deemed to create a security interest in the assets
      of the Trust Fund, such security interest would be deemed to be a perfected
      security interest of first priority under applicable law and will be maintained
      as such throughout the term of the Agreement.

     

    Section
      12.05  Notices. 

     

    (a)  The
      Securities Administrator shall use
      its
      best efforts to
      promptly
      provide notice to each Rating Agency and the Swap Provider 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;

     

    (iii)  The
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Trustee and the appointment of any successor;

     

    (iv)  The
      repurchase or substitution of Mortgage Loans pursuant to Sections 2.02, 2.03,
      3.05 and 11.01; and

     

    (v)  The
      final
      payment to Certificateholders.

     

    (b)  All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when delivered at or mailed by registered mail,
      return receipt requested, postage prepaid, or by recognized overnight courier,
      or by facsimile transmission to a number provided by the appropriate party
      if
      receipt of such transmission is confirmed to (i) in the case of the Depositor,
      Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue, New York, New
      York 10179, Attention: Chief Counsel and with respect to Regulation AB
      notifications to the Depositor at regabnotifications@bear.com; (ii) in the
      case
      of EMC or the Company, EMC Mortgage Corporation, 2780 Lake Vista Drive,
      Lewisville, Texas 75067 (Facsimile: (972) 444-2880), attention: President or
      General Counsel or such other address as may be hereafter furnished to the
      other
      parties hereto by the Master Servicer in writing; (iii) in the case of the
      Trustee, at its Corporate Trust Office or such other address as the Trustee
      may
      hereafter furnish to the other parties hereto, (iv) in the case of the Master
      Servicer or the Securities Administrator, P.O. Box 98, Columbia, Maryland 21046
      (or, for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland
      21045, Attention: Corporate Trust Services - SACO 07-1) or such other address
      as
      may be hereafter furnished to the other parties hereto by the Securities
      Administrator in writing, (v) in the case of Moody’s, 99 Church Street, New
      York, New York 10007, Attention: Home Equity Monitoring, or such other address
      as may be hereafter furnished to the other parties hereto by Moody’s in writing,
      (vi) in the case of Standard & Poor’s, a division of The McGraw-Hill
      Companies, Inc., 55 Water Street, 41st Floor, New York, New York 10041 or such
      other address as may be hereafter furnished to the other parties hereto by
      Standard & Poor’s in writing and (vii) in the case of the Swap Provider,
      Bear Stearns Financial Products Inc., 383 Madison Avenue, New York, New York
      10179. Any notice delivered to EMC, the Master Servicer, the Securities
      Administrator or the Trustee under this Agreement shall be effective only upon
      receipt. Any notice required or permitted to be mailed to a Certificateholder,
      unless otherwise provided herein, shall be given by first-class mail, postage
      prepaid, at the address of such Certificateholder as shown in the Certificate
      Register; any notice so mailed within the time prescribed in this Agreement
      shall be conclusively presumed to have been duly given, whether or not the
      Certificateholder receives such notice.

     

    Section
      12.06  Severability
      of Provisions. 

     

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

     

    Notwithstanding
      anything to the contrary contained herein, except as provided pursuant to
      Section 8.02, this Agreement may not be assigned by the Master Servicer,
EMC
      or the Depositor.

     

    Section
      12.08  Limitation
      on Rights of Certificateholders. 

     

    The
      death or incapacity of any Certificateholder shall not operate to terminate
      this
      Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
      representative or heirs to claim an accounting or to take any action or commence
      any proceeding in any court for a petition or winding up of the Trust Fund,
      or
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    No
      Certificateholder shall have any right to vote (except as provided herein)
      or in
      any manner otherwise control the operation and management of the Trust Fund,
      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 party 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 or by availing itself of any
      provisions 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 or the Securities
      Administrator, as appropriate, a written notice of an Event of Default and
      of
      the continuance thereof, as hereinbefore provided, the Holders of Certificates
      evidencing not less than 25% of the Voting Rights evidenced by the Certificates
      shall also have made written request to the Trustee or the Securities
      Administrator, as appropriate to institute such action, suit or proceeding
      in
      its own name as Trustee or the Securities Administrator, as appropriate,
      hereunder and shall have offered to the Trustee or the Securities Administrator,
      as appropriate, such reasonable indemnity as it may require against the costs,
      expenses, and liabilities to be incurred therein or thereby, and the Trustee
      or
      the Securities Administrator, as appropriate, for 60 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 being understood and intended,
      and being 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 or by availing itself
      or
      themselves of any provisions of this Agreement to affect, disturb or prejudice
      the rights of the Holders of any other of the Certificates, or to obtain or
      seek
      to obtain priority over or preference to any other such Holder or to enforce
      any
      right under this Agreement, except in the manner herein provided and for the
      common benefit of all Certificateholders. For the protection and enforcement
      of
      the provisions of this Section 12.08, each and every Certificateholder, the
      Trustee or the Securities Administrator shall be entitled to such relief as
      can
      be given either at law or in equity.

     

    Section
      12.09  Inspection
      and Audit Rights. 

     

    The
      Master Servicer agrees that, on reasonable prior notice, it will permit any
      representative of the Depositor or the Trustee during the Master Servicer’s
      normal business hours, to examine all the books of account, records, reports
      and
      other papers of the Master Servicer relating to the Mortgage Loans, to make
      copies and extracts therefrom, to cause such books to be audited by independent
      certified public accountants selected by the Depositor and the Trustee and
      to
      discuss its affairs, finances and accounts relating to such Mortgage Loans
      with
      its officers, employees and independent public accountants (and by this
      provision the Master Servicer hereby authorizes such accountants to discuss
      with
      such representative such affairs, finances and accounts), all at such reasonable
      times and as often as may be reasonably requested. Any out-of-pocket expense
      incident to the exercise by the Depositor or the Trustee of any right under
      this
      Section 12.09 shall be borne by the party requesting such inspection, subject
      to
      such party’s right to reimbursement hereunder (in the case of the Trustee,
      pursuant to Section 10.05 hereof.

     

    Section
      12.10  Certificates
      Nonassessable and Fully Paid. 

     

    It
      is the intention of the Depositor that Certificateholders shall not be
      personally liable for obligations of the Trust Fund, that the interests in
      the
      Trust Fund represented by the Certificates shall be nonassessable for any reason
      whatsoever, and that the Certificates, upon due authentication thereof by the
      Securities Administrator pursuant to this Agreement, are and shall be deemed
      fully paid.

     

    Section
      12.11  Third
      Party Rights. 

     

    The
      Swap
      Provider shall be an express third-party beneficiary of this Agreement to the
      extent of its express rights to receive any payments under this Agreement
or
      any
      other express rights of
      the
      Swap Provider explicitly
      stated in this Agreement,
      and
      shall have the right to enforce  such rights under this
      Agreement as if it were a party hereto. The Swap Administrator shall be an
      express third-party beneficiary of this Agreement to the extent of its express
      rights to receive any payments under this Agreement or
      any
      other express rights of
      the
      Swap Administrator explicitly
      stated in this Agreement,
      and
      shall have the right to enforce  such rights under this
      Agreement as if it were a party hereto.

    

    

     

    *
      *
      *

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the Depositor, the Seller, the Company, the Master Servicer,
      the Securities Administrator and the Trustee have caused their names to be
      signed hereto by their respective officers thereunto duly authorized as of
      the
      day and year first above written.

     

    
      	 	 	 	 	 	 	 	
              BEAR
                STEARNS ASSET BACKED SECURITIES
                I LLC,

              as
                Depositor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Baron Silverstein 

            
	 	 	 	 	 	 	 	
              Name:

            	
              Baron
                Silverstein

            
	 	 	 	 	 	 	 	
              Title:

            	
              Vice
                President

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              EMC
                MORTGAGE CORPORATION,

              as
                Seller and Company

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	/s/
              Sue Stepanek
	 	 	 	 	 	 	 	
              Name:

            	Sue
              Stepanek 
	 	 	 	 	 	 	 	
              Title:

            	Executive
              Vice President 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION,

              as
                Master Servicer and Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	/s/
              Stacey M. Taylor
	 	 	 	 	 	 	 	
              Name:

            	Stacey
              M. Taylor 
	 	 	 	 	 	 	 	
              Title:

            	Vice
              President 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.,

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	/s/
              Cirino Emanuele 
	 	 	 	 	 	 	 	
              Name:

            	Cirino
              Emanuele 
	 	 	 	 	 	 	 	
              Title:

            	Vice
              President 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

     

    On
      this 16th
      day of January, 2007, before me, a notary public in and for said State, appeared
      Baron Silverstein, personally known to me on the basis of satisfactory evidence
      to be an authorized representative of Bear Stearns Asset Backed Securities
      I
      LLC, one of the companies that executed the within instrument, and also known
      to
      me to be the person who executed it on behalf of such limited liability company
      and acknowledged to me that such limited liability company executed the within
      instrument.

     

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

     

    

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    

    
      	
              STATE
                OF TEXAS

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF DALLAS

            	
              )

            

    

    

     

    On
      this 16th
      day of January, 2007, before me, a notary public in and for said State, appeared
      _______________________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of EMC Mortgage Corporation, one
      of
      the corporations that executed the within instrument, and also known to me
      to be
      the person who executed it on behalf of such 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

            

    

    

     

    [Notarial
      Seal]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	
              STATE
                OF MARYLAND

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF HOWARD

            	
              )

            

    

    

     

    On
      this 16th
      day of January, 2007, before me, a notary public in and for said State, appeared
      ___________, personally known to me on the basis of satisfactory evidence to
      be
      a(n) __________________ of Wells Fargo Bank, National Association that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of such national banking association, and acknowledged to me that such
      national banking association 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

            

    

    

     

    [Notarial
      Seal]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

     

    On
      this 16th
      day of January, 2007, before me, a notary public in and for said State, appeared
      ________________, personally known to me on the basis of satisfactory evidence
      to be an authorized representative of Citibank, N.A. that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      such national banking association, and acknowledged to me that such national
      banking association 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

            

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      

        EXHIBIT
          A

         

        Form
          of
          Class A Certificates

         

        SOLELY
          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

         

        THE
          CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY
          THE
          PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
          FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
          BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
          BELOW.
          ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
          BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
          HEREIN.

         

        UNLESS
          THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
          TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
          EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
          OF
          CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
          TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
          PERSON
          IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
          HEREIN.

         

        PRIOR
          TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
          A
          CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION
          7.02(h)
          OF THE POOLING AND SERVICING AGREEMENT

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

         

        
          	
                  Certificate
                    No. 1

                	
                  Adjustable
                    Rate

                
	 	 
	
                  Class
                    A

                	 
	 	 
	
                  Date
                    of Pooling and Servicing Agreement

                  and
                    Cut-off Date:

                  December
                    1, 2006

                	
                  Aggregate
                    Initial Certificate Principal

                  Balance
                    of this Certificate as of the Cut-off

                  Date:

                  $[__________]

                
	 	 
	
                  First
                    Distribution Date:

                  January
                    25, 2007

                	
                  Initial
                    Certificate Principal Balance of this

                  Certificate
                    as of the Cut-off Date:

                  $[__________]

                
	 	 
	
                  Master
                    Servicer and Securities Administrator:

                  Wells
                    Fargo Bank, National Association

                	
                  CUSIP:
                    [__________]

                
	 	 
	
                  Last
                    Scheduled Distribution Date:

                  [
                    ]
                    25, 2036

                	 

        

        

         

        SACO
          I
          TRUST 2007-1

        MORTGAGE-BACKED
          CERTIFICATE

        SERIES
          2007-1

         

        evidencing
          a fractional undivided interest in the distributions allocable to the Class
          A
          Certificates with respect to a Trust Fund consisting primarily of a pool
          of
          conventional, closed-end, second lien, one- to four-family fixed interest
          rate
          mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

         

        This
          Certificate is payable solely from the assets of the Trust Fund, and does
          not
          represent an obligation of or interest in Bear Stearns Asset Backed Securities
          I
          LLC, the Master Servicer, the Securities Administrator or the Trustee referred
          to below or any of their affiliates or any other person. Neither this
          Certificate nor the underlying Mortgage Loans are guaranteed or insured
          by any
          governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
          Master
          Servicer, the Securities Administrator or the Trustee or any of their affiliates
          or any other person. None of Bear Stearns Asset Backed Securities I LLC,
          the
          Master Servicer or any of their affiliates will have any obligation with
          respect
          to any certificate or other obligation secured by or payable from payments
          on
          the Certificates.

         

        This
          certifies that Cede & Co. is the registered owner of the Percentage Interest
          evidenced hereby in the beneficial ownership interest of Certificates of
          the
          same Class as this Certificate in a trust (the “Trust Fund”) generally
          consisting of conventional, closed-end, second lien, fixed rate mortgage
          loans
          secured by one- to four-family residences (collectively, the “Mortgage Loans”)
          sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage
          Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo
          Bank, National Association will act as master servicer of the Mortgage
          Loans (in
          that capacity, the “Master Servicer,” which term includes any successors thereto
          under the Agreement referred to below). The Trust Fund was created pursuant
          to
          the Pooling and Servicing Agreement, dated as of the Cut-off Date specified
          above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC
          Mortgage Corporation as seller and as company, Wells Fargo Bank, National
          Association, as Master Servicer and securities administrator (the “Securities
          Administrator”), and Citibank, N.A., as trustee (the “Trustee”), a summary of
          certain of the pertinent provisions of which is set forth hereafter. To
          the
          extent not defined herein, capitalized terms used herein shall have the
          meaning
          ascribed to them in the Agreement. 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 its acceptance hereof
          assents and by which such Holder is bound.

         

        Interest
          on this Certificate will accrue from and including the 25th day of the
          calendar
          month preceding the month in which a Distribution Date (as hereinafter
          defined)
          occurs to and including the 24th day of the calendar month in which that
          Distribution Date occurs on the Certificate Principal Balance hereof at
          a per
          annum rate equal to the Pass-Through Rate set forth above. The Securities
          Administrator will distribute on the 25th day of each month, or, if such
          25th
          day is not a Business Day, the immediately following Business Day (each,
          a
“Distribution Date”), commencing on the First Distribution Date specified above,
          to the Person in whose name this Certificate is registered at the close
          of
          business on the Business Day immediately preceding such Distribution Date,
          an
          amount equal to the product of the Percentage Interest evidenced by this
          Certificate and the amount (of interest and principal, if any) required
          to be
          distributed to the Holders of Certificates of the same Class as this
          Certificate. The Last Scheduled Distribution Date is the Distribution Date
          in
          the month following the latest scheduled maturity date of any Mortgage
          Loan and
          is not likely to be the date on which the Certificate Principal Balance
          of this
          Class of Certificates will be reduced to zero.

         

        Distributions
          on this Certificate will be made by the Securities Administrator by check
          mailed
          to the address of the Person entitled thereto as such name and address
          shall
          appear on the Certificate Register or, if such Person so requests by notifying
          the Securities Administrator in writing as specified in the Agreement,
          by wire
          transfer. Notwithstanding the above, the final distribution on this Certificate
          will be made after due notice by the Securities Administrator of the pendency
          of
          such distribution and only upon presentation and surrender of this Certificate
          at the office or agency appointed by the Securities Administrator for that
          purpose and designated in such notice. The initial Certificate Principal
          Balance
          of this Certificate is set forth above. The Certificate Principal Balance
          hereof
          will be reduced to the extent of distributions allocable to principal hereon
          and
          any Realized Losses allocable hereto.

         

        This
          Certificate is one of a duly authorized issue of Certificates designated
          as set
          forth on the face hereof (the “Certificates”). The Certificates, in the
          aggregate, evidence the entire beneficial ownership interest in the Trust
          Fund
          formed pursuant to the Agreement.

         

        The
          Certificateholder, by its acceptance of this Certificate, agrees that it
          will
          look solely to the Trust Fund for payment hereunder and that neither the
          Trustee
          nor the Securities Administrator is 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 hereby, and the rights, duties and immunities
          of the Securities Administrator and the Trustee.

         

        The
          Agreement permits, with certain exceptions therein provided, the amendment
          thereof and the modification of the rights and obligations of the Depositor
          and
          the rights of the Certificateholders under the Agreement from time to time
          by
          the parties thereto with the consent of the Holders of the Certificates
          evidencing over 50% of the Voting Rights, or, if applicable, Holders of
          each
          Class of Certificates affected thereby evidencing over 50% of the Voting
          Rights
          of such Class or Classes. 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
          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.

         

        As
          provided in the Agreement and subject to certain limitations therein set
          forth,
          the transfer of this Certificate is registrable with the Securities
          Administrator upon surrender of this Certificate for registration of transfer
          at
          the offices or agencies maintained by the Securities Administrator for
          such
          purposes, duly endorsed by, or accompanied by a written instrument of transfer
          in form satisfactory to the Securities Administrator duly executed by the
          Holder
          hereof or such Holder’s attorney duly authorized in writing, and thereupon one
          or more new Certificates in authorized denominations representing a like
          aggregate Percentage Interest will be issued to the designated
          transferee.

         

        Prior
          to
          the termination of the Supplemental Interest Trust, any transferee of this
          Certificate shall be deemed to make the representations in Section 7.02(h)
          of
          the Agreement.

         

        The
          Certificates are issuable only as registered Certificates without coupons
          in the
          Classes and denominations specified in the Agreement. As provided in the
          Agreement and subject to certain limitations therein set forth, this Certificate
          is exchangeable for one or more new Certificates evidencing the same Class
          and
          in the same aggregate Percentage Interest, as requested by the Holder
          surrendering the same.

         

        No
          service charge will be made to the Certificateholders for any such registration
          of transfer, 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 Master Servicer, the Securities Administrator,
          the
          Trustee and any agent of any of them may treat the Person in whose name
          this
          Certificate is registered as the owner hereof for all purposes, and none
          of the
          Depositor, the Master Servicer, the Securities Administrator, the Trustee
          or any
          such agent shall be affected by notice to the contrary.

         

        The
          obligations created by the Agreement and the Trust Fund created thereby
          (other
          than the obligations to make payments to Certificateholders with respect
          to the
          termination of the Agreement) shall terminate upon the earlier of (i) the
          later
          of (A) the maturity or other liquidation (or Advance with respect thereto)
          of
          the last Mortgage Loan remaining in the Trust Fund and disposition of all
          property acquired upon foreclosure or deed in lieu of foreclosure of any
          Mortgage Loan and (B) the remittance of all funds due under the Agreement,
          or
          (ii) the optional repurchase by the party named in the Agreement of all
          the
          Mortgage Loans and other assets of the Trust Fund in accordance with the
          terms
          of the Agreement. Such optional repurchase may be made only on or after
          the
          first Distribution Date on which the aggregate Stated Principal Balance
          of the
          Mortgage Loans is less than or equal to a certain percentage of the aggregate
          Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
          set
          forth in the Agreement. The exercise of such right will effect the early
          retirement of the Certificates. In no event, however, will the Trust Fund
          created by the Agreement continue beyond the earlier of (i) the expiration
          of 21
          years after the death of certain persons identified in the Agreement and
          (ii)
          the Latest Possible Maturity Date (as defined in the Agreement).

         

        Unless
          this Certificate has been countersigned by an authorized signatory of the
          Securities Administrator by manual signature, this Certificate shall not
          be
          entitled to any benefit under the Agreement, or be valid for any
          purpose.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Securities Administrator has caused this Certificate
          to be
          duly executed.

         

        
          	
                  Dated:
                    ____________, 2007

                	 	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    not in its individual capacity

                  but
                    solely as Securities Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

         

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class A Certificates referred to in the within-mentioned
          Agreement.

        

        
          	 	 	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    Authorized signatory of

                  Wells
                    Fargo Bank, National Association , not in its

                  individual
                    capacity but solely as Securities

                  Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        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) a Percentage Interest evidenced
          by the
          within Asset-Backed Certificate and hereby authorizes the transfer of
          registration of such interest to assignee on the Certificate Register of
          the
          Trust Fund.

         

        I
          (We)
          further direct the Certificate Registrar 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

                
	 	 
	 	 
	 	
                  Signature
                    Guaranteed

                

        

        

        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

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          A-2

         

        Form
          of
          Class M-[1][2][3][4][5][6] Certificates

         

        THIS
          CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
          [,]
          [THE CLASS M-1 CERTIFICATES] [,] [THE CLASS M-2 CERTIFICATES] [,] [THE
          CLASS M-3
          CERTIFICATES] [,] [THE CLASS M-4 CERTIFICATES] [,] [AND] [THE CLASS M-5
          CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED
          BELOW).

         

        SOLELY
          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

         

        THE
          CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY
          THE
          PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
          FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
          BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
          BELOW.
          ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
          BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
          HEREIN.

         

        EACH
          HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE
          MADE THE
          REPRESENTATIONS SET FORTH IN SECTION 7.02(h) OF THE POOLING AND SERVICING
          AGREEMENT.

         

        UNLESS
          THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
          TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
          EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
          OF
          CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
          TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
          PERSON
          IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
          HEREIN.

         

         

        

        
          	
                  Certificate
                    No.1

                	
                  Adjustable
                    Rate

                
	 	 
	
                  Class
                    M-[1][2][3][4][5][6] Subordinate

                	 
	 	 
	
                  Date
                    of Pooling and Servicing Agreement

                  and
                    Cut-off Date:

                  December
                    1, 2006

                	
                  Aggregate
                    Initial Certificate Principal

                  Balance
                    of this Certificate as of the Cut-off

                  Date:

                  $[__________]

                
	 	 
	
                  First
                    Distribution Date:

                  January
                    25, 2007

                	
                  Initial
                    Certificate Principal Balance of this

                  Certificate
                    as of the Cut-off Date:

                  $[__________]

                
	 	 
	
                  Master
                    Servicer and Securities Administrator:

                  Wells
                    Fargo Bank, National Association

                	
                  CUSIP:
                    [__________]

                
	 	 
	
                  Last
                    Scheduled Distribution Date:

                  [
                    ]
                    25, 2036

                	 
	 	 

        

        

         

        SACO
          I
          TRUST 2007-1

        MORTGAGE-BACKED
          CERTIFICATE

        SERIES
          2007-1

         

        evidencing
          a fractional undivided interest in the distributions allocable to the Class
          M-[1][2][3][4][5][6] Certificates with respect to a Trust Fund consisting
          primarily of a pool of conventional, closed-end, second lien, one- to
          four-family fixed interest rate mortgage loans sold by BEAR STEARNS ASSET
          BACKED
          SECURITIES I LLC.

         

        This
          Certificate is payable solely from the assets of the Trust Fund, and does
          not
          represent an obligation of or interest in Bear Stearns Asset Backed Securities
          I
          LLC, the Master Servicer, the Securities Administrator or the Trustee referred
          to below or any of their affiliates or any other person. Neither this
          Certificate nor the underlying Mortgage Loans are guaranteed or insured
          by any
          governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
          Master
          Servicer, the Securities Administrator or the Trustee or any of their affiliates
          or any other person. None of Bear Stearns Asset Backed Securities I LLC,
          the
          Master Servicer or any of their affiliates will have any obligation with
          respect
          to any certificate or other obligation secured by or payable from payments
          on
          the Certificates.

         

        This
          certifies that Cede & Co. is the registered owner of the Percentage Interest
          evidenced hereby in the beneficial ownership interest of Certificates of
          the
          same Class as this Certificate in a trust (the “Trust Fund”) generally
          consisting of conventional, closed-end, second lien, fixed rate mortgage
          loans
          secured by one- to four-family residences (collectively, the “Mortgage Loans”)
          sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage
          Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo
          Bank, National Association will act as master servicer of the Mortgage
          Loans (in
          that capacity, the “Master Servicer,” which term includes any successors thereto
          under the Agreement referred to below). The Trust Fund was created pursuant
          to
          the Pooling and Servicing Agreement, dated as of the Cut-off Date specified
          above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC
          Mortgage Corporation as seller and as company, Wells Fargo Bank, National
          Association, as Master Servicer and securities administrator (the “Securities
          Administrator”), and Citibank, N.A., as trustee (the “Trustee”), a summary of
          certain of the pertinent provisions of which is set forth hereafter. To
          the
          extent not defined herein, capitalized terms used herein shall have the
          meaning
          ascribed to them in the Agreement. 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 its acceptance hereof
          assents and by which such Holder is bound.

         

        Interest
          on this Certificate will accrue from and including the 25th day of the
          calendar
          month preceding the month in which a Distribution Date (as hereinafter
          defined)
          occurs to and including the 24th day of the calendar month in which that
          Distribution Date occurs on the Certificate Principal Balance hereof at
          a per
          annum rate equal to the Pass-Through Rate set forth above. The Securities
          Administrator will distribute on the 25th day of each month, or, if such
          25th
          day is not a Business Day, the immediately following Business Day (each,
          a
“Distribution Date”), commencing on the First Distribution Date specified above,
          to the Person in whose name this Certificate is registered at the close
          of
          business on the Business Day immediately preceding such Distribution Date,
          an
          amount equal to the product of the Percentage Interest evidenced by this
          Certificate and the amount (of interest and principal, if any) required
          to be
          distributed to the Holders of Certificates of the same Class as this
          Certificate. The Last Scheduled Distribution Date is the Distribution Date
          in
          the month following the latest scheduled maturity date of any Mortgage
          Loan and
          is not likely to be the date on which the Certificate Principal Balance
          of this
          Class of Certificates will be reduced to zero.

         

        Distributions
          on this Certificate will be made by the Securities Administrator by check
          mailed
          to the address of the Person entitled thereto as such name and address
          shall
          appear on the Certificate Register or, if such Person so requests by notifying
          the Securities Administrator in writing as specified in the Agreement,
          by wire
          transfer. Notwithstanding the above, the final distribution on this Certificate
          will be made after due notice by the Securities Administrator of the pendency
          of
          such distribution and only upon presentation and surrender of this Certificate
          at the office or agency appointed by the Securities Administrator for that
          purpose and designated in such notice. The initial Certificate Principal
          Balance
          of this Certificate is set forth above. The Certificate Principal Balance
          hereof
          will be reduced to the extent of distributions allocable to principal hereon
          and
          any Realized Losses allocable hereto.

         

        This
          Certificate is one of a duly authorized issue of Certificates designated
          as set
          forth on the face hereof (the “Certificates”). The Certificates, in the
          aggregate, evidence the entire beneficial ownership interest in the Trust
          Fund
          formed pursuant to the Agreement.

         

        The
          Certificateholder, by its acceptance of this Certificate, agrees that it
          will
          look solely to the Trust Fund for payment hereunder and that neither the
          Trustee
          nor the Securities Administrator is 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 hereby, and the rights, duties and immunities
          of the Securities Administrator and the Trustee.

         

        The
          Agreement permits, with certain exceptions therein provided, the amendment
          thereof and the modification of the rights and obligations of the Depositor
          and
          the rights of the Certificateholders under the Agreement from time to time
          by
          the parties thereto with the consent of the Holders of the Certificates
          evidencing over 50% of the Voting Rights, or, if applicable, Holders of
          each
          Class of Certificates affected thereby evidencing over 50% of the Voting
          Rights
          of such Class or Classes. 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
          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.

         

        As
          provided in the Agreement and subject to certain limitations therein set
          forth,
          the transfer of this Certificate is registrable with the Securities
          Administrator upon surrender of this Certificate for registration of transfer
          at
          the offices or agencies maintained by the Securities Administrator for
          such
          purposes, duly endorsed by, or accompanied by a written instrument of transfer
          in form satisfactory to the Securities Administrator duly executed by the
          Holder
          hereof or such Holder’s attorney duly authorized in writing, and thereupon one
          or more new Certificates in authorized denominations representing a like
          aggregate Percentage Interest will be issued to the designated
          transferee.

         

        Each
          holder of a Certificate or beneficial ownership shall be deemed to have
          made the
          representations set forth in Section 7.02(h) of the Pooling and Servicing
          Agreement.

         

        The
          Certificates are issuable only as registered Certificates without coupons
          in the
          Classes and denominations specified in the Agreement. As provided in the
          Agreement and subject to certain limitations therein set forth, this Certificate
          is exchangeable for one or more new Certificates evidencing the same Class
          and
          in the same aggregate Percentage Interest, as requested by the Holder
          surrendering the same.

         

        No
          service charge will be made to the Certificateholders for any such registration
          of transfer, 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 Master Servicer, the Securities Administrator,
          the
          Trustee and any agent of any of them may treat the Person in whose name
          this
          Certificate is registered as the owner hereof for all purposes, and none
          of the
          Depositor, the Master Servicer, the Securities Administrator, the Trustee
          or any
          such agent shall be affected by notice to the contrary.

         

        The
          obligations created by the Agreement and the Trust Fund created thereby
          (other
          than the obligations to make payments to Certificateholders with respect
          to the
          termination of the Agreement) shall terminate upon the earlier of (i) the
          later
          of (A) the maturity or other liquidation (or Advance with respect thereto)
          of
          the last Mortgage Loan remaining in the Trust Fund and disposition of all
          property acquired upon foreclosure or deed in lieu of foreclosure of any
          Mortgage Loan and (B) the remittance of all funds due under the Agreement,
          or
          (ii) the optional repurchase by the party named in the Agreement of all
          the
          Mortgage Loans and other assets of the Trust Fund in accordance with the
          terms
          of the Agreement. Such optional repurchase may be made only on or after
          the
          first Distribution Date on which the aggregate Stated Principal Balance
          of the
          Mortgage Loans is less than or equal to a certain percentage of the aggregate
          Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
          set
          forth in the Agreement. The exercise of such right will effect the early
          retirement of the Certificates. In no event, however, will the Trust Fund
          created by the Agreement continue beyond the earlier of (i) the expiration
          of 21
          years after the death of certain persons identified in the Agreement and
          (ii)
          the Latest Possible Maturity Date (as defined in the Agreement).

         

        Unless
          this Certificate has been countersigned by an authorized signatory of the
          Securities Administrator by manual signature, this Certificate shall not
          be
          entitled to any benefit under the Agreement, or be valid for any
          purpose.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Securities Administrator has caused this Certificate
          to be
          duly executed.

         

        
          	
                  Dated:
                    ____________, 2007

                	 	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    not in its individual capacity

                  but
                    solely as Securities Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

         

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class M-[1][2][3][4][5][6] Certificates referred to in the
          within-mentioned Agreement.

        
          	 	 	
                   

                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    Authorized signatory of

                  Wells
                    Fargo Bank, National Association , not in its

                  individual
                    capacity but solely as Securities

                  Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        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) a Percentage Interest evidenced
          by the
          within Asset-Backed Certificate and hereby authorizes the transfer of
          registration of such interest to assignee on the Certificate Register of
          the
          Trust Fund.

         

        I
          (We)
          further direct the Certificate Registrar 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

                
	 	 
	 	 
	 	
                  Signature
                    Guaranteed

                

        

        

        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

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          A-3

         

        Form
          of
          Class B-[1][2][3][4] Certificates

         

        THIS
          CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
          [AND] THE CLASS M CERTIFICATES [,] [AND] [THE CLASS B-1 CERTIFICATES] [,]
          [AND]
          [THE CLASS B-2 CERTIFICATES] [,] [AND] [THE CLASS B-3 CERTIFICATES] AS
          DESCRIBED
          IN THE AGREEMENT (AS DEFINED BELOW).

         

        SOLELY
          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

         

        THE
          CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY
          THE
          PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
          FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
          BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
          BELOW.
          ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
          BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
          HEREIN.

         

        [For
          the Class B-1, Class B-2 and Class B-3 Certificates] EACH HOLDER OF A
          CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE THE
          REPRESENTATIONS SET FORTH IN SECTION 7.02(h) OF THE POOLING AND SERVICING
          AGREEMENT.

         

        UNLESS
          THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
          TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
          EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
          OF
          CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
          OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
          TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
          PERSON
          IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
          HEREIN.

         

        [For
          the Class B-4 Certificates] [THIS CERTIFICATE HAS NOT BEEN AND WILL NOT
          BE
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
          OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS
          CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED
          OR
          OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
          APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES
          ACT
          (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
          INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR
          ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE
          HOLDER
          HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER
          IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
          REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
          OR (3)
          IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE
          MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER
          THE ACT
          OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS
          PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT
          TO
          (A) THE RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY
          IN THE
          FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES
          ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES ADMINISTRATOR
          THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
          SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE
          WITH ALL
          APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
          JURISDICTION.]

         

        [For
          the Class B-4 Certificates] [NOTWITHSTANDING THE PREVIOUS PARAGRAPH, A
          CERTIFICATION WILL NOT BE REQUIRED WITH RESPECT TO THE TRANSFER OF THIS
          CERTIFICATE TO A DEPOSITORY, OR FOR ANY SUBSEQUENT TRANSFER OF THIS CERTIFICATE
          FOR SO LONG AS THIS CERTIFICATE IS A BOOK-ENTRY CERTIFICATE. ANY TRANSFEREE
          OF
          THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY VIRTUE OF ITS PURCHASE
          OR
          HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) THAT SUCH TRANSFEREE IS
          A
“QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A UNDER THE 1933
          ACT.]

         

        [For
          the Class B-4 Certificates] [THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY
          OR
          INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
          ARRANGEMENT WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
          SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE
          CODE
          OF 1986, AS AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT
          THE
          PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
          AND
          OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED
          TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED
          TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION
          EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II)
          WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART OF THE DEPOSITOR,
          THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE, WHICH
          WILL BE
          DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL
          CERTIFICATE OR UNLESS AN OPINION SPECIFIED IN SECTION 7.02 OF THE AGREEMENT
          IS
          PROVIDED.]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	
                  Certificate
                    No. [_]

                	
                  Adjustable
                    Rate

                
	 	 
	
                  Class
                    B-[1][2][3][4] Subordinate

                	 
	 	 
	
                  Date
                    of Pooling and Servicing Agreement

                  and
                    Cut-off Date:

                  December
                    1, 2006

                	
                  Aggregate
                    Initial Certificate Principal

                  Balance
                    of this Certificate as of the Cut-off

                  Date:

                  $[__________]

                
	 	 
	
                  First
                    Distribution Date:

                  January
                    25, 2007

                	
                  Initial
                    Certificate Principal Balance of this

                  Certificate
                    as of the Cut-off Date:

                  $[__________]

                
	 	 
	
                  Master
                    Servicer and Securities Administrator:

                  Wells
                    Fargo Bank, National Association

                	
                  CUSIP:
                    [__________]

                
	 	 
	
                  Last
                    Scheduled Distribution Date:

                  [
                    ], 2036

                	 
	 	 

        

        

         

        SACO
          I
          TRUST 2007-1

        MORTGAGE-BACKED
          CERTIFICATE

        SERIES
          2007-1

         

        evidencing
          a fractional undivided interest in the distributions allocable to the Class
          B-[1][2][3][4] Certificates with respect to a Trust Fund consisting primarily
          of
          a pool of conventional, closed-end, second lien, one- to four-family fixed
          interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES
          I
          LLC.

         

        This
          Certificate is payable solely from the assets of the Trust Fund, and does
          not
          represent an obligation of or interest in Bear Stearns Asset Backed Securities
          I
          LLC, the Master Servicer, the Securities Administrator or the Trustee referred
          to below or any of their affiliates or any other person. Neither this
          Certificate nor the underlying Mortgage Loans are guaranteed or insured
          by any
          governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
          Master
          Servicer, the Securities Administrator or the Trustee or any of their affiliates
          or any other person. None of Bear Stearns Asset Backed Securities I LLC,
          the
          Master Servicer or any of their affiliates will have any obligation with
          respect
          to any certificate or other obligation secured by or payable from payments
          on
          the Certificates.

         

        This
          certifies that Cede & Co. is the registered owner of the Percentage Interest
          evidenced hereby in the beneficial ownership interest of Certificates of
          the
          same Class as this Certificate in a trust (the “Trust Fund”) generally
          consisting of conventional, closed-end, second lien, fixed rate mortgage
          loans
          secured by one- to four-family residences (collectively, the “Mortgage Loans”)
          sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage
          Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo
          Bank, National Association will act as master servicer of the Mortgage
          Loans (in
          that capacity, the “Master Servicer,” which term includes any successors thereto
          under the Agreement referred to below). The Trust Fund was created pursuant
          to
          the Pooling and Servicing Agreement, dated as of the Cut-off Date specified
          above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC
          Mortgage Corporation as seller and as company, Wells Fargo Bank, National
          Association, as Master Servicer and securities administrator (the “Securities
          Administrator”), and Citibank, N.A., as trustee (the “Trustee”), a summary of
          certain of the pertinent provisions of which is set forth hereafter. To
          the
          extent not defined herein, capitalized terms used herein shall have the
          meaning
          ascribed to them in the Agreement. 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 its acceptance hereof
          assents and by which such Holder is bound.

         

        Interest
          on this Certificate will accrue during the month prior to the month in
          which a
          Distribution Date (as hereinafter defined) occurs on the Certificate Principal
          Balance hereof at a per annum rate equal to the Pass-Through Rate set forth
          above. The Securities Administrator will distribute on the 25th day of
          each
          month, or, if such 25th day is not a Business Day, the immediately following
          Business Day (each, a “Distribution Date”), commencing on the First Distribution
          Date specified above, to the Person in whose name this Certificate is registered
          at the close of business on the last day (or if such last day is not a
          Business
          Day, the Business Day immediately preceding such last day) of the calendar
          month
          immediately preceding the month in which the Distribution Date occurs,
          an amount
          equal to the product of the Percentage Interest evidenced by this Certificate
          and the amount (of interest and principal, if any) required to be distributed
          to
          the Holders of Certificates of the same Class as this Certificate. The
          Last
          Scheduled Distribution Date is the Distribution Date in the month following
          the
          latest scheduled maturity date of any Mortgage Loan and is not likely to
          be the
          date on which the Certificate Principal Balance of this Class of Certificates
          will be reduced to zero. 

         

        Distributions
          on this Certificate will be made by the Securities Administrator by check
          mailed
          to the address of the Person entitled thereto as such name and address
          shall
          appear on the Certificate Register or, if such Person so requests by notifying
          the Securities Administrator in writing as specified in the Agreement,
          by wire
          transfer. Notwithstanding the above, the final distribution on this Certificate
          will be made after due notice by the Securities Administrator of the pendency
          of
          such distribution and only upon presentation and surrender of this Certificate
          at the office or agency appointed by the Securities Administrator for that
          purpose and designated in such notice. The initial Certificate Principal
          Balance
          of this Certificate is set forth above. The Certificate Principal Balance
          hereof
          will be reduced to the extent of distributions allocable to principal hereon
          and
          any Realized Losses allocable hereto. 

         

        [For
          the
          Class B-4 Certificates] [No transfer of this Class B-4 Certificate will
          be made
          unless such transfer is (i) exempt from the registration requirements of
          the
          Securities Act of 1933, as amended, and any applicable state securities
          laws or
          is made in accordance with said Act and laws and (ii) made in accordance
          with
          Section 7.02 of the Agreement. In the event that such transfer is to be
          made the
          Securities Administrator shall register such transfer if, (i) made to a
          transferee who has provided the Securities Administrator with evidence
          as to its
          QIB status; or (ii) (A) the transferor has advised the Securities Administrator
          in writing that the Certificate is being transferred to an Institutional
          Accredited Investor and (B) prior to such transfer the transferee furnishes
          to
          the Securities Administrator an Investment Letter; provided that if based
          upon
          an Opinion of Counsel to the effect that (A) and (B) above are not sufficient
          to
          confirm that such transfer is being made pursuant to an exemption from,
          or in a
          transaction not subject to, the registration requirements of the Securities
          Act
          and other applicable laws, the Securities Administrator shall as a condition
          of
          the registration of any such transfer require the transferor to furnish
          such
          other certifications, legal opinions or other information prior to registering
          the transfer of this Certificate as shall be set forth in such Opinion
          of
          Counsel.]

         

        [For
          the
          Class B-4 Certificates] [Notwithstanding the foregoing, the certifications
          will
          not be required with respect to the transfer of this Certificate to a
          Depository, or for any subsequent transfer of this Certificate for so long
          as
          this Certificate is a Book-Entry Certificate.]

         

        This
          Certificate is one of a duly authorized issue of Certificates designated
          as set
          forth on the face hereof (the “Certificates”). The Certificates, in the
          aggregate, evidence the entire beneficial ownership interest in the Trust
          Fund
          formed pursuant to the Agreement. 

         

        The
          Certificateholder, by its acceptance of this Certificate, agrees that it
          will
          look solely to the Trust Fund for payment hereunder and that neither the
          Trustee
          nor the Securities Administrator is 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 hereby, and the rights, duties and immunities
          of the Securities Administrator and the Trustee.

         

        The
          Agreement permits, with certain exceptions therein provided, the amendment
          thereof and the modification of the rights and obligations of the Depositor
          and
          the rights of the Certificateholders under the Agreement from time to time
          by
          the parties thereto with the consent of the Holders of the Certificates
          evidencing over 50% of the Voting Rights, or, if applicable, Holders of
          each
          Class of Certificates affected thereby evidencing over 50% of the Voting
          Rights
          of such Class or Classes. 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
          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.

         

        As
          provided in the Agreement and subject to certain limitations therein set
          forth,
          the transfer of this Certificate is registrable with the Securities
          Administrator upon surrender of this Certificate for registration of transfer
          at
          the offices or agencies maintained by the Securities Administrator for
          such
          purposes, duly endorsed by, or accompanied by a written instrument of transfer
          in form satisfactory to the Securities Administrator duly executed by the
          Holder
          hereof or such Holder’s attorney duly authorized in writing, and thereupon one
          or more new Certificates in authorized denominations representing a like
          aggregate Percentage Interest will be issued to the designated
          transferee.

         

        [For
          the
          Class B-4 Certificates] [This Certificate may not be acquired directly
          or
          indirectly by, or on behalf of, an employee benefit plan or other retirement
          arrangement which is subject to Title I of the Employee Retirement Income
          Security Act of 1974, as amended, or Section 4975 of the Internal Revenue
          Code
          of 1986, as amended, unless the transferee certifies or represents that
          the
          proposed transfer and holding of a Certificate and the servicing, management
          and
          operation of the trust and its assets: (i) will not result in any prohibited
          transaction which is not covered under an individual or class prohibited
          transaction exemption, including, but not limited to, Prohibited Transaction
          Exemption (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23 and (ii)
          will not give rise to any additional obligations on the part of the Depositor,
          the Master Servicer, the Securities Administrator or the Trustee, which
          will be
          deemed represented by an owner of a Book-Entry Certificate or a Global
          Certificate or unless an opinion specified in section 7.02 of the Agreement
          is
          provided.]

         

        [For
          the
          Class B-1, Class B-2 and Class B-3 Certificates] Each holder of a Certificate
          or
          beneficial ownership shall be deemed to have made the representations set
          forth
          in Section 7.02(h) of the Pooling and Servicing Agreement.

         

        The
          Certificates are issuable only as registered Certificates without coupons
          in the
          Classes and denominations specified in the Agreement. As provided in the
          Agreement and subject to certain limitations therein set forth, this Certificate
          is exchangeable for one or more new Certificates evidencing the same Class
          and
          in the same aggregate Percentage Interest, as requested by the Holder
          surrendering the same.

         

        No
          service charge will be made to the Certificateholders for any such registration
          of transfer, 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 Master Servicer, the Securities Administrator,
          the
          Trustee and any agent of any of them may treat the Person in whose name
          this
          Certificate is registered as the owner hereof for all purposes, and none
          of the
          Depositor, the Master Servicer, the Securities Administrator, the Trustee
          or any
          such agent shall be affected by notice to the contrary.

         

        The
          obligations created by the Agreement and the Trust Fund created thereby
          (other
          than the obligations to make payments to Certificateholders with respect
          to the
          termination of the Agreement) shall terminate upon the earlier of (i) the
          later
          of (A) the maturity or other liquidation (or Advance with respect thereto)
          of
          the last Mortgage Loan remaining in the Trust Fund and disposition of all
          property acquired upon foreclosure or deed in lieu of foreclosure of any
          Mortgage Loan and (B) the remittance of all funds due under the Agreement,
          or
          (ii) the optional repurchase by the party named in the Agreement of all
          the
          Mortgage Loans and other assets of the Trust Fund in accordance with the
          terms
          of the Agreement. Such optional repurchase may be made only on or after
          the
          first Distribution Date on which the aggregate Stated Principal Balance
          of the
          Mortgage Loans is less than or equal to a certain percentage of the aggregate
          Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
          set
          forth in the Agreement. The exercise of such right will effect the early
          retirement of the Certificates. In no event, however, will the Trust Fund
          created by the Agreement continue beyond the earlier of (i) the expiration
          of 21
          years after the death of certain persons identified in the Agreement and
          (ii)
          the Latest Possible Maturity Date (as defined in the Agreement).

         

        Unless
          this Certificate has been countersigned by an authorized signatory of the
          Securities Administrator by manual signature, this Certificate shall not
          be
          entitled to any benefit under the Agreement, or be valid for any
          purpose.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Securities Administrator has caused this Certificate
          to be
          duly executed.

         

        
          	
                  Dated:
                    ____________, 2007

                	 	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    not in its individual capacity

                  but
                    solely as Securities Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

         

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class B-[1][2][3][4] Certificates referred to in the within-mentioned
          Agreement.

        

        
          	 	 	
                  WELLS
                    FARGO BANK, NATIONAL ASSOCIATION,
                    Authorized signatory of

                  Wells
                    Fargo Bank, National Association, not in its individual capacity
                    but
                    solely as Securities

                  Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        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) a Percentage Interest evidenced
          by the
          within Asset-Backed Certificate and hereby authorizes the transfer of
          registration of such interest to assignee on the Certificate Register of
          the
          Trust Fund.

         

        I
          (We)
          further direct the Certificate Registrar 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

                
	 	 
	 	 
	 	
                  Signature
                    Guaranteed

                

        

        

        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

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

        

        

        

        EXHIBIT
          A-4

         

        Form
          of
          Class C Certificates

         

        THIS
          CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
          THE
          CLASS M CERTIFICATES AND THE CLASS B CERTIFICATES AS DESCRIBED IN THE AGREEMENT
          (AS DEFINED BELOW).

         

        SOLELY
          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

         

        THIS
          CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
          ACT OF
          1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
          HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
          MAY
          BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
          WITH
          THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
          144A
          UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
          BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
          144A (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
          A
          QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
          PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
          TO
          AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
          ACT (IF
          AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
          D
          UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN
          SUCH
          PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES
          ACT,
          SUBJECT TO (A) THE RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER
          SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT
          BY THE
          SECURITIES ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
          ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
          WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE
          WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
          APPLICABLE JURISDICTION.

         

        NO
          TRANSFER OF ANY CLASS C CERTIFICATE SHALL BE MADE UNLESS THE TRANSFEREE
          OF SUCH
          CLASS C CERTIFICATE PROVIDES TO THE SECURITIES ADMINISTRATOR THE APPROPRIATE
          TAX
          CERTIFICATION FORM (I.E., IRS FORM W-9 OR IRS FORM W-8BEN, W-8IMY, OR W-8ECI,
          AS
          APPLICABLE (OR ANY SUCCESSOR FORM THERETO)), AS A CONDITION TO SUCH TRANSFER
          AND
          AGREES TO UPDATE SUCH FORMS (I) UPON EXPIRATION OF ANY SUCH FORM, (II)
          AS
          REQUIRED UNDER THEN APPLICABLE U.S. TREASURY REGULATIONS AND (III) PROMPTLY
          UPON
          LEARNING THAT ANY IRS FORM W-9 OR IRS FORM W-8BEN, W-8IMY, OR W-8ECI, AS
          APPLICABLE (OR ANY SUCCESSOR FORM THERETO), HAS BECOME OBSOLETE OR INCORRECT.
          UPON RECEIPT OF ANY SUCH TAX CERTIFICATION FORM FROM A TRANSFEREE OF ANY
          CLASS C
          CERTIFICATE, THE SECURITIES ADMINISTRATOR SHALL PROVIDE A COPY OF SUCH
          TAX
          CERTIFICATION FORM TO THE SUPPLEMENTAL INTEREST TRUST TRUSTEE. THE SUPPLEMENTAL
          INTEREST TRUST TRUSTEE SHALL PROVIDE A COPY OF ANY SUCH TAX CERTIFICATION
          FORM
          TO THE SWAP PROVIDER. 

        

        NO
          TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
          PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 7.02(h) OF THE AGREEMENT
          OR
          AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR THAT
          THE
          PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE
          LAW,
          WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS
          UNDER
          SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
          AMENDED
          (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE SECURITIES
          ADMINISTRATOR, THE MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR
          LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
          AGREEMENT.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	
                  Certificate
                    No.1

                	
                  Percentage
                    Interest: 100%

                
	 	 
	
                  Class
                    C

                	 
	 	 
	
                  Date
                    of Pooling and Servicing Agreement

                  and
                    Cut-off Date:

                  December
                    1, 2006

                	
                  Initial
                    Certificate Notional Amount of this

                  Certificate
                    as of the Cut-off Date:

                  $[__________]

                
	 	 
	
                  First
                    Distribution Date:

                  January
                    25, 2007

                	
                  Aggregate
                    Certificate Notional Amount of this

                  Certificate
                    as of the Cut-off Date:

                  $[__________]

                
	 	 
	
                  Master
                    Servicer and Securities Administrator:

                  Wells
                    Fargo Bank, National Association

                	
                  CUSIP:
                    [__________]

                
	 	 
	
                  Last
                    Scheduled Distribution Date:

                  [
                    ]
                    25, 2036

                	 
	 	 

        

        

         

        SACO
          I
          TRUST 2007-1

        MORTGAGE-BACKED
          CERTIFICATE

        SERIES
          2007-1

         

        evidencing
          a fractional undivided interest in the distributions allocable to the Class
          C
          Certificates with respect to a Trust Fund consisting primarily of a pool
          of
          conventional, closed-end, second lien, one- to four-family fixed interest
          rate
          mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

         

        This
          Certificate is payable solely from the assets of the Trust Fund, and does
          not
          represent an obligation of or interest in Bear Stearns Asset Backed Securities
          I
          LLC, the Master Servicer, the Securities Administrator or the Trustee referred
          to below or any of their affiliates or any other person. Neither this
          Certificate nor the underlying Mortgage Loans are guaranteed or insured
          by any
          governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
          Master
          Servicer, the Securities Administrator or the Trustee or any of their affiliates
          or any other person. None of Bear Stearns Asset Backed Securities I LLC,
          the
          Master Servicer or any of their affiliates will have any obligation with
          respect
          to any certificate or other obligation secured by or payable from payments
          on
          the Certificates.

         

        This
          certifies that ______________ is the registered owner of the Percentage
          Interest
          evidenced hereby in the beneficial ownership interest of Certificates of
          the
          same Class as this Certificate in a trust (the “Trust Fund”) generally
          consisting of conventional, closed-end, second lien, fixed rate mortgage
          loans
          secured by one- to four-family residences (collectively, the “Mortgage Loans”)
          sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage
          Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo
          Bank, National Association will act as master servicer of the Mortgage
          Loans (in
          that capacity, the “Master Servicer,” which term includes any successors thereto
          under the Agreement referred to below). The Trust Fund was created pursuant
          to
          the Pooling and Servicing Agreement, dated as of the Cut-off Date specified
          above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC
          Mortgage Corporation as seller and as company, Wells Fargo Bank, National
          Association, as Master Servicer and securities administrator (the “Securities
          Administrator”), and Citibank, N.A., as trustee (the “Trustee”), a summary of
          certain of the pertinent provisions of which is set forth hereafter. To
          the
          extent not defined herein, capitalized terms used herein shall have the
          meaning
          ascribed to them in the Agreement. 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 its acceptance hereof
          assents and by which such Holder is bound.

         

        The
          Securities Administrator will distribute on the 25th day of each month,
          or, if
          such 25th day is not a Business Day, the immediately following Business
          Day
          (each, a “Distribution Date”), commencing on the First Distribution Date
          specified above, to the Person in whose name this Certificate is registered
          at
          the close of business on the last day (or if such last day is not a Business
          Day, the Business Day immediately preceding such last day) of the calendar
          month
          immediately preceding the month in which the Distribution Date occurs,
          an amount
          equal to the product of the Percentage Interest evidenced by this Certificate
          and the amounts required to be distributed to the Holders of Certificates
          of the
          same Class as this Certificate. 

         

        Distributions
          on this Certificate will be made by the Securities Administrator by check
          mailed
          to the address of the Person entitled thereto as such name and address
          shall
          appear on the Certificate Register or, if such Person so requests by notifying
          the Securities Administrator in writing as specified in the Agreement,
          by wire
          transfer. Notwithstanding the above, the final distribution on this Certificate
          will be made after due notice by the Securities Administrator of the pendency
          of
          such distribution and only upon presentation and surrender of this Certificate
          at the office or agency appointed by the Securities Administrator for that
          purpose and designated in such notice. 

         

        No
          transfer of this Certificate shall be made unless the transfer is made
          pursuant
          to an effective registration statement under the Securities Act of 1933,
          as
          amended (the “1933 Act”), and an effective registration or qualification under
          applicable state securities laws, or is made in a transaction that does
          not
          require such registration or qualification. In the event that such a transfer
          of
          this Certificate is to be made without registration or qualification, the
          Securities Administrator shall require receipt of (i) if such transfer
          is
          purportedly being made in reliance upon Rule 144A under the 1933 Act, written
          certifications from the Holder of the Certificate desiring to effect the
          transfer, and from such Holder’s prospective transferee, substantially in the
          forms attached to the Agreement as Exhibit D and either Exhibit E or Exhibit
          F,
          as applicable, and (ii) in all other cases, an Opinion of Counsel satisfactory
          to it that such transfer may be made without such registration or qualification
          (which Opinion of Counsel shall not be an expense of the Trust Fund or
          of the
          Depositor, the Securities Administrator, the Trustee, or the Master Servicer
          in
          their respective capacities as such), together with copies of the written
          certification(s) of the Holder of the Certificate desiring to effect the
          transfer and/or such Holder’s prospective transferee upon which such Opinion of
          Counsel is based. Neither the Depositor, the Trustee nor the Securities
          Administrator is obligated to register or qualify the Class of Certificates
          specified on the face hereof under the 1933 Act or any other securities
          law or
          to take any action not otherwise required under the Agreement to permit
          the
          transfer of such Certificates without registration or qualification. Any
          Holder
          desiring to effect a transfer of this Certificate shall be required to
          indemnify
          the Trustee, the Securities Administrator, the Depositor, the Seller and
          the
          Master Servicer against any liability that may result if the transfer is
          not so
          exempt or is not made in accordance with such federal and state
          laws.

         

        No
          transfer of this Class C Certificate will be made unless the Securities
          Administrator shall have received either (i) the opinion of counsel set
          forth in
          Section 7.02(h) of the Agreement or (ii) a representation letter under
          Section
          7.02 of the Agreement, in the form as described by the Agreement, stating
          that
          the transferee is not an employee benefit or other plan subject to the
          prohibited transaction provisions of ERISA or Section 4975 of the Code
          (a
“Plan”), or any other person (including an investment manager, a named fiduciary
          or a trustee of any Plan) acting, directly or indirectly, on behalf of
          or
          purchasing any Certificate with “plan assets” of any Plan.

         

        This
          Certificate is one of a duly authorized issue of Certificates designated
          as set
          forth on the face hereof (the “Certificates”). The Certificates, in the
          aggregate, evidence the entire beneficial ownership interest in the Trust
          Fund
          formed pursuant to the Agreement.

         

        The
          Certificateholder, by its acceptance of this Certificate, agrees that it
          will
          look solely to the Trust Fund for payment hereunder and that neither the
          Trustee
          nor the Securities Administrator is 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 hereby, and the rights, duties and immunities
          of the Trustee and Securities Administrator.

         

        The
          Agreement permits, with certain exceptions therein provided, the amendment
          thereof and the modification of the rights and obligations of the Depositor
          and
          the rights of the Certificateholders under the Agreement from time to time
          by
          the parties thereto with the consent of the Holders of the Certificates
          evidencing over 50% of the Voting Rights, or, if applicable, Holders of
          each
          Class of Certificates affected thereby evidencing over 50% of the Voting
          Rights
          of such Class or Classes. 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
          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.

         

        As
          provided in the Agreement and subject to certain limitations therein set
          forth,
          the transfer of this Certificate is registrable with the Securities
          Administrator upon surrender of this Certificate for registration of transfer
          at
          the offices or agencies maintained by the Securities Administrator for
          such
          purposes, duly endorsed by, or accompanied by a written instrument of transfer
          in form satisfactory to the Securities Administrator duly executed by the
          Holder
          hereof or such Holder’s attorney duly authorized in writing, and thereupon one
          or more new Certificates in authorized denominations representing a like
          aggregate Percentage Interest will be issued to the designated
          transferee.

         

        The
          Certificates are issuable only as registered Certificates without coupons
          in the
          Classes and denominations specified in the Agreement. As provided in the
          Agreement and subject to certain limitations therein set forth, this Certificate
          is exchangeable for one or more new Certificates evidencing the same Class
          and
          in the same aggregate Percentage Interest, as requested by the Holder
          surrendering the same.

         

        No
          service charge will be made to the Certificateholders for any such registration
          of transfer, 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 Master Servicer, the Securities Administrator,
          the
          Trustee and any agent of any of them may treat the Person in whose name
          this
          Certificate is registered as the owner hereof for all purposes, and none
          of the
          Depositor, the Master Servicer, the Securities Administrator, the Trustee
          or any
          such agent shall be affected by notice to the contrary.

         

        The
          obligations created by the Agreement and the Trust Fund created thereby
          (other
          than the obligations to make payments to Certificateholders with respect
          to the
          termination of the Agreement) shall terminate upon the earlier of (i) the
          later
          of (A) the maturity or other liquidation (or Advance with respect thereto)
          of
          the last Mortgage Loan remaining in the Trust Fund and disposition of all
          property acquired upon foreclosure or deed in lieu of foreclosure of any
          Mortgage Loan and (B) the remittance of all funds due under the Agreement,
          or
          (ii) the optional repurchase by the party named in the Agreement of all
          the
          Mortgage Loans and other assets of the Trust Fund in accordance with the
          terms
          of the Agreement. Such optional repurchase may be made only on or after
          the
          first Distribution Date on which the aggregate Stated Principal Balance
          of the
          Mortgage Loans is less than or equal to a certain percentage of the aggregate
          Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
          set
          forth in the Agreement. The exercise of such right will effect the early
          retirement of the Certificates. In no event, however, will the Trust Fund
          created by the Agreement continue beyond the earlier of (i) the expiration
          of 21
          years after the death of certain persons identified in the Agreement and
          (ii)
          the Latest Possible Maturity Date (as defined in the Agreement).

         

        Unless
          this Certificate has been countersigned by an authorized signatory of the
          Securities Administrator by manual signature, this Certificate shall not
          be
          entitled to any benefit under the Agreement, or be valid for any
          purpose.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Securities Administrator has caused this Certificate
          to be
          duly executed.

         

        
          	
                  Dated:
                    ____________, 2007

                	 	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    not in its individual capacity

                  but
                    solely as Securities Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

         

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class C Certificates referred to in the within-mentioned
          Agreement.

        
          	 	 	
                   

                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    Authorized signatory of

                  Wells
                    Fargo Bank, National Association , not in its

                  individual
                    capacity but solely as Securities

                  Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        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) a Percentage Interest evidenced
          by the
          within Asset-Backed Certificate and hereby authorizes the transfer of
          registration of such interest to assignee on the Certificate Register of
          the
          Trust Fund.

         

        I
          (We)
          further direct the Certificate Registrar 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

                
	 	 
	 	 
	 	
                  Signature
                    Guaranteed

                

        

        

        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

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

        

        

         

        

        EXHIBIT
          A-5

         

        Form
          of
          Class R-[1][2][3][X] Certificates

         

        THIS
          CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
          OR A
          DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

         

        SOLELY
          FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “RESIDUAL
          INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE
          DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
          CODE OF
          1986 (THE “CODE”).

         

        NO
          TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
          PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 7.02(h) OF THE AGREEMENT
          OR
          AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR THAT
          THE
          PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE
          LAW,
          WILL NOT CONSTITUTE OR RESULT IN ANY NON EXEMPT PROHIBITED TRANSACTIONS
          UNDER
          SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
          AMENDED
          (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE SECURITIES
          ADMINISTRATOR, THE MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR
          LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
          AGREEMENT.

         

        ANY
          RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
          IF
          THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER
          AND
          SECURITIES ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED
          STATES,
          ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED
          STATES,
          OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN
          INSTRUMENTALITY WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT
          TO
          TAX AND EXCEPT FOR FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS
          NOT
          SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL
          ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING,
          (C)
          ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION
          521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE
          CODE
          UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF
          THE
          CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED
          BUSINESS
          TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED
          IN
          SECTION 1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER
          SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING
          CLAUSES
          (A), (B), (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED
          ORGANIZATION”), OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) SUCH
          TRANSFEREE IS A UNITED STATES PERSON UNDER SECTION 7701 OF THE CODE, (3)
          NO
          PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX
          AND
          (4) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO
          THE
          FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
          IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION
          OF THIS
          CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED
          ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE
          OR
          EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER
          FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
          DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
          OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS
          OF THIS
          PARAGRAPH.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	
                  Certificate
                    No.1

                	 
	 	 
	
                  Class
                    R-[1][2][3][X]

                	
                  Percentage
                    Interest: 100%

                
	 	 
	
                  Date
                    of Pooling and Servicing Agreement

                  and
                    Cut-off Date:

                  December
                    1, 2006

                	 
	 	 
	
                  First
                    Distribution Date:

                  January
                    25, 2007

                	 
	 	 
	
                  Master
                    Servicer and Securities Administrator:

                  Wells
                    Fargo Bank, National Association

                	
                  CUSIP:
                    [__________]

                
	 	 
	
                  Last
                    Scheduled Distribution Date:

                  [
                    ]
                    25, 2036

                	 
	 	 

        

        

         

        SACO
          I
          TRUST 2007-1

        MORTGAGE-BACKED
          CERTIFICATE

        SERIES
          2007-1

         

        evidencing
          a fractional undivided interest in the distributions allocable to the Class
          R-[1][2][3][X] Certificates with respect to a Trust Fund consisting primarily
          of
          a pool of conventional, closed-end second lien one- to four-family fixed
          interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES
          I
          LLC.

         

        This
          Certificate is payable solely from the assets of the Trust Fund, and does
          not
          represent an obligation of or interest in Bear Stearns Asset Backed Securities
          I
          LLC, the Master Servicer, the Securities Administrator or the Trustee referred
          to below or any of their affiliates or any other person. Neither this
          Certificate nor the underlying Mortgage Loans are guaranteed or insured
          by any
          governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
          Master
          Servicer, the Securities Administrator or the Trustee or any of their affiliates
          or any other person. None of Bear Stearns Asset Backed Securities I LLC,
          the
          Master Servicer or any of their affiliates will have any obligation with
          respect
          to any certificate or other obligation secured by or payable from payments
          on
          the Certificates.

         

        This
          certifies that Bear, Stearns Securities Corp is the registered owner of
          the
          Percentage Interest evidenced hereby in the beneficial ownership interest
          of
          Certificates of the same Class as this Certificate in a trust (the “Trust Fund”)
          generally consisting of conventional, closed-end, second lien, fixed rate
          mortgage loans secured by one- to four-family residences (collectively,
          the
“Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS
          I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS
          I. Wells Fargo Bank, National Association will act as master servicer of
          the
          Mortgage Loans (in that capacity, the “Master Servicer,” which term includes any
          successors thereto under the Agreement referred to below). The Trust Fund
          was
          created pursuant to the Pooling and Servicing Agreement, dated as of the
          Cut-off
          Date specified above (the “Agreement”), among BSABS I, as depositor (the
“Depositor”), EMC Mortgage Corporation as seller and company, Wells Fargo Bank,
          National Association, as Master Servicer and securities administrator (the
          “Securities Administrator”) and Citibank, N.A., as trustee (the “Trustee”), a
          summary of certain of the pertinent provisions of which is set forth hereafter.
          To the extent not defined herein, capitalized terms used herein shall have
          the
          meaning ascribed to them in the Agreement. 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 its acceptance hereof
          assents and by which such Holder is bound.

         

        Each
          Holder of this Certificate will be deemed to have agreed to be bound by
          the
          restrictions set forth in the Agreement to the effect that (i) each person
          holding or acquiring any Ownership Interest in this Certificate must be
          a
          Permitted Transferee, (ii) the transfer of any Ownership Interest in this
          Certificate will be conditioned upon the delivery to the Securities
          Administrator of, among other things, an affidavit to the effect that it
          is a
          Permitted Transferee, (iii) 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,
          and (iv) if any person other than a Permitted Transferee acquires any Ownership
          Interest in this Certificate in violation of such restrictions, then the
          Depositor will have the right, in its sole discretion and without notice
          to the
          Holder of this Certificate, to sell this Certificate to a purchaser selected
          by
          the Depositor, which purchaser may be the Depositor, or any affiliate of
          the
          Depositor, on such terms and conditions as the Depositor may
          choose.

         

        The
          Securities Administrator will distribute on the 25th day of each month,
          or, if
          such 25th day is not a Business Day, the immediately following Business
          Day
          (each, a “Distribution Date”), commencing on the First Distribution Date
          specified above, to the Person in whose name this Certificate is registered
          at
          the close of business on the last day (or if such last day is not a Business
          Day, the Business Day immediately preceding such last day) of the calendar
          month
          immediately preceding the month in which the Distribution Date occurs,
          an amount
          equal to the product of the Percentage Interest evidenced by this Certificate
          and the amounts required to be distributed to the Holders of Certificates
          of the
          same Class as this Certificate.

         

        Distributions
          on this Certificate will be made by the Securities Administrator by check
          mailed
          to the address of the Person entitled thereto as such name and address
          shall
          appear on the Certificate Register or, if such Person so requests by notifying
          the Securities Administrator in writing as specified in the Agreement,
          by wire
          transfer. Notwithstanding the above, the final distribution on this Certificate
          will be made after due notice by the Securities Administrator of the pendency
          of
          such distribution and only upon presentation and surrender of this Certificate
          at the office or agency appointed by the Securities Administrator for that
          purpose and designated in such notice.

         

        No
          transfer of this Class R-[1][2][3][X] Certificate will be made unless the
          Securities Administrator shall have received either (i) the opinion of
          counsel
          set forth in Section 7.02(h) of the Agreement or (ii) a representation
          letter
          under Section 7.02 of the Agreement, in the form as described by the Agreement,
          stating that the transferee is not an employee benefit or other plan subject
          to
          the prohibited transaction provisions of ERISA or Section 4975 of the Code
          (a
“Plan”), or any other person (including an investment manager, a named fiduciary
          or a trustee of any Plan) acting, directly or indirectly, on behalf of
          or
          purchasing any Certificate with “plan assets” of any Plan.

         

        This
          Certificate is one of a duly authorized issue of Certificates designated
          as set
          forth on the face hereof (the “Certificates”). The Certificates, in the
          aggregate, evidence the entire beneficial ownership interest in the Trust
          Fund
          formed pursuant to the Agreement.

         

        The
          Certificateholder, by its acceptance of this Certificate, agrees that it
          will
          look solely to the Trust Fund for payment hereunder and that neither the
          Trustee
          nor the Securities Administrator is 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 hereby, and the rights, duties and immunities
          of the Securities Administrator and the Trustee.

         

        The
          Agreement permits, with certain exceptions therein provided, the amendment
          thereof and the modification of the rights and obligations of the Depositor
          and
          the rights of the Certificateholders under the Agreement from time to time
          by
          the parties thereto with the consent of the Holders of the Certificates
          evidencing over 50% of the Voting Rights, or, if applicable, Holders of
          each
          Class of Certificates affected thereby evidencing over 50% of the Voting
          Rights
          of such Class or Classes. 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
          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.

         

        As
          provided in the Agreement and subject to certain limitations therein set
          forth,
          the transfer of this Certificate is registrable with the Securities
          Administrator upon surrender of this Certificate for registration of transfer
          at
          the offices or agencies maintained by the Securities Administrator for
          such
          purposes, duly endorsed by, or accompanied by a written instrument of transfer
          in form satisfactory to the Securities Administrator duly executed by the
          Holder
          hereof or such Holder’s attorney duly authorized in writing, and thereupon one
          or more new Certificates in authorized denominations representing a like
          aggregate Percentage Interest will be issued to the designated
          transferee.

         

        The
          Certificates are issuable only as registered Certificates without coupons
          in the
          Classes and denominations specified in the Agreement. As provided in the
          Agreement and subject to certain limitations therein set forth, this Certificate
          is exchangeable for one or more new Certificates evidencing the same Class
          and
          in the same aggregate Percentage Interest, as requested by the Holder
          surrendering the same.

         

        No
          service charge will be made to the Certificateholders for any such registration
          of transfer, 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 Master Servicer, the Securities Administrator,
          the
          Trustee and any agent of any of them may treat the Person in whose name
          this
          Certificate is registered as the owner hereof for all purposes, and none
          of the
          Depositor, the Master Servicer, the Securities Administrator, the Trustee
          or any
          such agent shall be affected by notice to the contrary.

         

        The
          obligations created by the Agreement and the Trust Fund created thereby
          (other
          than the obligations to make payments to Certificateholders with respect
          to the
          termination of the Agreement) shall terminate upon the earlier of (i) the
          later
          of (A) the maturity or other liquidation (or Advance with respect thereto)
          of
          the last Mortgage Loan remaining in the Trust Fund and disposition of all
          property acquired upon foreclosure or deed in lieu of foreclosure of any
          Mortgage Loan and (B) the remittance of all funds due under the Agreement,
          or
          (ii) the optional repurchase by the party named in the Agreement of all
          the
          Mortgage Loans and other assets of the Trust Fund in accordance with the
          terms
          of the Agreement. Such optional repurchase may be made only on or after
          the
          first Distribution Date on which the aggregate Stated Principal Balance
          of the
          Mortgage Loans is less than or equal to a certain percentage of the aggregate
          Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
          set
          forth in the Agreement. The exercise of such right will effect the early
          retirement of the Certificates. In no event, however, will the Trust Fund
          created by the Agreement continue beyond the earlier of (i) the expiration
          of 21
          years after the death of certain persons identified in the Agreement and
          (ii)
          the Latest Possible Maturity Date (as defined in the Agreement).

         

        Unless
          this Certificate has been countersigned by an authorized signatory of the
          Securities Administrator by manual signature, this Certificate shall not
          be
          entitled to any benefit under the Agreement, or be valid for any
          purpose.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Securities Administrator has caused this Certificate
          to be
          duly executed.

         

        
          	
                  Dated:
                    ____________, 2007

                	 	
                  WELLS
                    FARGO BANK, NATIONAL ASSOCIATION,
                    not in its individual capacity

                  but
                    solely as Securities Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

         

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class R-[1][2][3][X] Certificates referred to in the within-mentioned
          Agreement.

        
          	 	 	
                  WELLS
                    FARGO BANK, NATIONAL ASSOCIATION,
                    Authorized signatory of

                  Wells
                    Fargo Bank, National Association , not in its individual capacity
                    but
                    solely as Securities Administrator

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  Authorized
                    Signatory

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        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) a Percentage Interest evidenced
          by the
          within Asset-Backed Certificate and hereby authorizes the transfer of
          registration of such interest to assignee on the Certificate Register of
          the
          Trust Fund.

         

        I
          (We)
          further direct the Certificate Registrar 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

                
	 	 
	 	 
	 	
                  Signature
                    Guaranteed

                

        

        

        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

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          A-6

        

        Form
          of
          Class X Certificates 

         

        THIS
          CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY DISTRIBUTIONS
          IN
          RESPECT OF PRINCIPAL OR INTEREST.

         

        THIS
          CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
          ACT OF
          1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
          HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
          MAY
          BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
          WITH
          THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
          144A
          UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
          BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
          144A (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
          A
          QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
          PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
          TO
          AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
          ACT (IF
          AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
          D
          UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN
          SUCH
          PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES
          ACT,
          SUBJECT TO (A) THE RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER
          SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT
          BY THE
          SECURITIES ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
          ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
          WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE
          WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
          APPLICABLE JURISDICTION.

         

        NO
          TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
          PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 7.02(h) OF THE AGREEMENT
          OR
          AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR THAT
          THE
          PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE
          LAW,
          WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS
          UNDER
          SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
          AMENDED
          (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE SECURITIES
          ADMINISTRATOR, THE MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR
          LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
          AGREEMENT.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	
                  Certificate
                    No.1

                	 
	 	 
	
                  Class
                    X

                	
                  Percentage
                    Interest: 100%

                
	 	 
	
                  Date
                    of Pooling and Servicing Agreement 

                  and
                    Cut-off Date: December 1, 2006

                	 
	 	 
	 	 
	
                  Master
                    Servicer and Securities Administrator:

                  Wells
                    Fargo Bank, National Association

                	
                  CUSIP:
                    [_______________]

                
	 	 
	 	 

        

        

        SACO
          I
          TRUST 2007-1

        MORTGAGE-BACKED
          CERTIFICATE

        SERIES
          2007-1

         

        evidencing
          a fractional undivided interest in the distributions allocable to the Class
          X
          Certificates.

         

        This
          Certificate is entitled to distributions with respect to certain Mortgage
          Loans
          that are initially assets of the Trust, and does not represent an obligation
          of
          or interest in Bear Stearns Asset Backed Securities I LLC, the Master Servicer,
          the Securities Administrator or the Trustee referred to below or any of
          their
          affiliates or any other person. Neither this Certificate nor the underlying
          Mortgage Loans are guaranteed or insured by any governmental entity or
          by Bear
          Stearns Asset Backed Securities I LLC, the Master Servicer, the Securities
          Administrator, the Trustee or any of their affiliates or any other person.
          None
          of Bear Stearns Asset Backed Securities I LLC, the Master Servicer or any
          of
          their affiliates will have any obligation with respect to any certificate
          or
          other obligation secured by or payable from payments on the
          Certificates.

         

        This
          certifies that __________________ is the registered owner of the Percentage
          Interest evidenced hereby in the beneficial ownership interest of Certificates
          of the same Class as this Certificate in a trust (the “Trust Fund”) generally
          consisting primarily of a pool of fixed rate mortgage loans that are secured
          by
          junior liens on one- to four-family residences (collectively, the “Mortgage
          Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The
          Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells
          Fargo Bank, National Association will act as master servicer of the Mortgage
          Loans (in that capacity, the “Master Servicer,” which term includes any
          successors thereto under the Agreement referred to below). The Trust Fund
          was
          created pursuant to the Pooling and Servicing Agreement, dated as of the
          Cut-off
          Date specified above (the “Agreement”), among BSABS I, as depositor (the
“Depositor”), EMC Mortgage Corporation as seller and as company, Wells Fargo
          Bank, National Association as Master Servicer and securities administrator
          (the
“Securities Administrator”), and Citibank, N.A., as trustee (the “Trustee”), a
          summary of certain of the pertinent provisions of which is set forth hereafter.
          To the extent not defined herein, capitalized terms used herein shall have
          the
          meaning ascribed to them in the Agreement. 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 its acceptance hereof
          assents and by which such Holder is bound.

         

        No
          transfer of this Class X Certificate will be made unless the Securities
          Administrator shall have received either (i) the opinion of counsel set
          forth in
          Section 7.02(h) of the Agreement or (ii) a representation letter under
          Section
          7.02 of the Agreement, in the form as described by the Agreement, stating
          that
          the transferee is not an employee benefit or other plan subject to the
          prohibited transaction provisions of ERISA or Section 4975 of the Code
          (a
“Plan”), or any other person (including an investment manager, a named fiduciary
          or a trustee of any Plan) acting, directly or indirectly, on behalf of
          or
          purchasing any Certificate with “plan assets” of any Plan.

         

        This
          Certificate is one of a duly authorized issue of Certificates designated
          as set
          forth on the face hereof (the “Certificates”). The Certificates, in the
          aggregate, evidence the entire beneficial ownership interest in the Trust
          Fund
          formed pursuant to the Agreement.

         

        The
          Certificateholder, by its acceptance of this Certificate agrees that neither
          the
          Trustee nor the Securities Administrator is 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 hereby, and the rights, duties and immunities
          of the Securities Administrator and the Trustee.

         

        The
          Agreement permits, with certain exceptions therein provided, the amendment
          thereof and the modification of the rights and obligations of the Depositor
          and
          the rights of the Certificateholders under the Agreement from time to time
          by
          the parties thereto with the consent of the Holders of the Certificates
          evidencing over 50% of the Voting Rights, or, if applicable, Holders of
          each
          Class of Certificates affected thereby evidencing over 50% of the Voting
          Rights
          of such Class or Classes. 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
          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.

         

        As
          provided in the Agreement and subject to certain limitations therein set
          forth,
          the transfer of this Certificate is registrable with the Securities
          Administrator upon surrender of this Certificate for registration of transfer
          at
          the offices or agencies maintained by the Securities Administrator for
          such
          purposes, duly endorsed by, or accompanied by a written instrument of transfer
          in form satisfactory to the Securities Administrator duly executed by the
          Holder
          hereof or such Holder’s attorney duly authorized in writing, and thereupon one
          or more new Certificates in authorized denominations representing a like
          aggregate Percentage Interest will be issued to the designated
          transferee.

         

        The
          Certificates are issuable only as registered Certificates without coupons
          in the
          Classes and denominations specified in the Agreement. As provided in the
          Agreement and subject to certain limitations therein set forth, this Certificate
          is exchangeable for one or more new Certificates evidencing the same Class
          and
          in the same aggregate Percentage Interest, as requested by the Holder
          surrendering the same.

         

        No
          service charge will be made to the Certificateholders for any such registration
          of transfer, 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 Master Servicer, the Securities Administrator,
          the
          Trustee and any agent of any of them may treat the Person in whose name
          this
          Certificate is registered as the owner hereof for all purposes, and none
          of the
          Depositor, the Master Servicer, the Securities Administrator, the Trustee
          or any
          such agent shall be affected by notice to the contrary.

         

        The
          obligations created by the Agreement and the Trust Fund created thereby
          (other
          than the obligations to make payments to Certificateholders with respect
          to the
          termination of the Agreement) shall terminate upon the earlier of (i) the
          later
          of (A) the maturity or other liquidation (or Advance with respect thereto)
          of
          the last Mortgage Loan remaining in the Trust Fund and disposition of all
          property acquired upon foreclosure or deed in lieu of foreclosure of any
          Mortgage Loan and (B) the remittance of all funds due under the Agreement,
          or
          (ii) the optional repurchase by the party named in the Agreement of all
          the
          Mortgage Loans and other assets of the Trust Fund in accordance with the
          terms
          of the Agreement. Such optional repurchase may be made only on or after
          the
          first Distribution Date on which the aggregate Stated Principal Balance
          of the
          Mortgage Loans is less than or equal to a certain percentage of the aggregate
          Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
          set
          forth in the Agreement. The exercise of such right will effect the early
          retirement of the Certificates. In no event, however, will the Trust Fund
          created by the Agreement continue beyond the earlier of (i) the expiration
          of 21
          years after the death of certain persons identified in the Agreement and
          (ii)
          the Latest Possible Maturity Date (as defined in the Agreement).

         

        The
          Holder of This Certificate shall be entitled to the rights set forth under
          the
          Agreement. Unless this Certificate has been countersigned by an authorized
          signatory of the Securities Administrator by manual signature, this Certificate
          shall not be entitled to any benefit under the Agreement, or be valid for
          any
          purpose.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Securities Administrator has caused this Certificate
          to be
          duly executed.

         

        Dated:
          _____________, 2007 

         

        
          	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    not in its individual capacity but solely as Securities
                    Administrator

                
	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory

                

        

        

         

        CERTIFICATE
          OF AUTHENTICATION

         

        This
          is
          one of the Class X Certificates referred to in the within-mentioned
          Agreement.

         

        
          	
                  WELLS
                    FARGO BANK, NATIONAL

                  ASSOCIATION,
                    Authorized signatory of Wells Fargo Bank, National Association,
                    not in its
                    individual capacity but solely as Securities Administrator
                    

                
	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory

                

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        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) a Percentage Interest evidenced
          by the
          within Asset-Backed Certificate and hereby authorizes the transfer of
          registration of such interest to assignee on the Certificate Register of
          the
          Trust Fund.

         

        I
          (We)
          further direct the Certificate Registrar 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

                
	 	 
	 	 
	 	
                  Signature
                    Guaranteed

                

        

        

         

        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.

                	 	 

        

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

         

        

        EXHIBIT
          B

         

        MORTGAGE
          LOAN SCHEDULE

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        

        EXHIBIT
          C

         

        FORM
          OF
          TRANSFER AFFIDAVIT

         

        

         

        
          	 	
                  Affidavit
                    pursuant to Section 860E(e)(4) of the Internal Revenue Code of
                    1986, as
                    amended, and for other purposes

                

        

        

         

        
          	
                  STATE
                    OF

                	
                  )

                	 
	 	
                  )

                	
                  ss.:

                
	
                  COUNTY
                    OF

                	
                  )

                	 

        

         

        [NAME
          OF
          OFFICER], being first duly sworn, deposes and says:

         

        1. That
          he/she is [Title of Officer] of [Name of Investor] (the “Investor”), a [savings
          institution] [corporation] duly organized and existing under the laws of
          [the
          State of _____] [the United States], on behalf of which he makes this
          affidavit.

         

        2. That
          (i)
          the Investor is not a “disqualified organization” as defined in Section
          860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”), or an
          electing large partnership as defined in Section 775(a) of the Code, and
          will
          not be a disqualified organization or an electing large partnership as
          of
          [Closing Date] [date of purchase]; (ii) it is not acquiring the SACO I
          Trust
          2007-1, Series 2007-1, Class R[-1][-2][-3][X] Certificates (the “Residual
          Certificates”) for the account of a disqualified organization or an electing
          large partnership; (iii) it consents to any amendment of the Pooling and
          Servicing Agreement that shall be deemed necessary by Bear Stearns Asset
          Backed
          Securities I LLC (upon advice of counsel) to constitute a reasonable arrangement
          to ensure that the Residual Certificates will not be owned directly or
          indirectly by a disqualified organization or an electing large partnership;
          and
          (iv) it will not transfer such Residual Certificates unless (a) it has
          received
          from the transferee an affidavit in substantially the same form as this
          affidavit containing these same seven representations and (b) as of the
          time of
          the transfer, it does not have actual knowledge that such affidavit is
          false.

         

        3. That
          the
          Investor is one of the following: (i) a citizen or resident of the United
          States, (ii) a corporation or partnership (including an entity treated
          as a
          corporation or partnership for federal income tax purposes) created or
          organized
          in, or under the laws of, the United States or any state thereof or the
          District
          of Columbia (except, in the case of a partnership, to the extent provided
          in
          regulations), provided that no partnership or other entity treated as a
          partnership for United States federal income tax purposes shall be treated
          as a
          United States person within the meaning of the Code unless all persons
          that own
          an interest in such partnership either directly or through any entity that
          is
          not a corporation for United States federal income tax purposes are United
          States persons, (iii) an estate whose income is subject to United States
          federal
          income tax regardless of its source, or (iv) a trust other than a “foreign
          trust” as defined in Section 7701 (a)(31) of the Code.

         

        4. That
          the
          Investor’s taxpayer identification number is
          ______________________.

         

        5. That
          no
          purpose of the acquisition of the Residual Certificates is to avoid or
          impede
          the assessment or collection of tax.

         

        6. That
          the
          Investor understands that, as the holder of the Residual Certificates,
          the
          Investor may incur tax liabilities in excess of any cash flows generated
          by such
          Residual Certificates.

         

        7. That
          the
          Investor intends to pay taxes associated with holding the Residual Certificates
          as they become due.

         

        IN
          WITNESS WHEREOF, the Investor has caused this instrument to be executed
          on its
          behalf, pursuant to authority of its Board of Directors, by its [Title
          of
          Officer] this ____ day of _________, 20__.

         

        
          	 	 	 	 	 	 	 	
                  [NAME
                    OF INVESTOR]

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	
                  Name:

                	
                  [Name
                    of Officer]

                
	 	 	 	 	 	 	 	
                  Title:

                	
                  [Title
                    of Officer]

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
                  [Address
                    of Investor for receipt of distributions]

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
                  Address
                    of Investor for receipt of tax
                    information:

                

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Personally
          appeared before me the above-named [Name of Officer], known or proved to
          me to
          be the same person who executed the foregoing instrument and to be the
          [Title of
          Officer] of the Investor, and acknowledged to me that he/she executed the
          same
          as his/her free act and deed and the free act and deed of the
          Investor.

         

        Subscribed
          and sworn before me this ___ day of _________, 20___.

         

        NOTARY
          PUBLIC

         

        COUNTY
          OF

         

        STATE
          OF

         

        My
          commission expires the ___ day of ___________________, 20___.

         

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          D

         

        FORM
          OF
          TRANSFEROR CERTIFICATE

         

        ______________,
          200___

         

        Bear
          Stearns Asset Backed Securities I LLC

        383
          Madison Avenue

        New
          York,
          New York 10179

         

        Wells
          Fargo Bank, National Association

        1015
          10th
          Avenue S.E.

        Minneapolis,
          Minnesota 55414-0031

         

        Attention:
          SACO I Trust 2007-1

         

        
          	
                  Re:

                	
                  SACO
                    I Trust 2007-1, Mortgage-Backed Certificates, Series 2007-1 (the
                    “Certificates”), including the Class [__] Certificates
                    (the “Privately Offered
                    Certificates”)

                

        

        Ladies
          and Gentlemen:

         

        In
          connection with the sale by ___________ (the “Seller”) to ________ (the
“Purchaser”) of $_________ Initial Certificate Principal Balance of
          Mortgage-Backed Certificates, Series 2007-1, Class _____ (the “Certificates”),
          issued pursuant to the Pooling and Servicing Agreement (the “Pooling and
          Servicing Agreement”), dated as of December 1, 2006, among Bear Stearns Asset
          Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage
          Corporation, as seller and as company, Wells Fargo Bank, National Association
          as
          master servicer and securities administrator and Citibank, N.A., as trustee
          (the
“Trustee”). The Seller hereby certifies, represents and warrants to, a covenants
          with, the Depositor and the Securities Administrator that:

         

        Neither
          the Seller nor anyone acting on its behalf (a) has offered, pledged, sold,
          disposed of or otherwise transferred any Certificate, any interest in any
          Certificate or any other similar security to any person in any manner,
          (b) has
          solicited any offer to buy or to accept a pledge, disposition or other
          transfer
          of any Certificate, any interest in any Certificate or any other similar
          security from any person in any manner, (c) has otherwise approached or
          negotiated with respect to any Certificate, any interest in any Certificate
          or
          any other similar security with any person in any manner, (d) has made
          any
          general solicitation by means of general advertising or in any other manner,
          or
          (e) has taken any other action, that (as to any of (a) through (e) above)
          would
          constitute a distribution of the Certificates under the Securities Act
          of 1933
          (the “Act”), that would render the disposition of any Certificate a violation of
          Section 5 of the Act or any state securities law, or that would require
          registration or qualification pursuant thereto. The Seller will not act
          in any
          manner set forth in the foregoing sentence with respect to any Certificate.
          The
          Seller has not and will not sell or otherwise transfer any of the Certificates,
          except in compliance with the provisions of the Pooling and Servicing
          Agreement.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	 	 	 	 	 	 	 	
                  Very
                    truly yours,

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  (Seller)

                	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	
                  Name:

                	 
	 	 	 	 	 	 	 	
                  Title:

                	 

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        EXHIBIT
          E

         

        FORM
          OF
          INVESTMENT LETTER (NON-RULE 144A)

         

        [Date]

        [SELLER]

         

        Bear
          Stearns Asset Backed Securities I LLC

        383
          Madison Avenue

        New
          York,
          New York 10179

         

        Wells
          Fargo Bank, National Association

        9062
          Old
          Annapolis Road

        Columbia,
          Maryland 21045

         

        
          	
                  Re:

                	
                  SACO
                    I Trust 2007-1, Mortgage-Backed Certificates, Series 2007-1 (the
                    “Certificates”), including the Class [__] Certificates
                    (the “Privately Offered
                    Certificates”)

                

        

        Dear
          Ladies and Gentlemen:

         

        In
          connection with our purchase of Privately Offered Certificates, we confirm
          that:

         

        
          	
                  (i)

                	
                  we
                    understand that the Privately Offered Certificates are not being
                    registered under the Securities Act of 1933, as amended (the
“Act”) or any
                    applicable state securities or “Blue Sky” laws, and are being sold to us
                    in a transaction that is exempt from the registration requirements
                    of such
                    laws;

                
	 	 
	
                  (ii)

                	
                  any
                    information we desired concerning the Certificates, including
                    the
                    Privately Offered Certificates, the trust in which the Certificates
                    represent the entire beneficial ownership interest (the “Trust”) or any
                    other matter we deemed relevant to our decision to purchase Privately
                    Offered Certificates has been made available to us;

                
	 	 
	
                  (iii)

                	
                  we
                    are able to bear the economic risk of investment in Privately
                    Offered
                    Certificates; we are an institutional “accredited investor” as defined in
                    Section 501(a) of Regulation D promulgated under the Act and
                    a
                    sophisticated institutional investor;

                
	 	 
	
                  (iv)

                	
                  we
                    are acquiring Privately Offered Certificates for our own account,
                    not as
                    nominee for any other person, and not with a present view to
                    any
                    distribution or other disposition of the Privately Offered
                    Certificates;

                
	 	 
	
                  (v)

                	
                  we
                    agree the Privately Offered Certificates must be held indefinitely
                    by us
                    (and may not be sold, pledged, hypothecated or in any way disposed
                    of)
                    unless subsequently registered under the Act and any applicable
                    state
                    securities or “Blue Sky” laws or an exemption from the registration
                    requirements of the Act and any applicable state securities or
“Blue Sky”
                    laws is available;

                
	 	 
	
                  (vi)

                	
                  we
                    agree that in the event that at some future time we wish to dispose
                    of or
                    exchange any of the Privately Offered Certificates (such disposition
                    or
                    exchange not being currently foreseen or contemplated), we will
                    not
                    transfer or exchange any of the Privately Offered Certificates
                    unless:

                
	 	 
	 	
                  (A)
                    (1) the sale is to an Eligible Purchaser (as defined below),
                    (2) if
                    required by the Pooling and Servicing Agreement (as defined below)
                    a
                    letter to substantially the same effect as either this letter
                    or, if the
                    Eligible Purchaser is a Qualified Institutional Buyer as defined
                    under
                    Rule 144A of the Act, the Rule 144A and Related Matters Certificate
                    in the
                    form attached to the Pooling and Servicing Agreement (as defined
                    below)
                    (or such other documentation as may be acceptable to the Trustee)
                    is
                    executed promptly by the purchaser and delivered to the addressees
                    hereof
                    and (3) all offers or solicitations in connection with the sale,
                    whether
                    directly or through any agent acting on our behalf, are limited
                    only to
                    Eligible Purchasers and are not made by means of any form of
                    general
                    solicitation or general advertising whatsoever; and

                
	 	 
	 	
                  (B)
                    if the Privately Offered Certificate is not registered under
                    the Act (as
                    to which we acknowledge you have no obligation), the Privately
                    Offered
                    Certificate is sold in a transaction that does not require registration
                    under the Act and any applicable state securities or “blue sky” laws and,
                    if Wells Fargo Bank, National Association (the “Securities Administrator”)
                    so requests, a satisfactory Opinion of Counsel is furnished to
                    such
                    effect, which Opinion of Counsel shall be an expense of the transferor
                    or
                    the transferee;

                
	 	 
	
                  (vii)

                	
                  we
                    agree to be bound by all of the terms (including those relating
                    to
                    restrictions on transfer) of the Pooling and Servicing, pursuant
                    to which
                    the Trust was formed; we have reviewed carefully and understand
                    the terms
                    of the Pooling and Servicing Agreement;

                
	 	 
	
                  (viii)

                	
                  we
                    either: (i) are not acquiring the Privately Offered Certificate
                    directly
                    or indirectly by, or on behalf of, an employee benefit plan or
                    other
                    retirement arrangement which is subject to Title I of the Employee
                    Retirement Income Security Act of 1974, as amended, and/or section
                    4975 of
                    the Internal Revenue Code of 1986, as amended, or (ii) have provided
                    the
                    Opinion of Counsel required by the Agreement,
                    or
                    (iii) in the case of the Class B-4 Certificates, the transfer
                    (1) will not
                    result in a prohibited transaction which is not covered by Prohibited
                    Transaction Exemption (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE
                    96-23 and (2) will not give rise to any additional obligations
                    on the part
                    of the Depositor, the Securities Administrator, the Master Servicer
                    or the
                    Trustee. 

                
	 	 
	
                  (ix)

                	
                  We
                    understand that each of the Privately Offered Certificates bears,
                    and will
                    continue to bear, a legend to substantiate the following effect:
                    THIS
                    CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
                    SECURITIES
                    ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE
                    SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
                    AGREES
                    THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
                    TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
                    APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE
                    SECURITIES
                    ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
                    QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
                    (A “QIB”),
                    PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT
                    OF A
                    QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
                    RESALE,
                    PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
                    (2)
                    PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
                    UNDER THE
                    SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO
                    AN
                    “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
                    501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY
                    ENTITY IN
                    WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
                    NOT
                    FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT
                    TO (A) THE
                    RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY
                    IN THE
                    FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES
                    ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
                    ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS
                    IN
                    COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS
                    OR IN EACH
                    CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE
                    UNITED
                    STATES AND ANY OTHER APPLICABLE JURISDICTION. [In
                    the case of the Class B-4 Certificates]: NOTWITHSTANDING
                    THE PREVIOUS PARAGRAPH, A CERTIFICATION WILL NOT BE REQUIRED
                    WITH RESPECT
                    TO THE TRANSFER OF THIS CERTIFICATE TO A DEPOSITORY, OR FOR ANY
                    SUBSEQUENT
                    TRANSFER OF THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE
                    IS A
                    BOOK-ENTRY CERTIFICATE. ANY TRANSFEREE OF THIS CERTIFICATE WILL
                    BE DEEMED
                    TO HAVE REPRESENTED BY VIRTUE OF ITS PURCHASE OR HOLDING OF THIS
                    CERTIFICATE (OR INTEREST HEREIN) THAT SUCH TRANSFEREE IS A “QUALIFIED
                    INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A UNDER THE 1933 ACT.
                    THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY,
                    OR ON
                    BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
                    WHICH
                    IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
                    ACT OF
                    1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE
                    OF 1986, AS
                    AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE
                    PROPOSED
                    TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
                    AND
                    OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN
                    ANY
                    PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER PROHIBITED
                    TRANSACTION
                    EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND
                    (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE
                    PART OF THE
                    DEPOSITOR, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR,
                    WHICH WILL
                    BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE
                    OR A GLOBAL
                    CERTIFICATE OR UNLESS AN OPINION SPECIFIED IN SECTION 7.02 OF
                    THE
                    AGREEMENT IS PROVIDED. [In
                    the case of the Class C Certificates]: NO
                    TRANSFER OF ANY CLASS C CERTIFICATE SHALL BE MADE UNLESS THE
                    TRANSFEREE OF
                    SUCH CLASS C CERTIFICATE PROVIDES TO THE SECURITIES ADMINISTRATOR
                    THE
                    APPROPRIATE TAX CERTIFICATION FORM (I.E., IRS FORM W-9 OR IRS
                    FORM W-8BEN,
                    W-8IMY, OR W-8ECI, AS APPLICABLE (OR ANY SUCCESSOR FORM THERETO)),
                    AS A
                    CONDITION TO SUCH TRANSFER AND AGREES TO UPDATE SUCH FORMS (I)
                    UPON
                    EXPIRATION OF ANY SUCH FORM, (II) AS REQUIRED UNDER THEN APPLICABLE
                    U.S.
                    TREASURY REGULATIONS AND (III) PROMPTLY UPON LEARNING THAT ANY
                    IRS FORM
                    W-9 OR IRS FORM W-8BEN, W-8IMY, OR W-8ECI, AS APPLICABLE (OR
                    ANY SUCCESSOR
                    FORM THERETO), HAS BECOME OBSOLETE OR INCORRECT. UPON RECEIPT
                    OF ANY SUCH
                    TAX CERTIFICATION FORM FROM A TRANSFEREE OF ANY CLASS C CERTIFICATE,
                    THE
                    SECURITIES ADMINISTRATOR SHALL PROVIDE A COPY OF SUCH TAX CERTIFICATION
                    FORM TO THE SUPPLEMENTAL INTEREST TRUST TRUSTEE. THE SUPPLEMENTAL
                    INTEREST
                    TRUST TRUSTEE SHALL PROVIDE A COPY OF ANY SUCH TAX CERTIFICATION
                    FORM TO
                    THE SWAP PROVIDER. [In
                    the case of the Class C, Class X and Class R Certificates]: NO
                    TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS
                    THE
                    TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION
                    7.02(h) OF
                    THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES
                    ADMINISTRATOR THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
                    ARE
                    PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
                    IN ANY
                    NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE
                    RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION
                    4975 OF THE CODE AND WILL NOT SUBJECT THE SECURITIES ADMINISTRATOR,
                    THE
                    TRUSTEE, THE MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION
                    OR
                    LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
                    AGREEMENT.

                
	 	 

        

        

         

        “Eligible
          Purchaser”
          means a
          corporation, partnership or other entity which we have reasonable grounds
          to
          believe and do believe (i) can make representations with respect to itself
          to
          substantially the same effect as the representations set forth herein,
          and (ii)
          is either a Qualified Institutional Buyer as defined under Rule 144A of
          the Act
          or an institutional “Accredited Investor” as defined under Rule 501 of the
          Act.

         

        Terms
          not
          otherwise defined herein shall have the meanings assigned to them in the
          Pooling
          and Servicing Agreement, dated as of December 1, 2006, among Bear Stearns
          Asset
          Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage
          Corporation, as seller and as company, Wells Fargo Bank, National Association
          as
          master servicer and securities administrator, and Citibank, N.A., as Trustee
          (the “Pooling and Servicing Agreement”).

         

        If
          the
          Purchaser proposes that its Certificates be registered in the name of a
          nominee
          on its behalf, the Purchaser has identified such nominee below, and has
          caused
          such nominee to complete the Nominee Acknowledgment at the end of this
          letter.

         

        Name
          of
          Nominee (if any): __________________________

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, this document has been executed by the undersigned who
          is duly
          authorized to do so on behalf of the undersigned Eligible Purchaser on
          the ___
          day of ________, 20___.

         

        
          	 	 	 	 	 	 	 	
                  Very
                    truly yours,

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  [PURCHASER]

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Authorized
                    Officer)

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Attorney-in-fact)

                

        

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Nominee
          Acknowledgment

         

        The
          undersigned hereby acknowledges and agrees that as to the Certificates
          being
          registered in its name, the sole beneficial owner thereof is and shall
          be the
          Purchaser identified above, for whom the undersigned is acting as
          nominee.

         

        
          	 	 	 	 	 	 	 	
                  [NAME
                    OF NOMINEE]

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Authorized
                    Officer)

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Attorney-in-fact)

                

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          F

         

        FORM
          OF
          RULE 144A AND RELATED MATTERS CERTIFICATE

         

        [SELLER]

         

        Bear
          Stearns Asset Backed Securities I LLC

        383
          Madison Avenue

        New
          York,
          New York 10179

         

        Wells
          Fargo Bank, National Association

        1015
          10th
          Avenue S.E.

        Minneapolis,
          Minnesota 55414-0031

         

        Attn:
          SACO I Trust 2007-1

         

        
          	
                  Re:

                	
                  SACO
                    I Trust 2007-1, Mortgage-Backed Certificates, Series 2007-1 (the
                    “Certificates”), including the Class [__] Certificates
                    (the “Privately Offered
                    Certificates”)

                

        

        

        Dear
          Ladies and Gentlemen:

         

        In
          connection with our purchase of Privately Offered Certificates, the undersigned
          certifies to each of the parties to whom this letter is addressed that
          it is a
          qualified institutional buyer (as defined in Rule 144A under the Securities
          Act
          of 1933, as amended (the “Act”)) as follows:

         

        1. It
          owned
          and/or invested on a discretionary basis eligible securities (excluding
          affiliate’s securities, bank deposit notes and CD’s, loan participations,
          repurchase agreements, securities owned but subject to a repurchase agreement
          and swaps), as described below:

         

        Date:
          ______________, 20__ (must be on or after the close of its most recent
          fiscal
          year)

         

        Amount:
          $
          _____________________; and

         

        2. The
          dollar amount set forth above is:

         

        
          	 	
                  a.

                	
                  greater
                    than $100 million and the undersigned is one of the following
                    entities:

                

        

         

        
          	
                  (1)

                	
                  [_]

                	
                  an
                    insurance company as defined in Section 2(13) of the Act1 ;
                    or

                
	 	 	 
	
                  (2)

                	
                  [_]

                	
                  an
                    investment company registered under the Investment Company Act
                    or any
                    business development company as defined in Section 2(a)(48) of
                    the
                    Investment Company Act of 1940; or

                
	 	 	 
	
                  (3)

                	
                  [_]

                	
                  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; or

                
	 	 	 
	
                  (4)

                	
                  [_]

                	
                  a
                    plan (i) established and maintained by a state, its political
                    subdivisions, or any agency or instrumentality of a state or
                    its political
                    subdivisions, the laws of which permit the purchase of securities
                    of this
                    type, for the benefit of its employees and (ii) the governing
                    investment
                    guidelines of which permit the purchase of securities of this
                    type;
                    or

                
	 	 	 
	
                  (5)

                	
                  [_]

                	
                  a
                    business development company as defined in Section 202(a)(22)
                    of the
                    Investment Advisers Act of 1940; or

                
	 	 	 
	
                  (6)

                	
                  [_]

                	
                  a
                    corporation (other than a U.S. bank, savings and loan association
                    or
                    equivalent foreign institution), partnership, Massachusetts or
                    similar
                    business trust, or an organization described in Section 501(c)(3)
                    of the
                    Internal Revenue Code; or

                
	 	 	 
	
                  (7)

                	
                  [_]

                	
                  a
                    U.S. bank, savings and loan association or equivalent foreign
                    institution,
                    which has an audited net worth of at least $25 million as demonstrated
                    in
                    its latest annual financial statements; or

                
	 	 	 
	
                  (8)

                	
                  [_]

                	
                  an
                    investment adviser registered under the Investment Advisers Act;
                    or

                
	 	 	 
	 	
                  b.

                	
                  [_]

                	
                  greater
                    than $10 million, and the undersigned is a broker-dealer registered
                    with
                    the SEC; or

                
	 	 	 	 
	 	
                  c.

                	
                  [_]

                	
                  less
                    than $10 million, and the undersigned is a broker-dealer registered
                    with
                    the SEC and will only purchase Rule 144A securities in transactions
                    in
                    which it acts as a riskless principal (as defined in Rule 144A);
                    or

                
	 	 	 	 
	 	
                  d.

                	
                  [_]

                	
                  less
                    than $100 million, and the undersigned is an investment company
                    registered
                    under the Investment Company Act of 1940, which, together with
                    one or more
                    registered investment companies having the same or an affiliated
                    investment adviser, owns at least $100 million of eligible securities;
                    or

                
	 	 	 	 
	 	
                  e.

                	
                  [_]

                	
                  less
                    than $100 million, and the undersigned is an entity, all the
                    equity owners
                    of which are qualified institutional
                    buyers.

                

        

        

         

        The
          undersigned further certifies that it is purchasing a Privately Offered
          Certificate for its own account or for the account of others that independently
          qualify as “Qualified Institutional Buyers” as defined in Rule 144A. It is aware
          that the sale of the Privately Offered Certificates is being made in reliance
          on
          its continued compliance with Rule 144A. It is aware that the transferor
          may
          rely on the exemption from the provisions of Section 5 of the Act provided
          by
          Rule 144A. The undersigned understands that the Privately Offered Certificates
          may be resold, pledged or transferred only to (i) 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 in Rule 144A, or (ii)
          an
          institutional “accredited investor,” as such term is defined under Rule 501 of
          the Act in a transaction that otherwise does not constitute a public
          offering.

         

        The
          undersigned agrees that if at some future time it wishes to dispose of
          or
          exchange any of the Privately Offered Certificates, it will not transfer
          or
          exchange any of the Privately Offered Certificates to a Qualified Institutional
          Buyer without first obtaining a Rule 144A and Related Matters Certificate
          in the
          form hereof from the transferee and delivering such certificate to the
          addressees hereof. Prior to making any transfer of Privately Offered
          Certificates, if the proposed Transferee is an institutional “accredited
          investor,” the transferor shall obtain from the transferee and deliver to the
          addressees hereof an Investment Letter in the form attached to the Pooling
          and
          Servicing Agreement, dated as of December 1, 2006, among Bear Stearns Asset
          Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage
          Corporation, as seller and as company, Wells Fargo Bank, National Association
          as
          master servicer and securities administrator, and Citibank, N.A., as Trustee,
          pursuant to which the Certificates were issued.

         

        The
          undersigned certifies that it either: (i) is not acquiring the Privately
          Offered
          Certificates directly or indirectly by, or on behalf of, an employee benefit
          plan or other retirement arrangement which is subject to Title I of the
          Employee
          Retirement Income Security Act of 1974, as amended, and/or section 4975
          of the
          Internal Revenue Code of 1986, as amended, or (ii) has provided the Opinion
          of
          Counsel required by the Agreement or (iii) in the case of the Class B-4
          Certificates, the transfer (1) will not result in a prohibited transaction
          which
          is not covered by Prohibited Transaction Exemption (“PTE”) 84-14, PTE 91-38, PTE
          90-1, PTE 95-60 or PTE 96-23 and (2) will not give rise to any additional
          obligations on the part of the Depositor, the Securities Administrator,
          the
          Master Servicer or the Trustee. 

         

        If
          the
          Purchaser proposes that its Certificates be registered in the name of a
          nominee
          on its behalf, the Purchaser has identified such nominee below, and has
          caused
          such nominee to complete the Nominee Acknowledgment at the end of this
          letter.

         

        Name
          of
          Nominee (if any): ________________________

        

          

          
            1 A
              purchase by an insurance company for one or more of its separate accounts,
              as
              defined by Section 2(a)(37) of the Investment Company Act of 1940,
              which are
              neither registered nor required to be registered thereunder, shall
              be deemed to
              be a purchase for the account of such insurance company.

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, this document has been executed by the undersigned who
          is duly
          authorized to do so on behalf of the undersigned Eligible Purchaser on
          the ____
          day of ___________, 20___.

         

        
          	 	 	 	 	 	 	 	
                  Very
                    truly yours,

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  [PURCHASER]

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Authorized
                    Officer)

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Attorney-in-fact)

                

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Nominee
          Acknowledgment

         

        The
          undersigned hereby acknowledges and agrees that as to the Certificates
          being
          registered in its name, the sole beneficial owner thereof is and shall
          be the
          Purchaser identified above, for whom the undersigned is acting as
          nominee.

         

        
          	 	 	 	 	 	 	 	
                  [NAME
                    OF NOMINEE]

                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Authorized
                    Officer)

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (Attorney-in-fact)

                

        

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          G

         

        FORM
          OF
          REQUEST FOR RELEASE

         

        
          	
                  To:

                	
                  Wells
                    Fargo Bank, National Association 
                    9062
                      Old Annapolis Road

                    Columbia,
                      Maryland 21045

                  

                

        

         

         

        
          	
                  RE:

                	
                  Pooling
                    and Servicing Agreement, dated as of December 1, 2006, among
                    Bear Stearns
                    Asset Backed Securities I LLC, as Depositor, EMC Mortgage Corporation,
                    as
                    seller and as company, Wells Fargo Bank, National Association
                    as master
                    servicer and securities administrator, and Citibank, N.A., as
                    Trustee

                

        

        

        In
          connection with the administration of the Mortgage Loans held by you pursuant
          to
          the above-captioned Pooling and Servicing Agreement, we request the release,
          and
          hereby acknowledge receipt, of the Mortgage File for the Mortgage Loan
          described
          below, for the reason indicated.

         

        Mortgage
          Loan Number:

         

        Mortgagor
          Name, Address & Zip Code:

         

        Reason
          for Requesting Documents (check one):

         

        
          	
                  _____

                	
                  1.

                	
                  Mortgage
                    Paid in Full and proceeds have been deposited into the Custodial
                    Account

                
	 	 	 
	
                  _____

                	
                  2.

                	
                  Foreclosure

                	 
	 	 	 	 
	
                  _____

                	
                  3.

                	
                  Substitution

                	 
	 	 	 	 
	
                  _____

                	
                  4.

                	
                  Other
                    Liquidation

                	 
	 	 	 	 
	
                  _____

                	
                  5.

                	
                  Nonliquidation

                	
                  Reason:_________________________________

                
	 	 	 	 
	
                  _____

                	
                  6.

                	
                  California
                    Mortgage Loan paid in full

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	 	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	 	
                  (authorized
                    signer)

                
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  Issuer:

                	 
	 	 	 	 	 	 	 	
                  Address:

                	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                  Date:

                	 

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          H

         

        DTC
          LETTER OF REPRESENTATIONS

        

        [Provided
          Upon Request]

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          I

         

        SCHEDULE
          OF MORTGAGE LOANS WITH LOST NOTES

        

        [Provided
          Upon Request]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          J

         

        FORM
          OF
          LASALLE CUSTODIAL AGREEMENT

         

        

          CUSTODIAL
            AGREEMENT

           

          THIS
            CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
            “Agreement”), dated as of January 16, 2007, by and among CITIBANK, N.A., not
            individually but solely as trustee under the Pooling and Servicing Agreement
            defined below (in such capacity, including its successors under the Pooling
            and
            Servicing Agreement defined below, the “Trustee”), BEAR STEARNS ASSET BACKED
            SECURITIES I LLC, as depositor (together with any successor in interest,
            the
“Depositor”), EMC MORTGAGE CORPORATION, as seller (in such capacity, “EMC” or
            the “Seller”) and as company (in
            such
            capacity, together
            with any successor in interest or successor under the Pooling and Servicing
            Agreement referred to below, the “Company”), WELLS FARGO BANK, NATIONAL
            ASSOCIATION, as master servicer (together with any successor in interest,
            the
“Master Servicer”), securities administrator (in that capacity, the “Securities
            Administrator”) and LASALLE BANK NATIONAL ASSOCIATION, as custodian (in such
            capacity, together with any successor in interest or any successor appointed
            hereunder, the “Custodian”).

           

          WITNESSETH
            THAT:

           

          WHEREAS,
            the Depositor, EMC, the Master Servicer, the Securities Administrator
            and the
            Trustee have entered into a Pooling and Servicing Agreement, dated as
            of
            December 1, 2006, relating to the issuance of SACO I Trust 2007-1,
            Mortgage-Backed Certificates, Series 2007-1 (as in effect on the date
            of this
            Agreement, and as amended and supplemented from time to time, the “Pooling and
            Servicing Agreement”).

           

          WHEREAS,
            the Custodian has agreed to act as agent for the Trustee on behalf of
            the
            Certificateholders for the purposes of receiving and holding certain
            documents
            and other instruments delivered by the Depositor, the Seller or the Master
            Servicer under the Pooling and Servicing Agreement and the Servicers,
            if any,
            under their respective Servicing Agreements, all upon the terms, conditions
            and
            obligations and subject to the limitations hereinafter set forth. In
            the event
            any custodian terms, conditions and obligations are defined in the Pooling
            and
            Servicing Agreement, this custodial agreement shall supercede;

           

          NOW,
            THEREFORE, in consideration of the premises and the mutual covenants
            and
            agreements hereinafter set forth, the Trustee, the Depositor, the Seller,
            the
            Master Servicer, the Company and the Custodian hereby agree as
            follows:

           

           

          ARTICLE
            I.

           

          DEFINITIONS

           

          Section
            1.1.  Definitions.
            For
            purposes of this Agreement, the following terms shall have the indicated
            meanings unless the context or use indicates another or different meaning
            and
            intent, the definitions of such terms are equally applicable to the singular
            and
            the plural forms of such terms, the words “herein,” “hereof” and “hereunder” and
            other words of similar import refer to this Agreement as a whole and
            not to any
            particular section or other subdivision, and section references refer
            to
            sections of this Agreement.

           

          “Business
            Day” shall mean any day other than (i) a Saturday or a Sunday, or (ii) a day
            on
            which banking institutions in The City of New York, New York, Chicago,
            Illinois,
            Minneapolis, Minnesota, Columbia, Maryland or any city in which the Corporate
            Trust Office of the Trustee or the principal office of the Master Servicer
            is
            located are authorized or obligated by law or executive order to be
            closed.

           

          “Closing
            Date” shall mean January 16, 2007.

           

          “EMC
            Flow
            Loans” shall mean the Mortgage Loans purchased by EMC pursuant to a flow loan
            purchase agreement.

           

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

           

          “MERS
            Loan” or “MERS Mortgage Loan” shall mean any Mortgage Loan registered with MERS
            on the MERS® system.

           

          “MERS®
            System” shall mean the system of recording transfers of Mortgages electronically
            maintained by MERS.

           

          “MIN”
            shall mean the Mortgage Identification Number for Mortgage Loans registered
            with
            MERS on the MERS System.

           

          “MOM
            Loan” shall mean with respect to any Mortgage Loan, MERS acting as the mortgagee
            of such Mortgage Loan, solely as nominee for the originator of such Mortgage
            Loan and its successors and assigns, at the origination thereof.

           

          “Mortgage”
            shall mean the mortgage, deed of trust or other instrument creating a
            first or
            second lien on or first or second priority ownership interest in an estate
            in
            fee simple in real property securing a Mortgage Note.

           

          “Mortgage
            Assignment” shall mean an assignment of the Mortgage in recordable form,
            sufficient under the laws of the jurisdiction wherein the related Mortgaged
            Property is located to reflect the sale of the Mortgage.

           

          “Mortgage
            File” shall have the meaning set forth in Section 2 hereof.

           

          “Mortgage
            Loan” shall mean a first or subordinate lien mortgage loan on a one-to-four
            family residential property.

           

          “Mortgage
            Loan Schedule” shall mean the electronic schedule of Mortgage Loans identified
            in Schedule A.

           

          “Mortgaged
            Property” shall mean the real property securing repayment of a Mortgage
            Loan.

           

          “Mortgagor”
            shall mean the obligor on a Mortgage Note.

           

          “Note”
            shall mean any promissory note or other evidence of indebtedness evidencing
            the
            indebtedness of a Mortgagor under a Mortgage Loan.

           

          “Servicer”
            shall mean the related servicer of the Mortgage Loans.

           

          “Trustee”
            shall mean Citibank, N.A., a national banking association, not in its
            individual
            capacity, but solely in its capacity as trustee for the benefit of the
            Certificateholders under this Agreement, and any successor thereto, and
            any
            corporation or national banking association resulting from or surviving
            any
            consolidation or merger to which it or its successors may be a party
            and any
            successor trustee as may from time to time be serving as successor trustee
            hereunder.

           

          Any
            Capitalized terms used in this Agreement and not defined herein shall
            have the
            meanings assigned in the Pooling and Servicing Agreement, unless otherwise
            required by the context herein.

           

           

          ARTICLE
            II.

           

          CUSTODY
            OF MORTGAGE DOCUMENTS

           

          Section
            2.1.  Custodian
            to Act as Agent: Acceptance of Mortgage Files.
            The
            Custodian, as the duly appointed custodial agent of the Trustee for these
            purposes, acknowledges (subject to any exceptions noted in the Initial
            Certification referred to in Section 2.3(a)) receipt of the Mortgage
            Files
            relating to the Mortgage Loans identified on Schedule A attached hereto
            (the
“Mortgage Loan Schedule”) and declares that it holds and will hold such Mortgage
            Files as agent for the Trustee, in trust, for the use and benefit of
            all present
            and future Certificateholders.

           

          Section
            2.2.  Recordation
            of Assignments.
            If any
            Mortgage File includes one or more assignments of Mortgage that have
            not been
            recorded and the related Mortgage Loan is not a MERS Loan or the Custodian
            has
            not received written instructions from the Seller or the Trustee that
            the
            related Mortgaged Properties are located in jurisdictions under the laws
            of
            which the recordation of such assignment is not necessary to protect
            the
            Trustee’s interest therein, each such assignment shall be delivered by the
            Custodian to the Seller for the purpose of recording it in the appropriate
            public office for real property records, and the Seller, at no expense
            to the
            Custodian, shall promptly cause to be recorded in the appropriate public
            office
            for real property records each such assignment of Mortgage and, upon
            receipt
            thereof from such public office, shall return each such assignment of
            Mortgage
            to the Custodian.

           

          Section
            2.3.  Review
            of Mortgage Files.

           

          (a)  The
            documents set forth in the definition “Mortgage File” herein shall be delivered
            and released to the Custodian relating to each of the Mortgage Loans
            to be
            purchased on a Closing Date. The related Mortgage Loans shall be identified
            in
            the Mortgage Loan Schedule in electronic format which shall be delivered
            to the
            Custodian by EMC at least two Business Days prior to each Closing Date.
            On or
            prior to the Closing Date, the Custodian shall deliver to EMC, the Master
            Servicer and the Trustee an Initial Certification in the form annexed
            hereto as
            Exhibit One evidencing receipt (subject to any exceptions noted therein)
            of a
            Mortgage File for each of the Mortgage Loans listed on Schedule A attached
            hereto (the “Mortgage Loan Schedule”).

           

          (b)  Within
            90
            days thereafter, the Custodian agrees, for the benefit of Certificateholders
            to
            review each such document, and shall deliver to EMC, the Master Servicer
            and the
            Trustee an Interim Certification in the form annexed hereto as Exhibit
            Two to
            the effect that all such documents have been executed and received and
            that such
            documents relate to the Mortgage Loans identified on the Mortgage Loan
            Schedule,
            except for any exceptions listed on Schedule A attached to such Interim
            Certification. The Custodian shall be under no duty or obligation to
            inspect,
            review or examine said documents, instruments, certificates or other
            papers to
            determine that the same 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.

           

          (c)  Not
            later
            than 180 days after the Closing Date, the Custodian shall review, for
            the
            benefit of Certificateholders, the Mortgage Files and deliver to EMC,
            the Master
            Servicer and the Trustee a Final Certification in the form annexed hereto
            as
            Exhibit Three evidencing whether each document required to be recorded
            has been
            returned from the recording office with evidence of recording thereon
            and the
            Custodian has received either an original or a copy thereof. If the Custodian
            finds any document missing, or to be unrelated, determined on the basis
            of the
            mortgagor name, original principal balance and loan number, to the mortgage
            loans identified on the Mortgage Loan Schedule or to appear defective
            on its
            face, the Custodian shall note such defect in the exception report attached
            to
            the Final Certification and shall promptly notify the Trustee. 

           

          (d)  In
            reviewing the Mortgage Files as provided herein, the Custodian shall
            make no
            representation as to and shall not be responsible to verify (i) the validity,
            legality, enforceability, due authorization, recordability, sufficiency
            or
            genuineness of any of the documents included in any Mortgage File or
            (ii) the
            collectibility, insurability, effectiveness or suitability of any of
            the
            documents in any Mortgage File.

           

          In
            performing any such review, the Custodian may conclusively rely on the
            purported
            due execution and genuineness of any such document and on the purported
            genuineness of any signature thereon.

           

          Upon
            receipt of written request from EMC, the Master Servicer, the Securities
            Administrator or the Trustee, the Custodian shall as soon as practicable
            supply
            such entity with a list of all of the documents relating to the Mortgage
            Loans
            missing from the Mortgage Files.

           

          Section
            2.4.  Custodian
            to Cooperate: Release of Mortgage Files.
            Upon
            receipt of written notice per Exhibit Four or Electronic Release Request
            per
            Exhibit Five from the Trustee that EMC has repurchased a Mortgage Loan
            pursuant
            to Article II of the Pooling and Servicing Agreement, and a request for
            release
            (a “Request for Release”) confirming that the purchase price therefor has been
            paid as required under the Pooling and Servicing Agreement, then the
            Custodian
            agrees to promptly release to EMC the related Mortgage File.

           

          Upon
            the
            Custodian’s receipt of a Request for Release from the Master Servicer
            substantially in the form of Exhibit Four attached hereto or Electronic
            Release
            Request per Exhibit Five, stating that it has received payment in full
            of a
            Mortgage Loan or that payment in full will be escrowed in a manner customary
            for
            such purposes, the Custodian agrees promptly to release to the Company
            or the
            related Servicer, the related Mortgage File. The Depositor shall deliver
            to the
            Custodian and the Custodian agrees to review in accordance with the provisions
            of the Custodial Agreement the Mortgage Note and other documents constituting
            the Mortgage File with respect to any Replacement Mortgage Loan.

           

          From
            time
            to time as is appropriate for the servicing or foreclosure of any Mortgage
            Loan,
            the Company or the related Servicer, as applicable, shall deliver to
            the
            Custodian a Request for Release per Exhibit Four or Electronic Release
            Request
            per Exhibit Five requesting that possession of all of the Mortgage File
            be
            released to the Company or the related Servicer, as applicable, and certifying
            as to the reason for such release. Upon receipt of the foregoing, the
            Custodian
            shall deliver the Mortgage File to the Company or the related Servicer,
            as
            applicable. All Mortgage Files so released to the Company or the related
            Servicer, as applicable, shall be held by it in trust for the Trustee
            for the
            use and benefit of all present and future Certificateholders. The Company
            or the
            related Servicer, as applicable, shall cause each Mortgage File or any
            document
            therein so released to be returned to the Custodian when the need therefore
            by
            the Company or the related Servicer, as applicable, no longer exists,
            unless (i)
            the Mortgage Loan has been liquidated, or (ii) the Mortgage File or such
            document has been delivered to an attorney, or to a public trustee or
            other
            public official as required by law, for purposes of initiating or pursuing
            legal
            action or other proceedings for the foreclosure of the Mortgaged Property
            either
            judicially or non-judicially, and the Company or the related Servicer,
            as
            applicable, has delivered to the Custodian a certificate of a Servicing
            Officer
            certifying as to the name and address of the Person to which such Mortgage
            File
            or such document was delivered and the purpose or purposes of such
            delivery.

           

          At
            any
            time that the Company, the
            Master Servicer
            or the
            related Servicer is required to deliver to the Custodian a Request for
            Release,
            the Company, the Master Servicer or the related Servicer, as applicable,
            shall
            deliver two copies of the Request for Release if delivered in hard copy
            or the
            Company, the Master Servicer or the related Servicer, as applicable,
            may furnish
            such Request for Release electronically to the Custodian, in which event
            the
            Servicing Officer or the Master Servicing Officer, as applicable, transmitting
            the same shall be deemed to have signed the Request for Release. In connection
            with any Request for Release of a Mortgage File because of a repurchase
            of a
            Mortgage Loan, such Request for Release shall be accompanied by an assignment
            of
            mortgage, without recourse, representation or warranty from the Trustee
            to EMC
            (unless such Mortgage Loan is a MOM Loan) and the related Mortgage Note
            shall be
            endorsed without recourse, representation or warranty by the Trustee
            (unless
            such Mortgage Loans is registered on the MERS System) and be returned
            to EMC. In
            connection with any Request for Release of a Mortgage File because of
            the
            payment in full of a Mortgage Loan, such Request for Release shall be
            accompanied by a certificate of satisfaction or other similar instrument
            to be
            executed by or on behalf of the Trustee and returned to the Company,
            the Master
            Servicer or the related Servicer, as applicable.

           

          Section
            2.5.  Assumption
            Agreements.
            In the
            event that any assumption agreement, substitution of liability agreement
            or sale
            of servicing agreement is entered into with respect to any Mortgage Loan
            subject
            to this Agreement, the Master Servicer shall enforce any obligation of
            the
            related Servicer, to the extent set forth in the Servicing Agreement
            or with
            respect to EMC as company, the Pooling and Servicing Agreement, to notify
            the
            Custodian that such assumption or substitution agreement has been completed
            by
            forwarding to the Custodian the original of such assumption or substitution
            agreement, which shall be added to the related Mortgage File and, for
            all
            purposes, shall be considered a part of such Mortgage File to the same
            extent as
            all other documents and instruments constituting parts thereof.

           

           

          ARTICLE
            III.

           

          CONCERNING
            THE CUSTODIAN

           

          Section
            3.1.  Custodian
            as Bailee and Agent of the Trustee.
            With
            respect to each Mortgage Note, Mortgage and other documents constituting
            each
            Mortgage File which are delivered to the Custodian, the Custodian is
            exclusively
            the bailee and custodial agent of the Trustee and has no instructions
            to hold
            any Mortgage Note or Mortgage for the benefit of any person other than
            the
            Trustee and the Certificateholders and undertakes to perform such duties
            and
            only such duties as are specifically set forth in this Agreement. Except
            upon
            compliance with the provisions of Section 2.4 of this Agreement, no Mortgage
            Note, Mortgage or Mortgage File shall be delivered by the Custodian to
            the
            Seller, the Depositor, any Servicer, the Securities Administrator or
            the Master
            Servicer or otherwise released from the possession of the
            Custodian.

           

          Section
            3.2.  Custodian
            May Own Certificates.
            The
            Custodian in its individual or any other capacity may become the owner
            or
            pledgee of interests in the Mortgage Loans with the same rights it would
            have if
            it were not Custodian.

           

          Section
            3.3.  Master
            Servicer to Pay Custodian’s Fees and Expenses.
            The
            Master Servicer covenants and agrees to pay pursuant to a separate fee
            schedule
            to the Custodian from time to time, and the Custodian shall be entitled
            to,
            reasonable compensation for all services rendered by it in the exercise
            and
            performance of any of the powers and duties hereunder of the Custodian,
            and the
            Master Servicer will pay or reimburse the Custodian (which payment or
            reimbursement shall be reimbursed to the Master Servicer pursuant to
            the Pooling
            and Servicing Agreement) upon its request for all reasonable expenses,
            disbursements and advances incurred or made by the Custodian in accordance
            with
            any of the provisions of this Agreement (including the reasonable compensation
            and the expenses and disbursements of its counsel and of all persons
            not
            regularly in its employ), except any such expense, disbursement or advance
            as
            may arise from its negligence or bad faith. 

           

          Section
            3.4.  Custodian
            May Resign; Trustee May Remove Custodian.
            The
            Custodian may resign from the obligations and duties hereby imposed upon
            it as
            such obligations and duties relate to its acting as Custodian of the
            Mortgage
            Loans. Upon receiving such written notice of resignation, the Trustee
            shall
            either take custody of the Mortgage Files itself and give prompt written
            notice
            thereof to the Depositor, the Master Servicer, the Securities Administrator
            and
            the Custodian, or promptly appoint a successor Custodian by written instrument,
            in duplicate, one copy of which instrument shall be delivered to the
            resigning
            Custodian and one copy to the successor Custodian. If the Trustee shall
            not have
            taken custody of the Mortgage Files and no successor Custodian shall
            have been
            so appointed and have accepted appointment within 30 days after the giving
            of
            such written notice of resignation, the resigning Custodian may petition
            any
            court of competent jurisdiction for the appointment of a successor
            Custodian.

           

          The
            Trustee may remove the Custodian at any time upon 60 days prior written
            notice
            to the Custodian. In such event, the Trustee shall appoint, or petition
            a court
            of competent jurisdiction to appoint, a successor Custodian hereunder.
            Any
            successor Custodian shall be a depository institution subject to supervision
            or
            examination by federal or state authority, shall be able to satisfy the
            other
            requirements contained in Section 3.6 and shall be unaffiliated with
            the Master
            Servicer, Securities Administrator and the Depositor.

           

          Any
            resignation or removal of the Custodian and appointment of a successor
            Custodian
            pursuant to any of the provisions of this Section 3.4 shall become effective
            upon acceptance of appointment by the successor Custodian. The Trustee
            shall
            give prompt notice to the Depositor and the Master Servicer of the appointment
            of any successor Custodian. Notwithstanding anything to the contrary
            set forth
            herein, no successor Custodian shall be appointed by the Trustee without
            the
            prior approval of the Depositor and the Master Servicer. 

           

          Section
            3.5.  Merger
            or Consolidation of Custodian.
            Any
            Person into which the Custodian 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 Custodian shall be a party, or any Person
            succeeding
            to the business of the Custodian, shall be the successor of the Custodian
            hereunder, without the execution or filing of any paper or any further
            act on
            the part of any of the parties hereto, anything herein to the contrary
            notwithstanding; provided that such successor is a depository institution
            subject to supervision or examination by federal or state authority and
            is able
            to satisfy the other requirements contained in Section 3.6.

           

          Section
            3.6.  Representations
            of the Custodian.
            The
            Custodian hereby represents that it is a depository institution subject
            to
            supervision or examination by a federal or state authority, has a combined
            capital and surplus of at least $15,000,000 and is qualified to do business
            in
            the jurisdictions in which it will hold any Mortgage File.

           

          Section
            3.7.  Limitation
            on Liability.
            Neither
            the Custodian nor any of its directors, officers, agents or employees,
            shall be
            liable for any action taken or omitted to be taken by it or them hereunder
            or in
            connection herewith in good faith and believed (which belief may be based
            upon
            the opinion or advice of counsel selected by it in the exercise of reasonable
            care) by it or them to be within the purview of this Agreement, except
            for its
            or their own negligence, lack of good faith or willful misconduct. The
            Custodian
            and any director, officer, employee or agent of the Custodian 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. In no event shall
            the
            Custodian or its directors, officers, agents and employees be held liable
            for
            any special, indirect or consequential damages resulting from any action
            taken
            or omitted to be taken by it or them hereunder or in connection herewith
            even if
            advised of the possibility of such damages.

           

          Notwithstanding
            anything herein to the contrary, the Custodian agrees to indemnify the
            Trust
            Fund and the Trustee and each of their respective officers, directors
            and agents
            for any and all liabilities, obligations, losses, damages, payments,
            costs or
            expenses of any kind whatsoever that may be imposed on, incurred by or
            asserted
            against the Trustee or the Trust Fund, due to any negligent performance
            by the
            Custodian of its duties and responsibilities under this Agreement; provided,
            however, that the Custodian shall not be liable to any of the foregoing
            Persons
            for any amount and any portion of any such amount resulting from the
            willful
            misfeasance, bad faith or negligence of such person, or the Custodian’s reliance
            on instructions from the Trustee, the Securities Administrator or the
            Master
            Servicer. The provisions of this Section 3.7 shall survive the termination
            of
            this Custodial Agreement.

           

          LaSalle
            Bank National Association, as Custodian and in its individual capacity,
            and its
            directors, officers, employees and agents shall be entitled to indemnification
            and defense from the Trust Fund for any loss, liability or expense incurred
            without negligence, willful misconduct, bad faith on their part, arising
            out of,
            or in connection with, the acceptance or administration of the custodial
            arrangement created hereunder, including the costs and expenses of defending
            themselves against any claim or liability in connection with the exercise
            or
            performance of any of their powers or duties hereunder.

           

          Section
            3.8.  Limitation
            of Duties.
            The
            Custodian in its capacity as such:

           

          (a)  in
            the
            course of its review of the Mortgage Files, shall not be required to
            make
            determinations (1) of a legal nature or (2) as to the authority of any
            officer
            or agent of the Master Servicer, Trustee or other entity who has executed
            (or
            certified with respect to) any document which is part of the Mortgage
            File;

           

          (b)  shall
            have no duties or obligations other than those specifically set forth
            herein or
            as may subsequently be agreed upon in writing by the parties hereto and
            shall
            use the same degree of care and skill as is reasonably expected of financial
            institutions acting in comparable capacities;

           

          (c)  will
            be
            regarded as making no representations and having no responsibilities
            as to the
            validity, sufficiency, value, genuineness, ownership or transferability
            of any
            Mortgage Loans and will not be required to and will not make any representations
            as to the validity, value or genuineness of the Mortgage Loans;

           

          (d)  shall
            not
            be obligated to take any legal action hereunder which might in its judgment
            involve any expense or liability unless it has been furnished with reasonable
            indemnity;

           

          (e)  may
            rely
            on and shall be protected in acting upon any certificate, instrument,
            opinion,
            notice, letter, telegram or other document, or any security, delivered
            to it and
            reasonably believed by it to be genuine and to have been signed by the
            Master
            Servicer, the Securities Administrator or the Trustee;

           

          (f)  may
            rely
            on and shall be protected in acting upon the written instructions of
            the Master
            Servicer or the Trustee and such employees and representatives of the
            Master
            Servicer, the Securities Administrator and the Trustee, as applicable,
            may
            hereinafter designate in writing;

           

          (g)  may
            consult counsel satisfactory to it (including counsel for the Trustee
            or the
            Master Servicer) and the opinion of such counsel shall be full and complete
            authorization and protection in respect of any action taken, suffered,
            or
            omitted by it hereunder in good faith and in accordance with the opinion
            of such
            counsel (provided that the fees of such counsel in connection with such
            consultation and opinion shall be paid by the Custodian); and

           

          (h)  shall
            not
            be liable for any error of judgment, or for any act done or step taken
            or
            omitted by it, in good faith, or for any mistake of fact or law, or for
            anything
            which it may do or refrain from doing in connection therewith, except
            in the
            case of a breach of any of the Custodian’s obligations hereunder, negligence or
            willful misconduct.

           

          The
            Custodian shall be held to the same standard of conduct, and shall be
            entitled
            to the same protections, privileges and immunities as other custodians
            acting in
            a custodial capacity are generally afforded.

           

          No
            covenant or agreement contained herein shall be deemed to be the covenant
            or
            agreement of any member of the Board of Directors, or any director, officer,
            agent, employee or representative of the Trustee, Master Servicer, Securities
            Administrator or the Custodian in his or her individual capacity and
            none of
            such persons shall be subject to any personal liability or accountability
            by
            reason of the execution of this Agreement, whether by virtue of any
            constitution, statute or rule of law or by the enforcement of any assessment
            or
            penalty, or otherwise.

           

           

          ARTICLE
            IV.

           

          COMPLIANCE
            WITH REGULATION AB

           

          Section
            4.1.  Intent
            of the Parties; Reasonableness.
            The
            parties hereto acknowledge and agree that the purpose of this Article
            IV is to
            facilitate compliance by the Depositor with the provisions of Regulation
            AB and
            related rules and regulations of the Commission. The Depositor shall
            not
            exercise its right to request delivery of information or other performance
            under
            these provisions other than in good faith, or for purposes other than
            compliance
            with the Securities Act, the Exchange Act and the rules and regulations
            of the
            Commission under the Securities Act and the Exchange Act. Each of the
            parties
            hereto acknowledges that interpretations of the requirements of Regulation
            AB
            may change over time, whether due to interpretive guidance provided by
            the
            Commission or its staff, consensus among participants in the mortgage-backed
            securities markets, advice of counsel, or otherwise, and agrees to comply
            with
            requests made by the Depositor in good faith for delivery of information
            under
            these provisions on the basis of evolving interpretations of Regulation
            AB. The
            Custodian shall cooperate reasonably with the Depositor to deliver to
            the
            Depositor (including any of its assignees or designees), any and all
            disclosure,
            statements, reports, certifications, records and any other information
            necessary
            in the reasonable, good faith determination of the Depositor to permit
            the
            Depositor to comply with the provisions of Regulation AB.

           

          Section
            4.2.  Additional
            Representations and Warranties of the Custodian.

           

          (a)  The
            Custodian shall be deemed to represent to the Depositor as of the date
            hereof
            and on each date on which information is provided to the Depositor under
            Section
            4.3 that, except as disclosed in writing to the Depositor prior to such
            date:
            (i) there are no aspects of its financial condition that could have a
            material
            adverse effect on the performance by it of its Custodian obligations
            under this
            Agreement or any other Securitization Transaction as to which it is the
            custodian; (ii) there are no material legal or governmental proceedings
            pending
            (or known to be contemplated) against it; and (iii) there are no affiliations,
            relationships or transactions relating to the Custodian with respect
            to the
            Depositor or any sponsor, issuing entity, servicer, originator, significant
            obligor, enhancement or support provider or other material transaction
            party
            (other than the master servicer and the securities administrator, which
            is the
            same entity as the Custodian) (as such terms are used in Regulation AB)
            relating
            to the Securitization Transaction contemplated by the Agreement, as identified
            by the Depositor to the Custodian in writing as of the Closing Date (each,
            a
“Transaction Party”).

           

          (b)  If
            so
            requested by the Depositor on any date following the Closing Date, the
            Custodian
            shall, within five Business Days following such request, confirm in writing
            the
            accuracy of the representations and warranties set forth in paragraph
            (a) of
            this Section or, if any such representation and warranty is not accurate
            as of
            the date of such confirmation, provide reasonably adequate disclosure
            of the
            pertinent facts, in writing, to the requesting party. Any such request
            from the
            Depositor shall not be given more than once each calendar quarter, unless
            the
            Depositor shall have a reasonable basis for a determination that any
            of the
            representations and warranties may not be accurate.

           

          Section
            4.3.  Additional
            Information to Be Provided by the Custodian.
            For so
            long as the Trust is subject to the reporting obligations under the Exchange
            Act, for the purpose of satisfying the Depositor 's reporting obligation
            under
            the Exchange Act with respect to any class of publicly offered Certificates,
            the
            Custodian shall (a) notify the Depositor and the Securities Administrator
            in
            writing of any material litigation or governmental proceedings pending
            against
            the Custodian that would be material to Certificateholders, and (b) provide
            to
            the Depositor (and the Securities Administrator) unless the Custodian
            and the
            Securities Administrator are the same party a written description of
            such
            proceedings. Any notices and descriptions required under this Section
            4.3 shall
            be given no later than five Business Days prior to the Determination
            Date
            following the month in which the Custodian has knowledge of the occurrence
            of
            the relevant event. As of the date the Depositor or the Securities Administrator
            files each Report on Form 10-D or Form 10-K with respect to the Certificates,
            the Custodian will be deemed to represent that any information previously
            provided under this Section 4.3, if any, is materially correct and does
            not have
            any material omissions unless the Custodian has provided an update to
            such
            information.

           

          Section
            4.4.  Report
            on Assessment of Compliance and Attestation.
            On or
            before March 15th of each calendar year beginning in 2008, the Custodian
            shall:

           

          (a)  deliver
            to the Securities Administrator and the Depositor a report regarding
            the
            Custodian’s assessment of compliance (an “Assessment of Compliance”) with the
            Servicing Criteria during the preceding calendar year, as required under
            Rules
            13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.
            The
            Assessment of Compliance, as set forth in Regulation AB, must contain
            (i) a
            statement by such officer of its responsibility for assessing compliance
            with
            the Servicing Criteria applicable to the Custodian, (ii) a statement
            by such
            officer that the Custodian used the Servicing Criteria attached as Exhibit
            Six
            hereto, and which will also be attached to the Assessment of Compliance,
            to
            assess compliance with the Servicing Criteria applicable to the Custodian,
            (iii)
            an assessment by such officer of the Custodian’s compliance with the applicable
            Servicing Criteria for the period consisting of the preceding calendar
            year,
            including disclosure of any material instance of noncompliance with respect
            thereto during such period, which assessment shall be based on the activities
            the Custodian performs with respect to asset-based securities transactions
            taken
            as a whole involving the Custodian, that are backed by the same asset
            type as
            the Mortgage Loans, (iv) a statement that a registered public accounting
            firm
            has issued an attestation report on the Custodian’s Assessment of Compliance for
            the period consisting of the preceding calendar year, and (v) a statement
            as to
            which of the Servicing Criteria, if any, are not applicable to the Custodian,
            which statement shall be based on the activities the Custodian performs
            with
            respect to asset-backed securities transactions taken as a whole involving
            the
            Custodian, that are backed by the same asset type as the Mortgage Loans.
            Such
            report at a minimum shall address each of the Servicing Criteria specified
            on
            Exhibit Six hereto which are indicated as applicable to the Custodian;
            and

           

          (b)  deliver
            to the Securities Administrator and the Depositor an Attestation Report
            (an
“Attestation Report”) by a registered public accounting firm that attests to,
            and reports on, the Assessment of Compliance made by the Custodian, as
            required
            by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation
            AB, which Attestation Report must be made in accordance with standards
            for
            attestation reports issued or adopted by the Public Company Accounting
            Oversight
            Board.

           

          (c)  Notwithstanding
            the foregoing, an Assessment of Compliance is not required to be delivered
            by
            the Custodian unless it is required as part of a Form 10-K with respect
            to the
            Trust Fund.

           

          Section
            4.5.  Indemnification;
            Remedies.

           

          (a)  The
            Custodian shall indemnify the Depositor, each affiliate of the Depositor,
            the
            Securities Administrator, the Master Servicer and each broker dealer
            acting as
            underwriter, placement agent or initial purchaser of the Certificates
            or each
            Person who controls any of such parties (within the meaning of Section
            15 of the
            Securities Act and Section 20 of the Exchange Act); and the respective
            present
            and former directors, officers, employees and agents of each of the foregoing,
            and shall hold each of them harmless from and against any losses, damages,
            penalties, fines, forfeitures, legal fees and expenses and related costs,
            judgments, and any other costs, fees and expenses that any of them may
            sustain
            arising out of or based upon any failure by the Custodian to deliver
            any report
            on assessment of compliance or accountants’ attestation when and as required
            under this Article IV.

           

          (b)  In
            the
            case of any failure of performance described in clause (ii) of Section
            4.5(a),
            the Custodian shall promptly reimburse the Depositor for all costs reasonably
            incurred by the Depositor in order to obtain the information, report,
            certification, accountants’ letter or other material not delivered as required
            by the Custodian.

           

           

          ARTICLE
            V.

           

          MISCELLANEOUS
            PROVISIONS

           

          Section
            5.1.  Notices.  All
            notices, requests, consents and demands and other communications required
            under
            this Agreement or pursuant to any other instrument or document delivered
            hereunder shall be in writing and, unless otherwise specifically provided,
            may
            be delivered personally, by telegram or telex, or by registered or certified
            mail, postage prepaid, return receipt requested, at the addresses specified
            on
            the signature page hereof (unless changed by the particular party whose
            address
            is stated herein by similar notice in writing), in which case the notice
            will be
            deemed delivered when received.

           

          Section
            5.2.  Amendments.
            No
            modification or amendment of or supplement to this Agreement shall be
            valid or
            effective unless the same is in writing and signed by all parties hereto.
            The
            Securities Administrator shall give prompt notice to the Custodian of
            any
            amendment or supplement to the Pooling and Servicing Agreement and furnish
            the
            Custodian with written copies thereof.

           

          Section
            5.3.  GOVERNING
            LAW.
            THIS
            AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
            LAWS OF
            THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES
            THEREOF
            OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

           

          Section
            5.4.  Recordation
            of Agreement.
            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 properties
            subject to
            the Mortgages are situated, and in any other appropriate public recording
            office
            or elsewhere, such recordation to be effected by the Depositor and at
            the
            Trust’s expense, but only upon direction accompanied by an Opinion of Counsel
            reasonably satisfactory to the Depositor to the effect that the failure
            to
            effect such recordation is likely to materially and adversely affect
            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 constitute but one and the same
            instrument.

           

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

           

          [Signature
            Page Attached]

           

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, this Agreement is executed as of the date first above
            written.

          

          
            	
                    Address:

                    388
                      Greenwich Street, 14th Floor

                    New
                      York, New York 10013

                     

                    Attention:
                      SACO I Trust, Series 2007-1

                    Telecopy:
                      (212) 816-5527

                     

                  	
                    CITIBANK,
                      N.A., not individually but solely as Trustee

                     

                    By;__________________________________

                    Name:

                    Title:

                  
	
                    Address:

                    383
                      Madison Avenue

                    New
                      York, New York 10179

                  	
                    BEAR
                      STEARNS ASSET BACKED SECURITIES I LLC

                     

                    By;__________________________________

                    Name: Baron
                      Silverstein

                    Title: Vice
                      President

                     

                  
	
                    Address:

                    2780
                      Lake Vista Drive

                    Lewisville,
                      Texas 75067

                    (Facsimile:
                      (469) 759-4714)

                    Attention:
                      President or General Counsel

                  	
                    EMC
                      MORTGAGE CORPORATION

                     

                    By;__________________________________

                    Name: 

                    Title:
                      

                  
	 	 
	
                    Address:

                    2571
                      Busse Rd., Suite 200

                    Elk
                      Grove Village, Illinois 60007

                  	
                    LASALLE
                      BANK NATIONAL ASSOCIATION,
                      as Custodian

                     

                    By;__________________________________

                    Name: 

                    Title: 

                     

                  
	
                    Address:

                    9062
                      Old
                      Annapolis Road

                    Columbia,
                      Maryland 21045

                    Attention:
                      SACO 2007-1 Trust Admin Group

                  	
                    WELLS
                      FARGO BANK, NATIONAL ASSOCIATION, as Master Servicer and Securities
                      Administrator

                     

                    By;__________________________________

                    Name: 

                    Title: 

                  

          

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF NEW YORK

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF NEW YORK

                  	
                    )

                  	 

          

          

           

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared ________________________ known to me to be a(n)
            _________________________of Citibank, N.A., one of the parties that executed
            the
            within agreement, and also known to me to be the person who executed
            the within
            agreement on behalf of said party and acknowledged to me that such party
            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

           

          [SEAL]

           

          

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF NEW YORK

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF NEW YORK

                  	
                    )

                  	 

          

          

           

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared Baron Silverstein, known to me to be a Vice President of Bear
            Stearns
            Asset Backed Securities I LLC, and also known to me to be the person
            who
            executed the within instrument on behalf of said party, and acknowledged
            to me
            that such party 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

           

          [SEAL]

           

          

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF TEXAS

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF DALLAS

                  	
                    )

                  	 

          

          

           

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared ___________________________, known to me to be a(n)
            ____________________________ of EMC Mortgage Corporation, one of the
            parties
            that executed the within instrument, and also known to me to be the person
            who
            executed the within instrument on behalf of said party, and acknowledged
            to me
            that such party 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

           

          [Notarial
            Seal]

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF ILLINOIS

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF ___________

                  	
                    )

                  	 

          

          

           

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared __________________________, known to me to be a(n)
            _________________________ of LaSalle Bank National Association, one of
            the
            parties that executed the within instrument, and also known to me to
            be the
            person who executed it on behalf of said party, and acknowledged to me
            that such
            party 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

           

          [Notarial
            Seal] 

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF MARYLAND

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF HOWARD

                  	
                    )

                  	 

          

          

           

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared _________________________, known to me to be an
            _________________________ of Wells Fargo Bank, National Association,
            one of the
            parties that executed the within instrument, and also known to me to
            be the
            person who executed it on behalf of said party, and acknowledged to me
            that such
            party 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

           

          [Notarial
            Seal] 

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            A

          

          MORTGAGE
            LOAN SCHEDULE

          

          (Provided
            upon request)

          

          

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            ONE

           

          

           

          FORM
            OF
            CUSTODIAN INITIAL CERTIFICATION

           

          January
            16, 2007

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          Attn:
            Structured Finance - SACO I Trust, Series 2007-1

          

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attn:
            SACO I Trust 2007-1 Trust Admin Group

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            Texas 75067

          (Facsimile:
            (469) 759-4714)

          Attention:
            President or General Counsel

          

          Attention:
            SACO I Inc., Series 2007-1

           

          Re:         Custodial
            Agreement, dated as of January 16, 2007, by and among Citibank, N.A.,
            LaSalle
            Bank National Association, 

          Wells
            Fargo Bank,
            National
            Association, Bear Stearns Asset Backed Securities I LLC and EMC Mortgage
            Corporation 

          relating
            to SACO I Trust 2007-1, Mortgage-Backed
            Certificates, Series
            2007-1                                                                  
 

           

          Ladies
            and Gentlemen:

           

          In
            accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
            the
            undersigned, as Custodian, hereby certifies that it has received the
            following
            documents with respect to each Mortgage Loan listed in the Mortgage Loan
            Schedule, with any exceptions listed on Schedule A attached hereto: (i)
            an
            original note, including any riders thereto, endorsed without recourse
            to the
            order of blank or to “Citibank, N.A., as Trustee for certificateholders of SACO
            I Trust 2007-1, Mortgage Pass-Through Certificates, Series 2007-1 under
            the
            Pooling and Servicing Agreement dated as of December 1, 2006 for SACO
            I Trust
            2007-1 Mortgage Pass-Through Certificates, Series 2007-1,” and showing an
            unbroken chain of endorsements from the original payee thereof to the
            person
            endorsing it to the Trustee; (ii) an original mortgage and, if the related
            mortgage loan is a MERS Loan, registered with MERS, noting the presence
            of the
            mortgage identification number and language indicating that such mortgage
            loan
            is a MERS Loan, which shall have been recorded (or, for Mortgage Loans
            other
            than the EMC Flow Loans, if the original is not available, a copy) with
            evidence
            of such recording indicated thereon (or if clause (x) in the proviso
            below
            applies, shall be in recordable form); (iii) unless the mortgage loan
            is a MERS
            Loan, the assignment (either an original or a copy, which may be in the
            form of
            a blanket assignment if permitted in the jurisdiction in which the mortgage
            property is located) to the Trustee of the mortgage with respect to each
            mortgage loan in the name of ___________________________, which shall
            have been
            recorded (of if clause (x) in the proviso below applies, shall be in recordable
            form); (iv) an original or a copy of all intervening assignments of the
            mortgage, if any, with evidence of recording thereon; (v) the original
            policy of
            title insurance or mortgagee’s certificate of title insurance or commitment or
            binder for title insurance, if available, or a copy thereof, or, in the
            event
            that such original title insurance policy is unavailable, a photocopy
            thereof,
            or in lieu thereof, a current lien search on the related mortgaged property;
            and
            (vi) originals or copies of all available assumption, modification or
            substitution agreements, if any; provided, however, that in lieu of the
            foregoing, the Seller may deliver the following documents, under the
            circumstances set forth below: (x) if any mortgage (other than the mortgages
            related to the EMC Flow Loans), assignment thereof to the Trustee or
            intervening
            assignments thereof have been delivered or are being delivered to recording
            offices for recording and have not been returned in time to permit their
            delivery as specified above, the Depositor may deliver a true copy thereof
            with
            a certification by the Seller or the title company issuing the commitment
            for
            title insurance, on the face of such copy, substantially as follows:
“Certified
            to be a true and correct copy of the original, which has been transmitted
            for
            recording”; and (y) in lieu of the mortgage notes relating to the Mortgage Loans
            identified in the list attached hereto, the Depositor may deliver a lost
            note
            affidavit and indemnity and a copy of the original note, if
            available.

           

          Capitalized
            words and phrases used herein shall have the respective meanings assigned
            to
            them in the above-captioned Custodial Agreement.

           

          LASALLE
            BANK NATIONAL ASSOCIATION, as Custodian

           

          By:_________________________________

          Name:______________________________

          Title:_______________________________

           

          
 

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            A

           

          (PROVIDED
            UPON REQUEST)

           

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            TWO

           

          

           

          FORM
            OF
            CUSTODIAN INTERIM CERTIFICATION

           

          [DATE]

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          Attn:
            Structured Finance - SACO I Trust, Series 2007-1

          

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attn:
            SACO I Trust 2007-1 Trust Admin Group

           

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            Texas 75067

          (Facsimile:
            (469) 759-4714)

          Attention:
            President or General Counsel

           

          Attention:
            SACO I Inc., Series 2007-1

           

          Re:      
             Custodial
            Agreement, dated as of January 16, 2007, by and among Citibank, N.A.,
            LaSalle
            Bank National Association, Wells Fargo Bank, National Association, Bear
            Stearns
            Asset Backed Securities I LLC and EMC Mortgage Corporation relating to
            SACO I
            Trust 2007-1, Mortgage-Backed Certificates,
            Series
            2007-1                                                                                                                                                       

           

          Ladies
            and Gentlemen:

           

          In
            accordance with Section 2.3(b) of the above-captioned Custodial Agreement,
            the
            undersigned, as Custodian, hereby certifies that it has received and
            reviewed
            the documents described in its initial certification dated January 16,
            2007 and
            has determined that: all documents have been executed and received and
            that such
            documents relate to the Mortgage Loans identified on the Mortgage Loan
            Schedule,
            with any exceptions listed on Schedule A attached hereto.

           

          Capitalized
            words and phrases used herein shall have the respective meanings assigned
            to
            them in the above-captioned Custodial Agreement.

           

          LASALLE
            BANK NATIONAL ASSOCIATION, as Custodian

           

          By:_________________________________

          Name:______________________________

          Title:_______________________________

           

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            A

           

          (PROVIDED
            UPON REQUEST)

           

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            THREE

           

          

           

          FORM
            OF
            CUSTODIAN FINAL CERTIFICATION

           

          [DATE]

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          Attn:
            Structured Finance - SACO I Trust, Series 2007-1

          

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attn:
            SACO I Trust 2007-1 Trust Admin Group

           

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            Texas 75067

          (Facsimile:
            (469) 759-4714)

          Attention:
            President or General Counsel

           

          Attention:
            SACO I Inc., Series 2007-1

           

          Re:      
             Custodial
            Agreement, dated as of January 16, 2007, by and among Citibank, N.A.,
            LaSalle
            Bank National Association, Wells Fargo Bank, National Association, Bear
            Stearns
            Asset Backed Securities I LLC and EMC Mortgage Corporation relating to
            SACO I
            Trust 2007-1, Mortgage-Backed
            Certificates, Series
            2007-1                                                                                                                                                     
 

           

          Ladies
            and Gentlemen:

           

          In
            accordance with Section 2.3(c) of the above-captioned Custodial Agreement,
            the
            undersigned, as Custodian, hereby certifies that it has received and
            reviewed
            the documents described in its initial certification dated January 16,
            2007 and
            has determined that: all documents have been executed and received and
            that such
            documents relate to the Mortgage Loans identified on the Mortgage Loan
            Schedule,
            with any exceptions listed on Schedule A attached hereto.

          

          Capitalized
            words and phrases used herein shall have the respective meanings assigned
            to
            them in the above-captioned Custodial Agreement.

           

          LASALLE
            BANK NATIONAL ASSOCIATION, as Custodian

           

          By:________________________________

          Name:______________________________

          Title:_______________________________

           

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            A

           

          (PROVIDED
            UPON REQUEST)

           

          

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            FOUR

           

          

           

          FORM
            OF
            REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

           

          

          

          To: [Name/Address
            of Owner]

           

          

          

          Attention:
            

           

          Re:      
             Custodial
            Agreement, dated as of January 16, 2007, by and among Citibank, N.A.,
            LaSalle
            Bank National Association, Wells Fargo Bank, National Association, Bear
            Stearns
            Asset Backed Securities I LLC and EMC Mortgage Corporation relating to
            SACO I
            Trust 2007-1, Mortgage-Backed
            Certificates, Series
            2007-1                                                                                                                                                       

           

          

          In
            connection with the Mortgage Files that you hold pursuant to the Custodial
            Agreement, we request the release, and acknowledge receipt of the Mortgage
            file/[specify document] for the Mortgage Loan described below, the reason
            indicated.

          

          Mortgagor’s
            Name, Address and Zip Code:

          

          

          Mortgage
            Loan Number:

          

          

          Reason
            for Requesting Documents: (check one)

          

          _____
            1.
            Mortgage Loan paid in full. ([The Master Servicer] [A Servicer] [the
            Trustee]
            hereby certifies that all amounts received in connection therewith have
            been
            credited to
            __________________________________________________________________________.)

          

          _____
            2.
            Mortgage Loan in foreclosure.

          

          _____
            3.
            Repurchase. (The [Master Servicer] [Trustee] hereby certifies that the
            repurchase price has been credited to
            _____________________________________________.)

          

          _____
            4.
            Mortgage Loan liquidated by _______________________________________.
            ([The
            Master Servicer] [A Servicer] [The Trustee] hereby certifies that all
            proceeds
            of the foreclosure, insurance, condemnation or other liquidation have
            been
            finally received and credited to
            _____________________________________.

          

          _____
            5.
            Other (explain):  

           

          
            	 	 	 	 	 	 	 	
                    By:

                  	 
	 	 	 	 	 	 	 	 	
                    (authorized
                      signer)

                  
	 	 	 	 	 	 	 	 	 

          

          

          
            	 	 	 	 	 	 	
                      
                      Issuer:

                  	 
	 	 	 	 	 	 	
                      
                      Address:

                  	 
	 	 	 	 	 	 	
                      
                      Date:

                  	 

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            FIVE

          

          ELECTRONIC
            RELEASE REQUEST (Excel)

          
            	
                    Collateral
                      Release Tasks 

                  	
                     

                  
	
                     

                  	
                     

                  
	
                    Required
                      Field Header

                  	
                    Description

                  
	
                     

                  	
                     

                  
	
                    customer

                  	
                    Value
                      can be constant of '1018'
                      

                  
	
                     

                  	
                     

                  
	
                    poolnum

                  	
                    pool
                      number if available, can be left blank as well

                  
	
                     

                  	
                     

                  
	
                    loanid

                  	
                    EMC
                      loan#, required field

                  
	
                     

                  	
                     

                  
	
                    loc_code

                  	
                    Codes
                      must be mutually agreed upon with custodian. Examples are PDPO=
                      loans
                      released for payoff, FORC = loans released for foreclosure,
                      OLIQ= loans
                      released for repurchase, NLIQ = loans released for
                      non-liquidation/correction.

                  
	
                     

                  	
                     

                  
	
                    rel_code

                  	
                    Codes
                      must be mutually agreed upon with custodian. Examples are 

                    1
                      =
                      payoff, 2 = foreclosure, 4 = repurchase, 5 =
                      non-liquidation.

                  
	
                     

                  	
                     

                  
	
                    rel_doclist

                  	
                    Can
                      be left blank

                  
	
                     

                  	
                     

                  
	
                    notation

                  	
                    “Name
                      of Person File Being Released To @ Company Name” (i.e. Sharon
                      Ayers@EMC)

                  
	
                     

                  	
                     

                  
	
                    reqstr

                  	
                    Can
                      be left blank

                  
	
                     

                  	
                     

                  
	
                    reqstr_sig

                  	
                    Signatory
                      code assigned to requestor, TBD

                  
	
                     

                  	
                     

                  
	
                    amend

                  	
                    0
                      =
                      new release request, 1= amend an existing released record (i.e.
                      FORC to
                      PDPO)

                  

          

          

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            SIX

          

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

          The
            assessment of compliance to be delivered by the Custodian shall address,
            at a
            minimum, the criteria identified below as “Applicable Servicing
            Criteria”:

          

          
            	
                     

                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing
                      Criteria

                  
	
                    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

                  	 
	
                     

                    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

                  	 
	
                     

                    1122(d)(1)(iii)

                  	
                    Any
                      requirements in the transaction agreements to maintain a back-up
                      servicer
                      for the pool assets are maintained.

                  	 
	
                     

                     

                    1122(d)(1)(iv)

                  	
                    A
                      fidelity bond and errors and omissions policy is in effect
                      on the party
                      participating in the servicing function throughout the reporting
                      period in
                      the amount of coverage required by and otherwise in accordance
                      with the
                      terms of the transaction agreements.

                  	 
	 	
                     

                    Cash
                      Collection and Administration

                  	 
	
                     

                     

                    1122(d)(2)(i)

                  	
                    Payments
                      on pool assets are deposited into the appropriate custodial
                      bank accounts
                      and related bank clearing accounts no more than two business
                      days
                      following receipt, or such other number of days specified in
                      the
                      transaction agreements.

                  	 
	
                     

                    1122(d)(2)(ii)

                  	
                    Disbursements
                      made via wire transfer on behalf of an obligor or to an investor
                      are made
                      only by authorized personnel.

                  	 
	
                     

                    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.

                  	 
	
                     

                     

                    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.

                  	 
	
                     

                     

                    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 institutions” 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. 

                  	 
	
                    1122(d)(2)(vi)

                  	
                    Unissued
                      checks are safeguarded so as to prevent unauthorized
                      access.

                  	 
	
                     

                     

                     

                     

                     

                    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
                      reconciliations; 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.

                  	 
	 	
                     

                    Investor
                      Remittances and Reporting

                  	 
	
                     

                     

                     

                     

                    1122(d)(3)(i)

                  	
                    Reports
                      to investors, including those to be filed with the Commission,
                      are
                      maintained in accordance with the transaction agreements and
                      applicable
                      Commission requirements. Specifically, such reports (A) are
                      prepared in
                      accordance with timeframes and other terms set forth in the
                      transaction
                      agreements, (B) provide information calculated in accordance
                      with the
                      terms specified in the transaction agreements; (C) are filed
                      with the
                      Commission as required by its rules and regulations; and (D)
                      agree with
                      investors; or the trustee’s records as to the total unpaid principal
                      balance and number of pool assets serviced by the
                      servicer.

                  	 
	
                     

                    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.

                  	 
	
                     

                    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.

                  	 
	
                     

                    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.

                  	 
	 	
                     

                    Pool
                      Asset Administration

                  	 
	
                     

                    1122(d)(4)(i)

                  	
                    Collateral
                      or security on pool assets is maintained as required by the
                      transaction
                      agreements or related asset pool documents.

                  	
                    √

                  
	
                    1122(d)(4)(ii)

                  	
                    Pool
                      assets and related documents are safeguarded as required by
                      the
                      transaction agreements.

                  	
                    √

                  
	
                     

                    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

                  	
                    √1 

                  
	
                     

                     

                    1122(d)(4)(iv)

                  	
                    Payments
                      on pool assets, including any payoffs, made in accordance with
                      the related
                      pool asset documents are posted to the servicer’s obligor records
                      maintained no more than two business days after receipt, or
                      such other
                      number of days specified in the transaction agreements, and
                      allocated to
                      principal, interest or other items (e.g., escrow) in accordance
                      with the
                      related pool asset documents.

                  	 
	
                     

                    1122(d)(4)(v)

                  	
                    The
                      servicer’s records regarding the pool assets agree with the servicer’s
                      records with respect to an obligor’s unpaid principal
                      balance.

                  	 
	
                     

                     

                    1122(d)(4)(vi)

                  	
                    Changes
                      with respect to the terms or status of an obligor’s pool asset (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 of recovery actions (e.g., forbearance plans, modifications
                      and
                      deed 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
                      documents.

                  	 
	
                     

                     

                     

                    1122(d)(4)(viii)

                  	
                    Records
                      documenting collection efforts are maintained during the period
                      a pool
                      asset is delinquent in accordance with the transaction agreements.,
                      Such
                      records are maintained in at least a monthly basis, or such
                      other period
                      specified in the transaction agreements, and describe the entity’s
                      activities in monitoring delinquent pool assets including,
                      for example,
                      phone calls, letters and payment rescheduling plans in cases
                      where
                      delinquency is deemed temporary (e.g., illness or
                      unemployment).

                  	 
	
                     

                    1122(d)(4)(ix)

                  	
                    Adjustments
                      to interest rates or rates of return for pool assets with variable
                      rates
                      are computed based on the related pool asset documents.

                  	 
	
                     

                     

                     

                     

                    1122(d)(4)(x)

                  	
                    Regarding
                      any funds held in trust for an obligor (such as escrow accounts);
                      (A) such
                      funds are analyzed, in accordance with the obligor’s pool asset documents,
                      on at least an annual basis, or such other period specified
                      in the
                      transaction agreements; (B) interest on such funds is paid,
                      or credited,
                      to obligors in accordance with applicable pool asset documents
                      and state
                      laws; and (C) such funds are returned to the obligor within
                      3- calendar
                      days of full repayment of the related pool asset, or such other
                      number of
                      days specified in the transaction agreements.

                  	 
	
                     

                     

                    1122(d)(4)(xi)

                  	
                    Payments
                      made on behalf of an obligor (such as tax ore 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 service 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 funds are recognized and recorded
                      in
                      accordance with the transaction agreements.

                  	 
	
                    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.

                  	 

          

          

          

            

            
              1
                Only
                with respect to the logistics of adding, removing or substituting
                loan
                files.

            

          

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          K

         

        FORM
          OF
          WELLS FARGO CUSTODIAL AGREEMENT

         

        

          CUSTODIAL
            AGREEMENT

           

          THIS
            CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
            “Agreement”), dated as of January 16, 2007, by and among CITIBANK, N.A., as
            trustee under the Pooling and Servicing Agreement defined below (including
            its
            successors under the Pooling and Servicing Agreement defined below, the
            “Trustee”), BEAR STEARNS ASSET BACKED SECURITIES I LLC, as depositor (together
            with any successor in interest, the “Depositor”), EMC MORTGAGE CORPORATION, as
            seller (the “Seller”) and company (together with any successor in interest or
            successor under the Pooling and Servicing Agreement referred to below,
            the
“Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as master servicer
            (together with any successor in interest or successor under the Pooling
            and
            Servicing Agreement referred to below, the “Master Servicer”), securities
            administrator and custodian (together with any successor in interest
            or any
            successor appointed hereunder, the “Custodian”).

           

          WITNESSETH
            THAT:

           

          WHEREAS,
            the Depositor, the Seller, the Master Servicer and the Trustee have entered
            into
            a Pooling and Servicing Agreement, dated as of December 1, 2006, relating
            to the
            issuance of SACO I Trust 2007-1, Mortgage-Backed Certificates, Series
            2007-1 (as
            in effect on the date of this Agreement, the “Original Pooling and Servicing
            Agreement,” and as amended and supplemented from time to time, the “Pooling and
            Servicing Agreement”); and

           

          WHEREAS,
            the Custodian has agreed to act as agent for the Trustee for the purposes
            of
            receiving and holding certain documents and other instruments delivered
            by the
            Depositor, the Seller or the Master Servicer under the Pooling and Servicing
            Agreement and the Servicers under their respective Servicing Agreements,
            all
            upon the terms and conditions and subject to the limitations hereinafter
            set
            forth;

           

          NOW,
            THEREFORE, in consideration of the premises and the mutual covenants
            and
            agreements hereinafter set forth, the Trustee, the Depositor, the Seller,
            the
            Master Servicer and the Custodian hereby agree as follows:

           

           

          ARTICLE
            I.

           

          DEFINITIONS

           

          Capitalized
            terms used in this Agreement and not defined herein shall have the meanings
            assigned in the Original Pooling and Servicing Agreement, unless otherwise
            required by the context herein.

           

           

          ARTICLE
            II.

           

          CUSTODY
            OF MORTGAGE DOCUMENTS

           

          Section
            2.1.  Custodian
            to Act as Agent: Acceptance of Mortgage Files.
            The
            Custodian, as the duly appointed custodial agent of the Trustee for these
            purposes, acknowledges (subject to any exceptions noted in the Initial
            Certification referred to in Section 2.3(a)) receipt of the Mortgage
            Files
            relating to the Mortgage Loans identified on the schedule attached hereto
            (the
“Mortgage Files”) and declares that it holds and will hold such Mortgage Files
            as agent for the Trustee, in trust, for the use and benefit of all present
            and
            future Certificateholders.

           

          Section
            2.2.  Recordation
            of Assignments.
            If any
            Mortgage File includes one or more assignments of Mortgage that have
            not been
            recorded pursuant to the provisions of Section 2.01 of the Pooling and
            Servicing
            Agreement and the related Mortgage Loan is not a MOM Loan or the related
            Mortgaged Properties are located in jurisdictions specifically excluded
            by the
            Opinion of Counsel delivered to the Trustee pursuant to Section 2.01
            of the
            Pooling and Servicing Agreement, each such assignment shall be delivered
            by the
            Custodian to the Seller for the purpose of recording it in the appropriate
            public office for real property records, and the Seller, at no expense
            to the
            Custodian, shall promptly cause to be recorded in the appropriate public
            office
            for real property records each such assignment of Mortgage and, upon
            receipt
            thereof from such public office, shall return each such assignment of
            Mortgage
            to the Custodian.

           

          Section
            2.3.  Review
            of Mortgage Files.

           

          (a)  On
            or
            prior to the Closing Date, in accordance with Section 2.02 of the Pooling
            and
            Servicing Agreement, the Custodian shall deliver to the Seller, the Master
            Servicer and the Trustee an Initial Certification in the form annexed
            hereto as
            Exhibit One evidencing receipt (subject to any exceptions noted therein)
            of a
            Mortgage File for each of the Mortgage Loans listed on the Schedule attached
            hereto (the “Mortgage Loan Schedule”).

           

          (b)  Within
            90
            days of the Closing Date, the Custodian agrees, for the benefit of
            Certificateholders, to review, in accordance with the provisions of Section
            2.02
            of the Pooling and Servicing Agreement, each such document, and shall
            deliver to
            the Seller, the Master Servicer and the Trustee an Interim Certification
            in the
            form annexed hereto as Exhibit Two to the effect that all such documents
            have
            been executed and received and that such documents relate to the Mortgage
            Loans
            identified on the Mortgage Loan Schedule, except for any exceptions listed
            on
            Schedule A attached to such Interim Certification. The Custodian shall
            be under
            no duty or obligation to inspect, review or examine said documents, instruments,
            certificates or other papers to determine that the same 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.

           

          (c)  Not
            later
            than 180 days after the Closing Date, the Custodian shall review the
            Mortgage
            Files as provided in Section 2.02 of the Pooling and Servicing Agreement
            and
            deliver to the Seller, the Master Servicer and the Trustee a Final Certification
            in the form annexed hereto as Exhibit Three evidencing the completeness
            of the
            Mortgage Files.

           

          (d)  In
            reviewing the Mortgage Files as provided herein and in the Pooling and
            Servicing
            Agreement, the Custodian shall make no representation as to and shall
            not be
            responsible to verify (i) the validity, legality, enforceability, due
            authorization, recordability, sufficiency or genuineness of any of the
            documents
            included in any Mortgage File or (ii) the collectability, insurability,
            effectiveness or suitability of any of the documents in any Mortgage
            File.

           

          Upon
            receipt of written request from the Trustee, the Custodian shall as soon
            as
            practicable supply the Trustee with a list of all of the documents relating
            to
            the Mortgage Loans missing from the Mortgage Files.

           

          Section
            2.4.  Notification
            of Breaches of Representations and Warranties.
            Upon
            discovery by the Custodian of a breach of any representation or warranty
            made by
            the Depositor as set forth in the Pooling and Servicing Agreement with
            respect
            to a Mortgage Loan relating to a Mortgage File, the Custodian shall give
            prompt
            written notice to the Depositor, the related Servicer and the
            Trustee.

           

          Section
            2.5.  Custodian
            to Cooperate: Release of Mortgage Files.
            Upon
            receipt of written notice from the Trustee that the Seller has repurchased
            a
            Mortgage Loan pursuant to Article II of the Pooling and Servicing Agreement,
            and
            a request for release (a “Request for Release”) confirming that the purchase
            price therefore has been deposited in the Master Servicer Collection
            Account or
            the Distribution Account, then the Custodian agrees to promptly release
            to the
            Seller the related Mortgage File.

           

          Upon
            the
            Custodian’s receipt of a Request for Release substantially in the form of
            Exhibit G to the Pooling and Servicing Agreement signed by a Servicing
            Officer
            of a Servicer, stating that it has received payment in full of a Mortgage
            Loan
            or that payment in full will be escrowed in a manner customary for such
            purposes, the Custodian agrees promptly to release to the Servicer, the
            related
            Mortgage File. The Depositor shall deliver to the Custodian and the Custodian
            agrees to review in accordance with the provisions of their Agreement
            the
            Mortgage Note and other documents constituting the Mortgage File with
            respect to
            any Replacement Mortgage Loan.

           

          From
            time
            to time as is appropriate for the servicing or foreclosure of any Mortgage
            Loan,
            including, for this purpose, collection under any Primary Insurance Policy
            or
            PMI Policy, the Company or the related Servicer, as applicable, shall
            deliver to
            the Custodian a Request for Release signed by a Servicing Officer requesting
            that possession of all of the Mortgage File be released to the Company
            or the
            related Servicer, as applicable, and certifying as to the reason for
            such
            release and that such release will not invalidate any insurance coverage
            provided in respect of the Mortgage Loan under any of the Insurance Policies.
            Upon receipt of the foregoing, the Custodian shall deliver the Mortgage
            File to
            the Company or the related Servicer, as applicable. The Company or the
            related
            Servicer, as applicable, shall cause each Mortgage File or any document
            therein
            so released to be returned to the Custodian when the need therefore by
            the
            Company or the related Servicer, as applicable, no longer exists, unless
            (i) the
            Mortgage Loan has been liquidated and the Liquidation Proceeds relating
            to the
            Mortgage Loan have been deposited in the Master Servicer Collection Account
            or
            the Distribution Account or (ii) the Mortgage File or such document has
            been
            delivered to an attorney, or to a public trustee or other public official
            as
            required by law, for purposes of initiating or pursuing legal action
            or other
            proceedings for the foreclosure of the Mortgaged Property either judicially
            or
            non-judicially, and the Company or the related Servicer, as applicable,
            has
            delivered to the Custodian a certificate of a Servicing Officer certifying
            as to
            the name and address of the Person to which such Mortgage File or such
            document
            was delivered and the purpose or purposes of such delivery.

           

          At
            any
            time that the Company or the related Servicer is required to deliver
            to the
            Custodian a Request for Release, the Company or the related Servicer,
            as
            applicable, shall deliver two copies of the Request for Release if delivered
            in
            hard copy or the Company or the related Servicer, as applicable, may
            furnish
            such Request for Release electronically to the Custodian, in which event
            the
            Servicing Officer transmitting the same shall be deemed to have signed
            the
            Request for Release. In connection with any Request for Release of a
            Mortgage
            File because of a repurchase of a Mortgage Loan, such Request for Release
            shall
            be accompanied by an assignment of mortgage, without recourse, representation
            or
            warranty from the Trustee to the Seller (unless such Mortgage Loan is
            a MOM
            Loan) and the related Mortgage Note shall be endorsed without recourse,
            representation or warranty by the Trustee (unless such Mortgage Loans
            is
            registered on the MERS System) and be returned to the Seller. In connection
            with
            any Request for Release of a Mortgage File because of the payment in
            full of a
            Mortgage Loan, such Request for Release shall be accompanied by a certificate
            of
            satisfaction or other similar instrument to be executed by or on behalf
            of the
            Trustee and returned to the Company or the related Servicer, as
            applicable.

           

          Section
            2.6.  Assumption
            Agreements.
            In the
            event that any assumption agreement, substitution of liability agreement
            or sale
            of servicing agreement is entered into with respect to any Mortgage Loan
            subject
            to this Agreement in accordance with the terms and provisions of the
            Pooling and
            Servicing Agreement, the Master Servicer, to the extent provided in the
            Pooling
            and Servicing Agreement or the related Servicing Agreement, shall cause
            the
            Company or the related Servicer, as applicable, to notify the Custodian
            that
            such assumption or substitution agreement has been completed by forwarding
            to
            the Custodian the original of such assumption or substitution agreement,
            which
            shall be added to the related Mortgage File and, for all purposes, shall
            be
            considered a part of such Mortgage File to the same extent as all other
            documents and instruments constituting parts thereof.

           

           

          ARTICLE
            III.

           

          CONCERNING
            THE CUSTODIAN

           

          Section
            3.1.  Custodian
            a Bailee and Agent of the Trustee.
            With
            respect to each Mortgage Note, Mortgage and other documents constituting
            each
            Mortgage File which are delivered to the Custodian, the Custodian is
            exclusively
            the bailee and custodial agent of the Trustee and has no instructions
            to hold
            any Mortgage Note or Mortgage for the benefit of any person other than
            the
            Trustee and the Certificateholders and undertakes to perform such duties
            and
            only such duties as are specifically set forth in this Agreement and
            in the
            Pooling and Servicing Agreement. Except upon compliance with the provisions
            of
            Section 2.5 of this Agreement, no Mortgage Note, Mortgage or Mortgage
            File shall
            be delivered by the Custodian to the Company, the Depositor, any Servicer
            or the
            Master Servicer or otherwise released from the possession of the
            Custodian.

           

          Section
            3.2.  Custodian
            May Own Certificates.
            The
            Custodian in its individual or any other capacity may become the owner
            or
            pledgee of Certificates with the same rights it would have if it were
            not
            Custodian.

           

          Section
            3.3.  Master
            Servicer to Pay Custodian’s Fees and Expenses.
            The
            Master Servicer covenants and agrees to pay to the Custodian from time
            to time,
            and the Custodian shall be entitled to, reasonable compensation for all
            services
            rendered by it in the exercise and performance of any of the powers and
            duties
            hereunder of the Custodian, and the Master Servicer will pay or reimburse
            the
            Custodian upon its request for all reasonable expenses, disbursements
            and
            advances incurred or made by the Custodian in accordance with any of
            the
            provisions of this Agreement (including the reasonable compensation and
            the
            expenses and disbursements of its counsel and of all persons not regularly
            in
            its employ), except any such expense, disbursement or advance as may
            arise from
            its negligence or bad faith or to the extent that such cost or expense
            is
            indemnified by the Depositor pursuant to the Pooling and Servicing
            Agreement.

           

          Section
            3.4.  Custodian
            May Resign; Trustee May Remove Custodian.
            The
            Custodian may resign from the obligations and duties hereby imposed upon
            it as
            such obligations and duties relate to its acting as Custodian of the
            Mortgage
            Loans. Upon receiving such written notice of resignation, the Trustee
            shall
            either take custody of the Mortgage Files itself and give prompt written
            notice
            thereof to the Depositor, the Master Servicer and the Custodian, or promptly
            appoint a successor Custodian by written instrument, in duplicate, one
            copy of
            which instrument shall be delivered to the resigning Custodian and one
            copy to
            the successor Custodian. If the Trustee shall not have taken custody
            of the
            Mortgage Files and no successor Custodian shall have been so appointed
            and have
            accepted appointment within 30 days after the giving of such written
            notice of
            resignation, the resigning Custodian may petition any court of competent
            jurisdiction for the appointment of a successor Custodian.

           

          The
            Trustee may remove the Custodian at any time upon 60 days prior written
            notice
            to Custodian. In such event, the Trustee shall appoint, or petition a
            court of
            competent jurisdiction to appoint, a successor Custodian hereunder. Any
            successor Custodian shall be a depository institution subject to supervision
            or
            examination by federal or state authority shall be able to satisfy the
            other
            requirements contained in Section 3.6 and shall be unaffiliated with
            the
            Servicers, the Company and the Depositor.

           

          Any
            resignation or removal of the Custodian and appointment of a successor
            Custodian
            pursuant to any of the provisions of this Section 3.4 shall become effective
            upon acceptance of appointment by the successor Custodian. The Trustee
            shall
            give prompt notice to the Depositor and the Master Servicer of the appointment
            of any successor Custodian. No successor Custodian shall be appointed
            by the
            Trustee without the prior approval of the Depositor and the Master
            Servicer.

           

          Section
            3.5.  Merger
            or Consolidation of Custodian.
            Any
            Person into which the Custodian 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 Custodian shall be a party, or any Person
            succeeding
            to the business of the Custodian, shall be the successor of the Custodian
            hereunder, without the execution or filing of any paper or any further
            act on
            the part of any of the parties hereto, anything herein to the contrary
            notwithstanding.

           

          Section
            3.6.  Representations
            of the Custodian.
            The
            Custodian hereby represents that it is a depository institution subject
            to
            supervision or examination by a federal or state authority, has a combined
            capital and surplus of at least $15,000,000 and is qualified to do business
            in
            the jurisdictions in which it will hold any Mortgage File.

           

           

          ARTICLE
            IV.

           

          COMPLIANCE
            WITH REGULATION AB

           

          Section
            4.1.  Intent
            of the Parties; Reasonableness.
            The
            parties hereto acknowledge and agree that the purpose of this Article
            IV is to
            facilitate compliance by the Depositor with the provisions of Regulation
            AB and
            related rules and regulations of the Commission. The Depositor shall
            not
            exercise its right to request delivery of information or other performance
            under
            these provisions other than in good faith, or for purposes other than
            compliance
            with the Securities Act, the Exchange Act and the rules and regulations
            of the
            Commission under the Securities Act and the Exchange Act. Each of the
            parties
            hereto acknowledges that interpretations of the requirements of Regulation
            AB
            may change over time, whether due to interpretive guidance provided by
            the
            Commission or its staff, consensus among participants in the mortgage-backed
            securities markets, advice of counsel, or otherwise, and agrees to comply
            with
            requests made by the Depositor in good faith for delivery of information
            under
            these provisions on the basis of evolving interpretations of Regulation
            AB to
            the extent reasonably practicable. The Custodian shall cooperate reasonably
            with
            the Depositor to deliver to the Depositor (including any of its assignees
            or
            designees), any and all disclosure, statements, reports, certifications,
            records
            and any other information necessary in the reasonable, good faith determination
            of the Depositor to permit the Depositor to comply with the provisions
            of
            Regulation AB.

           

          Section
            4.2.  Additional
            Representations and Warranties of the Custodian.

           

          (a)  The
            Custodian hereby represents and warrants that the information set forth
            in the
            Prospectus Supplement under the caption "Description of the Certificates
            - The
            Custodian" (the "Custodian Disclosure") does not contain any untrue statement
            of
            a material fact or omit to state a material fact required to be stated
            therein
            or necessary in order to make the statements therein, in the light of
            the
            circumstances under which they were made, not misleading.

           

          (b)  The
            Custodian shall be deemed to represent to the Depositor as of the date
            hereof
            and on each date on which information is provided to the Depositor under
            Section
            4.3 that, except as disclosed in writing to the Depositor prior to such
            date:
            (i) there are no aspects of its financial condition that could have a
            material
            adverse effect on the performance by it of its Custodian obligations
            under this
            Agreement or any other Securitization Transaction as to which it is the
            custodian; (ii) there are no material legal or governmental proceedings
            pending
            (or known to be contemplated) against it; and (iii) there are no affiliations,
            relationships or transactions relating to the Custodian with respect
            to the
            Depositor or any sponsor, issuing entity, servicer, trustee, originator,
            significant obligor, enhancement or support provider or other material
            transaction party (as such terms are used in Regulation AB) relating
            to the
            Securitization Transaction contemplated by the Agreement, as identified
            by the
            Depositor to the Custodian in writing as of the Closing Date (each, a
            "Transaction Party").

           

          (c)  If
            so
            requested by the Depositor on any date following the Closing Date, the
            Custodian
            shall, within five Business Days following such request, confirm in writing
            the
            accuracy of the representations and warranties set forth in paragraph
            (a) of
            this Section or, if any such representation and warranty is not accurate
            as of
            the date of such confirmation, provide reasonably adequate disclosure
            of the
            pertinent facts, in writing, to the requesting party. Any such request
            from the
            Depositor shall not be given more than once each calendar quarter, unless
            the
            Depositor shall have a reasonable basis for a determination that any
            of the
            representations and warranties may not be accurate.

           

          Section
            4.3.  Additional
            Information to Be Provided by the Custodian.
            For so
            long as the Certificates are outstanding, for the purpose of satisfying
            the
            Depositor 's reporting obligation under the Exchange Act with respect
            to any
            class of Certificates, the Custodian shall (a) notify the Depositor in
            writing
            of any material litigation or governmental proceedings pending against
            the
            Custodian that would be material to Certificateholders, and (b) provide
            to the
            Depositor a written description of such proceedings. Any notices and
            descriptions required under this Section 4.3 shall be given no later
            than five
            Business Days prior to the Determination Date following the month in
            which the
            Custodian has knowledge of the occurrence of the relevant event. As of
            the date
            the Depositor or Master Servicer files each Report on Form 10-D or Form
            10-K
            with respect to the Certificates, the Custodian will be deemed to represent
            that
            any information previously provided under this Section 4.3, if any, is
            materially correct and does not have any material omissions unless the
            Custodian
            has provided an update to such information.

           

          Section
            4.4.  Report
            on Assessment of Compliance and Attestation.
            

           

          (a)  On
            or
            before March 15 of each calendar year, the Custodian shall:

           

          (i) deliver
            to the Master Servicer, the Depositor and the Securities Administrator
            a report
            (in form and substance reasonably satisfactory to the Depositor) regarding
            the
            Custodian’s assessment of compliance with the Servicing Criteria during the
            immediately preceding calendar year, as required under Rules 13a-18 and
            15d-18
            of the Exchange Act and Item 1122 of Regulation AB. Such report shall
            be
            addressed to the Master Servicer, the Depositor and the Securities Administrator
            and signed by an authorized officer of the Custodian, and shall address
            each of
            the Servicing Criteria specified on a certification substantially in
            the form of
            Exhibit Four attached hereto; and

           

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

           

          (b)  In
            the
            event the Custodian is terminated under, or resigns pursuant to, the
            terms of
            this Agreement, the Custodian shall provide an Assessment of Compliance
            and
            cause to be provided an Attestation Report pursuant to this Section 4.4
            notwithstanding any such termination or resignation.

           

          Section
            4.5.  Indemnification;
            Remedies.

           

          (a)  The
            Custodian shall indemnify the Depositor, each affiliate of the Depositor,
            EMC
            and each broker dealer acting as underwriter, placement agent or initial
            purchaser of the Certificates or each Person who controls any of such
            parties
            (within the meaning of Section 15 of the Securities Act and Section 20
            of the
            Exchange Act); and the respective present and former directors, officers,
            employees and agents of each of the foregoing, and shall hold each of
            them
            harmless from and against any losses, damages, penalties, fines, forfeitures,
            legal fees and expenses and related costs, judgments, and any other costs,
            fees
            and expenses that any of them may sustain arising out of or based
            upon:

           

          (i) (A)
            any
            untrue statement of a material fact contained or alleged to be contained
            in the
            Custodian Disclosure and any information, report, certification, accountants’
attestation or other material provided under this Article IV by or on
            behalf of
            the Custodian (collectively, the “Custodian Information”), or (B) the omission
            or alleged omission to state in the Custodian Information a material
            fact
            required to be stated in the Custodian Information or necessary in order
            to make
            the statements therein, in the light of the circumstances under which
            they were
            made, not misleading; or

           

          (ii) any
            failure by the Custodian to deliver any information, report, certification,
            accountants’ attestation or other material when and as required under this
            Article IV.

           

          (iii) the
            negligence, bad faith or willful misconduct of the Custodian in the performance
            of its obligations under this Article IV. 

           

          (b)  In
            the
            case of any failure of performance described in clause (ii) of Section
            4.5(a),
            the Custodian shall promptly reimburse the Depositor for all costs reasonably
            incurred by the Depositor in order to obtain the information, report,
            certification, accountants’ letter or other material not delivered as required
            by the Custodian.

           

          (c)  In
            no
            event shall the Custodian or its directors, officers, and employees be
            liable
            for any special, indirect or consequential damages from any action taken
            or
            omitted to be taken by it or them hereunder or in connection herewith
            even if
            advised of the possibility of such damages.

           

          This
            indemnification shall survive the termination of this Agreement or the
            termination of the Custodian. 

           

           

          ARTICLE
            V.

           

          MISCELLANEOUS
            PROVISIONS

           

          Section
            5.1.  Notices.
            All
            notices, requests, consents and demands and other communications required
            under
            this Agreement or pursuant to any other instrument or document delivered
            hereunder shall be in writing and, unless otherwise specifically provided,
            may
            be delivered personally, by telegram or telex, or by registered or certified
            mail, postage prepaid, return receipt requested, at the addresses specified
            on
            the signature page hereof (unless changed by the particular party whose
            address
            is stated herein by similar notice in writing), in which case the notice
            will be
            deemed delivered when received.

           

          Section
            5.2.  [Reserved].

           

          Section
            5.3.  Amendments.
            No
            modification or amendment of or supplement to this Agreement shall be
            valid or
            effective unless the same is in writing and signed by all parties
            hereto.  The Securities Administrator shall give prompt notice to the
            Custodian of any amendment or supplement to the Pooling and Servicing
            Agreement
            and furnish the Custodian with written copies thereof.

           

          Section
            5.4.  GOVERNING
            LAW.
            THIS
            AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
            LAWS OF
            THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES
            THEREOF
            OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

           

          Section
            5.5.  Recordation
            of Agreement.
            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 properties
            subject to
            the Mortgages are situated, and in any other appropriate public recording
            office
            or elsewhere, such recordation to be effected by the Depositor and at
            the
            Trust’s expense, but only upon direction accompanied by an Opinion of Counsel
            reasonably satisfactory to the Depositor to the effect that the failure
            to
            effect such recordation is likely to materially and adversely affect
            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 constitute but one and the same
            instrument.

           

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

           

          [Signature
            Page Follows]

           

          

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, this Agreement is executed as of the date first above
            written.

           

          

          
            	
                    Address:

                    388
                      Greenwich Street, 14th Floor

                    New
                      York, New York 10013

                     

                    Attention:
                      

                    SACO
                      2007-1

                     

                  	
                    CITIBANK,
                      N.A., not individually but solely as Trustee

                     

                    By:_________________________________

                    Name: 

                    Title: 

                  
	
                    Address:

                    383
                      Madison Avenue

                    New
                      York, New York 10179

                  	
                    BEAR
                      STEARNS ASSET BACKED SECURITIES I LLC

                     

                    By:_________________________________

                    Name:  

                    Title: 

                     

                  
	
                    Address:

                    2780
                      Lake Vista Drive, 

                    Lewisville,
                      Texas 75067

                  	
                    EMC
                      MORTGAGE CORPORATION

                     

                    By:_________________________________

                    Name: 

                    Title: 

                     

                  
	
                    Address:

                    9062
                      Old Annapolis Road

                    Columbia,
                      Maryland 21045

                    Attention:
                      SACO 2007-1 Trust Admin Group

                  	
                    WELLS
                      FARGO BANK,

                    NATIONAL
                      ASSOCIATION,

                    as
                      Master Servicer

                     

                    By:_________________________________

                    Name: 

                    Title: 

                     

                  
	
                    Address:

                    1015
                      10th Avenue S.E.

                    Minneapolis,
                      Minnesota 55414-0031

                  	
                    WELLS
                      FARGO BANK,

                    NATIONAL
                      ASSOCIATION, as Custodian

                     

                    By:_________________________________

                    Name: 

                    Title: 

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF NEW YORK

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF NEW YORK

                  	
                    )

                  	 

          

          

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared __________________________, known to me to be a(n)
            __________________________ of Citibank, N.A., a national banking association,
            one of the parties that executed the within agreement, and also known
            to me to
            be the person who executed the within agreement on behalf of said party
            and
            acknowledged to me that such party 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

           

          [SEAL]

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF NEW YORK

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF NEW YORK

                  	
                    )

                  	 

          

          

           

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared __________________________, known to me to be a(n)
            __________________________ of Bear Stearns Asset Backed Securities I
            LLC, and
            also known to me to be the person who executed the within instrument
            on behalf
            of said party, and acknowledged to me that such party 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

           

          [SEAL]

           

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF TEXAS

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF DALLAS

                  	
                    )

                  	 

          

          

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared __________________________, known to me to be an authorized
            representative of EMC Mortgage Corporation, one of the parties that executed
            the
            within instrument, and also known to me to be the person who executed
            the within
            instrument on behalf of said party, and acknowledged to me that such
            party
            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

           

          [Notarial
            Seal]

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF MARYLAND

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF HOWARD

                  	
                    )

                  	 

          

          

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared __________________________, known to me to be a(n)
            __________________________ of Wells Fargo Bank, National Association,
            a national
            banking association, one of the parties that executed the within instrument,
            and
            also known to me to be the person who executed it on behalf of said party,
            and
            acknowledged to me that such party 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

           

          [Notarial
            Seal]

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            	
                    STATE
                      OF MINNESOTA

                  	
                    )

                  	 
	 	
                    )

                  	
                    ss.:

                  
	
                    COUNTY
                      OF HENNEPIN

                  	
                    )

                  	 

          

          

          On
            the
            16th
            day of
            January 2007 before me, a notary public in and for said State, personally
            appeared __________________________, known to me to be a(n)
            __________________________ of Wells Fargo Bank, National Association,
            a national
            banking association, one of the parties that executed the within instrument,
            and
            also known to me to be the person who executed it on behalf of said party,
            and
            acknowledged to me that such party 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

           

          [Notarial
            Seal]

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            ONE

           

          FORM
            OF
            CUSTODIAN INITIAL CERTIFICATION

           

          January
            16, 2007

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive, 

          Lewisville,
            Texas 75067

          Attention:
            Bear Stearns Asset Backed Securities I LLC, Series 2007-1

          

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attention:
            SACO 2007-1 Trust Admin Group 

          

          
            	 	
                    Re:

                  	
                    Custodial
                      Agreement, dated as of January 16, 2007, by and among Citibank,
                      N.A.,
                      Wells Fargo Bank, National Association, Bear Stearns Asset
                      Backed
                      Securities I LLC and EMC Mortgage Corporation relating to SACO
                      I Trust
                      2007-1, Mortgage-Backed
                      Certificates, Series
                      2007-1                             

                  

          

           

          Ladies
            and Gentlemen:

           

          In
            accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
            and
            subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
            undersigned, as Custodian, hereby certifies that it has received a Mortgage
            File
            (which contains an original Mortgage Note or lost note affidavit) to
            the extent
            required in Section 2.01 of the Pooling and Servicing Agreement with
            respect to
            each Mortgage Loan listed in the Mortgage Loan Schedule, with any exceptions
            listed on Schedule A attached hereto.

           

          Capitalized
            words and phrases used herein shall have the respective meanings assigned
            to
            them in the above-captioned Custodial Agreement.

           

          

           

          WELLS
            FARGO BANK, NATIONAL ASSOCIATION

           

          By:_________________________________

          Name:______________________________

          Title:_______________________________

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            A

           

          (PROVIDED
            UPON REQUEST)

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

           

          EXHIBIT
            TWO

           

          FORM
            OF
            CUSTODIAN INTERIM CERTIFICATION

           

          [DATE]

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive, 

          Lewisville,
            Texas 75067

          Attention:
            Bear Stearns Asset Backed Securities I LLC, Series 2007-1

          

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attention:
            SACO 2007-1 Trust Admin Group

          

          
            	 	
                    Re:

                  	
                    Custodial
                      Agreement, dated as of January 16, 2007, by and among Citibank,
                      N.A.,
                      Wells Fargo Bank, National Association, Bear Stearns Asset
                      Backed
                      Securities I LLC and EMC Mortgage Corporation relating to SACO
                      I Trust
                      2007-1, Mortgage-Backed
                      Certificates, Series
                      2007-1                                 
                      

                  

          

           

          Ladies
            and Gentlemen:

           

          In
            accordance with Section 2.3(b) of the above-captioned Custodial Agreement
            and
            subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
            undersigned, as Custodian, hereby certifies that it has received a Mortgage
            File
            to the extent required pursuant to Section 2.01 of the Pooling and Servicing
            Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
            Schedule, and it has reviewed the Mortgage File and the Mortgage Loan
            Schedule
            and has determined that: all required documents have been executed and
            received
            and that such documents relate to the Mortgage Loans identified on the
            Mortgage
            Loan Schedule, with any exceptions listed on Schedule A attached
            hereto.

           

          Capitalized
            words and phrases used herein shall have the respective meanings assigned
            to
            them in the above-captioned Custodial Agreement.

           

          

           

          WELLS
            FARGO BANK, NATIONAL ASSOCIATION

           

          By:________________________________

          Name:______________________________

          Title:_______________________________

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            A

          

          (PROVIDED
            UPON REQUEST)

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
            THREE

           

          FORM
            OF
            CUSTODIAN FINAL CERTIFICATION

           

          [DATE]

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive, 

          Lewisville,
            Texas 75067

          Attention:
            Bear Stearns Asset Backed Securities I LLC, Series 2007-1

          

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attention:
            SACO 2007-1 Trust Admin Group

          

           

          
            	 	
                    Re:

                  	
                    Custodial
                      Agreement, dated as of January 16, 2007, by and among Citibank,
                      N.A.,
                      Wells Fargo Bank, National Association, Bear Stearns Asset
                      Backed
                      Securities I LLC and EMC Mortgage Corporation relating to SACO
                      I Trust
                      2007-1, Mortgage-Backed
                      Certificates, Series
                      2007-1                            
                      

                  	 

          

           

          In
            accordance with Section 2.3(c) of the above-captioned Custodial
            Agreement

          and,
            subject to Section 2.02(b) of the Pooling and Servicing Agreement, the
            undersigned, as Custodian, hereby certifies that it has received a Mortgage
            File
            to the extent required pursuant to Section 2.01 of the Pooling and Servicing
            Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
            Schedule, and it has reviewed the Mortgage File and the Mortgage Loan
            Schedule
            and has determined that: all required documents have been executed and
            received
            and that such documents relate to the Mortgage Loans identified on the
            Mortgage
            Loan Schedule, with any exceptions listed on Schedule A attached
            hereto.

           

          Capitalized
            words and phrases used herein shall have the respective meanings assigned
            to
            them in the above-captioned Custodial Agreement or in the Pooling and
            Servicing
            Agreement, as applicable.

           

          

           

          WELLS
            FARGO BANK, NATIONAL ASSOCIATION

           

          By:_______________________________________

          Name:____________________________________

          Title:_____________________________________

           

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          SCHEDULE
            A

          

          (PROVIDED
            UPON REQUEST)

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
            FOUR

          

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

          The
            assessment of compliance to be delivered by the Custodian shall address,
            at a
            minimum, the criteria identified below as “Applicable Servicing
            Criteria”:

          

          
            	
                     

                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing
                      Criteria

                  
	
                    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

                  	 
	
                     

                    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

                  	 
	
                     

                    1122(d)(1)(iii)

                  	
                    Any
                      requirements in the transaction agreements to maintain a back-up
                      servicer
                      for the pool assets are maintained.

                  	 
	
                     

                     

                    1122(d)(1)(iv)

                  	
                    A
                      fidelity bond and errors and omissions policy is in effect
                      on the party
                      participating in the servicing function throughout the reporting
                      period in
                      the amount of coverage required by and otherwise in accordance
                      with the
                      terms of the transaction agreements.

                  	 
	 	
                     

                    Cash
                      Collection and Administration

                  	 
	
                     

                    1122(d)(2)(i)

                  	
                    Payments
                      on pool assets are deposited into the appropriate custodial
                      bank accounts
                      and related bank clearing accounts no more than two business
                      days
                      following receipt, or such other number of days specified in
                      the
                      transaction agreements.

                  	 
	
                     

                    1122(d)(2)(ii)

                  	
                    Disbursements
                      made via wire transfer on behalf of an obligor or to an investor
                      are made
                      only by authorized personnel.

                  	 
	
                     

                    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.

                  	 
	
                     

                    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.

                  	 
	
                     

                     

                    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 institutions” 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. 

                  	 
	
                    1122(d)(2)(vi)

                  	
                    Unissued
                      checks are safeguarded so as to prevent unauthorized
                      access.

                  	 
	
                     

                     

                     

                     

                     

                    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
                      reconciliations; 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.

                  	 
	 	
                     

                    Investor
                      Remittances and Reporting

                  	 
	
                     

                     

                     

                     

                    1122(d)(3)(i)

                  	
                    Reports
                      to investors, including those to be filed with the Commission,
                      are
                      maintained in accordance with the transaction agreements and
                      applicable
                      Commission requirements. Specifically, such reports (A) are
                      prepared in
                      accordance with timeframes and other terms set forth in the
                      transaction
                      agreements, (B) provide information calculated in accordance
                      with the
                      terms specified in the transaction agreements; (C) are filed
                      with the
                      Commission as required by its rules and regulations; and (D)
                      agree with
                      investors; or the trustee’s records as to the total unpaid principal
                      balance and number of pool assets serviced by the
                      servicer.

                  	 
	
                     

                    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.

                  	 
	
                     

                    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.

                  	 
	
                     

                    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.

                  	 
	 	
                     

                    Pool
                      Asset Administration

                  	 
	
                     

                    1122(d)(4)(i)

                  	
                    Collateral
                      or security on pool assets is maintained as required by the
                      transaction
                      agreements or related asset pool documents.

                  	
                    √

                  
	
                    1122(d)(4)(ii)

                  	
                    Pool
                      assets and related documents are safeguarded as required by
                      the
                      transaction agreements.

                  	
                    √

                  
	
                     

                    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

                  	 
	
                     

                     

                    1122(d)(4)(iv)

                  	
                    Payments
                      on pool assets, including any payoffs, made in accordance with
                      the related
                      pool asset documents are posted to the servicer’s obligor records
                      maintained no more than two business days after receipt, or
                      such other
                      number of days specified in the transaction agreements, and
                      allocated to
                      principal, interest or other items (e.g., escrow) in accordance
                      with the
                      related pool asset documents.

                  	 
	
                     

                    1122(d)(4)(v)

                  	
                    The
                      servicer’s records regarding the pool assets agree with the servicer’s
                      records with respect to an obligor’s unpaid principal
                      balance.

                  	 
	
                     

                    1122(d)(4)(vi)

                  	
                    Changes
                      with respect to the terms or status of an obligor’s pool asset (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 of recovery actions (e.g., forbearance plans, modifications
                      and
                      deed 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
                      documents.

                  	 
	
                     

                     

                     

                    1122(d)(4)(viii)

                  	
                    Records
                      documenting collection efforts are maintained during the period
                      a pool
                      asset is delinquent in accordance with the transaction agreements.,
                      Such
                      records are maintained in at least a monthly basis, or such
                      other period
                      specified in the transaction agreements, and describe the entity’s
                      activities in monitoring delinquent pool assets including,
                      for example,
                      phone calls, letters and payment rescheduling plans in cases
                      where
                      delinquency is deemed temporary (e.g., illness or
                      unemployment).

                  	 
	
                     

                    1122(d)(4)(ix)

                  	
                    Adjustments
                      to interest rates or rates of return for pool assets with variable
                      rates
                      are computed based on the related pool asset documents.

                  	 
	
                     

                     

                     

                     

                    1122(d)(4)(x)

                  	
                    Regarding
                      any funds held in trust for an obligor (such as escrow accounts);
                      (A) such
                      funds are analyzed, in accordance with the obligor’s pool asset documents,
                      on at least an annual basis, or such other period specified
                      in the
                      transaction agreements; (B) interest on such funds is paid,
                      or credited,
                      to obligors in accordance with applicable pool asset documents
                      and state
                      laws; and (C) such funds are returned to the obligor within
                      3- calendar
                      days of full repayment of the related pool asset, or such other
                      number of
                      days specified in the transaction agreements.

                  	 
	
                     

                     

                    1122(d)(4)(xi)

                  	
                    Payments
                      made on behalf of an obligor (such as tax ore 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 service 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 funds are recognized and recorded
                      in
                      accordance with the transaction agreements.

                  	 
	
                    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.

                  	 

          

          

 

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          L

        

        FORM
          OF
          MORTGAGE LOAN PURCHASE AGREEMENT

         

        MORTGAGE
          LOAN PURCHASE AGREEMENT, dated as of January 16, 2007, as amended and
          supplemented by any and all amendments hereto (collectively, “this
          Agreement”),
          by
          and between EMC MORTGAGE CORPORATION, a Delaware corporation (the “Mortgage Loan
          Seller”) and BEAR STEARNS ASSET BACKED SECURITIES I LLC, a Delaware limited
          liability company (the “Purchaser”).

         

        Upon
          the
          terms and subject to the conditions of this Agreement, the Mortgage Loan
          Seller
          agrees to sell, and the Purchaser agrees to purchase, certain conventional,
          closed-end, fixed rate junior-lien mortgage loans secured by one- to four-family
          residences (collectively, the “Mortgage
          Loans”)
          as
          described herein. The Purchaser intends to deposit the Mortgage Loans into
          a
          trust fund (the “Trust
          Fund”)
          and
          create SACO I Trust 2007-1, Mortgage-Backed Certificates, Series 2007-1
          (the
“Certificates”),
          under
          a pooling and servicing agreement, to be dated as of December 1, 2006 (the
          “Pooling
          and Servicing Agreement”),
          among
          the Purchaser, as depositor, EMC, as seller and as company, Wells Fargo
          Bank,
          National Association, as master servicer (in that capacity, the “Master
          Servicer”)
          and
          securities administrator (in that capacity, the “Securities Administrator”), and
          Citibank, N.A., as trustee (the “Trustee”).

         

        The
          Purchaser has filed with the Securities and Exchange Commission (the
“Commission”)
          a
          registration statement on Form S-3 (Number 333-131374) relating to its
          Mortgage-Backed Certificates and the offering of certain series thereof
          (including certain classes of the Certificates) from time to time in accordance
          with Rule 415 under the Securities Act of 1933, as amended, and the rules
          and
          regulations of the Commission promulgated thereunder (the “Securities
          Act”).
          Such
          registration statement, when it became effective under the Securities Act,
          and
          the prospectus relating to the public offering of certain classes of the
          Certificates by the Purchaser (the “Public
          Offering”),
          as
          each may be amended or supplemented from time to time pursuant to the Securities
          Act or otherwise, are referred to herein as the “Registration
          Statement”
and
          the
“Prospectus,”
          respectively. The “Free
          Writing Prospectus”
shall
          mean the free writing prospectus, dated January 10, 2007. The
          “Prospectus
          Supplement”
          shall mean that supplement, dated January
          [__], 2007
          to the Prospectus, dated December 18, 2006, relating to certain classes
          of
          Certificates. With
          respect to the Public Offering of certain classes of the Certificates,
          Bear,
          Stearns & Co. Inc. (“Bear
          Stearns”)
          and the
          Purchaser have entered into a terms agreement, dated as of January 10,
          2007, to
          an underwriting agreement, dated April 13, 2006 (together, the “Underwriting
          Agreement”)
          between
          Bear Stearns and the Purchaser.

         

        Now,
          therefore, in consideration of the premises and the mutual agreements set
          forth
          herein, the parties hereto agree as follows:

         

        SECTION
          1.   Definitions.
          Certain
          terms are defined herein. Capitalized terms used herein but not defined
          herein
          shall have the meanings specified in the Pooling and Servicing Agreement.
          The
          following other terms are defined as follows:

         

        Acquisition
          Price:
          With
          respect to the Mortgage Loan Seller and the sale of the Mortgage Loans,
          cash in
          an amount equal to $            *          
          (plus
          $         *         
          in
          accrued interest) and the retained certificates. 

         

        Bear
          Stearns:
          Bear,
          Stearns & Co. Inc.

         

        Closing
          Date:
          January
          16, 2007.

         

        Custodial
          Agreement:
          Any of
          the LaSalle Custodial Agreement or Wells Fargo Custodial Agreement.

         

        Custodian:
          Any of
          LaSalle, as custodian under the LaSalle Custodial Agreement or Wells Fargo,
          as
          custodian under the Wells Fargo Custodial Agreement.

         

        Cut-off
          Date:
          December 1, 2006.

         

        Cut-off
          Date Balance:
          Shall
          mean $258,688,044.14.

         

        Deleted
          Mortgage Loan:
          A
          Mortgage Loan replaced or to be replaced by a Replacement Mortgage
          Loan.

         

        Due
          Date:
          As to
          any Mortgage Loan, the date in each month on which the related Scheduled
          Payment
          is due, as set forth in the related Mortgage Note.

         

        EMC:
          EMC
          Mortgage Corporation.

         

        EMC
          Flow Loans:
          The
          Mortgage Loans purchased by EMC pursuant to a flow loan purchase
          agreement.

         

        LaSalle:
          LaSalle
          Bank National Association, or its successors in interest.

         

        LaSalle
          Custodial Agreement:
          The
          custodial agreement, dated as of January 16, 2007, among the Depositor,
          the
          Mortgage Loan Seller, the Master Servicer, the Securities Administrator,
          the
          Trustee and LaSalle Bank National Association as Custodian relating to
          the
          Mortgage Loans identified in such custodial agreement. 

         

        Loan
          Group I Mortgage Loans:
          The
          Mortgage Loans with respect to Loan Group I.

         

        Loan
          Group II Mortgage Loans:
          The
          Mortgage Loans with respect to Loan Group II.

         

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

         

        MERS®
          System:
          The
          system of recording transfers of Mortgages electronically maintained by
          MERS.

         

        Moody’s:
          Moody’s
          Investors Service, Inc., or its successors in interest.

         

        Mortgage:
          The
          mortgage or deed of trust or other instrument creating a first or junior
          lien on
          an interest in an estate in fee simple in real property securing a Mortgage
          Note.

         

        Mortgage
          File:
          The
          items referred to in Exhibit
          1
          pertaining to a particular Mortgage Loan and any additional documents required
          to be added to such documents pursuant to this Agreement.

         

        Mortgage
          Rate:
          The
          annual rate of interest borne by a Mortgage Note as stated herein.

         

        Mortgagor:
          The
          obligor(s) on a Mortgage Note.

         

        Net
          Mortgage Rate:
          As to
          each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage
          Rate less the sum of (i) the Servicing Fee Rate, (ii) the Trustee Fee Rate
          and
          (iii) the rate at which the LPMI Fee is calculated, if any.

         

        Opinion
          of Counsel:
          A
          written opinion of counsel, who may be counsel for the Mortgage Loan Seller
          or
          the Purchaser, reasonably acceptable to the Trustee.

         

        Person:
          Any
          legal person, including any individual, corporation, partnership, joint
          venture,
          association, joint stock company, trust, unincorporated organization or
          government or any agency or political subdivision thereof.

         

        Piggyback
          Loan:
          With
          respect to a second lien mortgage loan originated by the same originator
          to the
          same borrower at the same time as the first lien mortgage loan, each secured
          by
          the same mortgaged property.

         

        Purchase
          Price:
          With
          respect to any Mortgage Loan required to be purchased pursuant to the applicable
          provisions of this Agreement, an amount equal to the sum of (i) 100% of
          the
          principal remaining unpaid on such Mortgage Loan as of the date of purchase
          (including if a foreclosure has already occurred, the principal balance
          of the
          related Mortgage Loan at the time the Mortgaged Property was acquired),
          net of
          any Servicing Advances and Advances attributable to principal and payable
          to the
          purchaser of the Mortgage Loan if such purchaser is also the Master Servicer
          of
          such Mortgage Loan, (ii) accrued and unpaid interest thereon at the Mortgage
          Rate through and including the last day of the month of purchase, net of
          any
          portion of the Servicing Fee and any Servicing Advances and Advances
          attributable to interest that is payable to the purchaser of the Mortgage
          Loan
          if such purchaser is also the Master Servicer of such Mortgage Loan, plus
          and
          (iii) any costs and damages (if any) incurred by the Trust in connection
          with
          any violation of such Mortgage Loan of any anti-predatory lending
          laws..

         

        Rating
          Agencies:
          Moody’s
          and Standard & Poor’s, each a “Rating Agency”.

         

        Replacement
          Mortgage Loan:
          A
          mortgage loan substituted for a Deleted Mortgage Loan which must meet on
          the
          date of such substitution the requirements stated herein and in the Pooling
          and
          Servicing Agreement; upon such substitution, such mortgage loan shall be
          a
“Mortgage Loan” hereunder.

         

        Securities
          Act:
          The
          Securities Act of 1933, as amended.

         

        Standard
          & Poor’s:
          Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or its
          successors in interest.

         

        Value:
          The
          value of the Mortgaged Property at the time of origination of the Mortgage
          Loan,
          such value being the lesser of (i) the value of such property set forth
          in an
          appraisal accepted by the applicable originator of the Mortgage Loan or
          (ii) the
          sales price of such property at the time of origination.

         

        Wells
          Fargo:
          Wells
          Fargo Bank, National Association, or its successor in interest.

         

        Wells
          Fargo Custodial Agreement:
          The
          custodial agreement, dated as of January 16, 2007, among the Depositor,
          the
          Mortgage Loan Seller, the Master Servicer, Securities Administrator, the
          Trustee
          and Wells Fargo Bank, National Association as Custodian relating to the
          Mortgage
          Loans identified in such custodial agreement.

        

        
          * Please
            contact Bear Stearns for pricing information.

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SECTION
          2.   Purchase
          and Sale of the Mortgage Loans and Related Rights. 

         

        (a)  Upon
          satisfaction of the conditions set forth in Section 10 hereof, the Mortgage
          Loan
          Seller agrees to sell, and the Purchaser agrees to purchase the Mortgage
          Loans
          sold by the Mortgage Loan Seller having an aggregate outstanding principal
          balance as of the Cut-off Date equal to the Cut-off Date Balance.

         

        (b)  The
          closing for the purchase and sale of the Mortgage Loans and the closing
          for the
          issuance of the Certificates will take place on the Closing Date at the
          office
          of the Purchaser’s counsel in New York, New York or such other place as the
          parties shall agree.

         

        (c)  Upon
          the
          satisfaction of the conditions set forth in Section 10 hereof, on the Closing
          Date, the Purchaser shall pay to the Mortgage Loan Seller the Acquisition
          Price
          for the Mortgage Loans sold by the Mortgage Loan Seller in immediately
          available
          funds by wire transfer to such account or accounts as shall be designated
          by the
          Mortgage Loan Seller.

         

        SECTION
          3.   Mortgage
          Loan Schedule.
          The
          Mortgage Loan Seller agrees to provide to the Purchaser as of the date
          hereof a
          listing of the Mortgage Loans (the “Mortgage
          Loan Schedule”)
          setting forth the information listed on Exhibit 2 to this Agreement with
          respect
          to each of the Mortgage Loans being sold by the Mortgage Loan
          Seller.
          The
          Mortgage Loan Schedule shall be delivered to the Purchaser on the Closing
          Date
          and shall be in form and substance mutually agreed to by the Mortgage Loan
          Seller and the Purchaser.

         

        SECTION
          4.   Mortgage
          Loan Transfer. 

         

        (a)  The
          Purchaser will be entitled to all scheduled payments of principal and interest
          on the Mortgage Loans due after the Cut-off Date (regardless of when actually
          collected) and all payments thereof. The Mortgage Loan Seller will be entitled
          to all scheduled payments of principal and interest on the Mortgage Loans
          sold
          by it to the Purchaser due on or before the Cut-off Date (including payments
          collected after the Cut-off Date) and all payments thereof. Such principal
          amounts and any interest thereon belonging to the Mortgage Loan Seller
          as
          described above will not be included in the aggregate outstanding principal
          balance of the Mortgage Loans as of the Cut-off Date as set forth on the
          Mortgage Loan Schedule.

         

        (b)  Pursuant
          to various conveyancing documents to be executed on the Closing Date and
          pursuant to the Pooling and Servicing Agreement, the Purchaser will assign
          on
          the Closing Date all of its right, title and interest in and to the Mortgage
          Loans to the Trustee for the benefit of the Certificateholders. In connection
          with the transfer and assignment of the Mortgage Loans, the Mortgage Loan
          Seller
          has delivered or will deliver or cause to be delivered to the Trustee,
          or the
          Custodian on behalf of the Trustee, by the Closing Date or such later date
          as is
          agreed to by the Purchaser and the Mortgage Loan Seller (each of the Closing
          Date and such later date is referred to as a “Mortgage
          File Delivery Date”),
          the
          items of the respective Custodian’s Mortgage File, provided,
          however,
          that in
          lieu of the foregoing, the Mortgage Loan Seller may deliver the following
          documents, under the circumstances set forth below: (x) in lieu of the
          original
          Mortgage (other than the Mortgages related to the EMC Flow Loans), assignments
          to the Trustee or intervening assignments thereof which have been delivered,
          are
          being delivered or will upon receipt of recording information relating
          to the
          Mortgage required to be included thereon, be delivered to recording offices
          for
          recording and have not been returned in time to permit their delivery as
          specified above, the Mortgage Loan Seller may deliver a true copy thereof
          with a
          certification by the Mortgage Loan Seller or the Master Servicer, on the
          face of
          such copy, substantially as follows: “Certified to be a true and correct copy of
          the original, which has been transmitted for recording;” (y) in lieu of the
          Mortgage (other than the Mortgages related to the EMC Flow Loans), assignments
          to the Trustee or intervening assignments thereof, if the applicable
          jurisdiction retains the originals of such documents or if the originals
          are
          lost (in each case, as evidenced by a certification from the Mortgage Loan
          Seller or the Master Servicer to such effect), the Mortgage Loan Seller
          may
          deliver photocopies of such documents containing an original certification
          by
          the judicial or other governmental authority of the jurisdiction where
          such
          documents were recorded; and (z) in lieu of the Mortgage Notes relating
          to the
          Mortgage Loans, each identified in the list delivered by the Purchaser
          to the
          Trustee on the Closing Date and attached hereto as Exhibit
          5
          the
          Mortgage Loan Seller may deliver lost note affidavits and indemnities of
          the
          Mortgage Loan Seller; and provided further, however, that in the case of
          Mortgage Loans which have been prepaid in full after the Cut-off Date and
          prior
          to the Closing Date, the Mortgage Loan Seller, in lieu of delivering the
          above
          documents, may deliver to the Trustee a certification by the Mortgage Loan
          Seller or the Master Servicer to such effect. The Mortgage Loan Seller
          shall
          deliver such original documents (including any original documents as to
          which
          certified copies had previously been delivered) or such certified copies
          to the
          Trustee, or the related Custodian on behalf of the Trustee, promptly after
          they
          are received. The Mortgage Loan Seller shall cause the Mortgage and intervening
          assignments, if any, and the assignment of the Mortgage to be recorded
          not later
          than 180 days after the Closing Date unless such assignment is not required
          to
          be recorded under the terms set forth in Section 6(a) hereof.

         

        (c)  In
          connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Mortgage Loan Seller further agrees that it will cause, at
          the
          Mortgage Loan Seller’s own expense, within 30 days after the Closing Date, the
          MERS® System to indicate that such Mortgage Loans have been assigned by the
          Mortgage Loan Seller to the Purchaser and by the Purchaser to the Trustee
          in
          accordance with this Agreement for the benefit of the Certificateholders
          by
          including (or deleting, in the case of Mortgage Loans which are repurchased
          in
          accordance with this Agreement) in such computer files (a) the code in
          the field
          which identifies the specific Trustee and (b) the code in the field “Pool Field”
which identifies the series of the Certificates issued in connection with
          such
          Mortgage Loans. The Mortgage Loan Seller further agrees that it will not,
          and
          will not permit the Master Servicer or related Servicer to, alter the codes
          referenced in this paragraph with respect to any Mortgage Loan during the
          term
          of the Pooling and Servicing Agreement unless and until such Mortgage Loan
          is
          repurchased in accordance with the terms of the Pooling and Servicing
          Agreement.

         

        (d)  The
          Mortgage Loan Seller and the Purchaser acknowledge hereunder that all of
          the
          Mortgage Loans will ultimately be assigned to Citibank, N.A., as Trustee
          for the
          benefit of the Certificateholders, on the date hereof.

         

        SECTION
          5.   Examination
          of Mortgage Files. 

         

        (a)  On
          or
          before the Mortgage File Delivery Date, the Mortgage Loan Seller will have
          made
          the Mortgage Files available to the Purchaser or its agent for examination
          which
          may be at the offices of the Trustee or the Mortgage Loan Seller and/or
          the
          Mortgage Loan Seller’s custodian. The fact that the Purchaser or its agent has
          conducted or has failed to conduct any partial or complete examination
          of the
          Mortgage Files shall not affect the Purchaser’s rights to demand cure,
          repurchase, substitution or other relief as provided in this Agreement.
          In
          furtherance of the foregoing, the Mortgage Loan Seller shall make the Mortgage
          Files available to the Purchaser or its agent from time to time so as to
          permit
          the Purchaser to confirm the Mortgage Loan Seller’s compliance with the delivery
          and recordation requirements of this Agreement and the Pooling and Servicing
          Agreement. In addition, upon request of the Purchaser, the Mortgage Loan
          Seller
          agrees to provide to the Purchaser, Bear Stearns and to any investors or
          prospective investors in the Certificates information regarding the Mortgage
          Loans and their servicing, to make the Mortgage Files available to the
          Purchaser, Bear Stearns and to such investors or prospective investors
          (which
          may be at the offices of the Mortgage Loan Seller and/or the Mortgage Loan
          Seller’s custodian) and to make available personnel knowledgeable about the
          Mortgage Loans for discussions with the Purchaser, Bear Stearns and such
          investors or prospective investors, upon reasonable request during regular
          business hours, sufficient to permit the Purchaser, Bear Stearns and such
          investors or potential investors to conduct such due diligence as any such
          party
          reasonably believes is appropriate.

         

        (b)  Pursuant
          to the Pooling and Servicing Agreement, on the Closing Date the Trustee
          (or the
          Custodian as obligated under the applicable Custodial Agreement), for the
          benefit of the Certificateholders, will review items of the Mortgage Files
          as
          set forth on Exhibit
          1
          and will
          deliver to the Mortgage Loan Seller an initial certification in the form
          attached as Exhibit One to the applicable Custodial Agreement.

         

        (c)  Within
          90
          days of the Closing Date, the Trustee or the related Custodian on its behalf
          shall, in accordance with the provisions of Section 2.02 of the Pooling
          and
          Servicing Agreement, deliver to the Mortgage Loan Seller and the Trustee
          an
          Interim Certification in the form attached as Exhibit Two to the applicable
          Custodial Agreement to the effect that all such documents have been executed
          and
          received and that such documents relate to the Mortgage Loans identified
          on the
          Mortgage Loan Schedule, except for any exceptions listed on Schedule A
          attached
          to such Interim Certification. The related Custodian shall be under no
          duty or
          obligation to inspect, review or examine said documents, instruments,
          certificates or other papers to determine that the same 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.

         

        (d)  The
          Trustee or the related Custodian on its behalf will review the Mortgage
          Files
          within 180 days of the Closing Date and will deliver to the Mortgage Loan
          Seller
          and the Master Servicer, and if reviewed by the related Custodian, the
          Trustee,
          a final certification substantially in the form of Exhibit 3 to the applicable
          Custodial Agreement. If the Trustee or the related Custodian on its behalf
          is
          unable to deliver a final certification with respect to the items listed
          in
Exhibit
          1
          due to
          any document that is missing, has not been executed, is unrelated, determined
          on
          the basis of the Mortgagor name, original principal balance and loan number,
          to
          the Mortgage Loans identified in the Mortgage Loan Schedule (a “Material
          Defect”),
          the
          Trustee or the related Custodian on its behalf shall notify the Mortgage
          Loan
          Seller of such Material Defect. The Mortgage Loan Seller shall correct
          or cure
          any such Material Defect within 90 days from the date of notice from the
          Trustee, the Depositor or the Master Servicer of the Material Defect and
          if the
          Mortgage Loan Seller does not correct or cure such Material Defect within
          such
          period and such defect materially and adversely affects the interests of
          the
          Certificateholders in the Mortgage Loan, the Mortgage Loan Seller will,
          in
          accordance with the terms of the Pooling and Servicing Agreement, within
          90 days
          of the date of notice, provide the Trustee with a Replacement Mortgage
          Loan (if
          within two years of the Closing Date) or purchase the Mortgage Loan at
          the
          applicable Purchase Price; provided,
          however,
          that if
          such defect relates solely to the inability of the Mortgage Loan Seller
          to
          deliver the original security instrument or intervening assignments thereof,
          or
          a certified copy because the originals of such documents, or a certified
          copy,
          have not been returned by the applicable jurisdiction, the Mortgage Loan
          Seller
          shall not be required to purchase such Mortgage Loan if the Mortgage Loan
          Seller
          delivers such original documents or certified copy promptly upon receipt,
          but in
          no event later than 360 days after the Closing Date. The foregoing repurchase
          obligation shall not apply in the event that the Mortgage Loan Seller cannot
          deliver such original or copy of any document submitted for recording to
          the
          appropriate recording office in the applicable jurisdiction because such
          document has not been returned by such office; provided that the Mortgage
          Loan
          Seller shall instead deliver a recording receipt of such recording office
          or, if
          such receipt is not available, a certificate of the Mortgage Loan Seller
          or a
          Servicing Officer confirming that such documents have been accepted for
          recording, and delivery to the Trustee shall be effected by the Mortgage
          Loan
          Seller within thirty days of its receipt of the original recorded
          document.

         

        (e)  At
          the
          time of any substitution, the Mortgage Loan Seller shall deliver or cause
          to be
          delivered the Replacement Mortgage Loan, the Mortgage File and any other
          documents and payments required to be delivered in connection with a
          substitution pursuant to the Pooling and Servicing Agreement. At the time
          of any
          purchase or substitution, the Trustee shall (i) assign the selected Mortgage
          Loan to the Mortgage Loan Seller and shall release or cause the related
          Custodian to release the documents (including, but not limited to, the
          Mortgage,
          Mortgage Note and other contents of the Mortgage File) in the possession
          of the
          Trustee or the related Custodian, as applicable relating to the Deleted
          Mortgage
          Loan and (ii) execute and deliver such instruments of transfer or assignment,
          in
          each case without recourse, as shall be necessary to vest in the Mortgage Loan
          Seller title to such Deleted Mortgage Loan.

         

        SECTION
          6.   Recordation
          of Assignments of Mortgage. 

         

        (a)  The
          Mortgage Loan Seller will, promptly after the Closing Date, cause each
          Mortgage
          and each assignment of Mortgage from the Mortgage Loan Seller to the Trustee,
          and all unrecorded intervening assignments, if any, delivered on or prior
          to the
          Closing Date, to be recorded in all recording offices in the jurisdictions
          where
          the related Mortgaged Properties are located; provided,
          however,
          the
          Mortgage Loan Seller need not cause to be recorded any assignment which
          relates
          to a Mortgage Loan that is a MOM Loan or for which the related Mortgaged
          Property is located in any jurisdiction under the laws of which, as evidenced
          by
          an Opinion of Counsel delivered by the Mortgage Loan Seller to the Trustee
          and
          the Rating Agencies, the recordation of such assignment is not necessary
          to
          protect the Trustee’s interest in the related Mortgage Loan; provided,
          however,
          notwithstanding the delivery of any Opinion of Counsel, each assignment
          of
          Mortgage shall be submitted for recording by the Mortgage Loan Seller in
          the
          manner described above, at no expense to the Trust Fund or Trustee, upon
          the
          earliest to occur of (i) reasonable direction by the Holders of Certificates
          evidencing Percentage Interests aggregating not less than 25% of the Trust,
          (ii)
          the occurrence of an Event of Default, (iii) the occurrence of a bankruptcy,
          insolvency or foreclosure relating to the Mortgage Loan Seller under the
          Pooling
          and Servicing Agreement, (iv) the occurrence of a servicing transfer or
          an
          assignment of the servicing as described in Section 8.07 of the Pooling
          and
          Servicing Agreement or (iv) with respect to any one assignment of Mortgage,
          the
          occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgagor
          under the related Mortgage.

         

        While
          each such Mortgage or assignment is being recorded, if necessary, the Mortgage
          Loan Seller shall leave or cause to be left with the Trustee or the related
          Custodian on its behalf a certified copy of such Mortgage or assignment.
          In the
          event that, within 180 days of the Closing Date, the Trustee has not been
          provided with an Opinion of Counsel as described above or received evidence
          of
          recording with respect to each Mortgage Loan delivered to the Purchaser
          pursuant
          to the terms hereof or as set forth above and the related Mortgage Loan
          is not a
          MOM Loan, the failure to provide evidence of recording or such Opinion
          of
          Counsel shall be considered a Material Defect, and the provisions of Section
          5(c) and (d) shall apply. All customary recording fees and reasonable expenses
          relating to the recordation of the assignments of mortgage to the Trustee
          or the
          Opinion of Counsel, as the case may be, shall be borne by the Mortgage
          Loan
          Seller.

         

        (b)  It
          is the
          express intent of the parties hereto that the conveyance of the Mortgage
          Loans
          by the Mortgage Loan Seller to the Purchaser, as contemplated by this Agreement
          be, and be treated as, a sale. It is, further, not the intention of the
          parties
          that such conveyance be deemed a pledge of the Mortgage Loans by the Mortgage
          Loan Seller to the Purchaser to secure a debt or other obligation of the
          Mortgage Loan Seller. However, in the event that, notwithstanding the intent
          of
          the parties, the Mortgage Loans are held by a court to continue to be property
          of the Mortgage Loan Seller, then (a) this Agreement shall also be deemed
          to be
          a security agreement within the meaning of Articles 8 and 9 of the applicable
          Uniform Commercial Code; (b) the transfer of the Mortgage Loans provided
          for
          herein shall be deemed to be a grant by the Mortgage Loan Seller to the
          Purchaser of a security interest in all of the Mortgage Loan Seller’s right,
          title and interest in and to the Mortgage Loans and all amounts payable
          to the
          holders of the Mortgage Loans in accordance with the terms thereof and
          all
          proceeds of the conversion, voluntary or involuntary, of the foregoing
          into
          cash, instruments, securities or other property, to the extent the Purchaser
          would otherwise be entitled to own such Mortgage Loans and proceeds pursuant
          to
          Section 4 hereof, including all amounts, other than investment earnings,
          from
          time to time held or invested in any accounts created pursuant to the Pooling
          and Servicing Agreement, whether in the form of cash, instruments, securities
          or
          other property; (c) the possession by the Purchaser or the Trustee (or
          the
          related Custodian on its behalf) of Mortgage Notes and such other items
          of
          property as constitute instruments, money, negotiable documents or chattel
          paper
          shall be deemed to be “possession by the secured party” for purposes of
          perfecting the security interest pursuant to Section 9-305 (or comparable
          provision) of the applicable Uniform Commercial Code; and (d) notifications
          to
          persons holding such property, and acknowledgments, receipts or confirmations
          from persons holding such property, shall be deemed notifications to, or
          acknowledgments, receipts or confirmations from, financial intermediaries,
          bailees or agents (as applicable) of the Purchaser for the purpose of perfecting
          such security interest under applicable law. Any assignment of the interest
          of
          the Purchaser pursuant to any provision hereof or pursuant to the Pooling
          and
          Servicing Agreement shall also be deemed to be an assignment of any security
          interest created hereby. The Mortgage Loan Seller and the Purchaser shall,
          to
          the extent consistent with this Agreement, take such actions as may be
          reasonably necessary to ensure that, if this Agreement were deemed to create
          a
          security interest in the Mortgage Loans, such security interest would be
          deemed
          to be a perfected security interest of first priority under applicable
          law and
          will be maintained as such throughout the term of the Pooling and Servicing
          Agreement.

         

        SECTION
          7.   Representations
          and Warranties of the Mortgage Loan Seller Concerning the Mortgage
          Loans.
          The
          Mortgage Loan Seller hereby represents and warrants to the Purchaser as
          of the
          Closing Date or such other date as may be specified below with respect
          to each
          Mortgage Loan:

         

        (a)  the
          information set forth in the Mortgage Loan Schedule hereto is true and
          correct
          in all material respects;

         

        (b)  immediately
          prior to the transfer to the Purchaser, the Mortgage Loan Seller was the
          sole
          owner of beneficial title and holder of each Mortgage and Mortgage Note
          relating
          to the Mortgage Loans and is conveying the same free and clear of any and
          all
          liens, claims, encumbrances, participation interests, equities, pledges,
          charges
          or security interests of any nature and the Mortgage Loan Seller has full
          right
          and authority to sell or assign the same pursuant to this
          Agreement;

         

        (c)  each
          Mortgage Loan at the time it was made complied in all material respects
          with all
          applicable local, state and federal laws and regulations, including, without
          limitation, usury, equal credit opportunity, disclosure and recording laws
          and
          all applicable predatory, abusive and fair lending laws; and each Mortgage
          Loan
          has been serviced in all material respects in accordance with all applicable
          local, state and federal laws and regulations, including, without limitation,
          usury, equal credit opportunity, disclosure and recording laws and all
          applicable anti-predatory lending laws and the terms of the related Mortgage
          Note, the Mortgage and other loan documents;

         

        (d)  there
          is
          no monetary default existing under any Mortgage or the related Mortgage
          Note and
          there is no material event which, with the passage of time or with notice
          and
          the expiration of any grace or cure period, would constitute a default,
          breach
          or event of acceleration; and neither the Mortgage Loan Seller, any of
          its
          affiliates nor any servicer of any related Mortgage Loan has taken any
          action to
          waive any default, breach or event of acceleration; and no foreclosure
          action is
          threatened or has been commenced with respect to the Mortgage Loan;

         

        (e)  the
          terms
          of the Mortgage Note and the Mortgage have not been impaired, waived, altered
          or
          modified in any respect, except by written instruments, (i) if required
          by law
          in the jurisdiction where the Mortgaged Property is located, or (ii) to
          protect
          the interests of the Trustee on behalf of the Certificateholders;

         

        (f)  no
          selection procedure reasonably believed by the Mortgage Loan Seller to
          be
          adverse to the interests of the Certificateholders was utilized in selecting
          the
          Mortgage Loans;

         

        (g)  each
          Mortgage is a valid and enforceable junior lien on the property securing
          the
          related Mortgage Note and each Mortgaged Property is owned by the Mortgagor
          in
          fee simple (except with respect to common areas in the case of condominiums,
          PUDs and de minimis
          PUDs) or
          by leasehold for a term longer than the term of the related Mortgage, subject
          only to (i) the lien of current real property taxes and assessments, (ii)
          covenants, conditions and restrictions, rights of way, easements and other
          matters of public record as of the date of recording of such Mortgage,
          such
          exceptions being acceptable to mortgage lending institutions generally
          or
          specifically reflected in the appraisal obtained in connection with the
          origination of the related Mortgage Loan or referred to in the lender’s title
          insurance policy delivered to the originator of the related Mortgage Loan
          and
          (iii) other matters to which like properties are commonly subject which
          do not
          materially interfere with the benefits of the security intended to be provided
          by such Mortgage;

         

        (h)  there
          is
          no mechanics’ lien or claim for work, labor or material affecting the premises
          subject to any Mortgage which is or may be a lien prior to, or equal with,
          the
          lien of such Mortgage except those which are insured against by the title
          insurance policy referred to in clause (m) below;

         

        (i)  there
          was
          no delinquent tax or assessment lien against the property subject to any
          Mortgage, except where such lien was being contested in good faith and
          a stay
          had been granted against levying on the property;

         

        (j)  there
          is
          no valid offset, defense or counterclaim to any Mortgage Note or Mortgage,
          including the obligation of the Mortgagor to pay the unpaid principal and
          interest on such Mortgage Note;

         

        (k)  the
          physical property subject to any Mortgage is free of material damage and
          is in
          good repair and there is no proceeding pending or threatened for the total
          or
          partial condemnation of any Mortgaged Property;

         

        (l)  the
          Mortgaged Property and all improvements thereon comply with all requirements
          of
          any applicable zoning and subdivision laws and ordinances;

         

        (m)  a
          lender’s title insurance policy (on an ALTA or CLTA form) or binder, or other
          assurance of title customary in the relevant jurisdiction therefor in a
          form
          acceptable to Fannie Mae or Freddie Mac, was issued on the date that each
          Mortgage Loan was created by a title insurance company which, to the best
          of the
          Mortgage Loan Seller’s knowledge, was qualified to do business in the
          jurisdiction where the related Mortgaged Property is located, insuring
          the
          Mortgage Loan Seller and its successors and assigns that the Mortgage is
          a first
          priority lien on the related Mortgaged Property in the original principal
          amount
          of the Mortgage Loan; and the Mortgage Loan Seller is the sole insured
          under
          such lender’s title insurance policy, and such policy, binder or assurance is
          valid and remains in full force and effect, and each such policy, binder
          or
          assurance shall contain all applicable endorsements including a negative
          amortization endorsement, if applicable; with respect to any junior lien
          Mortgage Loan, other than any Piggyback Loan that has an initial principal
          amount less than or equal to $200,000, (a) a lender’s title insurance policy or
          binder, or other assurance of title customary in the relevant jurisdiction
          therefore in a form acceptable to Fannie Mae or Freddie Mac, was issued
          on the
          date that each Mortgage Loan was created by a title insurance company which,
          to
          the best of the Mortgage Loan Seller’s knowledge, was qualified to do business
          in the jurisdiction where the related Mortgaged Property is located, insuring
          the related seller and its successors and assigns; and the Mortgage Loan
          Seller
          is the sole insured under such lender’s title insurance policy, and such policy,
          binder or assurance is valid and remains in full force and effect, and
          each such
          policy, binder or assurance shall contain all applicable endorsements including
          a negative amortization endorsement, if applicable, or (b) a lien search
          was
          conducted at the time of origination with respect to the related Mortgaged
          Property;

         

        (n)  at
          the
          time of origination, each Mortgaged Property was the subject of an appraisal
          which conformed to the underwriting requirements of the originator of the
          Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae
          or
          Freddie Mac;

         

        (o)  the
          improvements on each Mortgaged Property securing a Mortgage Loan are insured
          (by
          an insurer which is acceptable to the Mortgage Loan Seller) against loss
          by fire
          and such hazards as are covered under a standard extended coverage endorsement
          in the locale in which the Mortgaged Property is located, in an amount
          which is
          not less than the lesser of the maximum insurable value of the improvements
          securing such Mortgage Loan or the outstanding principal balance of the
          Mortgage
          Loan, but in no event in an amount less than an amount that is required
          to
          prevent the Mortgagor from being deemed to be a co-insurer thereunder;
          if the
          improvement on the Mortgaged Property is a condominium unit, it is included
          under the coverage afforded by a blanket policy for the condominium project;
          if
          upon origination of the related Mortgage Loan, the improvements on the
          Mortgaged
          Property were in an area identified as a federally designated flood area,
          a
          flood insurance policy is in effect in an amount representing coverage
          not less
          than the least of (i) the outstanding principal balance of the Mortgage
          Loan,
          (ii) the restorable cost of improvements located on such Mortgaged Property
          or
          (iii) the maximum coverage available under federal law; and each Mortgage
          obligates the Mortgagor thereunder to maintain the insurance referred to
          above
          at the Mortgagor’s cost and expense;

         

        (p)  each
          Mortgage Loan constitutes a "qualified mortgage" under Section 860G(a)(3)(A)
          of
          the Code and Treasury Regulation Section 1.860G-2(a)(1), (2), (4), (5),
          (6), (7)
          and (9) without reliance on the provisions of Treasury Regulation Section
          1.860G-2(a)(3) or Treasury Regulation Section 1.860G-2(f)(2) or any other
          provision that would allow a Mortgage Loan to be treated as a “qualified
          mortgage” notwithstanding its failure to meet the requirements of Section
          860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860G-2(a)(1),
          (2),
          (4), (5), (6), (7) and (9);

         

        (q)  none
          of
          the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR
          Part
          226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing
          TILA,
          which implements the Home Ownership and Equity Protection Act of 1994,
          as
          amended or (b) “high cost home,” “covered” (excluding home loans defined as
“covered home loans” in the New Jersey Home
          Ownership Security Act of 2002 that were originated between November 26,
          2003
          and July 7, 2004), “high risk home” or “predatory” loans under any applicable
          state, federal or local law (or a similarly classified loan using different
          terminology under a law imposing heightened regulatory scrutiny or additional
          legal liability for residential mortgage loans having high interest rates,
          points and/or fees);

         

        (r)  the
          information set forth in Schedule A of the Prospectus Supplement with respect
          to
          the Mortgage Loans
          is true
          and correct in all material respects; 

         

        (s)  no
          Mortgage Loan (a) is a “high cost loan” or “covered loan” as applicable (as such
          terms are defined in the then current Standard & Poor’s LEVELS® Glossary,
          which is now Version 5.7, Appendix E, attached hereto as Exhibit 6) or
          (b) was
          originated on or after October 1, 2002 through March 6, 2003 and is governed
          by
          the Georgia Fair Lending Act;

         

        (t)  each
          Mortgage Loan was originated in accordance with the underwriting guidelines
          of
          the related originator;

         

        (u)  each
          original Mortgage has been recorded or is in the process of being recorded
          in
          accordance with the requirements of Section 2.01 of the Pooling and Servicing
          Agreement in the appropriate jurisdictions wherein such recordation is
          required
          to perfect the lien thereof for the benefit of the Trust Fund; 

         

        (v)  the
          related Mortgage File contains each of the documents and instruments listed
          in
          Section 2.01 of the Pooling and Servicing Agreement, subject to any exceptions,
          substitutions and qualifications as are set forth in such Section;

         

        (w)  the
          Mortgage Loans are currently being serviced in accordance with accepted
          servicing practices;

         

        (x)  with
          respect to each Mortgage Loan that has a prepayment penalty feature, each
          such
          prepayment penalty is enforceable and will be enforced by the Mortgage
          Loan
          Seller and each prepayment penalty
          is
          permitted pursuant to federal, state and local law. In addition, with respect
          to
          each Mortgage Loan (i) no Mortgage Loan will impose a prepayment penalty
          for a
          term in excess of five years from the date such Mortgage Loan was originated
          and
          (ii) such prepayment penalty is at least equal to the lesser of (A) the
          maximum
          amount permitted under applicable law and (B) six months interest at the
          related
          Mortgage Interest Rate on the amount prepaid in excess of 20% of the original
          principal balance of such Mortgage Loan; 

         

        (y)  if
          any of
          the Mortgage Loans are secured by a leasehold interest, with respect to
          each
          leasehold interest: the use of leasehold estates for residential properties
          is
          an accepted practice in the area where the related Mortgaged Property is
          located; residential property in such area consisting of leasehold estates
          is
          readily marketable; the lease is recorded and no party is in any way in
          breach
          of any provision of such lease; the leasehold is in full force and effect
          and is
          not subject to any prior lien or encumbrance by which the leasehold could
          be
          terminated or subject to any charge or penalty; and the remaining term
          of the
          lease does not terminate less than ten years after the maturity date of
          such
          Mortgage Loan;

         

        (z)  with
          respect to the Loan Group II Mortgage Loans, no refinance or purchase money
          mortgage loan has an APR or total points and fees that exceed the thresholds
          set
          by the Home Ownership and Equity Protection Act of 1994 (“HOEPA”) and its
          implementing regulations, including 12 CFR § 226.32(a)(1)(i) and
          (ii);

         

        (aa)  with
          respect to the Loan Group II Mortgage Loans, no borrower obtained a prepaid
          single-premium credit-life, credit disability, credit unemployment or credit
          property insurance policy in connection with the origination of the mortgage
          loan;

         

        (bb)  with
          respect to the Loan Group II Mortgage Loans that contain a provision permitting
          imposition of a penalty upon a prepayment prior to maturity: (a) the mortgage
          loan provides some benefit to the borrower (e.g., a rate or fee reduction)
          in
          exchange for accepting such prepayment penalty; (b) the mortgage loan’s
          originator had a written policy of offering the borrower, or requiring
          any
          third-party brokers to offer the borrower, the option of obtaining a mortgage
          loan that did not require payment of such a penalty; (c) the prepayment
          penalty
          was adequately disclosed to the borrower pursuant to applicable state and
          federal law; and (d) no subprime loan originated on or after October 1,
          2002
          will provide for prepayment penalties for a term in excess of three years
          and
          any loans originated prior to such date, and any non-subprime loans, will
          not
          provide for prepayment penalties for a term in excess of five years; unless
          the
          loan was modified to reduce the prepayment period to no more than three
          years
          from the date of the note and the borrower was notified in writing of such
          reduction in prepayment period; 

         

        (cc)  with
          respect to the Loan Group II Mortgage Loans, the borrower was not encouraged
          or
          required to select a mortgage loan product offered by the mortgage loan’s
          originator which is a higher cost product designed for less creditworthy
          borrowers, taking into account such facts as, without limitation, the mortgage
          loan’s requirements and the borrower’s credit history, income, assets and
          liabilities;

         

        (dd)  
          with
          respect to the Loan Group II Mortgage Loans, the methodology used in
          underwriting the extension of credit for each Loan Group II Mortgage Loan
          in the
          trust did not rely solely on the extent of the borrower’s equity in the
          collateral as the principal determining factor in approving such extension
          of
          credit. The methodology employed objective criteria such as the borrower’s
          income, assets and liabilities, to the proposed mortgage payment and, based
          on
          such methodology, the Mortgage Loan’s originator made a reasonable determination
          that at the time of origination the borrower had the ability to make timely
          payments on the Mortgage Loan;

         

        (ee)  with
          respect to the Loan Group II Mortgage Loans, no borrower was charged “points and
          fees” in an amount greater than (a) $1,000 or (b) 5% of the principal amount
          of
          such mortgage loan, whichever is greater. For purposes of this representation,
          “points and fees” (x) include origination, underwriting, broker and finder’s
          fees and charges that the lender imposed as a condition of making the mortgage
          loan, whether they are paid to the lender or a third party; and (y) exclude
          bona
          fide discount points, fees paid for actual services rendered in connection
          with
          the origination of the mortgage (such as attorneys’ fees, notaries fees and fees
          paid for property appraisals, credit reports, surveys, title examinations
          and
          extracts, flood and tax certifications, and home inspections); the cost
          of
          mortgage insurance or credit-risk price adjustments; the costs of title,
          hazard,
          and flood insurance policies; state and local transfer taxes or fees; escrow
          deposits for the future payment of taxes and insurance premiums; and other
          miscellaneous fees and charges, which miscellaneous fee and charges, in
          total,
          do not exceed 0.25 percent of the loan amount; 

         

        (ff)  with
          respect to any Loan Group II Mortgage Loans originated on or after August
          1,
          2004, neither the related mortgage nor the related mortgage note requires
          the
          borrower to submit to arbitration to resolve any dispute arising out of
          or
          relating in any way to the mortgage loan transaction;

         

        (gg)  no
          Loan
          Group II Mortgage Loan was originated in connection with a manufactured
          housing
          unit;

         

        (hh)  none
          of
          the Loan Group II Mortgage Loans have an original principal balance that
          exceeds
          the applicable Freddie Mac loan limit as of the Closing Date; 

         

        (ii)  none
          of
          the Loan Group II Mortgage Loans are seasoned more than 12 months;

         

        (jj)  with
          respect to any Loan Group II Mortgage Loan which is a subordinate lien
          mortgage
          loan underlying the Security, such lien is on a one- to four-family residence
          that is the principal residence of the borrower; 

         

        (kk)  no
          Loan
          Group II Mortgage Loan which is a subordinate lien mortgage loan underlying
          the
          Security has an original principal balance that exceeds one-half of the
          one-unit
          limitation for first lien mortgage loans, i.e., $208,500 (in Alaska, Guam,
          Hawaii or Virgin Islands: $312,750), without regard to the number of units;
          and

         

        (ll)  with
          respect to any Loan Group II Mortgage Loan, the original principal balance
          of
          the first lien mortgage loan plus the original principal balance of any
          subordinate lien mortgage loans relating to the same mortgaged property
          does not
          exceed the applicable Freddie Mac loan limit for first lien mortgage loans
          for
          that property type.

         

        It
          is
          understood and agreed that the representations and warranties set forth
          in this
          Section 7 will inure to the benefit of the Purchaser, its successors and
          assigns, notwithstanding any restrictive or qualified endorsement on any
          Mortgage Note or assignment of Mortgage or the examination of any Mortgage
          File.
          Upon any substitution for a Mortgage Loan, the representations and warranties
          set forth above shall be deemed to be made by the Mortgage Loan Seller
          as to any
          Replacement Mortgage Loan as of the date of substitution.

         

        Upon
          discovery or receipt of notice by the Mortgage Loan Seller, the Purchaser
          or the
          Trustee of a breach of any representation or warranty of the Mortgage Loan
          Seller set forth in this Section 7 which materially and adversely affects
          the
          value of the interests of the Purchaser, the Certificateholders or the
          Trustee
          in any of the Mortgage Loans delivered to the Purchaser pursuant to this
          Agreement, the party discovering or receiving notice of such breach shall
          give
          prompt written notice to the others. It is understood and agreed that a
          breach
          of any one of the representations contained in clauses (c), (q) and (s)
          in
          respect of the Loan Group II Mortgage Loans and clauses (z) through (ll)
          will be
          deemed to materially adversely affect the interests of the related
          Certificateholders. In the case of any such breach of a representation
          or
          warranty set forth in this Section 7, within 90 days from the date of discovery
          by the Mortgage Loan Seller, or the date the Mortgage Loan Seller is notified
          by
          the party discovering or receiving notice of such breach (whichever occurs
          earlier), the Mortgage Loan Seller will (i) cure such breach in all material
          respects, (ii) purchase the affected Mortgage Loan at the applicable Purchase
          Price or (iii) if within two years of the Closing Date, substitute a qualifying
          Replacement Mortgage Loan in exchange for such Mortgage Loan; provided
          that, (A)
          in the case of a breach of the representation and warranty concerning the
          Mortgage Loan Schedule contained in clause (a) of this Section 7, if such
          breach
          is material and relates to any field on the Mortgage Loan Schedule which
          identifies any Prepayment Charge or (B) in the case of a breach of the
          representation contained in clause (x) of this Section 7, then, in each
          case, in
          lieu of purchasing such Mortgage Loan from the Trust Fund at the Purchase
          Price,
          the Mortgage Loan Seller shall pay the amount of the Prepayment Charge
          (net of
          any amount previously collected by or paid to the Trust Fund in respect
          of such
          Prepayment Charge) from its own funds and without reimbursement therefor,
          and
          the Mortgage Loan Seller shall have no obligation to repurchase or substitute
          for such Mortgage Loan. The obligations of the Mortgage Loan Seller to
          cure,
          purchase or substitute a qualifying Replacement Mortgage Loan shall constitute
          the Purchaser’s, the Trustee’s and the Certificateholder’s sole and exclusive
          remedy under this Agreement or otherwise respecting a breach of representations
          or warranties hereunder with respect to the Mortgage Loans, except for
          the
          obligation of the Mortgage Loan Seller to indemnify the Purchaser for such
          breach as set forth in and limited by Section 13 hereof.

         

        Any
          cause
          of action against the Mortgage Loan Seller or relating to or arising out
          of a
          breach by the Mortgage Loan Seller of any representations and warranties
          made in
          this Section 7 shall accrue as to any Mortgage Loan upon (i) discovery
          of such
          breach by the Mortgage Loan Seller or notice thereof by the party discovering
          such breach and (ii) failure by the Mortgage Loan Seller to cure such breach,
          purchase such Mortgage Loan or substitute a qualifying Replacement Mortgage
          Loan
          pursuant to the terms hereof.

         

        SECTION
          8.   Representations
          and Warranties Concerning the Mortgage Loan Seller.
          As of
          the date hereof and as of the Closing Date, the Mortgage Loan Seller represents
          and warrants to the Purchaser as to itself in the capacity indicated as
          follows:

         

        (a)  the
          Mortgage Loan Seller (i) is a corporation duly organized, validly existing
          and
          in good standing under the laws of the State of Delaware and (ii) is qualified
          and in good standing to do business in each jurisdiction where such
          qualification is necessary, except where the failure so to qualify would
          not
          reasonably be expected to have a material adverse effect on the Mortgage
          Loan
          Seller’s business as presently conducted or on the Mortgage Loan Seller’s
          ability to enter into this Agreement and to consummate the transactions
          contemplated hereby;

         

        (b)  the
          Mortgage Loan Seller has full power to own its property, to carry on its
          business as presently conducted and to enter into and perform its obligations
          under this Agreement;

         

        (c)  the
          execution and delivery by the Mortgage Loan Seller of this Agreement has
          been
          duly authorized by all necessary action on the part of the Mortgage Loan
          Seller;
          and neither the execution and delivery of this Agreement, nor the consummation
          of the transactions herein contemplated, nor compliance with the provisions
          hereof or thereof, will conflict with or result in a breach of, or constitute
          a
          default under, any of the provisions of any law, governmental rule, regulation,
          judgment, decree or order binding on the Mortgage Loan Seller or its properties
          or the charter or by-laws of the Mortgage Loan Seller, except those conflicts,
          breaches or defaults which would not reasonably be expected to have a material
          adverse effect on the Mortgage Loan Seller’s ability to enter into this
          Agreement and to consummate the transactions contemplated hereby;

         

        (d)  the
          execution, delivery and performance by the Mortgage Loan Seller of this
          Agreement and the consummation of the transactions contemplated hereby
          do not
          require the consent or approval of, the giving of notice to, the registration
          with, or the taking of any other action in respect of, any state, federal
          or
          other governmental authority or agency, except those consents, approvals,
          notices, registrations or other actions as have already been obtained,
          given or
          made and, in connection with the recordation of the Mortgages, powers of
          attorney or assignments of Mortgages not yet completed;

         

        (e)  this
          Agreement has been duly executed and delivered by the Mortgage Loan Seller
          and,
          assuming due authorization, execution and delivery by the Purchaser or
          the
          parties thereto, constitutes a valid and binding obligation of the Mortgage
          Loan
          Seller enforceable against it in accordance with its terms (subject to
          applicable bankruptcy and insolvency laws and other similar laws affecting
          the
          enforcement of the rights of creditors generally);

         

        (f)  there
          are
          no actions, suits or proceedings pending or, to the knowledge of the Mortgage
          Loan Seller, threatened against the Mortgage Loan Seller, before or by
          any
          court, administrative agency, arbitrator or governmental body (i) with
          respect
          to any of the transactions contemplated by this Agreement or (ii) with
          respect
          to any other matter which in the judgment of the Mortgage Loan Seller could
          reasonably be expected to be determined adversely to the Mortgage Loan
          Seller
          and if determined adversely to the Mortgage Loan Seller materially and
          adversely
          affect the Mortgage Loan Seller’s ability to perform its obligations under this
          Agreement and the Mortgage Loan Seller is not in default with respect to
          any
          order of any court, administrative agency, arbitrator or governmental body
          so as
          to materially and adversely affect the transactions contemplated by this
          Agreement; and

         

        (g)  the
          Mortgage Loan Seller’s Information (as defined in Section 13(a) hereof) does not
          include any untrue statement of a material fact or omit to state a material
          fact
          necessary in order to make the statements made, in light of the circumstances
          under which they were made, not misleading.

         

        SECTION
          9.   Representations
          and Warranties Concerning the Purchaser.
          As of
          the date hereof and as of the Closing Date, the Purchaser represents and
          warrants to the Mortgage Loan Seller as follows:

         

        (a)  the
          Purchaser (i) is a limited liability company duly organized, validly existing
          and in good standing under the laws of the State of Delaware and (ii) is
          qualified and in good standing to do business in each jurisdiction where
          such
          qualification is necessary, except where the failure so to qualify would
          not
          reasonably be expected to have a material adverse effect on the Purchaser’s
          business as presently conducted or on the Purchaser’s ability to enter into this
          Agreement and to consummate the transactions contemplated hereby;

         

        (b)  the
          Purchaser has full power to own its property, to carry on its business
          as
          presently conducted and to enter into and perform its obligations under
          this
          Agreement;

         

        (c)  the
          execution and delivery by the Purchaser of this Agreement has been duly
          authorized by all necessary action on the part of the Purchaser; and neither
          the
          execution and delivery of this Agreement, nor the consummation of the
          transactions herein contemplated, nor compliance with the provisions hereof,
          will conflict with or result in a breach of, or constitute a default under,
          any
          of the provisions of any law, governmental rule, regulation, judgment,
          decree or
          order binding on the Purchaser or its properties or the certificate of
          formation
          or limited liability company agreement of the Purchaser, except those conflicts,
          breaches or defaults which would not reasonably be expected to have a material
          adverse effect on the Purchaser’s ability to enter into this Agreement and to
          consummate the transactions contemplated hereby or thereby;

         

        (d)  the
          execution, delivery and performance by the Purchaser of this Agreement
          and the
          consummation of the transactions contemplated hereby or thereby do not
          require
          the consent or approval of, the giving of notice to, the registration with,
          or
          the taking of any other action in respect of, any state, federal or other
          governmental authority or agency, except those consents, approvals, notices,
          registrations or other actions as have already been obtained, given or
          made;

         

        (e)  this
          Agreement has been duly executed and delivered by the Purchaser and, assuming
          due authorization, execution and delivery by the Mortgage Loan Seller,
          constitutes a valid and binding obligation of the Purchaser enforceable
          against
          it in accordance with its terms (subject to applicable bankruptcy and insolvency
          laws and other similar laws affecting the enforcement of the rights of
          creditors
          generally);

         

        (f)  there
          are
          no actions, suits or proceedings pending or, to the knowledge of the Purchaser,
          threatened against the Purchaser, before or by any court, administrative
          agency,
          arbitrator or governmental body (i) with respect to any of the transactions
          contemplated by this Agreement or (ii) with respect to any other matter
          which in
          the judgment of the Purchaser could reasonably be expected to be determined
          adversely to the Purchaser and if determined adversely to the Purchaser
          materially and adversely affect the Purchaser’s ability to perform its
          obligations under this Agreement; and the Purchaser is not in default with
          respect to any order of any court, administrative agency, arbitrator or
          governmental body so as to materially and adversely affect the transactions
          contemplated by this Agreement; and

         

        (g)  the
          Purchaser’s Information (as defined in Section 13(b) hereof) does not include
          any untrue statement of a material fact or omit to state a material fact
          necessary in order to make the statements made, in light of the circumstances
          under which they were made, not misleading.

         

        SECTION
          10.   Conditions
          to Closing. 

         

        (a)  The
          obligations of the Purchaser under this Agreement will be subject to the
          satisfaction, on or prior to the Closing Date, of the following
          conditions:

         

        (1)  Each
          of
          the obligations of the Mortgage Loan Seller required to be performed at
          or prior
          to the Closing Date pursuant to the terms of this Agreement shall have
          been duly
          performed and complied with in all material respects; all of the representations
          and warranties of the Mortgage Loan Seller under this Agreement shall be
          true
          and correct as of the date or dates specified in all material respects;
          and no
          event shall have occurred which, with notice or the passage of time, would
          constitute a default under this Agreement or the Pooling and Servicing
          Agreement; and the Purchaser shall have received certificates to that effect
          signed by authorized officers of each of the Mortgage Loan Seller.

         

        (2)  The
          Purchaser shall have received all of the following closing documents, in
          such
          forms as are agreed upon and reasonably acceptable to the Purchaser, duly
          executed by all signatories other than the Purchaser as required pursuant
          to the
          respective terms thereof:

         

        (i)  The
          Pooling and Servicing Agreement, in form and substance reasonably satisfactory
          to the Trustee and the Purchaser, and all documents required thereby duly
          executed by all signatories;

         

        (ii)  A
          certificate of an officer of the Mortgage Loan Seller dated as of the Closing
          Date, in a form reasonably acceptable to the Purchaser, and attached thereto
          the
          resolutions of the Mortgage Loan Seller authorizing the transactions
          contemplated by this Agreement, together with copies of the articles of
          incorporation, by-laws and certificate of good standing of the Mortgage
          Loan
          Seller;

         

        (iii)  One
          or
          more opinions of counsel from the Mortgage Loan Seller’s counsel otherwise in
          form and substance reasonably satisfactory to the Purchaser the Trustee
          and each
          Rating Agency;

         

        (iv)  A
          letter
          from each of the Rating Agencies giving each Class of Certificates set
          forth on
          Schedule A hereto the rating set forth therein; and

         

        (v)  Such
          other documents, certificates (including additional representations and
          warranties) and opinions as may be reasonably necessary to secure the intended
          ratings from each Rating Agency for the Certificates.

         

        (3)  The
          Certificates to be sold to Bear Stearns pursuant to the Underwriting Agreement
          and the Purchase Agreement shall have been issued and sold to Bear
          Stearns.

         

        (4)  The
          Mortgage Loan Seller shall have furnished to the Purchaser such other
          certificates of its officers or others and such other documents and opinions
          of
          counsel to evidence fulfillment of the conditions set forth in this Agreement
          and the transactions contemplated hereby as the Purchaser and its respective
          counsel may reasonably request.

         

        (b)  The
          obligations of the Mortgage Loan Seller under this Agreement shall be subject
          to
          the satisfaction, on or prior to the Closing Date, of the following
          conditions:

         

        (1)  The
          obligations of the Purchaser required to be performed by it on or prior
          to the
          Closing Date pursuant to the terms of this Agreement shall have been duly
          performed and complied with in all material respects, and all of the
          representations and warranties of the Purchaser under this Agreement shall
          be
          true and correct in all material respects as of the date hereof and as
          of the
          Closing Date, and no event shall have occurred which would constitute a
          breach
          by it of the terms of this Agreement or the Pooling and Servicing Agreement,
          and
          the Mortgage Loan Seller shall have received a certificate to that effect
          signed
          by an authorized officer of the Purchaser.

         

        (2)  The
          Mortgage Loan Seller shall have received copies of all of the following
          closing
          documents, in such forms as are agreed upon and reasonably acceptable to
          the
          Mortgage Loan Seller, duly executed by all signatories other than the Mortgage
          Loan Seller as required pursuant to the respective terms thereof:

         

        (i)  The
          Pooling and Servicing Agreement, in form and substance reasonably satisfactory
          to the Mortgage Loan Seller and the Trustee, and all documents required
          thereby
          duly executed by all signatories;

         

        (ii)  A
          certificate of an officer of the Purchaser dated as of the Closing Date,
          in a
          form reasonably acceptable to the Mortgage Loan Seller and attached thereto
          the
          written consent of the member of the Purchaser authorizing the transactions
          contemplated by this Agreement, the Pooling and Servicing Agreement, together
          with copies of the Purchaser’s certificate of formation, limited liability
          company agreement and evidence as to the good standing of the Purchaser
          dated as
          of a recent date;

         

        (iii)  One
          or
          more opinions of counsel from the Purchaser’s counsel in form and substance
          reasonably satisfactory to the Mortgage Loan Seller, the Trustee and the
          Rating
          Agencies; and

         

        (iv)  Such
          other documents, certificates (including additional representations and
          warranties) and opinions as may be reasonably necessary to secure the intended
          rating from each Rating Agency for the Certificates.

         

        SECTION
          11.   Fees
          and Expenses.
          Subject
          to Section 16 hereof, the Mortgage Loan Seller shall pay on the Closing
          Date or
          such later date as may be agreed to by the Purchaser (i) the fees and expenses
          of the Mortgage Loan Seller’s attorneys and the reasonable fees and expenses of
          the Purchaser’s attorneys, (ii) the fees and expenses of Deloitte & Touche
          LLP, (iii) the fee for the use of Purchaser’s Registration Statement based on
          the aggregate original principal amount of the Certificates and the filing
          fee
          of the Commission as in effect on the date on which the Registration Statement
          was declared effective, (iv) the fees and expenses including counsel’s fees and
          expenses in connection with any “blue sky” and legal investment matters, (v) the
          fees and expenses of the Trustee which shall include without limitation
          the fees
          and expenses of the Trustee (and the fees and disbursements of its counsel)
          with
          respect to (A) legal and document review of this Agreement, the Pooling
          and
          Servicing Agreement, the Certificates and related agreements, (B) attendance
          at
          the Closing and (C) review of the Mortgage Loans to be performed by the
          Trustee
          or the related Custodian on its behalf, (vi) the expenses for printing
          or
          otherwise reproducing the Certificates, the Prospectus and the Prospectus
          Supplement, (vii) the fees and expenses of each Rating Agency (both initial
          and
          ongoing), (viii) the fees and expenses relating to the preparation and
          recordation of mortgage assignments (including intervening assignments,
          if any
          and if available, to evidence a complete chain of title from the originator
          to
          the Trustee) from the Mortgage Loan Seller to the Trustee or the expenses
          relating to the Opinion of Counsel referred to in Section 6(a) hereof,
          as the
          case may be and (ix) Mortgage File due diligence expenses and other
          out-of-pocket expenses incurred by the Purchaser in connection with the
          purchase
          of the Mortgage Loans and by Bear Stearns in connection with the sale of
          the
          Certificates. The Mortgage Loan Seller additionally agrees to pay directly
          to
          any third party on a timely basis the fees provided for above which are
          charged
          by such third party and which are billed periodically.

         

        SECTION
          12.   Accountants’
          Letters. 

         

        (a)  Deloitte
          & Touche LLP
          will
          review the characteristics of a sample of the Mortgage Loans described
          in the
          Mortgage Loan Schedule and will compare those characteristics to the description
          of the Mortgage Loans contained in the Free Writing Prospectus under the
          captions “Summary—The Mortgage Loans” and “The Mortgage Pool” and in Schedule A
          thereto. Deloitte & Touche LLP
          will
          review the characteristics of a sample of the Mortgage Loans described
          in the
          Mortgage Loan Schedule and will compare those characteristics to the description
          of the Mortgage Loans contained in the Prospectus Supplement under the
          captions
“Summary—The Mortgage Loans” and “The Mortgage Pool” and in Schedule A thereto.
          The Mortgage Loan Seller will cooperate with the Purchaser in making available
          all information and taking all steps reasonably necessary to permit such
          accountants to complete the review and to deliver the letters required
          of them
          under the Underwriting Agreement. Deloitte & Touche LLP will also confirm
          certain calculations as set forth under the caption “Yield, Prepayment and
          Maturity Considerations” in the Free Writing Prospectus and the Prospectus
          Supplement.

         

        (b)  To
          the
          extent statistical information with respect to the Mortgage Loan Seller’s
          servicing portfolio is included in the Free Writing Prospectus and the
          Prospectus Supplement under the caption “Master
          Servicing and Servicing of the Mortgage Loans,”
a
          letter from the certified public accountant for the Mortgage Loan Seller
          will be
          delivered to the Purchaser dated the date of the Prospectus Supplement,
          in the
          form previously agreed to by the Mortgage Loan Seller and the Purchaser,
          with
          respect to such statistical information.

         

        SECTION
          13.   Indemnification. 

         

        (a)  The
          Mortgage Loan Seller shall indemnify and hold harmless the Purchaser and
          its
          directors, officers and controlling persons (as defined in Section 15 of
          the
          Securities Act) from and against any loss, claim, damage or liability or
          action
          in respect thereof, to which they or any of them may become subject, under
          the
          Securities Act or otherwise, insofar as such loss, claim, damage, liability
          or
          action arises out of, or is based upon any untrue statement of a material
          fact
          contained in the Mortgage
          Loan Seller’s Information
          as
          identified in Exhibit
          3,
          the
          omission to state in the Free Writing Prospectus, the Prospectus Supplement
          or
          Prospectus (or any amendment thereof or supplement thereto approved by
          the
          Mortgage Loan Seller and in which additional Mortgage Loan Seller’s Information
          is identified), in reliance upon and in conformity with Mortgage Loan Seller’s
          Information a material fact required to be stated therein or necessary
          to make
          the statements therein in light of the circumstances in which they were
          made,
          not misleading; and the Mortgage Loan Seller shall reimburse the Purchaser
          and
          each other indemnified party for any legal and other expenses reasonably
          incurred by them in connection with investigating or defending or preparing
          to
          defend against any such loss, claim, damage, liability or action.

         

        The
          foregoing indemnity agreement is in addition to any liability which the
          Mortgage
          Loan Seller otherwise may have to the Purchaser or any other such indemnified
          party.

         

        (b)  The
          Purchaser shall indemnify and hold harmless the Mortgage Loan Seller and
          its
          respective directors, officers and controlling persons (as defined in Section
          15
          of the Securities Act) from and against any loss, claim, damage or liability
          or
          action in respect thereof, to which they or any of them may become subject,
          under the Securities Act or otherwise, insofar as such loss, claim, damage,
          liability or action arises out of, or is based upon any untrue statement
          of a
          material fact contained in the Purchaser’s
          Information
          as
          identified in Exhibit
          4,
          the
          omission to state in the Free Writing Prospectus, the Prospectus Supplement
          or
          Prospectus (or any amendment thereof or supplement thereto approved by
          the
          Purchaser and in which additional Purchaser’s Information is identified), in
          reliance upon and in conformity with the Purchaser’s Information, a material
          fact required to be stated therein or necessary to make the statements
          therein
          in light of the circumstances in which they were made, not misleading;
          and the
          Purchaser shall reimburse the Mortgage Loan Seller and each other indemnified
          party for any legal and other expenses reasonably incurred by them in connection
          with investigating or defending or preparing to defend any such loss, claim,
          damage, liability or action. The foregoing indemnity agreement is in addition
          to
          any liability which the Purchaser otherwise may have to the Mortgage Loan
          Seller
          or any other such indemnified party.

         

        (c)  Promptly
          after receipt by an indemnified party under subsection (a) or (b) above
          of
          notice of the commencement of any action, such indemnified party shall,
          if a
          claim in respect thereof is to be made against the indemnifying party under
          such
          subsection, notify each party against whom indemnification is to be sought
          in
          writing of the commencement thereof (but the failure so to notify an
          indemnifying party shall not relieve it from any liability which it may
          have
          under this Section 13 except to the extent that it has been prejudiced
          in any
          material respect by such failure or from any liability which it may have
          otherwise). In case any such action is brought against any indemnified
          party,
          and it notifies an indemnifying party of the commencement thereof, the
          indemnifying party will be entitled to participate therein and, to the
          extent it
          may elect by written notice delivered to the indemnified party promptly
          (but, in
          any event, within 30 days) after receiving the aforesaid notice from such
          indemnified party, to assume the defense thereof with counsel reasonably
          satisfactory to such indemnified party. Notwithstanding the foregoing,
          the
          indemnified party or parties shall have the right to employ its or their
          own
          counsel in any such case, but the fees and expenses of such counsel shall
          be at
          the expense of such indemnified party or parties unless (i) the employment
          of
          such counsel shall have been authorized in writing by one of the indemnifying
          parties in connection with the defense of such action, (ii) the indemnifying
          parties shall not have employed counsel to have charge of the defense of
          such
          action within a reasonable time after notice of commencement of the action,
          or
          (iii) such indemnified party or parties shall have reasonably concluded
          that
          there is a conflict of interest between itself or themselves and the
          indemnifying party in the conduct of the defense of any claim or that the
          interests of the indemnified party or parties are not substantially co-extensive
          with those of the indemnifying party (in which case the indemnifying parties
          shall not have the right to direct the defense of such action on behalf
          of the
          indemnified party or parties), in any of which events such fees and expenses
          shall be borne by the indemnifying parties (provided,
          however,
          that
          the indemnifying party shall be liable only for the fees and expenses of
          one
          counsel in addition to one local counsel in the jurisdiction involved.
          Anything
          in this subsection to the contrary notwithstanding, an indemnifying party
          shall
          not be liable for any settlement or any claim or action effected without
          its
          written consent; provided,
          however,
          that
          such consent was not unreasonably withheld.

         

        (d)  If
          the
          indemnification provided for in paragraphs (a) and (b) of this Section
          13 shall
          for any reason be unavailable to an indemnified party in respect of any
          loss,
          claim, damage or liability, or any action in respect thereof, referred
          to in
          Section 13, then the indemnifying party shall in lieu of indemnifying the
          indemnified party contribute to the amount paid or payable by such indemnified
          party as a result of such loss, claim, damage or liability, or action in
          respect
          thereof, in such proportion as shall be appropriate to reflect the relative
          benefits received by the Mortgage Loan Seller on the one hand and the Purchaser
          on the other from the purchase and sale of the Mortgage Loans, the offering
          of
          the Certificates and the other transactions contemplated hereunder. No
          person
          found liable for a fraudulent misrepresentation shall be entitled to
          contribution from any person who is not also found liable for such fraudulent
          misrepresentation.

         

        (e)  The
          parties hereto agree that reliance by an indemnified party on any publicly
          available information or any information or directions furnished by an
          indemnifying party shall not constitute negligence, bad faith or willful
          misconduct by such indemnified party.

         

        SECTION
          14.   Notices.
          All
          demands, notices and communications hereunder shall be in writing but may
          be
          delivered by facsimile transmission subsequently confirmed in writing.
          Notices
          to the Mortgage Loan Seller shall be directed to EMC Mortgage Corporation,
          2780
          Lake Vista Drive, Lewisville, Texas 75067, (Telecopy: (469-759-4714), attention:
          President or General Counsel; notices to the Purchaser shall be directed
          to Bear
          Stearns Asset Backed Securities I LLC, 383 Madison Avenue, New York, New
          York
          10179, (Telecopy: (212-272-7206)), Attention: Chief Counsel; or to any
          other
          address as may hereafter be furnished by one party to the other party by
          like
          notice.  Any such demand, notice or communication hereunder shall be
          deemed to have been received on the date received at the premises of the
          addressee (as evidenced, in the case of registered or certified mail, by
          the
          date noted on the return receipt) provided that it is received on a business
          day
          during normal business hours and, if received after normal business hours,
          then
          it shall be deemed to be received on the next business day.

         

        SECTION
          15.   Transfer
          of Mortgage Loans.
          The
          Purchaser retains the right to assign the Mortgage Loans and any or all
          of its
          interest under this Agreement to the Trustee without the consent of the
          Mortgage
          Loan Seller, and, upon such assignment, the Trustee shall succeed to the
          applicable rights and obligations of the Purchaser hereunder; provided,
          however,
          the Purchaser shall remain entitled to the benefits set forth in Sections
          11, 13
          and 17 hereto and as provided in Section 2(a). Notwithstanding the foregoing,
          the sole and exclusive right and remedy of the Trustee with respect to
          a breach
          of representation or warranty of the Mortgage Loan Seller shall be the
          cure,
          purchase or substitution obligations of the Mortgage Loan Seller contained
          in
          Sections 5 and 7 hereof.

         

        SECTION
          16.   Termination.
          This
          Agreement may be terminated (a) by the mutual consent of the parties hereto
          prior to the Closing Date, (b) by the Purchaser, if the conditions to the
          Purchaser’s obligation to close set forth under Section 10(a) hereof are not
          fulfilled as and when required to be fulfilled or (c) by the Mortgage Loan
          Seller, if the conditions to the Mortgage Loan Seller’s obligation to close set
          forth under Section 10(b) hereof are not fulfilled as and when required
          to be
          fulfilled. In the event of termination pursuant to clause (b), the Mortgage
          Loan
          Seller shall pay, and in the event of termination pursuant to clause (c),
          the
          Purchaser shall pay, all reasonable out-of-pocket expenses incurred by
          the other
          in connection with the transactions contemplated by this Agreement. In
          the event
          of a termination pursuant to clause (a), each party shall be responsible
          for its
          own expenses.

         

        SECTION
          17.   Representations,
          Warranties and Agreements to Survive Delivery.
          All
          representations, warranties and agreements contained in this Agreement,
          or
          contained in certificates of officers of the Mortgage Loan Seller submitted
          pursuant hereto, shall remain operative and in full force and effect and
          shall
          survive delivery of the Mortgage Loans to the Purchaser (and by the Purchaser
          to
          the Trustee). Subsequent to the delivery of the Mortgage Loans to the Purchaser,
          the Mortgage Loan Seller’s representations and warranties contained herein with
          respect to the Mortgage Loans shall be deemed to relate to the Mortgage
          Loans
          actually delivered to the Purchaser and included in the Mortgage Loan Schedule
          and any Replacement Mortgage Loan.

         

        SECTION
          18.   Severability.
          If any
          provision of this Agreement shall be prohibited or invalid under applicable
          law,
          this Agreement shall be ineffective only to such extent, without invalidating
          the remainder of this Agreement.

         

        SECTION
          19.   Counterparts.
          This
          Agreement may be executed in counterparts, each of which will be an original,
          but which together shall constitute one and the same agreement.

         

        SECTION
          20.   Amendment.
          This
          Agreement cannot be amended or modified in any manner without the prior
          written
          consent of each party.

         

        SECTION
          21.   GOVERNING
          LAW.
          THIS
          AGREEMENT shall be governed by, and construed in accordance with, the laws
          of
          the State of New York, without regard to conflict of laws principles thereof
          other than Section 5-1401 of the New York General Obligations Law.

         

        SECTION
          22.   Further
          Assurances.
          Each of
          the parties agrees to execute and deliver such instruments and take such
          actions
          as another party may, from time to time, reasonably request in order to
          effectuate the purpose and to carry out the terms of this Agreement including
          any amendments hereto which may be required by either Rating
          Agency.

         

        SECTION
          23.   Successors
          and Assigns. 

         

        (a)  This
          Agreement shall bind and inure to the benefit of and be enforceable by
          the
          Mortgage Loan Seller and the Purchaser and their permitted successors and
          assigns and, to the extent specified in Section 13 hereof, Bear Stearns,
          and
          their directors, officers and controlling persons (within the meaning of
          federal
          securities laws), to the extent of its rights as a third party beneficiary
          hereunder. The Mortgage Loan Seller acknowledges and agrees that the Purchaser
          may assign its rights under this Agreement (including, without limitation,
          with
          respect to the Mortgage Loan Seller’s representations and warranties respecting
          the Mortgage Loans) to the Trustee. Any person into which the Mortgage
          Loan
          Seller may be merged or consolidated (or any person resulting from any
          merger or
          consolidation involving the Mortgage Loan Seller), any person resulting
          from a
          change in form of the Mortgage Loan Seller or any person succeeding to
          the
          business of the Mortgage Loan Seller, shall be considered the “successor” of the
          Mortgage Loan Seller hereunder and shall be considered a party hereto without
          the execution or filing of any paper or any further act or consent on the
          part
          of any party hereto. Except as provided in the two preceding sentences,
          this
          Agreement cannot be assigned, pledged or hypothecated by either party hereto
          without the written consent of the other parties to this Agreement and
          any such
          assignment or purported assignment shall be deemed null and void.

         

        SECTION
          24.   The
          Mortgage Loan Seller.
          The
          Mortgage Loan Seller will keep in full force and effect its existence,
          all
          rights and franchises as a corporation or a limited liability company,
          as the
          case may be, under the laws of the State of its incorporation and will
          obtain
          and preserve its qualification to do business as a foreign corporation
          or a
          limited liability company, as the case may be, in each jurisdiction in
          which
          such qualification is necessary to perform its obligations under this
          Agreement.

         

        SECTION
          25.   Entire
          Agreement.
          This
          Agreement contains the entire agreement and understanding between the parties
          with respect to the subject matter hereof, and supersedes all prior and
          contemporaneous agreements, understandings, inducements and conditions,
          express
          or implied, oral or written, of any nature whatsoever with respect to the
          subject matter hereof.

         

        SECTION
          26.   No
          Partnership.
          Nothing
          herein contained shall be deemed or construed to create a partnership or
          joint
          venture between the parties hereto.

         

        

        [Signature
          Page Follows]

        

        

        
          
          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused their names to be signed
          hereto
          by their respective duly authorized officers as of the date first above
          written.

         

        
          	
                  EMC
                    MORTGAGE CORPORATION

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  BEAR
                    STEARNS ASSET BACKED SECURITIES I LLC

                
	 	 
	
                  By:

                	 
	
                  Name:

                	
                  Baron
                    Silverstein

                
	
                  Title:

                	
                  Vice
                    President

                

        

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        EXHIBIT
          1

         

        CONTENTS
          OF MORTGAGE FILE

         

        With
          respect to each Mortgage Loan, the Mortgage File shall include each of
          the
          following items, which shall be available for inspection by the Purchaser
          or its
          designee, and which shall be delivered to the Purchaser or its designee
          pursuant
          to the terms of this Agreement.

         

        The
          original Mortgage Note, including any riders thereto, endorsed without
          recourse
          to the order of “Citibank, N.A., as Trustee for certificateholders of SACO I
          Trust, Mortgage-Backed Certificates, Series 2007-1,” or to blank and showing to
          the extent available to the Mortgage Loan Seller an unbroken chain of
          endorsements from the original payee thereof to the Person endorsing it
          to the
          Trustee;

         

        the
          original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting
          the
          presence of the MIN and language indicating that such Mortgage Loan is
          a MOM
          Loan, which shall have been recorded (or, for Mortgage Loans other than
          the EMC
          Flow Loans, if the original is not available, a copy), with evidence of
          such
          recording indicated thereon (or if clause (x) in the proviso below applies,
          shall be in recordable form);

         

        unless
          the Mortgage Loan is either a MOM Loan, the assignment (either an original
          or a
          copy, which may be in the form of a blanket assignment if permitted in
          the
          jurisdiction in which the Mortgaged Property is located) to the Trustee
          of the
          Mortgage with respect to each Mortgage Loan in the name of “Citibank, N.A., as
          Trustee for certificateholders of SACO I Trust, Mortgage-Backed Certificates,
          Series 2007-1,” which shall have been recorded (or if clause (x) in the proviso
          below applies, shall be in recordable form);

         

        an
          original or a copy of all intervening assignments of the Mortgage, if any,
          to
          the extent available to the Mortgage Loan Seller, with evidence of recording
          thereon;

         

        the
          original policy of title insurance or mortgagee’s certificate of title insurance
          or commitment or binder for title insurance, if available, or a copy thereof,
          or, in the event that such original title insurance policy is unavailable,
          a
          photocopy thereof, or in lieu thereof, a current lien search on the related
          Mortgaged Property and

         

        originals
          or copies of all available assumption, modification or substitution agreements,
          if any; provided, however, that in lieu of the foregoing, the Mortgage
          Loan
          Seller may deliver the following documents, under the circumstances set
          forth
          below: (x) if any Mortgage, assignment thereof to the Trustee or intervening
          assignments thereof have been delivered or are being delivered to recording
          offices for recording and have not been returned in time to permit their
          delivery as specified above, the Purchaser may deliver a true copy thereof
          with
          a certification by the Mortgage Loan Seller or the title company issuing
          the
          commitment for title insurance, on the face of such copy, substantially
          as
          follows: “Certified to be a true and correct copy of the original, which has
          been transmitted for recording”; and (y) in lieu of the Mortgage Notes relating
          to the Mortgage Loans identified in the list set forth in Exhibit J to
          the
          Pooling and Servicing Agreement, the Purchaser may deliver a lost note
          affidavit
          and indemnity and a copy of the original note, if available; and provided,
          further, however, that in the case of Mortgage Loans which have been prepaid
          in
          full after the Cut-Off Date and prior to the Closing Date, the Purchaser,
          in
          lieu of delivering the above documents, may deliver to the Trustee and
          the
          Custodians a certification of a Servicing Officer to such effect and in
          such
          case shall deposit all amounts paid in respect of such Mortgage Loans,
          in the
          Protected Account or in the Distribution Account on the Closing Date. In
          the
          case of the documents referred to in clause (x) above, the Purchaser shall
          deliver such documents to the Trustee or its Custodian promptly after they
          are
          received. The Mortgage Loan Seller shall cause, at its expense, the Mortgage
          and
          intervening assignments, if any, and to the extent required in accordance
          with
          the foregoing, the assignment of the Mortgage to the Trustee to be submitted
          for
          recording promptly after the Closing Date; provided that the Mortgage Loan
          Seller need not cause to be recorded any assignment (a) in any jurisdiction
          under the laws of which, as evidenced by an Opinion of Counsel addressed
          to the
          Trustee delivered by the Mortgage Loan Seller to the Trustee and the Rating
          Agencies, the recordation of such assignment is not necessary to protect
          the
          Trustee’s interest in the related Mortgage Loan or (b) if MERS is identified on
          the Mortgage or on a properly recorded assignment of the Mortgage as mortgagee
          of record solely as nominee for the Mortgage Loan Seller and its successors
          and
          assigns. In the event that the Mortgage Loan Seller, the Purchaser or the
          Master
          Servicer gives written notice to the Trustee that a court has recharacterized
          the sale of the Mortgage Loans as a financing, the Mortgage Loan Seller
          shall
          submit or cause to be submitted for recording as specified above or, should
          the
          Mortgage Loan Seller fail to perform such obligations, the Master Servicer
          shall
          cause each such previously unrecorded assignment to be submitted for recording
          as specified above at the expense of the Trust. In the event a Mortgage
          File is
          released to the Mortgage Loan Seller or the Master Servicer as a result
          of such
          Person having completed a Request for Release, the Custodian shall, if
          not so
          completed, complete the assignment of the related Mortgage in the manner
          specified in clause (iii) above.

         

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          2

        

         

        MORTGAGE
          LOAN SCHEDULE INFORMATION

         

        The
          Mortgage Loan Schedule shall set forth the following information with respect
          to
          each Mortgage Loan:

         

        (a)  the
          city,
          state and zip code of the Mortgaged Property; 

        (b)  the
          property type;

        (c)  the
          Mortgage Rate;

        (d)  the
          Servicing Fee Rate;

        (e)  the
          Master Servicer’s Fee Rate;

        (f)  the
          LPMI
          Fee, if applicable;

        (g)  the
          Trustee Fee Rate, if applicable;

        (h)  the
          Net
          Rate;

        (i)  the
          maturity date;

        (j)  the
          stated original term to maturity;

        (k)  the
          stated remaining term to maturity;

        (l)  the
          original Principal Balance;

        (m)  the
          first
          payment date;

        (n)  the
          principal and interest payment in effect as of the Cut-off Date;

        (o)  the
          unpaid Principal Balance as of the Cut-off Date;

        (p)  the
          Loan-to-Value Ratio at origination;

        (q)  the
          insurer of any Primary Mortgage Insurance Policy;

        (r)  the
          MIN
          with respect to each MOM Loan;

        (s)  the
          Gross
          Margin, if applicable;

        (t)  the
          next
          Adjustment Date, if applicable;

        (u)  the
          Maximum Lifetime Mortgage Rate, if applicable;

        (v)  the
          Minimum Lifetime Mortgage Rate, if applicable;

        (w)  the
          Periodic Rate Cap, if applicable; 

        (x)  the
          Loan
          Group, if applicable;

        (y)  a
          code
          indicating whether the Mortgage Loan is negatively amortizing;

        	(z) 
                  	
                which
                  Mortgage Loans adjust after an initial fixed-rate period of one,
                  two,
                  three, five, seven or ten years or any other period;
                  

              

        (aa)  the
          Prepayment Charge, if any;

        (bb)  lien
          position (e.g., first lien or second lien);

        (cc)  a
          code
          indicating whether the Mortgage Loan is has a balloon payment;

        (dd)  a
          code
          indicating whether the Mortgage Loan is an interest-only loan; 

        (ee)  the
          interest-only term, if applicable;

        (ff)  the
          Mortgage Loan Seller; and

        (gg)  the
          original amortization term.

        

        Such
          schedule also shall set forth for all of the Mortgage Loans, the total
          number of
          Mortgage Loans, the total of each of the amounts described under (n) and
          (o)
          above, the weighted average by principal balance as of the Cut-off Date
          of each
          of the rates described under (c) through (h) above, and the weighted average
          remaining term to maturity by unpaid principal balance as of the Cut-off
          Date.

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          3

         

         

        MORTGAGE
          LOAN SELLER’S INFORMATION

         

         

        All
          information in the Free Writing Prospectus and the Prospectus Supplement
          described under the following captions: “SUMMARY — The Mortgage Loans,” “THE
          MORTGAGE POOL”, “THE SPONSOR” and “SCHEDULE A — Mortgage Loan Statistical
          Data.”

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          4

         

        PURCHASER’S
          INFORMATION

         

        All
          information in the Free Writing Prospectus, the Prospectus Supplement and
          the
          Prospectus, except the Mortgage Loan Seller’s Information.

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          5

         

        SCHEDULE
          OF LOST NOTES

         

        Available
          Upon Request

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

          EXHIBIT
            6

           

           

           

          REVISED
            October 20, 2006

           

          

            APPENDIX
              E - Standard & Poor’s Predatory Lending Categories

          

        

        

          Standard
            & Poor’s has categorized loans governed by anti-predatory lending laws in
            the Jurisdictions listed below into three categories based upon a combination
            of
            factors that include (a) the risk exposure associated with the assignee
            liability and (b) the tests and thresholds set
            forth in
            those laws. Note that certain loans classified by the relevant statute
            as
            Covered are included in Standard & Poor’s High Cost Loan Category because
            they included thresholds and tests that are typical of what is generally
            considered High Cost by the industry.

        

        
          

          
            	
                    Standard
                      & Poor’s High Cost Loan Categorization

                  
	
                    State/Jurisdiction

                  	
                    Name
                      of Anti-Predatory Lending

                    Law/Effective
                      Date

                  	
                    Category
                      under

                    Applicable
                      Anti-Predatory Lending Law

                  
	
                    Arkansas

                  	
                    Arkansas
                      Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

                    Effective
                      July 16, 2003

                  	
                    High
                      Cost Home Loan

                  
	
                    Cleveland
                      Heights, OH

                  	
                    Ordinance
                      No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.

                    Effective
                      June 2, 2003

                  	
                    Covered
                      Loan

                  
	
                    Colorado

                  	
                    Consumer
                      Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.

                    Effective
                      for covered loans offered or entered into on or after January
                      1, 2003.
                      Other provisions of the Act took effect on June 7, 2002

                  	
                    Covered
                      Loan

                  
	
                    Connecticut

                  	
                    Connecticut
                      Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                      et seq.

                    Effective
                      October 1, 2001 

                  	
                    High
                      Cost Home Loan

                  
	
                    District
                      of Columbia

                  	
                    Home
                      Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.

                    Effective
                      for loans closed on or after January 28, 2003

                  	
                    Covered
                      Loan

                  
	
                    Florida

                  	
                    Fair
                      Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

                    Effective
                      October 2, 2002

                  	
                    High
                      Cost Home Loan

                  
	
                    Georgia
                      (Oct. 1, 2002 - Mar. 6, 2003)

                  	
                    Georgia
                      Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.
                      Effective October 1, 2002 - March 6, 2003

                  	
                    High
                      Cost Home Loan

                  
	
                    Georgia
                      as amended (Mar. 7, 2003 - current)

                  	
                    Georgia
                      Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                    Effective
                      for loans closed on or after March 7, 2003 

                  	
                    High
                      Cost Home Loan

                  
	
                    HOEPA
                      Section 32

                  	
                    Home
                      Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                      §§ 226.32 and 226.34

                    Effective
                      October 1, 1995, amendments October 1, 2002

                  	
                    High
                      Cost Loan

                  
	
                    Illinois

                  	
                    High
                      Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.

                    Effective
                      January 1, 2004 (prior to this date, regulations under Residential
                      Mortgage License Act effective from May 14, 2001)

                  	
                    High
                      Risk Home Loan

                  
	
                    Indiana

                  	
                    Indiana
                      Home Loan Practices Act, Ind. Code Ann. §§ 24-9-1-1 et seq.

                    Effective
                      January 1, 2005; amended by 2005 HB 1179, effective July 1,
                      2005.
                      

                  	
                    High
                      Cost Home Loans 

                  
	
                    Kansas

                  	
                    Consumer
                      Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.

                    Sections
                      16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                      16a-3-308a became effective July 1, 1999

                  	
                    High
                      Loan to Value Consumer Loan (id. § 16a-3-207) and;

                  
	
                    High
                      APR Consumer Loan (id.
                      §16a-3-308a)

                  
	
                    Kentucky

                  	
                    2003
                      KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                      et seq.
                      

                    Effective
                      June 24, 2003

                  	
                    High
                      Cost Home Loan

                  
	
                    Maine

                  	
                    Truth
                      in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.

                    Effective
                      September 29, 1995 and as amended from time to time

                  	
                    High
                      Rate High Fee Mortgage

                  
	
                    Massachusetts

                  	
                    Part
                      40 and Part 32, 209 C.M.R. §§ 32.00 et seq.
                      and 209 C.M.R. §§ 40.01 et seq.

                    Effective
                      March 22, 2001 and amended from time to time

                  	
                    High
                      Cost Home Loan

                  
	
                    Nevada

                  	
                    Assembly
                      Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et seq.

                    Effective
                      October 1, 2003

                  	
                    Home
                      Loan

                  
	
                    New
                      Jersey

                  	
                    New
                      Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat.
§§ 46:10B-22
                      et seq.

                    Effective
                      for loans closed on or after November 27, 2003

                  	
                    High
                      Cost Home Loan

                  
	
                    New
                      Mexico

                  	
                    Home
                      Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

                    Effective
                      as of January 1, 2004; Revised as of February 26, 2004 

                  	
                    High
                      Cost Home Loan

                  
	
                    New
                      York

                  	
                    N.Y.
                      Banking Law Article 6-l

                    Effective
                      for applications made on or after April 1, 2003

                  	
                    High
                      Cost Home Loan

                  
	
                    North
                      Carolina

                  	
                    Restrictions
                      and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                      et seq.

                    Effective
                      July 1, 2000; amended October 1, 2003 (adding open-end lines
                      of credit)
                      

                  	
                    High
                      Cost Home Loan

                  
	
                    Ohio

                  	
                    H.B.
                      386 (codified in various sections of the Ohio Code), Ohio Rev.
                      Code Ann.
                      §§ 1349.25 et seq.

                    Effective
                      May 24, 2002 

                  	
                    Covered
                      Loan

                  
	
                    Oklahoma

                  	
                    Consumer
                      Credit Code (codified in various sections of Title 14A)

                    Effective
                      July 1, 2000; amended effective January 1, 2004

                  	
                    Subsection
                      10 Mortgage

                  
	
                    Rhode
                      Island

                  	
                    Rhode
                      Island Home Loan Protection Act, R.I. Gen. Laws §§ 34-25.2-1 et seq.

                    Effective
                      December 31, 2006. 

                  	
                    High
                      Cost Home Loan

                  
	
                    South
                      Carolina

                  	
                    South
                      Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                      et seq.

                    Effective
                      for loans taken on or after January 1, 2004

                  	
                    High
                      Cost Home Loan

                  
	
                    Tennessee

                  	
                    Tennessee
                      Home Loan Protection Act, Tenn. Code Ann. §§ 45-20-101 et seq.

                    Effective
                      January 1, 2007.

                  	
                    High
                      Cost Home Loan

                  
	
                    West
                      Virginia

                  	
                    West
                      Virginia Residential Mortgage Lender, Broker and Servicer Act,
                      W. Va. Code
                      Ann. §§ 31-17-1 et seq.

                    Effective
                      June 5, 2002

                  	
                    West
                      Virginia Mortgage Loan Act Loan

                  

          

           

          

           

          
            	
                    Standard
                      & Poor’s Covered Loan Categorization

                  
	
                    State/Jurisdiction

                  	
                    Name
                      of Anti-Predatory Lending

                    Law/Effective
                      Date

                  	
                    Category
                      under

                    Applicable
                      Anti-Predatory Lending Law

                  
	
                    Georgia
                      (Oct. 1, 2002 - Mar. 6, 2003)

                  	
                    Georgia
                      Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                    Effective
                      October 1, 2002 - March 6, 2003

                  	
                    Covered
                      Loan

                  
	
                    New
                      Jersey

                  	
                    New
                      Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat.
§§ 46:10B-22
                      et seq.

                    Effective
                      November 27, 2003 - July 5, 2004

                  	
                    Covered
                      Home Loan

                  

          

           

          
            	
                    Standard
                      & Poor’s Home Loan Categorization

                  
	
                    State/Jurisdiction

                  	
                    Name
                      of Anti-Predatory Lending

                    Law/Effective
                      Date

                  	
                    Category
                      under

                    Applicable
                      Anti-Predatory Lending Law

                  
	
                    Georgia
                      (Oct. 1, 2002 - Mar. 6, 2003)

                  	
                    Georgia
                      Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                    Effective
                      October 1, 2002 - March 6, 2003

                  	
                    Home
                      Loan

                  
	
                    New
                      Jersey

                  	
                    New
                      Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat.
§§ 46:10B-22
                      et seq.

                    Effective
                      for loans closed on or after November 27, 2003

                  	
                    Home
                      Loan

                  
	
                    New
                      Mexico

                  	
                    Home
                      Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

                    Effective
                      as of January 1, 2004; Revised as of February 26, 2004 

                  	
                    Home
                      Loan

                  
	
                    North
                      Carolina

                  	
                    Restrictions
                      and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                      et seq.

                    Effective
                      July 1, 2000; amended October 1, 2003 (adding open-end lines
                      of
                      credit)

                  	
                    Consumer
                      Home Loan

                  
	
                    South
                      Carolina

                  	
                    South
                      Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                      et seq.

                    Effective
                      for loans taken on or after January 1, 2004

                  	
                    Consumer
                      Home Loan

                  

          

          

           

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SCHEDULE
          A

         

        REQUIRED
          RATINGS FOR EACH CLASS OF CERTIFICATES

         

        Public
          Certificates

         

        
          	
                  Class

                	
                  Standard
                    & Poor’s

                	
                  Moody’s

                
	
                  I-A

                	
                  AAA

                	
                  Aaa

                
	
                  II-A

                	
                  AAA

                	
                  Aaa

                
	
                  M-1

                	
                  AA+

                	
                  Aa1

                
	
                  M-2

                	
                  AA

                	
                  Aa2

                
	
                  M-3

                	
                  AA-

                	
                  Aa3

                
	
                  M-4

                	
                  A+

                	
                  A1

                
	
                  M-5

                	
                  A

                	
                  A2

                
	
                  M-6

                	
                  A-

                	
                  A3

                
	
                  B-1

                	
                  BBB+

                	
                  Baa1

                
	
                  B-2

                	
                  BBB

                	
                  Baa2

                
	
                  B-3

                	
                  BBB-

                	
                  Baa3

                
	 	 	 

        

        

        None
          of
          the above ratings has been lowered, qualified or withdrawn since the dates
          of
          issuance of such ratings by the Rating Agencies.

         

        Private
          Certificates

         

        
          	
                  Class

                	
                  Standard
                    & Poor’s

                	
                  Moody’s

                
	
                  B-4

                	
                  [BB+

                	
                  Ba1]

                
	
                  C

                	
                  Not
                    Rated

                	
                  Not
                    Rated

                
	
                  R-1

                	
                  Not
                    Rated

                	
                  Not
                    Rated

                
	
                  R-2

                	
                  Not
                    Rated

                	
                  Not
                    Rated

                
	
                  R-3

                	
                  Not
                    Rated

                	
                  Not
                    Rated

                
	
                  RX

                	
                  Not
                    Rated

                	
                  Not
                    Rated

                
	
                  X

                	
                  Not
                    Rated

                	
                  Not
                    Rated

                

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          M

        

        FORM
          OF
          BACK-UP CERTIFICATION

        

         

        Re:  The
          [ ]
          agreement dated as of [ ],
          200[ ]
          (the “Agreement”), among [IDENTIFY PARTIES]

         

        I,
          ________________________________, the _______________________ of [NAME
          OF
          COMPANY], certify to [the Purchaser], [the Depositor], and the [Master
          Servicer]
          [Securities Administrator] [Trustee], and their officers, with the knowledge
          and
          intent that they will rely upon this certification, that:

         

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

         

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

         

        (3) Based
          on
          my knowledge, all of the Company Servicing Information required to be provided
          by the Company under the Agreement has been provided to the [Depositor]
          [Master
          Servicer] [Securities Administrator] ;

         

        (4) I
          am
          responsible for reviewing the activities performed by the Company as servicer
          under the Agreement, and based on my knowledge and the compliance review
          conducted in preparing the Compliance Statement and except as disclosed
          in the
          Compliance Statement, the Servicing Assessment or the Attestation Report,
          the
          Company has fulfilled its obligations under the Agreement in all material
          respects; and

         

        (5) The
          Compliance Statement required to be delivered by the Company pursuant to
          the
          Agreement, and the Servicing Assessment and Attestation Report required
          to be
          provided by the Company and by any Subservicer or Subcontractor pursuant
          to the
          Agreement, have been provided to the [Depositor] [Securities Administrator].
          Any
          material instances of noncompliance described in such reports have been
          disclosed to the [Depositor] [Securities Administrator]. Any material instance
          of noncompliance with the Servicing Criteria has been disclosed in such
          reports.

         

        

         

        
          	
                  Date:

                	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          N

         

        INTEREST
          RATE SWAP AGREEMENT

         

        [insert
          bear logo]

        BEAR
          STEARNS FINANCIAL PRODUCTS INC.

        383
          MADISON AVENUE

        NEW
          YORK, NEW YORK 10179

        212-272-4009

        

        

        
          	
                  DATE:

                	
                  January
                    16, 2007

                
	
                   

                	 
	
                  TO:

                	
                  The
                    Supplemental Interest Trust with respect to Home Equity Mortgage
                    Loan
                    Asset-Backed Trust Series SACO
                    I Trust 2007-1 Mortgage-Backed Certificates, Series 2007-1, by
                    Wells Fargo
                    Bank National Association, not in its individual capacity, but
                    solely as
                    the Supplemental Interest Trust Trustee

                
	
                  ATTENTION:

                	
                  Wells
                    Fargo Bank, N.A.

                
	 	
                  Attention:
                    Client Manager, SACO 07-1

                
	
                  TELEPHONE:

                	
                  (410)
                    884-2000

                
	
                  FACSIMILE:

                	
                  (410)
                    715-2380

                
	 	 
	
                  FROM:

                	
                  Derivatives
                    Documentation

                
	
                  TELEPHONE: 

                	
                  212-272-2711

                
	
                  FACSIMILE: 

                	
                  212-272-9857
                    

                
	 	 
	
                  SUBJECT:

                	
                  Fixed
                    Income Derivatives Confirmation and Agreement 

                
	 	 
	
                  REFERENCE
                    NUMBER:

                	
                  FXNSC9101

                

        

        

        The
          purpose of this long-form confirmation (“Confirmation”)
          is to
          confirm the terms and conditions of the current Transaction entered into
          on the
          Trade Date specified below (the “Transaction”)
          between
          Bear Stearns Financial Products Inc. (“Party
          A”) and
          the
          Supplemental Interest Trust with respect to SACO I Trust 2007-1 Mortgage-Backed
          Certificates, Series 2007-1 (the “Supplemental Interest Trust”) (“Party
          B”)
          by
          Wells Fargo Bank National Association, not individually, but solely as
          supplemental interest trust trustee (the “Supplemental Interest Trust Trustee”),
          created under the Pooling and Servicing Agreement, dated as of December
          1, 2006, among EMC Mortgage Corporation, as seller and as the company,
          Wells
          Fargo Bank National Association, as master servicer and as securities
          administrator, Bear Stearns Asset Backed Securities I LLC, as depositor
          and
          Citibank, N.A., as trustee, (the “Pooling
          and Servicing Agreement”).
          This
          Confirmation evidences a complete and binding agreement between you and
          us to
          enter into the Transaction on the terms set forth below and replaces any
          previous agreement between us with respect to the subject matter hereof.
          This
          Confirmation constitutes a “Confirmation”
          and also
          constitutes a “Schedule”
          as
          referred to in the ISDA Master Agreement, and Paragraph 13 of a Credit
          Support
          Annex to the Schedule. 

        

        	1.  	
                This
                  Confirmation shall supplement, form a part of, and be subject to
                  an
                  agreement in the form of the ISDA Master Agreement (Multicurrency
                  - Cross
                  Border) as published and copyrighted in 1992 by the International
                  Swaps
                  and Derivatives Association, Inc. (the “ISDA
                  Master Agreement”),
                  as if Party A and Party B had executed an agreement in such form
                  on the
                  date hereof, with a Schedule as set forth in Item 3 of this Confirmation,
                  and an ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
                  Subject
                  to New York Law Only version) as published and copyrighted in 1994
                  by the
                  International Swaps and Derivatives Association, Inc., with Paragraph
                  13
                  thereof as set forth in Annex A hereto (the “Credit
                  Support Annex”).
                  For the avoidance of doubt, the Transaction described herein shall
                  be the
                  sole Transaction governed by such ISDA Master Agreement. In the
                  event of
                  any inconsistency among any of the following documents, the relevant
                  document first listed shall govern: (i) this Confirmation, exclusive
                  of
                  the provisions set forth in Item 3 hereof and Annex A hereto; (ii)
                  the
                  provisions set forth in Item 3 hereof, which are incorporated by
                  reference
                  into the Schedule; (iii) the Credit Support Annex; (iv) the Definitions;
                  and (v) the ISDA Master Agreement.

              

        

        Each
          reference herein to a “Section” (unless specifically referencing the Pooling and
          Servicing Agreement) or to a “Section” “of this Agreement” will be construed as
          a reference to a Section of the ISDA Master Agreement; each herein reference
          to
          a “Part” will be construed as a reference to the provisions herein deemed
          incorporated in a Schedule to the ISDA Master Agreement; each reference
          herein
          to a “Paragraph” will be construed as a reference to a Paragraph of the Credit
          Support Annex.

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	
                  2.

                	
                  The
                    terms of the particular Transaction to which this Confirmation
                    relates are
                    as follows:

                

        

        
        

         

        
          	
                  Type
                    of Transaction:

                	
                  Interest
                    Rate Swap

                
	 	 
	
                  Notional
                    Amount:

                	
                  With
                    respect to any Calculation Period, an amount equal to the amount
                    set forth
                    for such period on Schedule I attached hereto.

                
	 	 
	
                  Trade
                    Date:

                	
                  January
                    11, 2007

                
	 	 
	
                  Effective
                    Date:

                	
                  January
                    16, 2007

                
	 	 
	
                  Termination
                    Date:

                	
                  September
                    25, 2010, subject to adjustment in accordance with the Business
                    Day
                    Convention; provided, however, that for the purpose of determining
                    the
                    final Fixed Rate Payer Period End Date, Termination Date shall
                    be subject
                    to No Adjustment.

                
	 	 
	
                  Fixed
                    Amounts:

                	 
	 	 
	
                  Fixed
                    Rate Payer:

                	
                  Party
                    B

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    January 25, 2007, and ending on the Termination Date, with No
                    Adjustment.

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	
                  Payment
                    Dates:

                	
                  The
                    25th calendar day of each month during the Term of this Transaction,
                    commencing January 25, 2007, and ending on the Termination Date,
                    subject
                    to adjustment in accordance with the Business Day
                    Convention.

                
	 	 
	
                  Fixed
                    Rate:

                	
                  5.1230%

                
	 	 
	
                  Fixed
                    Amount:

                	
                  To
                    be determined in accordance with the following formula:

                
	 	 
	
                  100
                    * Fixed Rate * Notional Amount * Fixed Rate Day Count
                    Fraction

                	 
	 	 
	
                  Fixed
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  30/360

                
	 	 
	
                  Floating
                    Amounts:

                	 
	 	 
	
                  Floating
                    Rate Payer:

                	
                  Party
                    A

                
	 	 
	
                  Floating
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    January 25, 2007, and ending on the Termination Date, subject
                    to
                    adjustment in accordance with the Business Day
                    Convention.

                
	 	 
	
                  Floating
                    Rate Payer 

                	 
	
                  Payment
                    Dates:

                	
                  The
                    25th calendar day of each month during the Term of this Transaction,
                    commencing January 25, 2007, and ending on the Termination Date,
                    subject
                    to adjustment in accordance with the Business Day
                    Convention.

                
	 	 
	
                  Floating
                    Rate Option:

                	
                  USD-LIBOR-BBA

                
	 	 
	
                  Designated
                    Maturity:

                	
                  One
                    month

                
	 	 
	
                  Floating
                    Amount:

                	
                  To
                    be determined in accordance with the following formula:

                
	 	 
	
                  100
                    * Floating Rate Option * Notional Amount * Floating Rate Day
                    Count
                    Fraction

                	 
	 	 
	
                  Designated
                    Maturity:

                	
                  One
                    month 

                
	 	 
	
                  Floating
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  Actual/360

                
	 	 
	
                  Reset
                    Dates:

                	
                  The
                    first day of each Calculation Period.

                
	 	 
	
                  Compounding:

                	
                  Inapplicable

                
	 	 
	
                  Business
                    Days:

                	
                  New
                    York

                
	 	 
	
                  Business
                    Day Convention:

                	
                  Following

                
	 	 
	
                  Calculation
                    Agent:

                	
                  Party
                    A

                

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	
                  3.

                	
                  Provisions
                    Deemed Incorporated in a Schedule to the ISDA Master
                    Agreement:

                

        

        

        
          	
                  Part
                    1.

                	
                  Termination
                    Provisions.

                

        

        

        For
          the
          purposes of this Agreement:-

        

        (a)         
           “Specified
          Entity”
          will not
          apply to Party A or Party B for any purpose. 

        

        
          	
                  (b)

                	
                  “Specified
                    Transaction”
                    will have the meaning specified in Section
                    14.

                

        

        

        
          	
                  (c)

                	
                  Events
                    of Default.

                

        

        

        The
          statement below that an Event of Default will apply to a specific party
          means
          that upon the occurrence of such an Event of Default with respect to such
          party,
          the other party shall have the rights of a Non-defaulting Party under Section
          6
          of this Agreement; conversely, the statement below that such event will
          not
          apply to a specific party means that the other party shall not have such
          rights.

        

        	(i)  	
                The
                  “Failure
                  to Pay or Deliver”
                  provisions of Section 5(a)(i) will apply to Party A and will apply
                  to
                  Party B; provided, however, that notwithstanding anything to the
                  contrary
                  in Section 5(a)(i) or in Paragraph 7 of the Credit Support Annex,
                  any
                  failure by Party A to comply with or perform any obligation to
                  be complied
                  with or performed by Party A under the Credit Support Annex shall
                  not
                  constitute an Event of Default under Section 5(a)(i) unless (A)
                  a Required
                  Ratings Downgrade Event has occurred and been continuing for 30
                  or more
                  Local Business Days and (B) such failure is not remedied on or
                  before the
                  third Local Business Day after notice of such failure is given
                  to Party
                  A.

              

        

        	(ii)  	
                The
                  “Breach
                  of Agreement”
                  provisions of Section 5(a)(ii) will apply to Party A and will not
                  apply to
                  Party B.

              

        

        	(iii)  	
                The
                  “Credit
                  Support Default”
                  provisions of Section 5(a)(iii) will apply to Party A and will
                  not apply
                  to Party B except that Section 5(a)(iii)(1) will apply to Party
                  B solely
                  in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                  Support Annex; provided, however, that notwithstanding anything
                  to the
                  contrary in Section 5(a)(iii)(1), any failure by Party A to comply
                  with or
                  perform any obligation to be complied with or performed by Party
                  A under
                  the Credit Support Annex shall not constitute an Event of Default
                  under
                  Section 5(a)(iii) unless (A) a Required Ratings Downgrade Event
                  has
                  occurred and been continuing for 30 or more Local Business Days
                  and (B)
                  such failure is not remedied on or before the third Local Business
                  Day
                  after notice of such failure is given to Party
                  A.

              

        

        	(iv)  	
                The
                  “Misrepresentation”
                  provisions of Section 5(a)(iv) will apply to Party A and will not
                  apply to
                  Party B. 

              

        

        	(v)  	
                The
                  “Default
                  under Specified Transaction”
                  provisions of Section 5(a)(v) will apply to Party A and will not
                  apply to
                  Party B.

              

        

        	(vi)  	
                The
                  “Cross
                  Default”
                  provisions of Section 5(a)(vi) will apply to Party A and will not
                  apply to
                  Party B. For purposes of Section 5(a)(vi), solely with respect
                  to Party
                  A:

              

        

        “Specified
          Indebtedness” will have the meaning specified in Section 14.

        

        “Threshold
          Amount” means USD 100,000,000.

        

        	(vii)  	
                The
                  “Bankruptcy”
                  provisions of Section 5(a)(vii) will apply to Party A and will
                  apply to
                  Party B except that the provisions of Section 5(a)(vii)(2), (6)
                  (to the
                  extent that such provisions refer to any appointment contemplated
                  or
                  effected by the Pooling and Servicing Agreement or any appointment
                  to
                  which Party B has not become subject), (7) and (9) will not apply
                  to Party
                  B; provided that, with respect to Party B only, Section 5(a)(vii)(4)
                  is
                  hereby amended by adding after the words “against it” the words
                  “(excluding any proceeding or petition instituted or presented by
                  Party A
                  or its Affiliates)”, and Section 5(a)(vii)(8) is hereby amended by
                  deleting the words “to (7) inclusive” and inserting lieu thereof “, (3),
                  (4) as amended, (5), (6) as amended, or
                  (7)”.

              

        

        	(viii)  	
                The
                  “Merger
                  Without Assumption”
                  provisions of Section 5(a)(viii) will apply to Party A and will
                  apply to
                  Party B.

              

        

        (d)         
           Termination
          Events.

        

        The
          statement below that a Termination Event will apply to a specific party
          means
          that upon the occurrence of such a Termination Event, if such specific
          party is
          the Affected Party with respect to a Tax Event, the Burdened Party with
          respect
          to a Tax Event Upon Merger (except as noted below) or the non-Affected
          Party
          with respect to a Credit Event Upon Merger, as the case may be, such specific
          party shall have the right to designate an Early Termination Date in accordance
          with Section 6 of this Agreement; conversely, the statement below that
          such an
          event will not apply to a specific party means that such party shall not
          have
          such right; provided, however, with respect to “Illegality” the statement that
          such event will apply to a specific party means that upon the occurrence
          of such
          a Termination Event with respect to such party, either party shall have
          the
          right to designate an Early Termination Date in accordance with Section
          6 of
          this Agreement.

        

        (i) The
          “Illegality”
          provisions of Section 5(b)(i) will apply to Party A and will apply to Party
          B.

        

        
          	 	
                  (ii)

                	
                  The
                    “Tax
                    Event”
                    provisions of Section 5(b)(ii) will apply to Party A and will
                    apply to
                    Party B. 

                

        

        

        
          	 	
                  (iii)

                	
                  The
                    “Tax
                    Event Upon Merger”
                    provisions of Section 5(b)(iii) will apply to Party A and will
                    apply to
                    Party B, provided that Party A shall not be entitled to designate
                    an Early
                    Termination Date by reason of a Tax Event upon Merger in respect
                    of which
                    it is the Affected Party.

                

        

        

        
          	 	
                  (iv)

                	
                  The
                    “Credit
                    Event Upon Merger”
                    provisions of Section 5(b)(iv) will not apply to Party A and
                    will not
                    apply to Party B.

                

        

        

        
          	
                  (e)

                	
                  The
                    “Automatic
                    Early Termination”
                    provision of Section 6(a) will not apply to Party A and will
                    not apply to
                    Party B.

                

        

        

        (f)         
            Payments
          on Early Termination.
          For the
          purpose of Section 6(e) of this Agreement:

        

        	(i)  	
                The
                  Second Method will apply.

              

        

        	(ii)  	
                Market
                  Quotation will apply, provided, however, that, if Party A is the
                  Defaulting Party or the sole Affected Party, the following provisions
                  will
                  apply:

              

        

        
          	 	
                  (A)

                	
                  Section
                    6(e) is hereby amended by inserting on the first line thereof
                    the words
                    “or is effectively designated” after “If an Early Termination Date
                    occurs”;

                

        

        

        
          	 	
                  (B)
                    

                	
                  The
                    definition of Market Quotation in Section 14 shall be deleted
                    in its
                    entirety and replaced with the following:

                

        

        

        “Market
          Quotation” means,
          with respect to one or more Terminated Transactions, and a party making
          the
          determination, an amount determined on the basis of one or more Firm Offers
          from
          Reference Market-makers that are Eligible Replacements. Each Firm Offer
          will be
          (1) for an amount that would be paid to Party B (expressed as a negative
          number)
          or by Party B (expressed as a positive number) in consideration of an agreement
          between Party B and such Reference Market-maker to enter into a Replacement
          Transaction, and (2) made on the basis that Unpaid Amounts in respect of
          the
          Terminated Transaction or group of Transactions are to be excluded but,
          without
          limitation, any payment or delivery that would, but for the relevant Early
          Termination Date, have been required (assuming satisfaction of each applicable
          condition precedent) after that Early Termination Date are to be included.
          The
          party making the determination (or its agent) will request each Reference
          Market-maker that is an Eligible Replacement to provide its Firm Offer
          to the
          extent reasonably practicable as of the same day and time (without regard
          to
          different time zones) on or as soon as reasonably practicable after the
          designation of the relevant Early Termination Date. The day and time as
          of which
          those Firm Offers are to be provided (the “bid time”) will be selected in good
          faith by the party obliged to make a determination under Section 6(e),
          and, if
          each party is so obliged, after consultation with the other. If at least
          one
          Firm Offer from an Approved Replacement (which, if accepted, would determine
          the
          Market Quotation) is provided at the bid time, the Market Quotation will
          be the
          Firm Offer (among such Firm Offers as specified in clause (C) below) actually
          accepted by Party B no later than the Business Day immediately preceding
          the
          Early Termination Date. If no Firm Offer from an Approved Replacement (which,
          if
          accepted, would determine the Market Quotation) is provided at the bid
          time, it
          will be deemed that the Market Quotation in respect of such Terminated
          Transaction or group of Transactions cannot be determined.

        

        
          	 	
                  (C)

                	
                  If
                    more than one Firm Offer from an Approved Replacement (which,
                    if accepted,
                    would determine the Market Quotation) is provided at the bid
                    time, Party B
                    shall use best efforts to accept the Firm Offer (among such Firm
                    Offers)
                    which would require either (x) the lowest payment by Party B
                    to the
                    Reference Market-maker, to the extent Party B would be required
                    to make a
                    payment to the Reference Market-maker or (y) the highest payment
                    from the
                    Reference Market-maker to Party B, to the extent the Reference
                    Market-maker would be required to make a payment to Party B.
                    If only one
                    Firm Offer from an Approved Replacement (which, if accepted,
                    would
                    determine the Market Quotation) is provided at the bid time,
                    Party B shall
                    use best efforts to accept such Firm
                    Offer.

                

        

        

        
          	 	
                  (D)

                	
                  If
                    Party B requests Party A in writing to obtain Market Quotations,
                    Party A
                    shall use its reasonable efforts to do so.

                

        

        

        
          	 	
                  (E)

                	
                  If
                    the Settlement Amount is a negative number, Section 6(e)(i)(3)
                    shall be
                    deleted in its entirety and replaced with the
                    following:

                

        

        

        “(3)
          Second
          Method and Market Quotation.
          If the
          Second Method and Market Quotation apply, (I) Party B shall pay to Party
          A an
          amount equal to the absolute value of the Settlement Amount in respect
          of the
          Terminated Transactions, (II) Party B shall pay to Party A the Termination
          Currency Equivalent of the Unpaid Amounts owing to Party A and (III) Party
          A
          shall pay to Party B the Termination Currency Equivalent of the Unpaid
          Amounts
          owing to Party B; provided, however, that (x) the amounts payable under
          the
          immediately preceding clauses (II) and (III) shall be subject to netting
          in
          accordance with Section 2(c) of this Agreement and (y) notwithstanding
          any other
          provision of this Agreement, any amount payable by Party A under the immediately
          preceding clause (III) shall not be netted-off against any amount payable
          by
          Party B under the immediately preceding clause (I).”

         

        (g)         
           “Termination
          Currency”
          means
          USD.

        

        (h)         
            Additional
          Termination Events.
          Additional Termination Events will apply as provided in Part 5(c).

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Part
          2.  Tax
          Matters.

        

        (a)         
           Tax
          Representations. 

        

        
          	 	
                  (i)

                	
                  Payer
                    Representations.
                    For the purpose of Section 3(e) of this Agreement:
                    

                

        

         

        (A) Party
          A
          makes the following representation(s):

        

        It
          is not
          required by any applicable law, as modified by the practice of any relevant
          governmental revenue authority, of any Relevant Jurisdiction to make any
          deduction or withholding for or on account of any Tax from any payment
          (other
          than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to
          be made
          by it to the other party under this Agreement. 

        

        In
          making
          this representation, it may rely on: 

        

        
          	 	
                  (1)

                	
                  the
                    accuracy of any representations made by the other party pursuant
                    to
                    Section 3(f) of this Agreement; 

                

        

        

        
          	 	
                  (2)

                	
                  the
                    satisfaction of the agreement contained in Section 4(a)(i) or
                    4(a)(iii) of
                    this Agreement and the accuracy and effectiveness of any document
                    provided
                    by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of
                    this
                    Agreement; and 

                

        

        

        
          	 	
                  (3)

                	
                  the
                    satisfaction of the agreement of the other party contained in
                    Section 4(d)
                    of this Agreement, provided that it shall not be a breach of
                    this
                    representation where reliance is placed on clause (ii) and the
                    other party
                    does not deliver a form or document under Section 4(a)(iii) by
                    reason of
                    material prejudice to its legal or commercial
                    position.

                

        

        
          	 	 	 

        

        (B) Party
          B
          makes the following representation(s):

        

        None.

        

        (ii)
           Payee
          Representations.
          For the
          purpose of Section 3(f) of this Agreement: 

         

        (A) Party
          A
          makes the following representation(s):

        

        Party
          A
          is a corporation organized under the laws of the State of Delaware and
          its U.S.
          taxpayer identification number is 13-3866307.

        
          	 	 	 

        

        (B) Party
          B
          makes the following representation(s):

        

        None.

        

        
          	
                  (b)

                	
                  Tax
                    Provisions.

                

        

        

        
          	 	
                  (i)

                	
                  Gross
                    Up.
                    Section 2(d)(i)(4) shall not apply to Party B as X, such that
                    Party B
                    shall not be required to pay any additional amounts referred
                    to
                    therein.

                

        

        

        
          	 	
                  (ii)

                	
                  Indemnifiable
                    Tax.
                    Notwithstanding the definition of “Indemnifiable Tax” in Section 14 of
                    this Agreement, all Taxes in relation to payments by Party A
                    shall be
                    Indemnifiable Taxes (including any Tax imposed in relation to
                    a Credit
                    Support Document or in relation to any payment thereunder) unless
                    (i) such
                    Taxes are assessed directly against Party B and not by deduction
                    or
                    withholding by Party A or (ii) arise as a result of a Change
                    in Tax Law
                    (in which case such Tax shall be an Indemnifiable Tax only if
                    such Tax
                    satisfies the definition of Indemnifiable Tax provided in Section
                    14). In
                    relation to payments by Party B, no Tax shall be an Indemnifiable
                    Tax.

                

        

        

        

        Part
          3.  Agreement
          to Deliver Documents.  

        

        (a)          
           For
          the
          purpose of Section 4(a)(i), tax forms, documents, or certificates to be
          delivered are:

        

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	 	
                  Date
                    by which to

                  be
                    delivered

                
	 	 	 	 
	
                  Party
                    A

                	
                  An
                    original properly completed and executed United States Internal
                    Revenue
                    Service Form W-9 (or any successor thereto) with respect to any
                    payments
                    received or to be received by Party A that eliminates U.S. federal
                    withholding and backup withholding Tax on payments to Party A
                    under this
                    Agreement.

                	 	
                  (i)
                    upon execution of this Agreement, (ii) on or before the first
                    payment date
                    under this Agreement, including any Credit Support Document,
                    (iii)
                    promptly upon the reasonable demand by Party B, (iv) prior to
                    the
                    expiration or obsolescence of any previously delivered form,
                    and (v)
                    promptly upon the information on any such previously delivered
                    form
                    becoming inaccurate or incorrect.

                
	 	 	 	 
	
                  Party
                    B

                	
                  (i)
                    Upon execution of this Agreement, an original properly completed
                    and
                    executed United States Internal Revenue Service Form W-9 (or
                    any successor
                    thereto) with respect to any payments received or to be received
                    by the
                    initial beneficial owner of payments to Party B that eliminates
                    U.S.
                    federal withholding and backup withholding Tax on payments to
                    Party B
                    under this Agreement, and (ii) thereafter, the appropriate tax
                    certification form (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY,
                    W-8EXP
                    or W-8ECI, as applicable (or any successor form thereto)) with
                    respect to
                    any payments received or to be received by the beneficial owner
                    of
                    payments to Party B under this Agreement from time to time.
                    

                	 	
                  (i)
                    upon execution of this Agreement, (ii) on or before the first
                    payment date
                    under this Agreement, including any Credit Support Document,
                    (iii) in the
                    case of a tax certification form other than a Form W-9, before
                    December 31
                    of each third succeeding calendar year, (iv) promptly upon the
                    reasonable
                    demand by Party B, (v) prior to the expiration or obsolescence
                    of any
                    previously delivered form, and (vi) promptly upon the information
                    on any
                    such previously delivered form becoming inaccurate or
                    incorrect.

                

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        (b) For
          the
          purpose of Section 4(a)(ii), other documents to be delivered are:

        

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	 	
                  Date
                    by which to

                  be
                    delivered

                	 	
                  Covered
                    by Section 3(d) Representation

                
	
                  Party
                    A and

                  Party
                    B

                	
                  Any
                    documents required by the receiving party to evidence the authority
                    of the
                    delivering party or its Credit Support Provider, if any, for
                    it to execute
                    and deliver the Agreement, this Confirmation, and any Credit
                    Support
                    Documents to which it is a party, and to evidence the authority
                    of the
                    delivering party or its Credit Support Provider to perform its
                    obligations
                    under the Agreement, this Confirmation and any Credit Support
                    Document, as
                    the case may be

                	 	
                  Upon
                    the execution and delivery of this Agreement

                	 	
                  Yes

                
	 	 	 	 	 	 
	
                  Party
                    A and

                  Party
                    B

                	
                  A
                    certificate of an authorized officer of the party, as to the
                    incumbency
                    and authority of the respective officers of the party signing
                    the
                    Agreement, this Confirmation, and any relevant Credit Support
                    Document, as
                    the case may be

                	 	
                  Upon
                    the execution and delivery of this Agreement

                	 	
                  Yes

                
	 	 	 	 	 	 
	
                  Party
                    A

                	
                  Annual
                    Report of Party A containing consolidated financial statements
                    certified
                    by independent certified public accountants and prepared in accordance
                    with generally accepted accounting principles in the country
                    in which
                    Party A is organized

                	 	
                  Upon
                    request by Party B

                	 	
                  Yes

                
	 	 	 	 	 	 
	
                  Party
                    A

                	
                  Quarterly
                    Financial Statements of Party A containing unaudited, consolidated
                    financial statements of Party A’s fiscal quarter prepared in accordance
                    with generally accepted accounting principles in the country
                    in which
                    Party A is organized

                	 	
                  Upon
                    request by Party B

                	 	
                  Yes

                
	 	 	 	 	 	 
	
                  Party
                    A and

                  Party
                    B

                	
                  An
                    opinion of counsel of such party regarding the enforceability
                    of this
                    Agreement in a form reasonably satisfactory to the other
                    party.

                	 	
                  Upon
                    the execution and delivery of this Agreement

                	 	
                  No

                
	 	 	 	 	 	 
	
                  Party
                    B

                	
                  An
                    executed copy of the Pooling and Servicing Agreement

                	 	
                  Promptly
                    upon filing of such agreement with the U.S. Securities and Exchange
                    Commission

                	 	
                  No

                

        

        

        Part
          4. Miscellaneous. 

        

        
          	
                  (a)

                	
                  Address
                    for Notices:
                    For the purposes of Section 12(a) of this
                    Agreement:

                

        

        

        Address
          for notices or communications to Party A:

        

        
          	
                  Address:

                	
                  383
                    Madison Avenue, New York, New York 10179

                
	
                  Attention:

                	
                  DPC
                    Manager 

                
	
                  Facsimile:

                	
                  (212)
                    272-5823

                
	 	 
	
                  with
                    a copy to:

                	 
	 	 
	
                  Address:

                	
                  One
                    Metrotech Center North, Brooklyn, New York 11201

                
	
                  Attention:

                	
                  Derivative
                    Operations 7th Floor

                
	
                  Facsimile:

                	
                  (212)
                    272-1634

                
	 	 
	
                  (For
                    all purposes)

                	 

        

        

        Address
          for notices or communications to Party B:

        

        
          	
                  Address:

                	
                  Wells
                    Fargo Bank, NA

                
	 	
                  9062
                    Old Annapolis Road

                
	 	
                  Columbia
                    MD 21045

                
	
                  Attention:

                	
                  Client
                    Manager, SACO 07-1

                
	
                  Facsimile:

                	
                  (410)
                    715-2380

                
	
                  Phone:

                	
                  (410)
                    884-2000

                
	 	 
	
                  (For
                    all purposes)

                	 

        

        

        (b) Process
          Agent.
          For the
          purpose of Section 13(c):

        

        Party
          A
          appoints as its Process Agent: Not applicable.

        

        Party
          B
          appoints as its Process Agent: Not applicable.

        

        
          	
                  (c)

                	
                  Offices.
                    The provisions of Section 10(a) will apply to this Agreement;
                    neither
                    Party A nor Party B has any Offices other than as set forth in
                    the Notices
                    Section.

                

        

        

        
          	
                  (d)

                	
                  Multibranch
                    Party.
                    For the purpose of Section 10(c) of this
                    Agreement:

                

        

        

        Party
          A
          is not a Multibranch Party.

        

        
          	 	
                  Party
                    B is not a Multibranch Party.

                

        

        

        
          	
                  (e)

                	
                  Calculation
                    Agent.
                    The Calculation Agent is Party A.

                

        

        

        (f) Credit
          Support Document. 

         

        
          	
                  Party
                    A:

                	
                  The
                    Credit Support Annex, and any guarantee in support of Party A’s
                    obligations under this Agreement.

                
	 	 
	
                  Party
                    B:

                	
                  The
                    Credit Support Annex.

                

        

        

        
          	
                  (g)

                	
                  Credit
                    Support Provider.

                

        

        

        
          	
                  Party
                    A:

                	
                  The
                    guarantor under any guarantee in support of Party A’s obligations under
                    this Agreement.

                
	 	 
	
                  Party
                    B:

                	
                  None.

                

        

        

        
          	
                  (h)

                	
                  Governing
                    Law.
                    The parties to this Agreement hereby agree that the law of the
                    State of
                    New York shall govern their rights and duties in whole, without
                    regard to
                    the conflict of law provisions thereof other than New York General
                    Obligations Law Sections 5-1401 and 5-1402.

                

        

        

        
          	
                  (i)

                	
                  Netting
                    of Payments.
                    The parties agree that subparagraph (ii) of Section 2(c) will
                    apply to
                    each Transaction hereunder. 

                

        

        

        
          	
                  (j)

                	
                  Affiliate.
                    Party A and Party B shall be deemed to have no Affiliates for
                    purposes of
                    this Agreement, including for purposes of Section
                    6(b)(ii).

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Part
          5.  Others
          Provisions.

        

        
          	
                  (a)

                	
                  Definitions.
                    Unless
                    otherwise specified in a Confirmation, this Agreement and each
                    Transaction
                    under this Agreement are subject to the 2000 ISDA Definitions
                    as published
                    and copyrighted in 2000 by the International Swaps and Derivatives
                    Association, Inc. (the “Definitions”),
                    and will be governed in all relevant respects by the provisions
                    set forth
                    in the Definitions, without regard to any amendment to the Definitions
                    subsequent to the date hereof. The provisions of the Definitions
                    are
                    hereby incorporated by reference in and shall be deemed a part
                    of this
                    Agreement, except that (i) references in the Definitions to a
“Swap
                    Transaction” shall be deemed references to a “Transaction” for purposes of
                    this Agreement, and (ii) references to a “Transaction” in this Agreement
                    shall be deemed references to a “Swap Transaction” for purposes of the
                    Definitions. Each term capitalized but not defined in this Agreement
                    shall
                    have the meaning assigned thereto in the Pooling and Servicing
                    Agreement.

                

        

         

        (b) Amendments
          to ISDA Master Agreement.

        

        
          	 	
                  (i)

                	
                  Single
                    Agreement.
                    Section 1(c) is hereby amended by the adding the words “including, for the
                    avoidance of doubt, the Credit Support Annex” after the words “Master
                    Agreement”. 

                

        

        

        
          	 	
                  (ii)

                	
                  [Reserved.]
                    

                

        

        

        
          	 	
                  (iii)

                	
                  [Reserved.]

                

        

        

        
          	 	
                  (iv)

                	
                  Representations.
                    Section 3 is hereby amended by adding at the end thereof the
                    following
                    subsection (g): 

                

        

        

        
          	 	
                  “(g)

                	
                  Relationship
                    Between Parties. 

                

        

        

        
          	 	
                  (1)

                	
                  Nonreliance.
                    (i) It is not relying on any statement or representation of the
                    other
                    party regarding the Transaction (whether written or oral), other
                    than the
                    representations expressly made in this Agreement or the Confirmation
                    in
                    respect of that Transaction, (ii) it has consulted with its own
                    legal,
                    regulatory, tax, business, investment, financial and accounting
                    advisors
                    to the extent it has deemed necessary, and it has made its own
                    investment,
                    hedging and trading decisions based upon its own judgment and
                    upon any
                    advice from such advisors as it has deemed necessary and not
                    upon any view
                    expressed by the other party, (iii) it is not relying on any
                    communication
                    (written or oral) of the other party as investment advice or
                    as a
                    recommendation to enter into this Transaction; it being understood
                    that
                    information and explanations related to the terms and conditions
                    of this
                    Transaction shall not be considered investment advice or a recommendation
                    to enter into this Transaction, and (iv) it has not received
                    from the
                    other party any assurance or guaranty as to the expected results
                    of this
                    Transaction.

                

        

         

        
          	 	
                  (2)

                	
                  Evaluation
                    and Understanding. (i) It has the capacity to evaluate (internally
                    or
                    through independent professional advice) the Transaction and
                    has made its
                    own decision to enter into the Transaction and (ii) it understands
                    the
                    terms, conditions and risks of the Transaction and is willing
                    and able to
                    accept those terms and conditions and to assume those risks,
                    financially
                    and otherwise. 

                

        

        

        
          	 	
                  (3)

                	
                  Purpose.
                    It is entering into the Transaction for the purposes of managing
                    its
                    borrowings or investments, hedging its underlying assets or liabilities
                    or
                    in connection with a line of business.

                

        

        

        
          	 	
                  (4)

                	
                  Status
                    of Parties. The other party is not acting as an agent, fiduciary
                    or
                    advisor for it in respect of the Transaction.

                

        

        

        
          	 	
                  (5)

                	
                  Eligible
                    Contract Participant. It is an “eligible swap participant” as such term is
                    defined in, Section 35.1(b)(2) of the regulations (17 C.F.R.
                    35)
                    promulgated under, and an “eligible contract participant” as defined in
                    Section 1(a)(12) of the Commodity Exchange Act, as
                    amended.”

                

        

        

        
          	 	
                  (v)

                	
                  Transfer
                    to Avoid Termination Event.
                    Section 6(b)(ii) is hereby amended by (i) deleting the words
“or if a Tax
                    Event Upon Merger occurs and the Burdened Party is the Affected
                    Party,”
                    and (ii) deleting the last paragraph thereof and inserting the
                    following
                    in lieu thereof:

                

        

        

        “Notwithstanding
          anything to the contrary in Section 7 (as amended herein) and Part 5(f),
          any
          transfer by Party A under this Section 6(b)(ii) shall not require the consent
          of
          Party B for such transfer if the following conditions are
          satisfied:

        

        
          	 	
                  (1)

                	
                  the
                    transferee (the “Section 6 Transferee”) is an Eligible
                    Replacement;

                

        

        

        
          	 	
                  (2)

                	
                  if
                    the Section 6 Transferee is domiciled in a different country
                    or political
                    subdivision thereof from both Party A and Party B, such transfer
                    satisfies
                    the Rating Agency Condition;

                

        

        

        
          	 	
                  (3)

                	
                  the
                    Section 6 Transferee will not, as a result of such transfer,
                    be required
                    on the next succeeding Scheduled Payment Date to withhold or
                    deduct on
                    account of any Tax (except in respect of default interest) amounts
                    in
                    excess of that which Party A would, on the next succeeding Scheduled
                    Payment Date have been required to so withhold or deduct unless
                    the
                    Section 6 Transferee would be required to make additional payments
                    pursuant to Section 2(d)(i)(4) corresponding to such excess;
                    

                

        

        

        
          	 	
                  (4)

                	
                  a
                    Termination Event or Event of Default does not occur as a result
                    of such
                    transfer; and

                

        

        

        
          	 	
                  (5)

                	
                  the
                    Section 6 Transferee confirms in writing that it will accept
                    all of the
                    interests and obligations in and under this Agreement which are
                    to be
                    transferred to it in accordance with the terms of this
                    provision.”

                

        

        

        
          	 	
                  (vi)

                	
                  Jurisdiction.
                    Section
                    13(b) is hereby amended by: (i) deleting in the second line of
                    subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                    end of subparagraph 1 and inserting “.” in lieu thereof, and (iii)
                    deleting the final paragraph
                    thereof.

                

        

        

        
          	 	
                  (vii)

                	
                  Local
                    Business Day.
                    The definition of Local Business Day in Section 14 is hereby
                    amended by
                    the addition of the words “or any Credit Support Document” after “Section
                    2(a)(i)” and the addition of the words “or Credit Support Document” after
                    “Confirmation”. 

                

        

        

        
          	
                  (c)

                	
                  Additional
                    Termination Events.
                    The following Additional Termination Events will
                    apply:

                

        

        

        	(i)          
                 	
                S&P
                  First Level Downgrade.
                  If
                  an S&P Approved Ratings Downgrade Event has occurred and is continuing
                  and Party A fails to take any action described under Part (5)(d)(i)(1),
                  within the time period specified therein, then an Additional Termination
                  Event shall have occurred with respect to Party A, Party A shall
                  be the
                  sole Affected Party with respect to such Additional Termination
                  Event and
                  all Transactions hereunder shall be Affected
                  Transaction.

              

        

        	(ii)           	
                Moody’s
                  First Rating Trigger Collateral.
                  If
                  (A) it is not the case that a Moody’s Second Trigger Ratings Event has
                  occurred and been continuing for 30 or more Local Business Days
                  and (B)
                  Party A has failed to comply with or perform any obligation to
                  be complied
                  with or performed by Party A in accordance with the Credit Support
                  Annex,
                  then an Additional Termination Event shall have occurred with respect
                  to
                  Party A, Party A shall be the sole Affected Party with respect
                  to such
                  Additional Termination Event and all Transactions hereunder shall
                  be
                  Affected Transactions. 

              

        

        	(iii)        
                 	
                S&P
                  Second Level Downgrade.
                  If
                  an S&P Required Ratings Downgrade Event has occurred and is continuing
                  and Party A fails to take any action described under Part (5)(d)(i)(2)
                  within the time period specified therein, then an Additional Termination
                  Event shall have occurred with respect to Party A, Party A shall
                  be the
                  sole Affected Party with respect to such Additional Termination
                  Event and
                  all Transactions hereunder shall be Affected
                  Transaction.

              

        

        	(iv)          
                	
                Moody’s
                  Second Rating Trigger Replacement.
                  If
                  (A) a Moody’s Second Trigger Ratings Event has occurred and been
                  continuing for 30 or more Local Business Days and (B) (i) at least
                  one
                  Eligible Replacement has made a Firm Offer to be the transferee
                  of all of
                  Party A’s rights and obligations under this Agreement (and such Firm
                  Offer
                  remains an offer that will become legally binding upon such Eligible
                  Replacement upon acceptance by the offeree) and/or (ii) an Eligible
                  Guarantor has made a Firm Offer to provide an Eligible Guarantee
                  (and such
                  Firm Offer remains an offer that will become legally binding upon
                  such
                  Eligible Guarantor immediately upon acceptance by the offeree),
                  then an
                  Additional Termination Event shall have occurred with respect to
                  Party A,
                  Party A shall be the sole Affected Party with respect to such Additional
                  Termination Event and all Transactions hereunder shall be Affected
                  Transactions. 

              

        

        
          	 	
                  (v)

                	
                  Amendment
                    of Pooling and Servicing Agreement.
                    If, without the prior written consent of Party A where such consent
                    is
                    required under the Pooling and Servicing Agreement (such consent
                    not to be
                    unreasonably withheld), an amendment is made to the Pooling and
                    Servicing
                    Agreement which amendment could reasonably be expected to have
                    a material
                    adverse effect on the interests of Party A under this Agreement,
                    an
                    Additional Termination Event shall have occurred with respect
                    to Party B,
                    Party B shall be the sole Affected Party with respect to such
                    Additional
                    Termination Event and all Transactions hereunder shall be Affected
                    Transactions. 

                

        

        

        
          	 	
                  (vi)

                	
                  Failure
                    to Comply with Regulation AB Requirements.
                    If, upon the occurrence of a Swap Disclosure Event (as defined
                    in Part
                    5(e) below) Party A has not complied with any of the provisions
                    set forth
                    in clause (iii) of Part 5(e) below, then an Additional Termination
                    Event
                    shall have occurred with respect to Party A and Party A shall
                    be the sole
                    Affected Party with respect to such Additional Termination
                    Event

                

        

        

        
          	 	
                  (vii)

                	
                  Optional
                    Termination of Securitization.
                    An
                    Additional Termination Event shall occur upon the notice to
                    Certificateholders of an Optional Termination becoming unrescindable
                    in
                    accordance with Article XI of the Pooling and Servicing Agreement
                    (such
                    notice, the “Optional
                    Termination Notice”).
                    With respect to such Additional Termination Event: (A) Party
                    B shall be
                    the sole Affected Party; (B) notwithstanding anything to the
                    contrary in
                    Section 6(b)(iv) or Section 6(c)(i), the final Distribution Date
                    specified
                    in the Optional Termination Notice is hereby designated as the
                    Early
                    Termination Date for this Additional Termination Event in respect
                    of all
                    Affected Transactions; (C) Section 2(a)(iii)(2) shall not be
                    applicable to
                    any Affected Transaction in
                    connection with the Early Termination Date resulting from this
                    Additional
                    Termination Event; notwithstanding anything to the contrary in
                    Section
                    6(c)(ii), payments and deliveries under Section 2(a)(i) or Section
                    2(e) in
                    respect of the Terminated Transactions resulting from this Additional
                    Termination Event will be required to be made through and including
                    the
                    Early Termination Date designated
                    as a result of this Additional Termination Event; provided, for
                    the
                    avoidance of doubt, that any such payments or deliveries that
                    are made on
                    or prior to such Early Termination Date will not be treated as
                    Unpaid
                    Amounts in determining the amount payable in respect of such
                    Early
                    Termination Date; (D) notwithstanding anything to the contrary
                    in Section
                    6(d)(i), (I) if, no later than 4:00 pm New York City time on
                    the day that
                    is four Business Days prior to the final Distribution Date specified
                    in
                    the Optional Termination Notice, the Securities Administrator
                    requests the
                    amount of the Estimated Swap Termination Payment, Party A shall
                    provide to
                    the Securities Administrator in writing (which may be done in
                    electronic
                    format) the amount of the Estimated Swap Termination Payment
                    no later than
                    2:00 pm New York City time on the following Business Day and
                    (II) if the
                    Securities Administrator provides written notice (which may be
                    done in
                    electronic format) to Party A no later than two Business Days
                    prior to the
                    final Distribution Date specified in the Optional Termination
                    Notice that
                    all requirements of the Optional Termination have been met, then
                    Party A
                    shall, no later than one Business Day prior to the final Distribution
                    Date
                    specified in the Optional Termination Notice, make the calculations
                    contemplated by Section 6(e) of the ISDA Master Agreement (as
                    amended
                    herein) and provide to the Securities Administrator in writing
                    (which may
                    be done in electronic format) the amount payable by either Party
                    B or
                    Party A in respect of the related Early Termination Date in
                    connection with this Additional Termination Event; provided,
                    however, that
                    the amount payable by Party B, if any, in respect of the related
                    Early
                    Termination Date shall be the lesser of (x) the amount calculated
                    to be
                    due by Party B pursuant to Section 6(e) and (y) the Estimated
                    Swap
                    Termination Payment; and (E) notwithstanding anything to the
                    contrary in
                    this Agreement, any amount due from Party B to Party A in respect
                    of this
                    Additional Termination Event will be payable on the final Distribution
                    Date specified in the Optional Termination Notice and any amount
                    due from
                    Party A to Party B in respect of this Additional Termination
                    Event will be
                    payable one Business Day prior to the final Distribution Date
                    specified in
                    the Optional Termination Notice.

                

        

        

        The
          Securities Administrator shall be an express third party beneficiary of
          this
          Agreement as if a party hereto to the extent of the Securities Administrator’s
          rights specified herein. 

        

        
          	 	
                  (viii)

                	
                  Failure
                    to Pay Class A Certificates.
                    If the Securities Administrator on behalf of the Trust is unable
                    to pay,
                    or fails or admits in writing its inability to pay (1) on any
                    Distribution
                    Date, any Accrued Certificate Interest Distribution Amount with
                    respect to
                    the Class A Certificates or (2) by the Distribution Date immediately
                    following the maturity date for the Mortgage Loan with the latest
                    maturity
                    date, the ultimate payment of principal with respect to the Class
                    A
                    Certificates, in either case to the extent required pursuant
                    to the terms
                    of the Pooling and Servicing Agreement to be paid to the Class
                    A
                    Certificates, then an Additional Termination Event shall have
                    occurred
                    with respect to Party A, Party A shall be the sole Affected Party
                    and all
                    Transactions hereunder shall be Affected
                    Transactions.

                

        

        

        
          	
                  (d)

                	
                  Rating
                    Agency Downgrade.  

                

        

        

        (i) S&P
          Downgrade:

        

        
          	 	
                  (1)

                	
                  In
                    the event that an S&P Approved Ratings Downgrade Event occurs and is
                    continuing, then within 30 days after such rating downgrade,
                    Party A
                    shall, subject to the Rating Agency Condition with respect to
                    S&P, at
                    its own expense, either (i) procure a Permitted Transfer, (ii)
                    obtain an
                    Eligible Guaranty or (iii) post collateral in accordance with
                    the Credit
                    Support Annex.

                

        

        

        
          	 	
                  (2)

                	
                  In
                    the event that an S&P Required Ratings Downgrade Event occurs and is
                    continuing, then within 10 Local Business Days after such rating
                    withdrawal or downgrade, Party A shall, subject to the Rating
                    Agency
                    Condition with respect to S&P, at its own expense, procure either (i)
                    a Permitted Transfer or (ii) an Eligible
                    Guaranty.

                

        

        

        (ii)
           Moody’s
          Downgrade.

        

        
          	 	
                  (1)
                    

                	
                  In
                    the event that a Moody’s Second Trigger Ratings Event occurs and is
                    continuing, Party A shall, as soon as reasonably practicable
                    thereafter,
                    at its own expense and using commercially reasonable efforts,
                    either (i)
                    procure a Permitted Transfer or (ii) obtain an Eligible Guaranty.
                    

                

        

        

        
          	
                  (e)
                    

                	
                  Compliance
                    with Regulation AB. 

                

        

        

        
          	 	
                  (i)

                	
                  Party
                    A agrees and acknowledges that Bear Stearns Asset Backed Securities
                    I LLC
                    (“Depositor”) is required under Regulation AB under the Securities Act of
                    1933, as amended, and the Securities Exchange Act of 1934, as
                    amended (the
                    “Exchange Act”) (“Regulation AB”), to disclose certain financial
                    information regarding Party A or its group of affiliated entities,
                    if
                    applicable, depending on the aggregate “significance percentage” of this
                    Agreement and any other derivative contracts between Party A
                    or its group
                    of affiliated entities, if applicable, and Party B, as calculated
                    from
                    time to time in accordance with Item 1115 of Regulation AB.
                    

                

        

        

        
          	 	
                  (ii)

                	
                  It
                    shall be a swap disclosure event (“Swap Disclosure Event”) if, on any
                    Business Day after the date hereof for so long as the Issuing
                    Entity is
                    required to file periodic reports under the Exchange Act, Depositor
                    requests from Party A the applicable financial information described in
                    Item 1115 of Regulation AB (such request to be based on a reasonable
                    determination by Depositor, in good faith, that such information
                    is
                    required under Regulation AB) (the “Swap Financial
                    Disclosure”).

                

        

        

        
          	 	
                  (iii)

                	
                  Upon
                    the occurrence of a Swap Disclosure Event, Party A, within ten
                    (10) days
                    and at its own expense, shall (1)(a) either (i) provide to Depositor
                    the
                    current Swap Financial Disclosure in an EDGAR-compatible format
                    (for
                    example, such information may be provided in Microsoft Word® or Microsoft
                    Excel® format but not in .pdf format) or (ii) provide written consent
                    to
                    Depositor to incorporation by reference of such current Swap
                    Financial
                    Disclosure that are filed with the Securities and Exchange Commission
                    in
                    the Exchange Act Reports of Depositor, (b) if applicable, cause
                    its
                    outside accounting firm to provide its consent to filing or incorporation
                    by reference in the Exchange Act Reports of Depositor of such
                    accounting
                    firm’s report relating to their audits of such current Swap Financial
                    Disclosure, and (c) provide to Depositor any updated Swap Financial
                    Disclosure with respect to Party A or any entity that consolidates
                    Party A
                    within five days of the release of any such updated Swap Financial
                    Disclosure; (2) secure another entity to replace Party A as party
                    to this
                    Agreement on terms substantially similar to this Agreement and
                    subject to
                    prior notification to the Swap Rating Agencies, which entity
                    (or a
                    guarantor therefor) satisfies the Rating Agency Condition with
                    respect to
                    S&P and which entity is able to comply with the requirements of
                    Item
                    1115 of Regulation AB or (3) subject to the Rating Agency Condition
                    with
                    respect to S&P and obtain a guaranty of the Party A’s obligations
                    under this Agreement from an affiliate of the Party A that is
                    able to
                    comply with the financial information disclosure requirements
                    of Item 1115
                    of Regulation AB, such that disclosure provided in respect of
                    the
                    affiliate will satisfy any disclosure requirements applicable
                    to the Swap
                    Provider, and cause such affiliate to provide Swap Financial
                    Disclosure.
                    If permitted by Regulation AB, any required Swap Financial Disclosure
                    may
                    be provided by incorporation by reference from reports filed
                    pursuant to
                    the Exchange Act.

                

        

        

        
          	 	
                  (iv)

                	
                  Party
                    A agrees that, in the event that Party A provides Swap Financial
                    Disclosure to Depositor in accordance with Part 5(e)(iii)(a)
                    or causes its
                    affiliate to provide Swap Financial Disclosure to Depositor in
                    accordance
                    with Part 5(e)(iii)(c), it will indemnify and hold harmless Depositor,
                    its
                    respective directors or officers and any person controlling Depositor,
                    from and against any and all losses, claims, damages and liabilities
                    caused by any untrue statement or alleged untrue statement of
                    a material
                    fact contained in such Swap Financial Disclosure or caused by
                    any omission
                    or alleged omission to state in such Swap Financial Disclosure
                    a material
                    fact required to be stated therein or necessary to make the statements
                    therein, in light of the circumstances under which they were
                    made, not
                    misleading.

                

        

        

        
          	 	
                  (v)

                	
                  Depositor
                    shall be an express third party beneficiary of this Agreement
                    as if a
                    party hereto to the extent of Depositor’s rights explicitly specified in
                    this Part 5(e). 

                

        

        

        
          	
                  (f)

                	
                  Transfers. 

                

        

         

        (i)          
           Section
          7
          is hereby amended to read in its entirety as follows:

         

        “Except
          with respect to a Permitted Transfer pursuant to Section 6(b)(ii), Part
          5(d),
          Part 5(b)(v) or the succeeding sentence, neither Party A nor Party B is
          permitted to assign, novate or transfer (whether by way of security or
          otherwise) as a whole or in part any of its rights, obligations or interests
          under the Agreement or any Transaction unless (a) the prior written consent
          of
          the other party is obtained and (b) the Rating Agency Condition has been
          satisfied with respect to S&P. At any time at which no Relevant Entity has
          credit ratings at least equal to the Approved Ratings Threshold, Party
          A may
          make a Permitted Transfer.” 

         

        
          	 	
                  (ii)

                	
                  If
                    an Eligible Replacement has made a Firm Offer (which remains
                    an offer that
                    will become legally binding upon acceptance by Party B) to be
                    the
                    transferee pursuant to a Permitted Transfer, Party B shall, at
                    Party A’s
                    written request and at Party A’s expense, execute such documentation
                    provided to it as is reasonably deemed necessary by Party A to
                    effect such
                    transfer. 

                

        

         

        
          	
                  (g)

                	
                  Non-Recourse.
                    Party A acknowledges and agree that, notwithstanding any provision
                    in this
                    Agreement to the contrary, the obligations of Party B hereunder
                    are
                    limited recourse obligations of Party B, payable solely from
                    the
                    Supplemental Interest Trust and
                    the proceeds thereof, in accordance with the priority of payments
                    and
                    other terms of the Pooling and Servicing Agreement and that Party
                    A will
                    not have any recourse to any of the directors, officers, agents,
                    employees, shareholders or affiliates of Party B with respect
                    to any
                    claims, losses, damages, liabilities, indemnities or other obligations
                    in
                    connection with any transactions contemplated hereby. In the
                    event that
                    the Supplemental Interest Trust and the proceeds thereof, should
                    be
                    insufficient to satisfy all claims outstanding and following
                    the
                    realization of the Supplemental Interest Trust and the proceeds
                    thereof,
                    any claims against or obligations of Party B under the ISDA Master
                    Agreement or any other confirmation thereunder still outstanding
                    shall be
                    extinguished and thereafter not revive. The Supplemental Interest
                    Trust
                    Trustee shall not have liability for any failure or delay in
                    making a
                    payment hereunder to Party A due to any failure or delay in receiving
                    amounts in the Supplemental Interest Trust from the Trust created
                    pursuant
                    to the Pooling and Servicing Agreement. This provision will survive
                    the
                    termination of this Agreement.

                

        

        

        
          	
                  (h)

                	
                  Timing
                    of Payments
                    by Party B upon Early Termination.
                    Notwithstanding anything to the contrary in Section 6(d)(ii),
                    to the
                    extent that all or a portion (in either case, the “Unfunded Amount”) of
                    any amount that is calculated as being due in respect of any
                    Early
                    Termination Date under Section 6(e) from Party B to Party A will
                    be paid
                    by Party B from amounts other than any upfront payment paid to
                    Party B by
                    an Eligible Replacement that has entered a Replacement Transaction
                    with
                    Party B, then such Unfunded Amount shall be due on the next subsequent
                    Distribution Date following the date on which the payment would
                    have been
                    payable as determined in accordance with Section 6(d)(ii), and
                    on any
                    subsequent Distribution Dates until paid in full (or if such
                    Early
                    Termination Date is the final Distribution Date, on such final
                    Distribution Date); provided, however, that if the date on which
                    the
                    payment would have been payable as determined in accordance with
                    Section
                    6(d)(ii) is a Distribution Date, such payment will be payable
                    on such
                    Distribution Date.

                

        

        

        
          	
                  (i)

                	
                  Rating
                    Agency Notifications. Notwithstanding
                    any other provision of this Agreement, no Early Termination Date
                    shall be
                    effectively designated hereunder by Party B and no transfer of
                    any rights
                    or obligations under this Agreement shall be made by either party
                    unless
                    each Swap Rating Agency has been given prior written notice of
                    such
                    designation or transfer. 

                

        

        

        
          	
                  (j)

                	
                  No
                    Set-off.
                    Except as expressly provided for in Section 2(c), Section 6 or
                    Part
                    1(f)(i)(D) hereof, and notwithstanding any other provision of
                    this
                    Agreement or any other existing or future agreement, each party
                    irrevocably waives any and all rights it may have to set off,
                    net, recoup
                    or otherwise withhold or suspend or condition payment or performance
                    of
                    any obligation between it and the other party hereunder against
                    any
                    obligation between it and the other party under any other agreements.
                    Section 6(e) shall be amended by deleting the following sentence:
“The
                    amount, if any, payable in respect of an Early Termination Date
                    and
                    determined pursuant to this Section will be subject to any
                    Set-off.”.

                

        

         

        
          	
                  (k)

                	
                  Amendment.
                    Notwithstanding any provision to the contrary in this Agreement,
                    no
                    amendment of either this Agreement or any Transaction under this
                    Agreement
                    shall be permitted by either party unless each of the Swap Rating
                    Agencies
                    has been provided prior written notice of the same and such amendment
                    satisfies the Rating Agency Condition with respect to
                    S&P.

                

        

        

        
          	
                  (l)

                	
                  Notice
                    of Certain Events or Circumstances.
                    Each Party agrees, upon learning of the occurrence or existence
                    of any
                    event or condition that constitutes (or that with the giving
                    of notice or
                    passage of time or both would constitute) an Event of Default
                    or
                    Termination Event with respect to such party, promptly to give
                    the other
                    Party and to each Swap Rating Agency notice of such event or
                    condition;
                    provided that failure to provide notice of such event or condition
                    pursuant to this Part 5(l) shall not constitute an Event of Default
                    or a
                    Termination Event.

                

        

         

        (m)        
           Proceedings.
          No
          Relevant Entity shall institute against, or cause any other person to institute
          against, or join any other person in instituting against Party B, the
          Supplemental Interest Trust, or the trust formed pursuant to the Pooling
          and
          Servicing Agreement, in any bankruptcy, reorganization, arrangement, insolvency
          or liquidation proceedings or other proceedings under any federal or state
          bankruptcy or similar law for a period of one year (or, if longer, the
          applicable preference period) and one day following payment in full of
          the
          Certificates and any Notes. This provision will survive the termination
          of this
          Agreement. 

        

        
          	
                  (n)

                	
                  Supplemental
                    Interest Trust Trustee Liability Limitations.
                    It
                    is expressly understood and agreed by the parties hereto that
                    (a) this
                    Agreement is executed by Wells Fargo Bank National Association
                    not in its
                    individual capacity, but solely as Supplemental Interest Trust
                    Trustee
                    under the Pooling and Servicing Agreement in the exercise of
                    the powers
                    and authority conferred and invested in it thereunder; (b) Wells
                    Fargo
                    Bank National Association has been directed pursuant to the Pooling
                    and
                    Servicing Agreement to enter into this Agreement and to perform
                    its
                    obligations hereunder; (c) each of the representations, undertakings
                    and
                    agreements herein made on behalf of the Supplemental Interest
                    Trust is
                    made and intended not as personal representations of Wells Fargo
                    Bank
                    National Association but is made and intended for the purpose
                    of binding
                    only the Supplemental Interest Trust; and (d) under no circumstances
                    shall Wells
                    Fargo Bank National Association in its individual capacity be
                    personally
                    liable for any payments hereunder or for the breach or failure
                    of any
                    obligation, representation, warranty or covenant made or undertaken
                    under
                    this Agreement.

                

        

        

        
          	
                  (o)

                	
                  Severability.
                    If
                    any term, provision, covenant, or condition of this Agreement,
                    or the
                    application thereof to any party or circumstance, shall be held
                    to be
                    invalid or unenforceable (in whole or in part) in any respect,
                    the
                    remaining terms, provisions, covenants, and conditions hereof
                    shall
                    continue in full force and effect as if this Agreement had been
                    executed
                    with the invalid or unenforceable portion eliminated, so long
                    as this
                    Agreement as so modified continues to express, without material
                    change,
                    the original intentions of the parties as to the subject matter
                    of this
                    Agreement and the deletion of such portion of this Agreement
                    will not
                    substantially impair the respective benefits or expectations
                    of the
                    parties; provided, however, that this severability provision
                    shall not be
                    applicable if any provision of Section 2, 5, 6, or 13 (or any
                    definition
                    or provision in Section 14 to the extent it relates to, or is
                    used in or
                    in connection with any such Section) shall be so held to be invalid
                    or
                    unenforceable. 

                

        

        

        The
          parties shall endeavor to engage in good faith negotiations to replace
          any
          invalid or unenforceable term, provision, covenant or condition with a
          valid or
          enforceable term, provision, covenant or condition, the economic effect
          of which
          comes as close as possible to that of the invalid or unenforceable term,
          provision, covenant or condition. 

        

        
          	
                  (p)

                	
                  Agent
                    for Party B. Party
                    A acknowledges that Party B has appointed the Supplemental Interest
                    Trust
                    Trustee and the Swap Administrator as its agents under the Pooling
                    and
                    Servicing Agreement and the Swap Administration Agreement to
                    carry out
                    certain functions on behalf of Party B, and that the Supplemental
                    Interest
                    Trust Trustee and the Swap Administrator shall be entitled to
                    give notices
                    and to perform and satisfy the obligations of Party B hereunder
                    on behalf
                    of Party B.

                

        

         

        
          	
                  (q)

                	
                  [Reserved.]

                

        

         

        
          	
                  (r)

                	
                  Consent
                    to Recording.
                    Each party hereto consents to the monitoring or recording, at
                    any time and
                    from time to time, by the other party of any and all communications
                    between trading, marketing, and operations personnel of the parties
                    and
                    their Affiliates, waives any further notice of such monitoring
                    or
                    recording, and agrees to notify such personnel of such monitoring
                    or
                    recording. 

                

        

        

        
          	
                  (s)

                	
                  Waiver
                    of Jury Trial.
                    Each party waives any right it may have to a trial by jury in
                    respect of
                    any in respect of any suit, action or proceeding relating to
                    this
                    Agreement or any Credit Support Document.

                

        

        

        
          	
                  (t)

                	
                  Form
                    of ISDA Master Agreement. Party
                    A and Party B hereby agree that the text of the body of the ISDA
                    Master
                    Agreement is intended to be the printed form of the ISDA Master
                    Agreement
                    (Multicurrency -
                    Crossborder) as published and copyrighted in 1992 by the International
                    Swaps and Derivatives Association,
                    Inc.

                

        

        

        
          	
                  (u)

                	
                  Payment
                    Instructions.
                    Party A hereby agrees that, unless notified in writing by Party
                    B of other
                    payment instructions, any and all amounts payable by Party A
                    to Party B
                    under this Agreement shall be paid to the account specified in
                    Item 4 of
                    this Confirmation, below. 

                

        

        

        
          	
                  (v)

                	
                  Capacity.
                    Party A represents to Party B on the date on which Party A enters
                    into
                    this Agreement
                    that it is entering into the Agreement and the Transaction as
                    principal
                    and not as agent of any person. Wells Fargo Bank National Association
                    represents to Party A on the date on which Party B enters into
                    this
                    Agreement that Wells Fargo Bank National Association is executing
                    the
                    Agreement not in its individual capacity, but solely as Supplemental
                    Interest Trust Trustee on behalf of the Supplemental Interest
                    Trust.

                

        

        

        
          	
                  (w)

                	
                  Substantial
                    financial transactions.
                    Each party hereto is hereby advised and acknowledges as of the
                    date hereof
                    that the other party has engaged in (or refrained from engaging
                    in)
                    substantial financial transactions and has taken (or refrained
                    from
                    taking) other material actions in reliance upon the entry by
                    the parties
                    into the Transaction being entered into on the terms and conditions
                    set
                    forth herein and in the Pooling and Servicing Agreement relating
                    to such
                    Transaction, as applicable. This paragraph shall be deemed repeated
                    on the
                    trade date of each Transaction.

                

        

        

        
          	
                  (x)

                	
                  [Reserved].

                

        

        

        
          	
                  (y)

                	
                  [Reserved].

                

        

        

        (z)         
           Additional
          Definitions. 

         

        As
          used
          in this Agreement, the following terms shall have the meanings set forth
          below,
          unless the context clearly requires otherwise: 

         

        “Approved
          Ratings Threshold”
          means
          each of the S&P Approved Ratings Threshold and the Moody’s First Trigger
          Ratings Threshold.

        

        “Approved
          Replacement” means,
          with respect to a Market Quotation, an entity making such Market Quotation,
          which entity would satisfy conditions (a), (b) and (c) of the definition
          of
          Permitted Transfer (as determined by Party B in its sole discretion, acting
          in a
          commercially reasonable manner) if such entity were a Transferee, as defined
          in
          the definition of Permitted Transfer.

        

        “Eligible
          Guarantee”
          means an
          unconditional and irrevocable guarantee of all present and future payment
          obligations and obligations to post collateral of Party A or an Eligible
          Replacement to Party B under this Agreement that is provided by an Eligible
          Guarantor as principal debtor rather than surety and that is directly
          enforceable by Party B, the form and substance of which guarantee are subject
          to
          the Rating Agency Condition with respect to S&P.

        

        “Eligible
          Guarantor” means
          an
          entity that (A) has credit ratings at least equal to the Approved Ratings
          Threshold or (B) has credit ratings at least equal to the Required Ratings
          Threshold, provided, for the avoidance of doubt, that an Eligible Guarantee
          of
          an Eligible Guarantor with credit ratings below the Approved Ratings Threshold
          will not cause a Collateral Event (as defined in the Credit Support Annex)
          not
          to occur or continue. An Eligible Guarantor shall provide to Party B in
          writing
          all credit ratings described in this definition, upon request of Party
          B.

        

        “Eligible
          Replacement”
          means an
          entity that (A) (i) has credit ratings at least equal to the Approved Ratings
          Threshold or (ii) has credit ratings at least equal to the Required Ratings
          Threshold, provided, for the avoidance of doubt, that an Eligible Replacement
          with credit ratings below the Approved Ratings Threshold will not cause
          a
          Collateral Event (as defined in the Credit Support Annex) not to occur
          or
          continue, or (iii) provides an Eligible Guarantee and (B) has executed
          an Item
          1115 Agreement with Depositor and Sponsor. An Eligible Replacement shall
          provide
          to Party B in writing all credit ratings described in this definition,
          upon
          request of Party B.

        

        “Estimated
          Swap Termination Payment”
          means,
          with respect to an Early Termination Date, an amount determined by Party
          A in
          good faith and in a commercially reasonable manner as the maximum payment
          that
          could be owed by Party B to Party A in respect of such Early Termination
          Date
          pursuant to Section 6(e) of the ISDA Master Agreement, taking into account
          then
          current market conditions.

        

        “Firm
          Offer”
          means
          (A) with respect to an Eligible Replacement, a quotation from such Eligible
          Replacement (i) in an amount equal to the actual amount payable by or to
          Party B
          in consideration of an agreement between Party B and such Eligible Replacement
          to replace Party A as the counterparty to this Agreement by way of novation
          or,
          if such novation is not possible, an agreement between Party B and such
          Eligible
          Replacement to enter into a Replacement Transaction (assuming that all
          Transactions hereunder become Terminated Transactions), and (ii) that
          constitutes an offer by such Eligible Replacement to replace Party A as
          the
          counterparty to this Agreement or enter a Replacement Transaction that
          will
          become legally binding upon such Eligible Replacement upon acceptance by
          Party
          B, and (B) with respect to an Eligible Guarantor, an offer by such Eligible
          Guarantor to provide an Eligible Guarantee that will become legally binding
          upon
          such Eligible Guarantor upon acceptance by the offeree.

        

        “Moody’s”
          means
          Moody’s Investors Service, Inc., or any successor thereto. 

        

        “Moody’s
          First Trigger Ratings Event” means
          that no
          Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
          First Trigger Ratings Threshold. 

        

        “Moody’s
          First Trigger Ratings Threshold” means,
          with respect to Party A, the guarantor under an Eligible Guarantee or an
          Eligible Replacement, (i) if such entity has a short-term unsecured and
          unsubordinated debt rating from Moody’s, a long-term unsecured and
          unsubordinated debt rating or counterparty rating from Moody’s of “A2” and a
          short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-1”,
          or (ii) if such entity does not have a short-term unsecured and unsubordinated
          debt rating or counterparty rating from Moody’s, a long-term unsecured and
          unsubordinated debt rating or counterparty rating from Moody’s of
“A1”.

        

        “Moody’s
          Second Trigger Ratings Event” means
          that no
          Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
          Second Trigger Ratings Threshold. 

        

        “Moody’s
          Second Trigger Ratings Threshold” means,
          with respect to Party A, the guarantor under an Eligible Guarantee or an
          Eligible Replacement, (i) if such entity has a short-term unsecured and
          unsubordinated debt rating from Moody’s, a long-term unsecured and
          unsubordinated debt rating or counterparty rating from Moody’s of “A3” and a
          short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-2”,
          or (ii) if such entity does not have a short-term unsecured and unsubordinated
          debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating
          or counterparty rating from Moody’s of “A3”.

        

        “Permitted
          Transfer” means
          a
          transfer by novation by Party A pursuant to Section 6(b)(ii), Part 5(d),
          Part
          5(b)(v), or the second sentence of Section 7 (as amended herein) to a transferee
          (the “Transferee”)
          of all,
          but not less than all, of Party A’s rights, liabilities, duties and obligations
          under this Agreement, with respect to which transfer each of the following
          conditions is satisfied: (a) the Transferee is an Eligible Replacement;
          (b)
          Party A and the Transferee are both “dealers in notional principal contracts”
within the meaning of Treasury regulations section 1.1001-4 (in each case
          as
          certified by such entity); (c) as of the date of such transfer the Transferee
          would not be required to withhold or deduct on account of Tax from any
          payments
          under this Agreement or would be required to gross up for such Tax under
          Section
          2(d)(i)(4); (d) an Event of Default or Termination Event would not occur
          as a
          result of such transfer; (e) pursuant to a written instrument (the “Transfer
          Agreement”),
          the
          Transferee acquires and assumes all rights and obligations of Party A under
          the
          Agreement and the relevant Transaction; (f) Party B shall have determined,
          in
          its sole discretion, acting in a commercially reasonable manner, that such
          Transfer Agreement is effective to transfer to the Transferee all, but
          not less
          than all, of Party A’s rights and obligations under the Agreement and all
          relevant Transactions; (g) Party A will be responsible for any costs or
          expenses
          incurred in connection with such transfer (including any replacement cost
          of
          entering into a replacement transaction); (h) either (A) Moody’s has been given
          prior written notice of such transfer and the Rating Agency Condition is
          satisfied with respect to S&P or (B) each Swap Rating Agency has been given
          prior written notice of such transfer and such transfer is in connection
          with
          the assignment and assumption of this Agreement without modification of
          its
          terms, other than party names, dates relevant to the effective date of
          such
          transfer, tax representations (provided that the representations in Part
          2(a)(i)
          are not modified) and any other representations regarding the status of
          the
          substitute counterparty of the type included in Part 5(b)(iv), Part 5(v)(i)(2)
          or Part 5(v)(ii), notice information and account details; and (i) such
          transfer
          otherwise complies with the terms of the Pooling and Servicing
          Agreement.

         

        “Rating
          Agency Condition”
          means,
          with respect to any particular proposed act or omission to act hereunder
          and
          each Swap Rating Agency specified in connection with such proposed act
          or
          omission, that the party acting or failing to act must consult with each
          of the
          specified Swap Rating Agencies and receive from each such Swap Rating Agency
          a
          prior written confirmation that the proposed action or inaction would not
          cause
          a downgrade or withdrawal of the then-current rating of any Certificates
          or
          Notes.

        

        “Relevant
          Entity” means
          Party A and, to the extent applicable, a guarantor under an Eligible
          Guarantee.

        

        “Replacement
          Transaction”
          means,
          with respect to any Terminated Transaction or group of Terminated Transactions,
          a transaction or group of transactions that (i) would have the effect of
          preserving for Party B the economic equivalent of any payment or delivery
          (whether the underlying obligation was absolute or contingent and assuming
          the
          satisfaction of each applicable condition precedent) by the parties under
          Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
          Transactions that would, but for the occurrence of the relevant Early
          Termination Date, have been required after that Date, and (ii) has terms
          which
          are substantially the same as this Agreement, including, without limitation,
          rating triggers, Regulation AB compliance, and credit support documentation,
          save for the exclusion of provisions relating to Transactions that are
          not
          Terminated Transaction, as determined by Party B in its sole discretion,
          acting
          in a commercially reasonable manner.

        

        “Required
          Ratings Downgrade Event”
          means
          that no Relevant Entity has credit ratings at least equal to the Required
          Ratings Threshold. For purposes of determining whether a Required Ratings
          Downgrade Event has occurred, each Relevant Entity shall provide its credit
          ratings to Party B in writing, upon request of Party B.

        

        “Required
          Ratings Threshold” means
          each of the S&P Required Ratings Threshold and the Moody’s Second Trigger
          Ratings Threshold.

        

        “S&P”
          means
          Standard & Poor's Rating Services, a division of The McGraw-Hill Companies,
          Inc., or any successor thereto. 

        

        “S&P
          Approved Ratings Downgrade Event”
          means
          that no Relevant Entity has credit ratings at least equal to the S&P
          Approved Ratings Threshold.

        

        “S&P
          Approved Ratings Threshold”
          means,
          with respect to Party A, the guarantor under an Eligible Guarantee or an
          Eligible Replacement, a short-term unsecured and unsubordinated debt rating
          from
          S&P of “A-1”, or, if such entity does not have a short-term unsecured and
          unsubordinated debt rating from S&P, a long-term unsecured and
          unsubordinated debt rating or counterparty rating from S&P of
“A+”.

        

        “S&P
          Required Ratings Downgrade Event”
          means
          that no Relevant Entity has credit ratings at least equal to the S&P
          Required Ratings Threshold.

        

        “S&P
          Required Ratings Threshold”
          means,
          with respect to Party A, the guarantor under an Eligible Guarantee or an
          Eligible Replacement, a long-term unsecured and unsubordinated debt rating
          or
          counterparty rating from S&P of “BBB-”.

        

        “Swap
          Rating Agencies”
          means,
          with respect to any date of determination, each of S&P and Moody’s, to the
          extent that each such rating agency is then providing a rating for any
          of the
          SACO I Trust 2007-1 Mortgage-Backed Certificates, Series 2007-1 (the
“Certificates”) or any notes backed by the Certificates (the
“Notes”).

        

         

        [Remainder
          of this page intentionally left blank.]

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        4. Account
          Details and Settlement Information:  

         

        Payments
          to Party A:

        

        Citibank,
          N.A., New York

        ABA
          Number: 021-0000-89, for the account of Bear, Stearns Securities
          Corp.

        Account
          Number: 0925-3186, for further credit to Bear Stearns Financial Products
          Inc.

        Sub-account
          Number: 102-04654-1-3

        Attention:
          Derivatives Department

         

        Payments
          to Party B:

        

        Wells
          Fargo Bank, NA

        ABA#:
          121000248

        Account
          Name: SAS Clearing

        Account
          #: 3970771416

        FFC:
          50979101, SACO 2007-1 Swap Account

        

        

        

        NEITHER
          THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF THE
          BEAR
          STEARNS COMPANIES INC. OTHER THAN PARTY A IS AN OBLIGOR OR A CREDIT SUPPORT
          PROVIDER ON THIS AGREEMENT.

        

        This
          Agreement may be executed in several counterparts, each of which shall
          be deemed
          an original but all of which together shall constitute one and the same
          instrument.

        

        Party
          B
          hereby agrees to check this Confirmation and to confirm that the foregoing
          correctly sets forth the terms of the Transaction by signing in the space
          provided below and returning to Party A a facsimile of the fully-executed
          Confirmation to 212-272-9857. For inquiries regarding U.S. Transactions,
          please
          contact Susan Donlon by telephone at 212-272-2364. For all other inquiries
          please contact Derivatives Documentation by telephone at 353-1-402-6233.
          Originals will be provided for your execution upon your
          request.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        We
          are
          very pleased to have executed this Transaction with you and we look forward
          to
          completing other transactions with you in the near future.

        

        Very
          truly yours,

        

        BEAR
          STEARNS FINANCIAL PRODUCTS INC.

        

        

        
          	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        

        Party
          B,
          acting through its duly authorized signatory, hereby agrees to, accepts
          and
          confirms the terms of the foregoing as of the date hereof.

        

        THE
          SUPPLEMENTAL INTEREST TRUST WITH RESPECT TO SACO I TRUST 2007-1 MORTGAGE-BACKED
          CERTIFICATES, SERIES 2007-1, BY WELLS FARGO BANK NATIONAL ASSOCIATION,
          NOT IN
          ITS INDIVIDUAL CAPACITY, BUT SOLELY AS THE SUPPLEMENTAL INTEREST TRUST
          TRUSTEE

         

        

        

        
          	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        SCHEDULE
          I

        (All
          such
          dates subject to No Adjustment with respect to Fixed Rate Payer Period
          End Dates
          and adjustment in accordance with the Following Business Day Convention
          with
          respect to Floating Rate Payer Period End Dates)

        

        
          	
                   

                  From
                    and Including

                	
                  To
                    but Excluding

                	
                  Notional
                    Amount

                  (USD)

                
	
                  Effective
                    Date

                	
                  January
                    25, 2007

                	
                  2,586,880.44

                
	
                  January
                    25, 2007

                	
                  February
                    25, 2007

                	
                  2,495,081.30

                
	
                  February
                    25, 2007

                	
                  March
                    25, 2007

                	
                  2,406,534.31

                
	
                  March
                    25, 2007

                	
                  April
                    25, 2007

                	
                  2,321,124.42

                
	
                  April
                    25, 2007

                	
                  May
                    25, 2007

                	
                  2,238,740.62

                
	
                  May
                    25, 2007

                	
                  June
                    25, 2007

                	
                  2,159,275.83

                
	
                  June
                    25, 2007

                	
                  July
                    25, 2007

                	
                  2,082,626.74

                
	
                  July
                    25, 2007

                	
                  August
                    25, 2007

                	
                  2,008,693.73

                
	
                  August
                    25, 2007

                	
                  September
                    25, 2007

                	
                  1,937,380.66

                
	
                  September
                    25, 2007

                	
                  October
                    25, 2007

                	
                  1,868,594.82

                
	
                  October
                    25, 2007

                	
                  November
                    25, 2007

                	
                  1,802,246.76

                
	
                  November
                    25, 2007

                	
                  December
                    25, 2007

                	
                  1,738,250.21

                
	
                  December
                    25, 2007

                	
                  January
                    25, 2008

                	
                  1,676,521.93

                
	
                  January
                    25, 2008

                	
                  February
                    25, 2008

                	
                  1,616,981.63

                
	
                  February
                    25, 2008

                	
                  March
                    25, 2008

                	
                  1,559,551.88

                
	
                  March
                    25, 2008

                	
                  April
                    25, 2008

                	
                  1,504,157.95

                
	
                  April
                    25, 2008

                	
                  May
                    25, 2008

                	
                  1,450,727.78

                
	
                  May
                    25, 2008

                	
                  June
                    25, 2008

                	
                  1,399,191.85

                
	
                  June
                    25, 2008

                	
                  July
                    25, 2008

                	
                  1,349,483.10

                
	
                  July
                    25, 2008

                	
                  August
                    25, 2008

                	
                  1,301,536.85

                
	
                  August
                    25, 2008

                	
                  September
                    25, 2008

                	
                  1,255,290.68

                
	
                  September
                    25, 2008

                	
                  October
                    25, 2008

                	
                  1,210,684.42

                
	
                  October
                    25, 2008

                	
                  November
                    25, 2008

                	
                  1,167,659.98

                
	
                  November
                    25, 2008

                	
                  December
                    25, 2008

                	
                  1,126,161.37

                
	
                  December
                    25, 2008

                	
                  January
                    25, 2009

                	
                  1,086,134.54

                
	
                  January
                    25, 2009

                	
                  February
                    25, 2009

                	
                  1,047,527.39

                
	
                  February
                    25, 2009

                	
                  March
                    25, 2009

                	
                  1,010,289.63

                
	
                  March
                    25, 2009

                	
                  April
                    25, 2009

                	
                  974,372.78

                
	
                  April
                    25, 2009

                	
                  May
                    25, 2009

                	
                  939,730.03

                
	
                  May
                    25, 2009

                	
                  June
                    25, 2009

                	
                  906,316.28

                
	
                  June
                    25, 2009

                	
                  July
                    25, 2009

                	
                  874,087.99

                
	
                  July
                    25, 2009

                	
                  August
                    25, 2009

                	
                  843,003.17

                
	
                  August
                    25, 2009

                	
                  September
                    25, 2009

                	
                  813,021.32

                
	
                  September
                    25, 2009

                	
                  October
                    25, 2009

                	
                  784,103.36

                
	
                  October
                    25, 2009

                	
                  November
                    25, 2009

                	
                  756,211.60

                
	
                  November
                    25, 2009

                	
                  December
                    25, 2009

                	
                  729,309.70

                
	
                  December
                    25, 2009

                	
                  January
                    25, 2010

                	
                  703,362.57

                
	
                  January
                    25, 2010

                	
                  February
                    25, 2010

                	
                  678,336.40

                
	
                  February
                    25, 2010

                	
                  March
                    25, 2010

                	
                  654,198.55

                
	
                  March
                    25, 2010

                	
                  April
                    25, 2010

                	
                  630,917.54

                
	
                  April
                    25, 2010

                	
                  May
                    25, 2010

                	
                  608,463.01

                
	
                  May
                    25, 2010

                	
                  June
                    25, 2010

                	
                  586,805.68

                
	
                  June
                    25, 2010

                	
                  July
                    25, 2010

                	
                  565,917.28

                
	
                  July
                    25, 2010

                	
                  August
                    25, 2010

                	
                  545,770.58

                
	
                  August
                    25, 2010

                	
                  Termination
                    Date 

                	
                  526,339.28

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Annex
          A

        

        Paragraph
          13 of the Credit Support Annex

        

         

        ISDA®

         

        CREDIT
          SUPPORT ANNEX

         

        to
          the
          Schedule to the

         

        ISDA
          Master Agreement

         

        dated
          as
          of January 16, 2007 between

         

        Bear
          Stearns Financial Products Inc. (hereinafter referred to as “Party
          A”
          or
“Pledgor”)

         

        and

         

        The
          Supplemental Interest Trust with respect to Home Equity Mortgage Loan
          Asset-Backed Trust Series SACO I Trust 2007-1 Mortgage-Backed Certificates,
          Series 2007-1, by Wells Fargo Bank National Association, not in its individual
          capacity, but solely as the Supplemental Interest Trust Trustee (hereinafter
          referred to as “Party
          B”
          or
“Secured
          Party”).

         

        For
          the
          avoidance of doubt, and notwithstanding anything to the contrary that may
          be
          contained in the Agreement, this Credit Support Annex shall relate solely
          to the
          Transaction documented in the Confirmation dated January 16, 2007, between
          Party
          A and Party B, Reference Number FXNSC9101.

        

         

        Paragraph
          13. Elections and Variables.

         

        (a)          
          Security
          Interest for “Obligations”.
          The
          term “Obligations”
          as used
          in this Annex includes the following additional obligations:

         

        With
          respect to Party A: not applicable.

         

        With
          respect to Party B: not applicable.

         

        (b)          
          Credit
          Support Obligations.

         

        (i)Delivery
          Amount, Return Amount and Credit Support Amount.

         

        
          	 	
                  (A)

                	
                  “Delivery
                    Amount”
                    has the meaning specified in Paragraph 3(a) as amended (I) by
                    deleting the
                    words “upon a demand made by the Secured Party on or promptly following
                    a
                    Valuation Date” and inserting in lieu thereof the words “not later than
                    the close of business on each Valuation Date” and (II) by deleting in its
                    entirety the sentence beginning “Unless otherwise specified in Paragraph
                    13” and ending “(ii) the Value as of that Valuation Date of all Posted
                    Credit Support held by the Secured Party.” and inserting in lieu thereof
                    the following:

                

        

         

        The
          “Delivery
          Amount”
          applicable to the Pledgor for any Valuation Date will equal the greatest
          of

         

        
          	 	
                  (1)

                	
                  the
                    amount by which (a) the S&P Credit Support Amount for such Valuation
                    Date exceeds (b) the S&P Value as of such Valuation Date of all Posted
                    Credit Support held by the Secured Party,

                

        

         

        
          	 	
                  (2)

                	
                  the
                    amount by which (a) the Moody’s First Trigger Credit Support Amount for
                    such Valuation Date exceeds (b) the Moody’s First Trigger Value as of such
                    Valuation Date of all Posted Credit Support held by the Secured
                    Party,
                    and

                

        

         

        
          	 	
                  (3)

                	
                  the
                    amount by which (a) the Moody’s Second Trigger Credit Support Amount for
                    such Valuation Date exceeds (b) the Moody’s Second Trigger Value as of
                    such Valuation Date of all Posted Credit Support held by the
                    Secured
                    Party.

                

        

         

        
          	 	
                  (B)

                	
                  “Return
                    Amount”
                    has the meaning specified in Paragraph 3(b) as amended by deleting
                    in its
                    entirety the sentence beginning “Unless otherwise specified in Paragraph
                    13” and ending “(ii) the Credit Support Amount.” and inserting in lieu
                    thereof the following:

                

        

         

        The
          “Return
          Amount”
          applicable to the Secured Party for any Valuation Date will equal the least
          of

         

        
          	 	
                  (1)

                	
                  the
                    amount by which (a) the S&P Value as of such Valuation Date of all
                    Posted Credit Support held by the Secured Party exceeds (b) the
                    S&P
                    Credit Support Amount for such Valuation Date,

                

        

         

        
          	 	
                  (2)

                	
                  the
                    amount by which (a) the Moody’s First Trigger Value as of such Valuation
                    Date of all Posted Credit Support held by the Secured Party exceeds
                    (b)
                    the Moody’s First Trigger Credit Support Amount for such Valuation Date,
                    and

                

        

         

        
          	 	
                  (3)

                	
                  the
                    amount by which (a) the Moody’s Second Trigger Value as of such Valuation
                    Date of all Posted Credit Support held by the Secured Party exceeds
                    (b)
                    the Moody’s Second Trigger Credit Support Amount for such Valuation
                    Date.

                

        

         

        
          	 	
                  (C)

                	
                  “Credit
                    Support Amount”
                    shall not apply. For purposes of calculating any Delivery Amount
                    or Return
                    Amount for any Valuation Date, reference shall be made to the
                    S&P
                    Credit Support Amount, the Moody’s First Trigger Credit Support Amount, or
                    the Moody’s Second Trigger Credit Support Amount, in each case for such
                    Valuation Date, as provided in Paragraphs 13(b)(i)(A) and 13(b)(i)(B),
                    above.

                

        

         

        
          	 	
                  (ii)

                	
                  Eligible
                    Collateral.
                    

                

        

         

        The
          items
          set forth on the schedule of Eligible Collateral attached as Schedule A
          hereto
          will qualify as “Eligible
          Collateral”
(for
          the avoidance of doubt, all Eligible Collateral described in (D) and (E)
          of
          column one of the Collateral Schedule to be denominated in USD).

         

        (iii)         
          Other
          Eligible Support. 

         

        The
          following items will qualify as “Other
          Eligible Support”
          for the
          party specified: 

         

        Not
          applicable.

         

        (iv)         
          Threshold.

         

        
          	 	
                  (A)

                	
                  “Independent
                    Amount”
                    means zero with respect to Party A and Party
                    B.

                

        

         

        
          	 	
                  (B)

                	
                  “Threshold”
                    means, with respect to Party A and any Valuation Date, zero if
                    (i) a
                    Collateral Event has occurred and has been continuing (x) for
                    at least 30
                    days or (y) since this Annex was executed or (ii) a Required
                    Ratings
                    Downgrade Event has occurred and is continuing; otherwise,
                    infinity.

                

        

         

        “Threshold”
          means,
          with respect to Party B and any Valuation Date, infinity.

         

        
          	 	
                  (C)

                	
                  “Minimum
                    Transfer Amount” means
                    USD 100,000 with respect to Party A and Party B; provided, however,
                    that
                    if the aggregate Certificate Principal Balance of the Certificates
                    and the
                    aggregate principal balance of the Notes rated by S&P is at the time
                    of any transfer less than USD 50,000,000, the “Minimum
                    Transfer Amount”
                    shall be USD 50,000.

                

        

         

        
          	 	
                  (D)

                	
                  Rounding:
                    The Delivery Amount will be rounded up to the nearest integral
                    multiple of
                    USD 10,000. The Return Amount will be rounded down to the nearest
                    integral
                    multiple of USD 10,000.

                

        

         

        (c)          
          Valuation
          and Timing.

         

        (i)           
          “Valuation
          Agent”
          means
          Party A.

         

        (ii)         
          “Valuation
          Date” means
          each Local Business Day on which any of the S&P Credit Support Amount, the
          Moody’s First Trigger Credit Support Amount or the Moody’s Second Trigger Credit
          Support Amount is greater than zero.

         

        (iii)        
          “Valuation
          Time” means
          the
          close of business in the city of the Valuation Agent on the Local Business
          Day
          immediately preceding the Valuation Date or date of calculation, as applicable;
          provided
          that the
          calculations of Value and Exposure will be made as of approximately the
          same
          time on the same date. The Valuation Agent will notify each party (or the
          other
          party, if the Valuation Agent is a party) of its calculations not later
          than the
          Notification Time on the applicable Valuation Date (or in the case of Paragraph
          6(d), the Local Business Day following the day on which such relevant
          calculations are performed).”

         

        (iv)         
          “Notification
          Time” means
          11:00 a.m., New York time, on a Local Business Day. 

         

        (v)          
          External
          Calculations.
          At any
          time at which Party A (or, to the extent applicable, its Credit Support
          Provider) does not have a long-term unsubordinated and unsecured debt rating
          of
          at least “BBB+” from S&P, the Valuation Agent shall (at its own expense)
          obtain external calculations of Party B’s Exposure from at least two Reference
          Market-makers on the last Local Business Day of each calendar month. Any
          determination of the S&P Credit Support Amount shall be based on the
          greatest of Party B’s Exposure determined by the Valuation Agent and such
          Reference Market-makers. Such external calculation may not be obtained
          from the
          same Reference Market-maker more than four times in any 12-month
          period.

         

        (vi)         Notice
          to S&P.
          At any
          time at which Party A (or, to the extent applicable, its Credit Support
          Provider) does not have a long-term unsubordinated and unsecured debt rating
          of
          at least “BBB+” from S&P, the Valuation Agent shall provide to S&P not
          later than the Notification Time on the Local Business Day following each
          Valuation Date its calculations of Party B’s Exposure and the S&P Value of
          any Eligible Credit Support or Posted Credit Support for that Valuation
          Date.
          The Valuation Agent shall also provide to S&P any external marks of Party
          B’s Exposure.

         

        (d)         
          Conditions
          Precedent and Secured Party’s Rights and Remedies.
          The
          following Termination Events will be a “Specified
          Condition”
for
          the
          party specified (that party being the Affected Party if the Termination
          Event
          occurs with respect to that party): With respect to Party A and Party B:
          None.

         

        (e)         
          Substitution.

         

        (i)           
          “Substitution
          Date”
has
          the
          meaning specified in Paragraph 4(d)(ii).

         

        (ii)           
          Consent.
          If
          specified here as applicable, then the Pledgor must obtain the Secured
          Party’s
          consent for any substitution pursuant to Paragraph 4(d):
          Inapplicable.

         

        (f)           
          Dispute
          Resolution.

         

        (i)           
          “Resolution
          Time”
means
          1:00 p.m. New York time on the Local Business Day following the date on
          which
          the notice of the dispute is given under Paragraph 5.

         

        (ii)           Value.
          Notwithstanding anything to the contrary in Paragraph 12, for the purpose
          of
          Paragraphs 5(i)(C) and 5(ii), the S&P Value, Moody’s First Trigger Value,
          and Moody’s Second Trigger Value, on any date, of Eligible Collateral other than
          Cash will be calculated as follows: 

         

        For
          Eligible Collateral in the form of securities listed in Paragraph 13(b)(ii):
          the
          product of (1)(x) the bid-side quotation at the Valuation Time for such
          securities on the principal national securities exchange on which such
          securities are listed, or (y) if such securities are not listed on a national
          securities exchange, the arithmetic mean of the bid-side quotations for
          such
          securities quoted at the Valuation Time by any three principal market makers
          for
          such securities selected by the Valuation Agent, provided that if only
          two
          bid-side quotations are obtained, then the arithmetic mean of such two
          bid-side
          quotations will be used, and if only one bid-side quotation is obtained,
          such
          quotation shall be used, or (z) if no such bid price is listed or quoted
          for
          such date, the bid price listed or quoted (as the case may be) at the Valuation
          Time for the day next preceding such date on which such prices were available
          and (2) the applicable Valuation Percentage for such Eligible
          Collateral.

         

        (iii)         
          Alternative.
          The
          provisions of Paragraph 5 will apply.

         

        (g)          
          Holding
          and Using Posted Collateral.

         

        (i)           
          Eligibility
          to Hold Posted Collateral; Custodians. Party
          B
          (or its Custodian) will be entitled to hold Posted Collateral pursuant
          to
          Paragraph 6(b), provided that the following conditions applicable to it
          are
          satisfied:

         

        
          	 	
                  (1)

                	
                  it
                    is not a Defaulting Party.

                

        

         

        
          	 	
                  (2)

                	
                  Posted
                    Collateral consisting of Cash or certificated securities that
                    cannot be
                    paid or delivered by book-entry may be held only in any state
                    of the
                    United States which has adopted the Uniform Commercial
                    Code.

                

        

         

        
          	 	
                  (3)

                	
                  in
                    the case of any Custodian for Party B, such Custodian (or, to
                    the extent
                    applicable, its parent company or credit support provider) shall
                    then have
                    a short-term unsecured and unsubordinated debt rating from S&P of at
                    least “A-1”.

                

        

         

        Initially,
          the Custodian
          for
          Party B is: the Swap Administrator.

         

        (ii)           
          Use
          of Posted Collateral.
          The
          provisions of Paragraph 6(c) will not apply to Party B, and Party B shall
          not
          have any right to use Posted Collateral or take any action specified in
          such
          Paragraph 6(c).

         

        (h)          
          Distributions
          and Interest Amount.

         

        (i)           
          Interest
          Rate.
          The
“Interest
          Rate”
will
          be
          the actual interest rate earned on Posted Collateral in the form of Cash
          that is
          held by Party B or its Custodian. Posted Collateral in the form of Cash
          shall be
          invested in such overnight (or redeemable within two Local Business Days
          of
          demand) Permitted Investments rated at least (x) AAAm or AAAm-G by S&P and
          (y) Prime-1 by Moody’s or Aaa by Moody’s, as directed by Party A. Gains and
          losses incurred in respect of any investment of Posted Collateral in the
          form of
          Cash in Permitted Investments as directed by Party A shall be for the account
          of
          Party A.

         

        (ii)          
          Amendment
          of Paragraph 6(d)(i) - Distributions.
          Clause
          (d)(i) of Paragraph 6 shall be amended and restated to read in its entirety
          as
          follows:

         

        “(i)
          Distributions.
          If Party
          B receives Distributions on a Local Business Day, it will credit to Party
          A not
          later than the following Local Business Day any Distributions it receives,
          and
          such Distributions will constitute Posted Collateral and will be subject
          to the
          security interest granted under Paragraph 2. For the avoidance of doubt,
          any
          Distributions will not be Transferred to Party A pursuant to Paragraph
          6.”

         

        (iii)         
          Amendment
          of Paragraph 6(d)(ii) - Interest Amount.
          Clause
          (d)(ii) of Paragraph 6 shall be amended and restated to read in its entirety
          as
          follows:

         

        “(ii)
          Interest
          Amount.
          The
          Interest Amount will not be Transferred to Party A pursuant to Paragraph
          6, but
          instead will constitute Posted Collateral and will be subject to the security
          interest granted under Paragraph 2. For purposes of calculating the Interest
          Amount the amount of interest calculated for each day of the interest period
          shall be compounded monthly.” Party B shall not be obliged to credit any
          Interest Amount unless and until it has received such amount.

         

        (i)            
          Additional
          Representation(s).
          There
          are no additional representations by either party.

         

        (ii)          
          Other
          Eligible Support and Other Posted Support.

         

        (i)           
          “Value”
with
          respect to Other Eligible Support and Other Posted Support means: not
          applicable. 

         

        (ii)           “Transfer”
with
          respect to Other Eligible Support and Other Posted Support means: not
          applicable.

         

        (k)          
          Demands
          and Notices.All
          demands, specifications and notices under this Annex will be made pursuant
          to
          the Notices Section of this Agreement, except that any demand, specification
          or
          notice shall be given to or made at the following addresses, or at such
          other
          address as the relevant party may from time to time designate by giving
          notice
          (in accordance with the terms of this paragraph) to the other
          party:

         

        If
          to
          Party A, at the address specified pursuant to the Notices Section of this
          Agreement.

         

        If
          to
          Party B, at the address specified pursuant to the Notices Section of this
          Agreement.

         

        If
          to
          Party B’s Custodian: at the address designated in writing from time to
          time.

         

        (l)           
          Address
          for Transfers.
          Each
          Transfer hereunder shall be made to the address specified below or to an
          address
          specified in writing from time to time by the party to which such Transfer
          will
          be made.

         

        Party
          A
          account details for holding collateral:

         

        Citibank,
          N.A., New York

        ABA
          Number: 021-0000-89, for the account of Bear, Stearns Securities
          Corp.

        Account
          Number: 0925-3186, for further credit to Bear Stearns Financial Products
          Inc.

        Sub-account
          Number: 102-04654-1-3

        Attention:
          Derivatives Department

        

        Party
          B’s
          Custodian account details for holding collateral:

         

        Wells
          Fargo Bank, NA

        ABA#:
          121000248

        Account
          Name: SAS Clearing

        Account
          #: 3970771416

        FFC:
          50979102, SACO 2007-1 Collateral Account

        

        (m)         
          Other
          Provisions.

         

        (i)           
          Collateral
          Account.
          Party B
          shall open and maintain a segregated account, which shall be an Eligible
          Account, and hold, record and identify all Posted Collateral in such segregated
          account.

         

        (ii)          
          Agreement
          as to Single Secured Party and Single Pledgor.
          Party A
          and Party B hereby agree that, notwithstanding anything to the contrary
          in this
          Annex, (a) the term “Secured Party” as used in this Annex means only Party B,
          (b) the term “Pledgor” as used in this Annex means only Party A, (c) only Party
          A makes the pledge and grant in Paragraph 2, the acknowledgement in the
          final
          sentence of Paragraph 8(a) and the representations in Paragraph 9.

         

        (iii)         
          Calculation
          of Value.
          Paragraph 4(c) is hereby amended by deleting the word “Value” and inserting in
          lieu thereof “S&P Value, Moody’s First Trigger Value, Moody’s Second Trigger
          Value”. Paragraph 4(d)(ii) is hereby amended by (A) deleting the words “a Value”
and inserting in lieu thereof “an S&P Value, Moody’s First Trigger Value,
          and Moody’s Second Trigger Value” and (B) deleting the words “the Value” and
          inserting in lieu thereof “S&P Value, Moody’s First Trigger Value, and
          Moody’s Second Trigger Value”. Paragraph 5 (flush language) is hereby amended by
          deleting the word “Value” and inserting in lieu thereof “S&P Value, Moody’s
          First Trigger Value, or Moody’s Second Trigger Value”. Paragraph 5(i) (flush
          language) is hereby amended by deleting the word “Value” and inserting in lieu
          thereof “S&P Value, Moody’s First Trigger Value, and Moody’s Second Trigger
          Value”. Paragraph 5(i)(C) is hereby amended by deleting the word “the Value, if”
and inserting in lieu thereof “any one or more of the S&P Value, Moody’s
          First Trigger Value, or Moody’s Second Trigger Value, as may be”. Paragraph
          5(ii) is hereby amended by (1) deleting the first instance of the words
“the
          Value” and inserting in lieu thereof “any one or more of the S&P Value,
          Moody’s First Trigger Value, or Moody’s Second Trigger Value” and (2) deleting
          the second instance of the words “the Value” and inserting in lieu thereof “such
          disputed S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger
          Value”. Each of Paragraph 8(b)(iv)(B) and Paragraph 11(a) is hereby amended by
          deleting the word “Value” and inserting in lieu thereof “least of the S&P
          Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.

         

        (iv)        
          Form
          of Annex. Party
          A
          and Party B hereby agree that the text of Paragraphs 1 through 12, inclusive,
          of
          this Annex is intended to be the printed form of ISDA Credit Support Annex
          (Bilateral Form - ISDA Agreements Subject to New York Law Only version)
          as
          published and copyrighted in 1994 by the International Swaps and Derivatives
          Association, Inc.

         

        (v)          
          Events
          of Default.
          Clause
          (iii) of Paragraph 7 shall not apply to Party B.

         

        (vi)         
          Expenses.
          Notwithstanding anything to the contrary in Paragraph 10, the Pledgor will
          be
          responsible for, and will reimburse the Secured Party for, all transfer
          and
          other taxes and other costs involved in any Transfer of Eligible
          Collateral.

         

        (vii)         
          Withholding.
          Paragraph 6(d)(ii) is hereby amended by inserting immediately after “the
          Interest Amount” in the fourth line thereof the words “less any applicable
          withholding taxes.”

         

        (ix)         
           Additional
          Definitions.
          As used
          in this Annex:

         

        “Collateral
          Event” means
          that no Relevant Entity has credit ratings at least equal to the Approved
          Ratings Threshold.

         

        “DV01”
          means,
          with respect to a Transaction and any date of determination, the estimated
          change in the Secured Party’s Transaction Exposure with respect to such
          Transaction that would result from a one basis point change in the relevant
          swap
          curve on such date, as determined by the Valuation Agent in good faith
          and in a
          commercially reasonable manner. The Valuation Agent shall, upon request
          of Party
          B, provide to Party B a statement showing in reasonable detail such
          calculation.

         

        “Exposure”
          has the meaning specified in Paragraph 12, except that after the word
“Agreement” the words “(assuming, for this purpose only, that Part 1(f) of the
          Schedule is deleted)” shall be inserted. 

         

        “Local
          Business Day”
means,
          for purposes of this Annex: any day on which (A) commercial banks are open
          for
          business (including dealings in foreign exchange and foreign currency deposits)
          in New York and the location of Party A, Party B and any Custodian, and
          (B) in
          relation to a Transfer of Eligible Collateral, any day on which the clearance
          system agreed between the parties for the delivery of Eligible Collateral
          is
          open for acceptance and execution of settlement instructions (or in the
          case of
          a Transfer of Cash or other Eligible Collateral for which delivery is
          contemplated by other means a day on which commercial banks are open for
          business (including dealings in foreign exchange and foreign deposits)
          in New
          York and the location of Party A, Party B and any Custodian. 

         

        “Moody’s
          First Trigger Credit Support Amount” means,
          for any Valuation Date, the excess, if any, of

         

        
          	 	
                  (I)

                	
                  (A)

                	
                  for
                    any Valuation Date on which (I) a Moody’s First Trigger Ratings Event has
                    occurred and has been continuing (x) for at least 30 Local Business
                    Days
                    or (y) since this Annex was executed and (II) it is not the case
                    that a
                    Moody’s Second Trigger Ratings Event has occurred and been continuing
                    for
                    at least 30 Local Business Days, an amount equal to the greater
                    of (a)
                    zero and (b) the sum of (i) the Secured Party’s Exposure for such
                    Valuation Date and (ii) the sum, for each Transaction to which
                    this Annex
                    relates, of the lesser of (x) the product of the Moody’s First Trigger
                    DV01 Multiplier and DV01 for such Transaction and such Valuation
                    Date and
                    (y) the product of Moody’s First Trigger Notional Amount Multiplier and
                    the Notional Amount for such Transaction for the Calculation
                    Period for
                    such Transaction (each as defined in the related Confirmation)
                    which
                    includes such Valuation Date, or

                

        

         

        
          	 	
                  (B)

                	
                  for
                    any other Valuation Date, zero,
                    over

                

        

         

        (II) the
          Threshold for Party A such Valuation Date.

         

        “Moody’s
          First Trigger DV01 Multiplier”
          means
          15.

         

        “Moody’s
          First Trigger Value”
          means,
          on any date and with respect to any Eligible Collateral other than Cash,
          the bid
          price obtained by the Valuation Agent multiplied by the Moody’s First Trigger
          Valuation Percentage for such Eligible Collateral set forth in Paragraph
          13(b)(ii).

         

        “Moody’s
          First Trigger Notional Amount Multiplier”
          means
          2%.

         

        “Moody’s
          Second Trigger Credit Support Amount”
          means,
          for any Valuation Date, the excess, if any, of

         

        
          	 	
                  (I)

                	
                  (A)

                	
                  for
                    any Valuation Date on which it is the case that a Moody’s Second Trigger
                    Ratings Event has occurred and been continuing for at least 30
                    Local
                    Business Days, an amount equal to the greatest of (a) zero, (b)
                    the
                    aggregate amount of the next payment due to be paid by Party
                    A under each
                    Transaction to which this Annex relates, and (c) the sum of (x)
                    the
                    Secured Party’s Exposure for such Valuation Date and (y) the sum, for each
                    Transaction to which this Annex relates,
                    of:

                

        

         

        
          	 	
                  (1)

                	
                  if
                    such Transaction is not a Transaction-Specific Hedge, the lesser
                    of (i)
                    the product of the Moody’s Second Trigger DV01 Multiplier and DV01 for
                    such Transaction and such Valuation Date and (ii) the product
                    of the
                    Moody’s Second Trigger Notional Amount Multiplier and the Notional
                    Amount
                    for such Transaction for the Calculation Period for such Transaction
                    (each
                    as defined in the related Confirmation) which includes such Valuation
                    Date;
                    or

                

        

         

        
          	 	
                  (2)

                	
                  if
                    such Transaction is a Transaction-Specific Hedge, the lesser
                    of (i) the
                    product of the Moody’s Second Trigger Transaction-Specific Hedge DV01
                    Multiplier and DV01 for such Transaction and such Valuation Date
                    and (ii)
                    the product of the Moody’s Second Trigger Transaction-Specific Hedge
                    Notional Amount Multiplier and the Notional Amount for such Transaction
                    for the Calculation Period for such Transaction (each as defined
                    in the
                    related Confirmation) which includes such Valuation Date;
                    or

                

        

         

        
          	 	
                  (B)

                	
                  for
                    any other Valuation Date, zero,
                    over

                

        

         

        (II) the
          Threshold for Party A for such Valuation Date.

         

        “Moody’s
          Second Trigger DV01 Multiplier”
          means
          50.

         

        “Moody’s
          Second Trigger Notional Amount Multiplier”
          means
          8%.

         

        “Moody’s
          Second Trigger Transaction-Specific Hedge DV01
          Multiplier”
          means
          65.

         

        “Moody’s
          Second Trigger Transaction-Specific Hedge Notional Amount
          Multiplier”
          means
          10%.

         

        “Moody’s
          Second Trigger Value”
          means,
          on any date and with respect to any Eligible Collateral other than Cash,
          the bid
          price obtained by the Valuation Agent multiplied by the Moody’s Second Trigger
          Valuation Percentage for such Eligible Collateral set forth in Paragraph
          13(b)(ii).

         

        “Remaining
          Weighted Average Maturity” means,
          with respect to a Transaction, the expected weighted average maturity for
          such
          Transaction as determined by the Valuation Agent. 

         

        “S&P
          Credit Support Amount”
          means,
          for any Valuation Date, the excess, if any, of

         

        
          	 	
                  (I)

                	
                  (A)
                    

                	
                  for
                    any Valuation Date on which (i) an S&P Approved Ratings Downgrade
                    Event has occurred and been continuing for at least 30 days or
                    (ii) a
                    S&P Required Ratings Downgrade Event has occurred and is continuing,
                    an amount equal to the sum of (1) 100.0% of the Secured Party’s Exposure
                    for such Valuation Date and (2) the sum, for each Transaction
                    to which
                    this Annex relates, of the product of the Volatility Buffer for
                    such
                    Transaction and the Notional Amount of such Transaction for the
                    Calculation Period of such Transaction (each as defined in the
                    related
                    Confirmation) which includes such Valuation Date,
                    or

                

        

         

        
          	 	
                  (B)

                	
                  for
                    any other Valuation Date, zero,
                    over

                

        

         

        (II) the
          Threshold for Party A for such Valuation Date.

         

        “S&P
          Value”
          means,
          on any date and with respect to any Eligible Collateral other than Cash,
          the
          product of (A) the bid price obtained by the Valuation Agent for such Eligible
          Collateral and (B) the S&P Valuation Percentage for such Eligible Collateral
          set forth in paragraph 13(b)(ii).

         

        “Transaction
          Exposure”
          means,
          for any Transaction, Exposure determined as if such Transaction were the
          only
          Transaction between the Secured Party and the Pledgor.

         

        “Transaction-Specific
          Hedge” means
          any
          Transaction that is (i) an interest rate swap in respect of which (x) the
          notional amount of the interest rate swap is “balance guaranteed” or (y) the
          notional amount of the interest rate swap for any Calculation Period (as
          defined
          in the related Confirmation) otherwise is not a specific dollar amount
          that is
          fixed at the inception of the Transaction, (ii) an interest rate cap, (iii)
          an
          interest rate floor or (iv) an interest rate swaption.

         

        “Valuation
          Percentage”
          shall
          mean, for purposes of determining the S&P Value, Moody’s First Trigger
          Value, or Moody’s Second Trigger Value with respect to any Eligible Collateral
          or Posted Collateral, the applicable S&P Valuation Percentage, Moody’s First
          Trigger Valuation Percentage, or Moody’s Second Trigger Valuation Percentage for
          such Eligible Collateral or Posted Collateral, respectively, in each case
          as set
          forth in Paragraph 13(b)(ii).

         

        “Value”
          shall
          mean, in respect of any date, the related S&P Value, the related Moody’s
          First Trigger Value, and the related Moody’s Second Trigger Value.

         

        “Volatility
          Buffer”
          means,
          for any Transaction, the related percentage set forth in the following
          table.

         

        
          	
                  The
                    higher of the S&P short-term credit rating of (i) Party A and (ii) the
                    Credit Support Provider of Party A, if applicable

                	
                  Remaining
                    Weighted Average Maturity 

                  up
                    to 3 years

                	
                  Remaining
                    Weighted Average Maturity

                  up
                    to 5 years

                	
                  Remaining
                    Weighted Average Maturity

                  up
                    to 10 years

                	
                  Remaining
                    Weighted Average Maturity

                  up
                    to 30 years

                
	
                  “A-2”
                    or higher

                	
                  2.75%

                	
                  3.25%

                	
                  4.00%

                	
                  4.75%

                
	
                  “A-3”

                	
                  3.25%

                	
                  4.00%

                	
                  5.00%

                	
                  6.25%

                
	
                  “BB+”
                    or
                    lower

                	
                  3.50%

                	
                  4.50%

                	
                  6.75%

                	
                  7.50%

                

        

        

         

        

         

        

         

        [Remainder
          of this page intentionally left blank]

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties have executed this Annex by their duly authorized
          representatives as of the date of the Agreement.

         

        
          	
                  Bear
                    Stearns Financial Products Inc.

                	 	
                  The
                    Supplemental Interest Trust with respect to Home Equity Mortgage
                    Loan
                    Asset-Backed Trust Series SACO I Trust 2007-1 Mortgage-Backed
                    Certificates, Series 2007-1, by Wells Fargo Bank National Association,
                    not
                    in its individual capacity, but solely as the Supplemental Interest
                    Trust
                    Trustee

                
	 	 	 	 	 
	 	 	 	 	 
	
                  By:

                	 	 	
                  By:

                	 
	
                  Name:

                	 	 	
                  Name:

                	 
	
                  Title:

                	 	 	
                  Title:

                	 
	
                  Date:

                	 	 	
                  Date:

                	 

        

        

         

        

         

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SCHEDULE
          A

         

        ELIGIBLE
          COLLATERAL

         

        

         

        
          	
                   

                  ISDA
                    Collateral Asset Definition
                    (ICAD) Code 

                	
                  Remaining
                    Maturity in Years

                	
                  S&P
                    

                  Valuation
                    

                  Percentage

                	
                  Moody’s

                  First
                    Trigger Valuation
                    Percentage

                	
                  Moody’s

                  Second
                    Trigger

                  Valuation

                  Percentage

                
	
                  (A)
                    US-CASH

                	
                  N/A

                	
                  100%

                	
                  100%

                	
                  100%

                
	
                  (B)
                    EU-CASH

                	
                  N/A

                	
                  92.5%

                	
                  98%

                	
                  94%

                
	
                  (C)
                    GB-CASH

                	
                  N/A

                	
                  94.1%

                	
                  98%

                	
                  95%

                
	
                  (D)
                    US-TBILL

                       
                    US-TNOTE

                       
                    US-TBOND

                	 	 	 	 
	 	
                  1
                    or less

                	
                  98.9%

                	
                  100%

                	
                  100%

                
	 	
                  More
                    than 1 but not more than 2

                	
                  98.0%

                	
                  100%

                	
                  99%

                
	 	
                  More
                    than 2 but not more than 3

                	
                  97.4%

                	
                  100%

                	
                  98%

                
	 	
                  More
                    than 3 but not more than 5

                	
                  95.5%

                	
                  100%

                	
                  97%

                
	 	
                  More
                    than 5 but not more than 7

                	
                  93.7%

                	
                  100%

                	
                  96%

                
	 	
                  More
                    than 7 but not more than 10

                	
                  92.5%

                	
                  100%

                	
                  94%

                
	 	
                  More
                    than 10 but not more than 20

                	
                  91.1%

                	
                  100%

                	
                  90%

                
	 	
                  More
                    than 20

                	
                  88.6%

                	
                  100%

                	
                  88%

                
	
                  (E)
                    US-GNMA

                       
                    US-FNMA

                       
                    US-FHLMC

                	 	 	 	 
	 	
                  1
                    or less

                	
                  98.5%

                	
                  100%

                	
                  99%

                
	 	
                  More
                    than 1 but not more than 2

                	
                  97.7%

                	
                  100%

                	
                  99%

                
	 	
                  More
                    than 2 but not more than 3

                	
                  97.3%

                	
                  100%

                	
                  98%

                
	 	
                  More
                    than 3 but not more than 5

                	
                  94.5%

                	
                  100%

                	
                  96%

                
	 	
                  More
                    than 5 but not more than 7

                	
                  93.1%

                	
                  100%

                	
                  93%

                
	 	
                  More
                    than 7 but not more than 10

                	
                  90.7%

                	
                  100%

                	
                  93%

                
	 	
                  More
                    than 10 but not more than 20

                	
                  87.7%

                	
                  100%

                	
                  89%

                
	 	
                  More
                    than 20

                	
                  84.4%

                	
                  100%

                	
                  87%

                
	
                  (F)
                    Fixed-Rate GA-EUROZONE-GOV

                	 	
                  Rated
                    AAA or better by S&P

                	
                  Rated
                    Aa3 or better by Moody's

                	
                  Rated
                    Aa3 or better by Moody's

                
	 	
                  1
                    or less

                	
                  98.8%

                	
                  98%

                	
                  94%

                
	 	
                  More
                    than 1 but not more than 2

                	
                  97.9%

                	
                  98%

                	
                  93%

                
	 	
                  More
                    than 2 but not more than 3

                	
                  97.1%

                	
                  98%

                	
                  92%

                
	 	
                  More
                    than 3 but not more than 5

                	
                  91.2%

                	
                  98%

                	
                  90%

                
	 	
                  More
                    than 5 but not more than 7

                	
                  87.5%

                	
                  98%

                	
                  89%

                
	 	
                  More
                    than 7 but not more than 10

                	
                  83.8%

                	
                  98%

                	
                  88%

                
	 	
                  More
                    than 10 but not more than 20

                	
                  75.5%

                	
                  98%

                	
                  84%

                

        

        

         

        The
          ISDA
          Collateral Asset Definition (ICAD) Codes used in this Schedule A are taken
          from
          the Collateral Asset Definitions (First Edition - June 2003) as published
          and
          copyrighted in 2003 by the International Swaps and Derivatives Association,
          Inc.

         

        

         

        

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          O

         

        SERVICING
          CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

         

        Definitions

        Primary
          Servicer - transaction party having borrower contact

        Master
          Servicer - aggregator of pool assets

        Securities
          Administrator - waterfall calculator

        Back-up
          Servicer - named in the transaction (in the event a Back up Servicer becomes
          the
          Primary Servicer, follow Primary Servicer obligations)

        Custodian
          - safe keeper of pool assets

        Trustee
          -
          fiduciary of the transaction

        

        Note:
          The
          definitions above describe the essential function that the party performs,
          rather than the party’s title. So, for example, in a particular transaction, the
          trustee may perform the “paying agent” and “securities administrator” functions,
          while in another transaction, the securities administrator may perform
          these
          functions.

        

        Where
          there are multiple checks for criteria the attesting party will identify
          in
          their management assertion that they are attesting only to the portion
          of the
          distribution chain they are responsible for in the related transaction
          agreements.

        

        Key: X
          - obligation

         

         

        
          	
                  Reg
                    AB Reference

                	
                  Servicing
                    Criteria

                	
                  Primary
                    Servicer

                	
                  Master
                    Servicer

                	
                  Securities
                    Administrator

                	
                  Custodian

                	
                  Trustee

                  (nominal)

                
	 	
                  General
                    Servicing Considerations

                	 	 	 	 	 
	
                  1122(d)(1)(i)

                	
                  Policies
                    and procedures are instituted to monitor any performance or other
                    triggers
                    and events of default in accordance with the transaction
                    agreements.

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(1)(ii)

                	
                  If
                    any material servicing activities are outsourced to third parties,
                    policies and procedures are instituted to monitor the third party’s
                    performance and compliance with such servicing activities.

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(1)(iii)

                	
                  Any
                    requirements in the transaction agreements to maintain a back-up
                    servicer
                    for the Pool Assets are maintained. 

                	 	 	 	 	 
	
                  1122(d)(1)(iv)

                	
                  A
                    fidelity bond and errors and omissions policy is in effect on
                    the party
                    participating in the servicing function throughout the reporting
                    period in
                    the amount of coverage required by and otherwise in accordance
                    with the
                    terms of the transaction agreements. 

                	
                  X

                	
                  X

                	 	 	 
	 	
                  Cash
                    Collection and Administration

                	 	 	 	 	 
	
                  1122(d)(2)(i)

                	
                  Payments
                    on pool assets are deposited into the appropriate custodial bank
                    accounts
                    and related bank clearing accounts no more than two business
                    days
                    following receipt, or such other number of days specified in
                    the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(ii)

                	
                  Disbursements
                    made via wire transfer on behalf of an obligor or to an investor
                    are made
                    only by authorized personnel. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(iii)

                	
                  Advances
                    of funds or guarantees regarding collections, cash flows or distributions,
                    and any interest or other fees charged for such advances, are
                    made,
                    reviewed and approved as specified in the transaction agreements.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(iv)

                	
                  The
                    related accounts for the transaction, such as cash reserve accounts
                    or
                    accounts established as a form of over collateralization, are
                    separately
                    maintained (e.g., with respect to commingling of cash) as set
                    forth in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(v)

                	
                  Each
                    custodial account is maintained at a federally insured depository
                    institution as set forth in the transaction agreements. For purposes
                    of
                    this criterion, “federally insured depository institution” with respect to
                    a foreign financial institution means a foreign financial institution
                    that
                    meets the requirements of Rule 13k-1(b)(1) of the Securities
                    Exchange Act.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(vi)

                	
                  Unissued
                    checks are safeguarded so as to prevent unauthorized access.
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(2)(vii)
                    

                	
                  Reconciliations
                    are prepared on a monthly basis for all asset-backed securities
                    related
                    bank accounts, including custodial accounts and related bank
                    clearing
                    accounts. These reconciliations are (A) mathematically accurate;
                    (B)
                    prepared within 30 calendar days after the bank statement cutoff
                    date, or
                    such other number of days specified in the transaction agreements;
                    (C)
                    reviewed and approved by someone other than the person who prepared
                    the
                    reconciliation; and (D) contain explanations for reconciling
                    items. These
                    reconciling items are resolved within 90 calendar days of their
                    original
                    identification, or such other number of days specified in the
                    transaction
                    agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	 	
                  Investor
                    Remittances and Reporting

                	 	 	 	 	 
	
                  1122(d)(3)(i)

                	
                  Reports
                    to investors, including those to be filed with the Commission,
                    are
                    maintained in accordance with the transaction agreements and
                    applicable
                    Commission requirements. Specifically, such reports (A) are prepared
                    in
                    accordance with timeframes and other terms set forth in the transaction
                    agreements; (B) provide information calculated in accordance
                    with the
                    terms specified in the transaction agreements; (C) are filed
                    with the
                    Commission as required by its rules and regulations; and (D)
                    agree with
                    investors’ or the trustee’s records as to the total unpaid principal
                    balance and number of Pool Assets serviced by the Servicer.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(ii)

                	
                  Amounts
                    due to investors are allocated and remitted in accordance with
                    timeframes,
                    distribution priority and other terms set forth in the transaction
                    agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(iii)

                	
                  Disbursements
                    made to an investor are posted within two business days to the
                    Servicer’s
                    investor records, or such other number of days specified in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(iv)

                	
                  Amounts
                    remitted to investors per the investor reports agree with cancelled
                    checks, or other form of payment, or custodial bank statements.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	 	
                  Pool
                    Asset Administration

                	 	 	 	 	 
	
                  1122(d)(4)(i)
                    

                	
                  Collateral
                    or security on pool assets is maintained as required by the transaction
                    agreements or related pool asset documents. 

                	
                  X

                	 	 	
                  X

                	 
	
                  1122(d)(4)(ii)

                	
                  Pool
                    assets and related documents are safeguarded as required by the
                    transaction agreements 

                	
                  X

                	 	 	
                  X

                	 
	
                  1122(d)(4)(iii)

                	
                  Any
                    additions, removals or substitutions to the asset pool are made,
                    reviewed
                    and approved in accordance with any conditions or requirements
                    in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	
                  X1   (only
                    with respect to LaSalle as Custodian)

                	 
	
                  1122(d)(4)(iv)

                	
                  Payments
                    on pool assets, including any payoffs, made in accordance with
                    the related
                    pool asset documents are posted to the Servicer’s obligor records
                    maintained no more than two business days after receipt, or such
                    other
                    number of days specified in the transaction agreements, and allocated
                    to
                    principal, interest or other items (e.g., escrow) in accordance
                    with the
                    related pool asset documents. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(v)

                	
                  The
                    Servicer’s records regarding the pool assets agree with the Servicer’s
                    records with respect to an obligor’s unpaid principal balance.
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(vi)

                	
                  Changes
                    with respect to the terms or status of an obligor's pool assets
                    (e.g.,
                    loan modifications or re-agings) are made, reviewed and approved
                    by
                    authorized personnel in accordance with the transaction agreements
                    and
                    related pool asset documents. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(vii)

                	
                  Loss
                    mitigation or recovery actions (e.g., forbearance plans, modifications
                    and
                    deeds in lieu of foreclosure, foreclosures and repossessions,
                    as
                    applicable) are initiated, conducted and concluded in accordance
                    with the
                    timeframes or other requirements established by the transaction
                    agreements. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(viii)

                	
                  Records
                    documenting collection efforts are maintained during the period
                    a pool
                    asset is delinquent in accordance with the transaction agreements.
                    Such
                    records are maintained on at least a monthly basis, or such other
                    period
                    specified in the transaction agreements, and describe the entity’s
                    activities in monitoring delinquent pool assets including, for
                    example,
                    phone calls, letters and payment rescheduling plans in cases
                    where
                    delinquency is deemed temporary (e.g., illness or unemployment).
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(ix)

                	
                  Adjustments
                    to interest rates or rates of return for pool assets with variable
                    rates
                    are computed based on the related pool asset documents. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(x)

                	
                  Regarding
                    any funds held in trust for an obligor (such as escrow accounts):
                    (A) such
                    funds are analyzed, in accordance with the obligor’s pool asset documents,
                    on at least an annual basis, or such other period specified in
                    the
                    transaction agreements; (B) interest on such funds is paid, or
                    credited,
                    to obligors in accordance with applicable pool asset documents
                    and state
                    laws; and (C) such funds are returned to the obligor within 30
                    calendar
                    days of full repayment of the related pool assets, or such other
                    number of
                    days specified in the transaction agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xi)

                	
                  Payments
                    made on behalf of an obligor (such as tax or insurance payments)
                    are made
                    on or before the related penalty or expiration dates, as indicated
                    on the
                    appropriate bills or notices for such payments, provided that
                    such support
                    has been received by the servicer at least 30 calendar days prior
                    to these
                    dates, or such other number of days specified in the transaction
                    agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xii)

                	
                  Any
                    late payment penalties in connection with any payment to be made
                    on behalf
                    of an obligor are paid from the Servicer’s funds and not charged to the
                    obligor, unless the late payment was due to the obligor’s error or
                    omission. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xiii)

                	
                  Disbursements
                    made on behalf of an obligor are posted within two business days
                    to the
                    obligor’s records maintained by the servicer, or such other number of
                    days
                    specified in the transaction agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xiv)
                    

                	
                  Delinquencies,
                    charge-offs and uncollectible accounts are recognized and recorded
                    in
                    accordance with the transaction agreements. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(xv)

                	
                  Any
                    external enhancement or other support, identified in Item 1114(a)(1)
                    through (3) or Item 1115 of Regulation AB, is maintained as set
                    forth in
                    the transaction agreements. 

                	
                  X

                	 	
                  X

                	 	 

        

        

         

        

         

        

         

        

          

          
            1Only
              with respect to the logistics of adding, removing or substituting loan
              files.

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          P

         

        FORM
          10-D, FORM 8-K AND FORM 10-K

        REPORTING
          RESPONSIBILITY

        

        As
          to
          each item described below, the entity indicated as the Responsible Party
          shall
          be primarily responsible for reporting the information to the party identified
          as responsible for preparing the Securities Exchange Act Reports pursuant
          to
          Section 3.18 of the Pooling and Servicing Agreement.

        

        Under
          Item 1 of Form 10-D: a) items marked “monthly statements to certificateholders”
are required to be included in the periodic Distribution Date statement
          under
          Section 6.06 of the Pooling and Servicing Agreement, provided by the Securities
          Administrator based on information received from the party providing such
          information to the Securities Administrator; and b) items marked “Form 10-D
          report” are required to be in the Form 10-D report but not the monthly
          statements to certificateholders, provided by the party indicated. Information
          under all other Items of Form 10-D is to be included in the Form 10-D report.
          All such information and any other Items of Form 8-K and Form 10-K set
          forth in
          this exhibit shall be sent to the Securities Administrator and the
          Depositor.

        

        

          
            	
                    Form

                  	
                    Item

                  	
                    Description

                  	
                    Servicers

                  	
                    Master
                      Servicer

                  	
                    Securities
                      Administrator

                  	
                    Custodian

                  	
                    Trustee
                      (nominal)

                  	
                    Depositor

                  	
                    Sponsor

                  
	
                    10-D

                  	
                    Must
                      be filed within 15 days of the distribution date for the asset-backed
                      securities.

                  	 	 	 	 
	
                    1

                  	
                    Distribution
                      and Pool Performance Information

                  	 	 	 	 	 	 	 
	
                    Item
                      1121(a) - Distribution and Pool Performance
                      Information

                  	 	 	 	 	 	 	 
	
                    (1)
                      Any applicable record dates, accrual dates, determination dates
                      for
                      calculating distributions and actual distribution dates for
                      the
                      distribution period.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (2)
                      Cash flows received and the sources thereof for distributions,
                      fees and
                      expenses.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (3)
                      Calculated amounts and distribution of the flow of funds for
                      the period
                      itemized by type and priority of payment, including:

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (i)
                      Fees or expenses accrued and paid, with an identification of
                      the general
                      purpose of such fees and the party receiving such fees or
                      expenses.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (ii)
                      Payments accrued or paid with respect to enhancement or other
                      support
                      identified in Item 1114 of Regulation AB (such as insurance
                      premiums or
                      other enhancement maintenance fees), with an identification
                      of the general
                      purpose of such payments and the party receiving such
                      payments.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (iii)
                      Principal, interest and other distributions accrued and paid
                      on the
                      asset-backed securities by type and by class or series and
                      any principal
                      or interest shortfalls or carryovers.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (iv)
                      The amount of excess cash flow or excess spread and the disposition
                      of
                      excess cash flow.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (4)
                      Beginning and ending principal balances of the asset-backed
                      securities.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (5)
                      Interest rates applicable to the pool assets and the asset-backed
                      securities, as applicable. Consider providing interest rate
                      information
                      for pool assets in appropriate distributional groups or incremental
                      ranges.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (6)
                      Beginning and ending balances of transaction accounts, such
                      as reserve
                      accounts, and material account activity during the period.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                     

                    (only
                      with respect to reserve accounts)

                  	 	 	 	 
	
                    (7)
                      Any amounts drawn on any credit enhancement or other support
                      identified in
                      Item 1114 of Regulation AB, as applicable, and the amount of
                      coverage
                      remaining under any such enhancement, if known and
                      applicable.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (8)
                      Number and amount of pool assets at the beginning and ending
                      of each
                      period, and updated pool composition information, such as weighted
                      average
                      coupon, weighted average remaining term, pool factors and prepayment
                      amounts.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	
                    Updated
                      pool composition information fields to be as specified by Depositor
                      from
                      time to time

                  	 
	
                    (9)
                      Delinquency and loss information for the period.

                  	
                    X

                  	
                    X

                  	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    In
                      addition, describe any material changes to the information
                      specified in
                      Item 1100(b)(5) of Regulation AB regarding the pool assets.
                      (methodology)

                  	
                    X

                  	 	 	 	 	 	 
	
                    (10)
                      Information on the amount, terms and general purpose of any
                      advances made
                      or reimbursed during the period, including the general use
                      of funds
                      advanced and the general source of funds for
                      reimbursements.

                  	
                    X

                  	
                    X

                  	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (11)
                      Any material modifications, extensions or waivers to pool asset
                      terms,
                      fees, penalties or payments during the distribution period
                      or that have
                      cumulatively become material over time.

                  	
                    X

                  	
                    X

                  	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (12)
                      Material breaches of pool asset representations or warranties
                      or
                      transaction covenants.

                  	
                    X

                  	
                    X

                  	
                    X

                     

                    (if
                      agreed upon by the parties)

                  	 	 	
                    X

                  	 
	
                    (13)
                      Information on ratio, coverage or other tests used for determining
                      any
                      early amortization, liquidation or other performance trigger
                      and whether
                      the trigger was met.

                  	 	 	
                    X

                     

                    (monthly
                      statements to certificateholders)

                  	 	 	 	 
	
                    (14)
                      Information regarding any new issuance of asset-backed securities
                      backed
                      by the same asset pool, 

                  	 	 	 	 	 	
                    X

                  	 
	
                    information
                      regarding any pool asset changes (other than in connection
                      with a pool
                      asset converting into cash in accordance with its terms), such
                      as
                      additions or removals in connection with a prefunding or revolving
                      period
                      and pool asset substitutions and repurchases (and purchase
                      rates, if
                      applicable), and cash flows available for future purchases,
                      such as the
                      balances of any prefunding or revolving accounts, if
                      applicable.

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	 	
                    X

                  	 
	
                    Disclose
                      any material changes in the solicitation, credit-granting,
                      underwriting,
                      origination, acquisition or pool selection criteria or procedures,
                      as
                      applicable, used to originate, acquire or select the new pool
                      assets.

                  	 	 	 	 	 	
                    X

                  	
                    X

                  
	
                    Item
                      1121(b) - Pre-Funding or Revolving Period Information

                     

                    Updated
                      pool information as required under Item 1121(b).

                  	 	 	 	 	 	
                    X

                  	 
	
                    2

                  	
                    Legal
                      Proceedings

                  	 	 	 	 	 	 	 
	
                    Item
                      1117 - Legal proceedings pending against the following entities,
                      or their
                      respective property, that is material to Certificateholders,
                      including
                      proceedings known to be contemplated by governmental
                      authorities:

                  	 	 	 	 	 	 	 
	
                    Sponsor
                      (Seller)

                  	 	 	 	 	 	 	
                    X

                  
	
                    Depositor

                  	 	 	 	 	 	
                    X

                  	 
	
                    Trustee

                  	 	 	 	 	
                    X

                  	 	 
	
                    Issuing
                      entity

                  	 	 	 	 	 	
                    X

                  	 
	
                    Master
                      Servicer, affiliated Servicer, other Servicer servicing 20%
                      or more of
                      pool assets at time of report, other material servicers

                  	
                    X

                  	
                    X

                  	 	 	 	 	 
	
                    Securities
                      Administrator

                  	 	 	
                    X

                  	 	 	 	 
	
                    Originator
                      of 20% or more of pool assets as of the Cut-off Date

                  	 	 	 	 	 	
                    X

                  	 
	
                    Custodian

                  	 	 	 	
                    X

                  	 	 	 
	
                    3

                  	
                    Sales
                      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.

                  	 	 	 	 	 	
                    X

                  	 
	
                    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)

                  	 	 	
                    X

                  	 	 	 	 
	
                    5

                  	
                    Submission
                      of Matters to a Vote of Certificateholders

                  	 	 	 	 	 	 	 
	
                    Information
                      from Item 4 of Part II of Form 10-Q

                  	 	 	
                    X

                  	 	 	 	 
	
                    6

                  	
                    Significant
                      Obligors of Pool Assets

                  	 	 	 	 	 	 	 
	
                    Item
                      1112(b) - Significant
                      Obligor Financial Information*

                  	 	 	 	 	 	
                    X

                  	 
	
                    *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.

                  	 	 	 	 	 	 	 
	
                    7

                  	
                    Significant
                      Enhancement Provider Information

                  	 	 	 	 	 	 	 
	
                    Item
                      1114(b)(2) - Credit Enhancement Provider Financial
                      Information*

                  	 	 	 	 	 	 	 
	
                    Determining
                      applicable disclosure threshold

                  	 	 	
                    X

                  	 	 	
                    X

                  	 
	
                    Requesting
                      required financial information or effecting incorporation by
                      reference

                  	 	 	
                    X

                  	 	 	
                    X

                  	 
	
                    Item
                      1115(b) - Derivative Counterparty Financial
                      Information*

                  	 	 	 	 	 	 	 
	
                    Determining
                      current maximum probable exposure

                  	 	 	 	 	 	
                    X

                  	 
	
                    Determining
                      current significance percentage

                  	 	 	
                    X

                  	 	 	 	 
	
                    Notifying
                      derivative counterparty of significance percentage and requesting
                      required
                      financial information

                  	 	 	
                    X

                  	 	 	 	 
	
                    Obtaining
                      required financial information or effecting incorporation by
                      reference

                  	 	 	 	 	 	
                    X

                  	 
	
                    *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.

                  	 	 	 	 	 	 	 
	
                    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

                  	
                    The
                      Responsible Party for the applicable Form 8-K item as indicated
                      below.

                  
	
                    9

                  	
                    Exhibits

                  	 	 	 	 	 	 	 
	
                    Distribution
                      report

                  	 	 	
                    X

                  	 	 	 	 
	
                    Exhibits
                      required by Item 601 of Regulation S-K, such as material
                      agreements

                  	 	 	 	 	 	
                    X

                  	 
	
                    8-K

                  	
                    Must
                      be filed within four business days of an event reportable on
                      Form
                      8-K.

                  	 	 	 	 
	
                    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

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	 	
                    X

                  	
                    X

                  
	
                    1.02

                  	
                    Termination
                      of a Material Definitive Agreement

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	 	
                    X

                  	
                    X

                  
	
                    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.

                  	 	 	 	 	 	 	 
	
                    1.03

                  	
                    Bankruptcy
                      or Receivership

                  	 	 	 	 	 	 	 
	
                    Disclosure
                      is required regarding the bankruptcy or receivership, if known
                      to the
                      Master Servicer, with respect to any of the following: 

                     

                    Sponsor
                      (Seller), Depositor, Master Servicer, affiliated Servicer,
                      other Servicer
                      servicing 20% or more of pool assets at time of report, other
                      material
                      servicers, Securities Administrator, Trustee, significant obligor,
                      credit
                      enhancer (10% or more), derivatives counterparty,
                      Custodian

                  	
                    X

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	
                    X

                  	
                    X

                  
	
                    2.04

                  	
                    Triggering
                      Events that Accelerate or Increase a Direct Financial Obligation
                      or an
                      Obligation under an Off-Balance Sheet Arrangement

                    [in
                      this transaction there is no 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 monthly statements to certificateholders.

                    [in
                      this transaction there will be no events other than waterfall
                        triggers]

                  	 	
                    X

                  	
                    X

                  	 	 	 	 
	
                    3.03

                  	
                    Material
                      Modification to Rights of Certificateholders

                  	 	 	 	 	 	 	 
	
                    Disclosure
                      is required of any material modification to documents defining
                      the rights
                      of Certificateholders, including the Pooling and Servicing
                      Agreement

                  	 	 	
                    X

                  	 	 	
                    X

                  	 
	
                    5.03

                  	
                    Amendments
                      to Articles of Incorporation or Bylaws; Change in Fiscal
                      Year

                  	 	 	 	 	 	 	 
	
                    Disclosure
                      is required of any amendment “to the governing documents of the issuing
                      entity”

                  	 	 	 	 	 	
                    X

                  	 
	
                    5.06

                  	
                    Change
                      in Shell Company Status

                  	 	 	 	 	 	 	 
	
                    [Not
                      applicable to ABS issuers]

                  	 	 	 	 	 	
                    X

                  	 
	
                    6.01

                  	
                    ABS
                      Informational and Computational Material

                  	 	 	 	 	 	 	 
	
                    [Not
                      included in reports to be filed under Section 3.18]

                  	 	 	 	 	 	
                    X

                  	 
	
                    6.02

                  	
                    Change
                      of Servicer or Trustee

                  	 	 	 	 	 	 	 
	
                    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,
                      securities
                      administrator or trustee.

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	 	
                    X

                  	 
	 	
                    Reg
                      AB disclosure about any new servicer is also required.

                  	
                    X

                  	 	 	 	 	 	 
	 	
                    Reg
                      AB disclosure about any new trustee is also required.

                  	 	 	 	 	
                    X (to
                      the extent required by successor trustee)

                  	 	 
	 	
                    Reg
                      AB disclosure about any new securities administrator is also
                      required.

                  	 	 	
                    X

                  	 	 	 	 
	
                    6.03

                  	
                    Change
                      in Credit Enhancement or Other 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.

                  	 	 	
                    X

                  	 	 	
                    X

                  	 
	 	
                    Reg
                      AB disclosure about any new enhancement provider is also
                      required.

                  	 	 	
                    X

                  	 	 	
                    X

                  	 
	
                    6.04

                  	
                    Failure
                      to Make a Required Distribution

                  	 	 	
                    X

                  	 	 	 	 
	
                    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.

                  	 	 	 	 	 	
                    X

                  	
                     

                  
	
                    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.

                  	 	 	 	 	 	
                    X

                  	 
	
                    7.01

                  	
                    Regulation
                      FD Disclosure

                  	
                    X

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	
                    X

                  	 
	
                    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.

                  	 	 	 	 	 	
                    X

                  	 
	
                    9.01

                  	
                    Financial
                      Statements and Exhibits

                  	
                    The
                      Responsible Party applicable to reportable event.

                  
	
                    10-K

                  	
                    Must
                      be filed within 90 days of the fiscal year end for the
                      registrant.

                  	 	 	 	 
	
                    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

                  	
                    The
                      Responsible Party for the applicable Form 8-K Item as indicated
                      above.

                  
	 	
                    15

                  	
                    Exhibits
                      and Financial Statement Schedules

                  	 	 	 	 	 	 	 
	
                    Item
                      1112(b) - Significant
                      Obligor Financial Information

                  	 	 	 	 	 	
                    X

                  	 
	
                    Item
                      1114(b)(2) - Credit Enhancement Provider Financial
                      Information

                  	 	 	 	 	 	 	 
	
                    Determining
                      applicable disclosure threshold

                  	 	 	
                    X

                  	 	 	 	 
	
                    Obtaining
                      required financial information or effecting incorporation by
                      reference

                  	 	 	
                    X

                  	 	 	 	 
	
                    Item
                      1115(b) - Derivative Counterparty Financial
                      Information

                  	 	 	 	 	 	 	 
	
                    Determining
                      current maximum probable exposure

                  	 	 	 	 	 	
                    X

                  	 
	 	 	
                    Determining
                      current significance percentage

                  	 	 	
                    X

                  	 	 	 	 
	
                    Notifying
                      derivative counterparty of significance percentage and requesting
                      required
                      financial informaiton

                  	 	 	
                    X

                  	 	 	 	 
	
                    Obtaining
                      required financial information or effecting incorporation by
                      reference

                  	 	 	 	 	 	
                    X

                  	 
	
                    Item
                      1117 - Legal proceedings pending against the following entities,
                      or their
                      respective property, that is material to Certificateholders,
                      including
                      proceedings known to be contemplated by governmental
                      authorities:

                  	 	 	 	 	 	 	 
	
                    Sponsor
                      (Seller)

                  	 	 	 	 	 	 	
                    X

                  
	
                    Depositor

                  	 	 	 	 	 	
                    X

                  	 
	
                    Trustee

                  	 	 	 	 	 	 	 
	
                    Issuing
                      entity

                  	 	 	 	 	 	
                    X

                  	 
	
                    Master
                      Servicer, affiliated Servicer, other Servicer servicing 20%
                      or more of
                      pool assets at time of report, other material servicers

                  	
                    X

                  	
                    X

                  	 	 	 	 	 
	
                    Securities
                      Administrator

                  	 	 	
                    X

                  	 	 	 	 
	
                    Originator
                      of 20% or more of pool assets as of the Cut-off Date

                  	 	 	 	 	 	
                    X

                  	 
	
                    Custodian

                  	 	 	 	
                    X

                  	 	 	 
	
                    Item
                      1119 - Affiliations and relationships between the following
                      entities, or
                      their respective affiliates, that are material to
                      Certificateholders:

                  	 	 	 	 	 	 	 
	
                    Sponsor
                      (Seller)

                  	 	 	 	 	 	 	
                    X

                  
	
                    Depositor

                  	 	 	 	 	 	
                    X

                  	 
	
                    Trustee

                  	 	 	 	 	 	 	 
	
                    Master
                      Servicer, affiliated Servicer, other Servicer servicing 20%
                      or more of
                      pool assets at time of report, other material servicers

                  	
                    X

                  	
                    X

                  	 	 	 	 	 
	
                    Securities
                      Administrator

                  	 	 	
                    X

                  	 	 	 	 
	
                    Originator

                  	 	 	 	 	 	
                    X

                  	 
	
                    Custodian

                  	 	 	 	
                    X

                  	 	 	 
	
                    Credit
                      Enhancer/Support Provider

                  	 	 	 	 	 	
                    X

                  	 
	
                    Significant
                      Obligor

                  	 	 	 	 	 	
                    X

                  	 
	
                    Item
                      1122 - Assessment of Compliance with Servicing
                      Criteria

                  	
                    X

                  	
                    X

                  	
                    X

                  	
                    X

                  	 	 	 
	
                    Item
                      1123 - Servicer Compliance Statement

                  	
                    X

                  	
                    X

                  	 	 	 	 	 

          

        

        

         

        EXHIBIT
          Q

         

        ADDITIONAL
          DISCLOSURE NOTIFICATION

        

        Bear
          Stearns Asset Backed Securities I LLC

        383
          Madison Avenue

        New
          York,
          New York 10179

        Fax:
          (212) 272-2000

        E-mail:
          regabnotifications@bear.com

        

        Wells
          Fargo Bank, National Association as Securities Administrator

        9062
          Old
          Annapolis Road

        Columbia,
          Maryland 21045

        Fax:
          (410) 715-4513

        

        Attn:
          Global Securities and Trust Services - SACO I TRUST 2007-1 - SEC REPORT
          PROCESSING

        

        RE:
          **Additional Form [     ]
          Disclosure**Required

         

        Ladies
          and Gentlemen:

         

        In
          accordance with Section 3.18 of the Pooling and Servicing Agreement, dated
          as of
          December 1, 2006, among Bear Stearns Asset Backed Securities I LLC, as
          depositor, EMC Mortgage Corporation, as Seller and as company, Wells Fargo
          Bank,
          National Association, as master servicer and as securities administrator,
          and
          Citibank, N.A., as trustee. The Undersigned, as [Name of Party], hereby
          notifies
          you that certain events have come to our attention that [will][may] need
          to be
          disclosed on Form [     ].

         

        Description
          of Additional Form [     ]
          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:

                	 

        

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          R-1

         

        FORM
          OF
          GMACM SERVICING AGREEMENT

         

        

          

          

          

          ____________________________________________________________________________________
            

          

          

          

          

          

          

          EMC
            MORTGAGE CORPORATION

          Owner

          

          

          

          GMAC
            MORTGAGE CORPORATION

          Servicer

          

          

          

          

          SERVICING
            AGREEMENT

          

          Dated
            as
            of May 1, 2001

          

          

          

          

          

          ____________________________________________________________________________________ 

           

          
 

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBITS

          

          

          
            	
                    Exhibit
                      A

                  	
                    Mortgage
                      Loan Schedule

                  
	 	 
	
                    Exhibit
                      B

                  	
                    Custodial
                      Account Letter Agreement

                  
	 	 
	
                    Exhibit
                      C

                  	
                    Escrow
                      Account Letter Agreement

                  
	 	 
	
                    Exhibit
                      D

                  	
                    Form
                      of Request for Release

                  
	 	 
	
                    Exhibit
                      E

                  	
                    Loan
                      Level Scheduled-Scheduled Remittance Tape
                      Layout

                  

          

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          THIS
            IS A
            SERVICING AGREEMENT, dated as of May 1, 2001, and is executed between
            EMC
            Mortgage Corporation (the "Owner") and GMAC Mortgage Corporation (the
            "Servicer").

          

          

          W
            I T N E
            S S E T H :

          

          

          WHEREAS,
            the Owner is the owner of the Mortgage Loans;

          

          WHEREAS,
            the Owner and the Servicer wish to prescribe the permanent management,
            servicing
            and control of the Mortgage Loans;

          

          NOW,
            THEREFORE, in consideration of the mutual agreements hereinafter set
            forth, and
            for other good and valuable consideration, the receipt and adequacy of
            which is
            hereby acknowledged, the Owner and the Servicer agree as follows:

          

          

          ARTICLE
            I

           

          DEFINITIONS

           

          Section
            1.01 Defined
            Terms

          Whenever
            used in this Agreement, the following words and phrases, unless the context
            otherwise requires, shall have the following meaning specified in this
            Article:

          

          Accepted
            Servicing Practices:
            With
            respect to any Mortgage Loan, those mortgage servicing practices (including
            collection procedures) that are in accordance with the Fannie Mae
            Guide.

          

          Adjustment
            Date:
            As to
            each ARM Loan, the date on which the Mortgage Interest Rate is adjusted
            in
            accordance with the terms of the related Mortgage Note.

          

          Agreement:
            This
            Servicing Agreement including all exhibits hereto, amendments hereof
            and
            supplements hereto.

          

          ARM
            Loans:
            First
            lien, conventional, 1-4 family residential Mortgage Loans with interest
            rates
            which adjust from time to time in accordance with the related Index and
            are
            subject to Periodic Rate Caps and Lifetime Rate Caps and which do not
            permit
            conversion to fixed interest rates.

          

          BIF:
            The
            Bank Insurance Fund, or any successor thereto.

          

          Business
            Day:
            Any day
            other than (i) a Saturday or Sunday, or (ii) a legal holiday in the States
            of
            New York, Iowa or the Commonwealth of Pennsylvania, or (iii) a day on
            which
            banks in the States of New York, Iowa or Pennsylvania are authorized
            or
            obligated by law or executive order to be closed.

          

          Code:
            The
            Internal Revenue Code of 1986, as it may be amended from time to time,
            or any
            successor statute thereto, and applicable U.S. Department of the Treasury
            regulations issued pursuant thereto.

          

          Condemnation
            Proceeds:
            All
            awards or settlements in respect of a Mortgaged Property, whether permanent
            or
            temporary, partial or entire, by exercise of the power of eminent domain
            or
            condemnation, to the extent not required to be released to a Mortgagor
            in
            accordance with the terms of the related Mortgage Loan Documents.

          

          Custodial
            Account:
            The
            separate demand account or accounts created and maintained pursuant to
            Section
            4.04 which shall be entitled "GMAC Mortgage Corporation Custodial Account
            in
            trust for [Owner], Owner of Whole Loan Mortgages and various Mortgagors"
            and
            shall be established at a Qualified Depository, each of which accounts
            shall in
            no event contain funds in excess of the FDIC insurance limits.

          

          Custodian:
            Wells
            Fargo Bank Minnesota, N.A., or such other custodian as Owner shall
            designate. 

          

          Cut-off
            Date:
            As
            identified on the related Confirmation.

          

          Determination
            Date:
            The
            15th day (or if such 15th day is not a Business Day, the Business Day
            immediately preceding such 15th day) of the month of the Remittance
            Date.

          

          Due
            Date:
            Each
            day on which payments of principal and interest are required to be paid
            in
            accordance with the terms of the related Mortgage Note, exclusive of
            any days of
            grace.

          

          Due
            Period:
            With
            respect to any Remittance Date, the period commencing on the second day
            of the
            month preceding the month of such Remittance Date and ending on the first
            day of
            the month of the Remittance Date.

          

          Effective
            Date:
            As
            identified on the related Confirmation.

          

          Escrow
            Account:
            The
            separate trust account or accounts created and maintained pursuant to
            Section
            4.06 which shall be entitled "GMAC Mortgage Corporation Escrow Account,
            in trust
            for [Owner], Owner of Whole Loan Mortgages and various Mortgagors" and
            shall be
            established at a Qualified Depository, each of which accounts shall in
            no event
            contain funds in excess of the FDIC insurance limits.

          

          Escrow
            Payments:
            With
            respect to any Mortgage Loan, the amounts constituting ground rents,
            taxes,
            assessments, water rates, sewer rents, municipal charges, mortgage insurance
            premiums, fire and hazard insurance premiums, condominium charges, and
            any other
            payments required to be escrowed by the Mortgagor with the mortgagee
            pursuant to
            the Mortgage or any other document.

          

          Event
            of Default:
            Any one
            of the conditions or circumstances enumerated in Section 9.01.

          

          Fannie
            Mae:
            Fannie
            Mae, or any successor thereto.

          

          Fannie
            Mae Guide:
            The
            Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
            or additions thereto.

          

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

          

          Fidelity
            Bond:
            A
            fidelity bond to be maintained by the Servicer pursuant to Section
            4.12.

          

          FIRREA:
            The
            Financial Institutions Reform, Recovery, and Enforcement Act of 1989,
            as amended
            from time to time.

          

          Freddie
            Mac:
            Freddie
            Mac, or any successor thereto.

          

          Freddie
            Mac Guide:
            The
            Freddie Mac Selling Guide and the Freddie Mac Servicing Guide and all
            amendments
            or additions thereto.

          

          Full
            Principal Prepayment:
            A
            Principal Prepayment made by a Mortgagor of the entire principal balance
            of a
            Mortgage Loan.

          

          
            	 	
                    GAAP:
                      Generally accepted accounting procedures, consistently
                      applied.

                  

          

          

          HUD:
            The
            United States Department of Housing and Urban Development or any
            successor.

          

          Index:
            With
            respect to each ARM Loan, on the related Adjustment Date, the index used
            to
            determine the Mortgage Interest Rate on each such ARM Loan.

          

          Insurance
            Proceeds:
            With
            respect to each Mortgage Loan, proceeds of insurance policies insuring
            the
            Mortgage Loan or the related Mortgaged Property.

          

          Lifetime
            Rate Cap:
            With
            respect to each ARM Loan, the maximum Mortgage Interest Rate over the
            term of
            such Mortgage Loan, as specified in the related Mortgage Note.

          

          Liquidation
            Proceeds:
            Cash
            received in connection with the liquidation of a defaulted Mortgage Loan,
            whether through the sale or assignment of such Mortgage Loan, trustee's
            sale,
            foreclosure sale or otherwise, other than amounts received following
            the
            acquisition of an REO Property pursuant to Section 4.13.

          

          Margin:
            With
            respect to each ARM Loan, the fixed percentage amount set forth in each
            related
            Mortgage Note which is added to the Index in order to determine the related
            Mortgage Interest Rate.

          

          Monthly
            Advance:
            The
            aggregate of the advances made by the Servicer on any Remittance Date
            pursuant
            to Section 5.03.

          

          Monthly
            Payment:
            With
            respect to each Mortgage Loan, the scheduled monthly payment of principal
            and
            interest thereon which is payable by the related Mortgagor under the
            related
            Mortgage Note.

          

          Mortgage:
            The
            mortgage, deed of trust or other instrument securing a Mortgage Note
            which
            creates a first lien on an unsubordinated estate in fee simple in real
            property
            securing the Mortgage Note.

          

          Mortgage
            Interest Rate:
            The
            annual rate at which interest accrues on any Mortgage Loan in accordance
            with
            the provisions of the related Mortgage Note, and in the case of an ARM
            Loan, as
            adjusted from time to time on each Adjustment Date for such Mortgage
            Loan to
            equal the Index for such Mortgage Loan plus the Margin for such Mortgage
            Loan,
            and subject to the limitations on such interest rate imposed by the Periodic
            Rate Cap and the Lifetime Rate Cap.

          

          Mortgage
            Loan:
            An
            individual Mortgage Loan described herein, and as further identified
            on the
            Mortgage Loan Schedule, which Mortgage Loan includes without limitation
            the
            Mortgage Loan Documents, the Monthly Payments, Principal Prepayments,
            Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO
            Disposition
            Proceeds, and all other rights, benefits, proceeds and obligations arising
            from
            or in connection with such Mortgage Loan.

          

          Mortgage
            Loan Documents:
            The
            original mortgage loan legal documents held by the Custodian.

          

          Mortgage
            Loan Remittance Rate:
            With
            respect to each Mortgage Loan, the annual rate of interest remitted to
            the
            Owner, which shall be equal to the related Mortgage Interest Rate minus
            the
            Servicing Fee Rate.

          

          Mortgage
            Loan Schedule:
            The
            schedule of Mortgage Loans attached hereto as Exhibit
            A,
            such
            schedule being acceptable to the Owner and the Servicer.

          

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

          

          Mortgaged
            Property:
            The
            underlying real property securing repayment of a Mortgage Note, consisting
            of a
            single parcel of real estate considered to be real estate under the laws
            of the
            State in which such real property is located, which may include condominium
            units and planned unit developments, improved by a residential
            dwelling.

          

          Mortgagor:
            The
            obligor on a Mortgage Note. The Mortgagor is a natural person who is
            a party to
            the Mortgage Note and Mortgage in an individual capacity.

          

          Nonrecoverable
            Advance:
            Any
            advance previously made by the Servicer pursuant to Section 5.03 or any
            expenses
            incurred pursuant to Section 4.08 which, in the good faith judgment of
            the
            Servicer, may not be ultimately recoverable by the Servicer from Liquidation
            Proceeds. The determination by the Servicer that is has made a Nonrecoverable
            Advance, shall be evidenced by an Officer’s Certificate of the Servicer
            delivered to the Owner and detailing the reasons for such
            determination.

          

          OCC:
            Office
            of the Comptroller of the Currency, its successors and assigns.

          

          Officers'
            Certificate:
            A
            certificate signed by the Chairman of the Board, the Vice Chairman of
            the Board,
            the President, a Senior Vice President or a Vice President or by the
            Treasurer
            or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
            of
            the Servicer, and delivered to the Owner as required by this
            Agreement.

          

          Opinion
            of Counsel:
            A
            written opinion of counsel, who may be an employee of the party on behalf
            of
            whom the opinion is being given, reasonably acceptable to the
            Owner.

          

            OTS:
            Office
            of Thrift Supervision, its successors and assigns.

          

          Owner:
            EMC
            Mortgage Corporation, its successors in interest and assigns.

          

          Partial
            Principal Prepayment:
            A
            Principal Prepayment by a Mortgagor of a partial principal balance of
            a Mortgage
            Loan.

          

          Pass-Through
            Transfer:
            The
            sale or transfer of same or all of the Mortgage Loans to a trust as part
            of a
            publicly issued or privately placed, rated or unrated Mortgage pass-through
            transaction.

          

          Periodic
            Rate Cap:
            With
            respect to each ARM Loan, the maximum increase or decrease in the Mortgage
            Interest Rate on any Adjustment Date.

          

          Permitted
            Investments:
            Any one
            or more of the following obligations or securities:

          

          (i) direct
            obligations of, and obligations fully guaranteed by the United States
            of America
            or any agency or instrumentality of the United States of America the
            obligations
            of which are backed by the full faith and credit of the United States
            of
            America; pro-vided that obligations of Freddie Mac or Fannie Mae shall
            be
            Per-mitted Invest-ments only if, at the time of investment, they are
            rated in
            one of the two highest rating categories by Standard & Poor's Rating
            Services, a division of The McGraw-Hill Companies Inc., Moody's Investors
            Service, Inc. and Fitch IBCA Inc.;

          

          (ii) (a)
            demand or time deposits, federal funds or bankers' acceptances issued
            by any
            depository institu-tion or trust company 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 banking authorities, provided that
            the
            commercial paper and/or the short-term deposit rating and/or the long-term
            unsecured debt obligations or deposits of such depository institution
            or trust
            company at the time of such investment or contractual commitment providing
            for
            such investment are rated in one of the two highest rating categories
            by
            Standard & Poor's Rating Services, a division of The McGraw-Hill Companies
            Inc., Moody's Investors Service, Inc. and Fitch IBCA Inc. and (b) any
            other
            demand or time deposit or certificate of deposit that is fully insured
            by the
            Federal Deposit Insurance Cor-poration;

          

          (iii) repurchase
            obligations with respect to (a) any security described in clause (i)
            above or
            (b) any other security issued or guaranteed by an agency or instrumen-tality
            of
            the United States of America, the obligations of which are backed by
            the full
            faith and credit of the United States of America, in either case entered
            into
            with a depository institution or trust company (acting as principal)
            described
            in clause (ii)(a) above;

          

          (iv) securities
            bearing interest or sold at a discount issued by any corporation incorporated
            under the laws of the United States of America or any state thereof that
            are
            rated in one of the two highest rating categories by Standard & Poor's
            Rating Services, a division of The McGraw-Hill Companies Inc., Moody's
            Investors
            Service, Inc. and Fitch IBCA Inc. at the time of such in-vestment or
            contractual
            commitment providing for such investment; provided,
            however,
            that
            securities issued by any particular corporation will not be Permitted
            Investments to the extent that investments therein will cause the then
            outstanding principal amount of secur-ities issued by such corporation
            and held
            as Permitted Investments to exceed 10% of the aggregate outstand-ing
            principal
            balances and amounts of all the Permitted Investments;

          

          (v) commercial
            paper (including both non-interest-bearing discount obligations and
            interest-bearing obliga-tions payable on demand or on a specified date
            not more
            than one year after the date of issuance there-of) which are rated in
            one of the
            two highest rating categories by Standard & Poor's Rating Services, a
            division of The McGraw-Hill Companies Inc., Moody's Investors Service,
            Inc. and
            Fitch IBCA Inc. at the time of such investment;

          

          (vi) any
            other
            demand, money market or time deposit, obligation, security or investment
            as may
            be acceptable to each of Standard & Poor's Rating Services, a division of
            The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. and
            Fitch IBCA
            Inc.;

          

          (vii) any
            money
            market funds the collateral of which consists of obligations fully guaranteed
            by
            the United States of America or any agency or instrumentality of the
            United
            States of America the obligations of which are backed by the full faith
            and
            credit of the United States of America (which may include repurchase
            obligations
            secured by collateral described in clause (i)) and other securities and
            which
            money market funds are rated in one of the two highest rating categories
            by
            Standard & Poor's Rating Services, a division of The McGraw-Hill Companies
            Inc., Moody's Investors Service, Inc. and Fitch IBCA Inc.; and

          

          (viii) GMAC
            Variable Denomination Adjustable Rate Demand Notes constituting unsecured,
            senior debt obligations of General Motors Acceptance Corporation as outlined
            in
            the prospectus dated June 17, 1998 and rated by Moody’s in its highest
            short-term rating category available and rated at least D-1 by
            Fitch;

          

          

          provided,
            however,
            that no
            instrument or security shall be a Permitted Investment if such instrument
            or
            security evidences a right to receive only interest payments with respect
            to the
            ob-li-ga-tions underlying such instrument or if such security provides
            for
            payment of both principal and interest with a yield to matur-ity in excess
            of
            120% of the yield to maturity at par.

          

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

           

          Prepayment
            Interest Shortfall:
            The sum
            of the differences between interest actually received in a Due Period
            as a
            result of a full or partial prepayment or other unscheduled receipt of
            principal
            (including as a result of a liquidation) on each Mortgage Loan as to
            which such
            a payment is received and the interest portion of the Monthly Payment
            of such
            Mortgage Loan scheduled to be due at the applicable Mortgage Loan Remittance
            Rate; provided, however, Prepayment Interest Shortfalls shall not include
            Full
            Principal Prepayments received on or before the 15th
            day of
            the month in which a Remittance Date occurs which are remitted by the
            Servicer
            to the Owner on such Remittance Date.

          

          Primary
            Mortgage Insurance Policy:
            Each
            primary policy of mortgage insurance, or any replacement policy therefor
            obtained by the Servicer pursuant to Section 4.08.

          

          Prime
            Rate:
            The
            prime rate of U.S. money center banks as published from time to time
            in

          The
            Wall Street Journal.

          

          Principal
            Prepayment:
            Any
            payment or other recovery of principal on a Mortgage Loan, full or partial,
            which is received in advance of its scheduled Due Date, including any
            prepayment
            penalty or premium thereon and which is not accompanied by an amount
            of interest
            representing scheduled interest due on any date or dates in any month
            or months
            subsequent to the month of prepayment.

          

          Qualified
            Appraiser:
            An
            appraiser, duly appointed by the Servicer, who had no interest, direct
            or
            indirect in the Mortgaged Property or in any loan made on the security
            thereof,
            and whose compensation is not affected by the approval or disapproval
            of the
            Mortgage Loan, which appraiser and the appraisal made by such appraiser
            both
            satisfy the requirements of Title XI of FIRREA and the regulations promulgated
            thereunder, all as in effect on the date the Mortgage Loan was
            originated.

          

          Qualified
            Depository:
            (a) The
            Custodian or (b) a depository, the accounts of which are insured by the
            FDIC
            through the BIF or the SAIF and the short term debt ratings and the long
            term
            deposit ratings of which are rated in one of the two highest rating categories
            by Standard & Poor's Ratings Services, a division of The McGraw-Hill
            Companies Inc., Moody's Investors Service, Inc., Fitch IBCA Duff &
Phelps.

          

          Qualified
            Insurer:
            An
            insurance company duly qualified as such under the laws of the states
            in which
            the Mortgaged Properties are located, duly authorized and licensed in
            such
            states to transact the applicable insurance business and to write the
            insurance
            provided, approved as an insurer by Fannie Mae and Freddie Mac. 

          

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

          

          REMIC
            Provisions:
            The
            provisions of the Federal income tax law relating to a REMIC, which appear
            at
            Section 860A through 860G of Subchapter M of Chapter 1, Subtitle A of
            the Code,
            and related provisions, and regulations, rulings or pronouncements promulgated
            thereunder, as the foregoing may be in effect from time to time.

          

          Remittance
            Date:
            The
            18th day of any month, or if such 18th day is not a Business Day, the
            first
            Business Day immediately preceding such 18th day.

          

          REO
            Disposition:
            The
            final sale by the Servicer of any REO Property.

          

          REO
            Disposition Proceeds:
            Amounts
            received by the Servicer in connection with a related REO
            Disposition.

          

          REO
            Property:
            A
            Mortgaged Property acquired by the Servicer on behalf of the Owner as
            described
            in Section 4.13.

          

          
            	 	
                    SAIF:
                      The Savings Association Insurance Fund, or any successor
                      thereto.

                  

          

          

          Servicer:
            GMAC
            Mortgage Corporation, or any of its successors in interest or any successor
            under this Agreement appointed as herein provided.

          

          Servicing
            Advances:
            All
            customary, reasonable and necessary "out of pocket" costs and expenses
            (including reasonable attorneys' fees and disbursements) incurred prior
            to, on
            and subsequent to the Effective Date in the performance by the Servicer
            of its
            servicing obligations relating to each Mortgage Loan, including, but
            not limited
            to, the cost of (a) the preservation, restoration and protection of the
            Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
            or any legal work or advice specifically related to servicing the Mortgage
            Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
            drug seizures, elections, foreclosures by subordinate or superior lienholders,
            and other legal actions incidental to the servicing of the Mortgage Loans
            (provided that such expenses are reasonable and that the Servicer specifies
            the
            Mortgage Loan(s) to which such expenses relate), (c) the management and
            liquidation of the Mortgaged Property if the Mortgaged Property is acquired
            in
            full or partial satisfaction of the Mortgage, (d) taxes, assessments,
            water
            rates, sewer rates and other charges which are or may become a lien upon
            the
            Mortgaged Property, and Primary Mortgage Insurance Policy premiums and
            fire and
            hazard insurance coverage and (e) compliance with the obligations under
            Section
            4.08.

          

          Servicing
            Fee:
            With
            respect to each Mortgage Loan, the amount of the annual fee the Owner
            shall pay
            to the Servicer, which shall, for a period of one full month, be equal
            to
            one--twelfth of the product of (a) the applicable Servicing Fee Rate
            and (b) the
            outstanding principal balance of such Mortgage Loan. Such fee shall be
            payable
            monthly, computed on the basis of the same principal amount and period
            respecting which any related interest payment on a Mortgage Loan is computed.
            The obligation of the Owner to pay the Servicing Fee is limited to, and
            the
            Servicing Fee is payable solely from, the interest portion (not including
            recoveries of interest from Liquidation Proceeds or otherwise) of such
            Monthly
            Payment collected by the Servicer, or as otherwise provided under Section
            4.05.

          

          Servicing
            Fee Rate:
            The
            Servicing Fee Rate shall be a rate per annum equal to 0.25%.

          

          Servicing
            File:
            The
            documents, records and other items pertaining to a particular Mortgage
            Loan, and
            any additional documents relating to such Mortgage Loan as are in, or
            as may
            from time to time come into, the Servicer's possession.

          

          Servicing
            Officer:
            Any
            officer of the Servicer involved in, or responsible for, the administration
            and
            servicing of the Mortgage Loans whose name appears on a list of servicing
            officers furnished by the Servicer to the Owner upon request, as such
            list may
            from time to time be amended.

          

          Stated
            Principal Balance:
            As to
            each Mortgage Loan as of any date of determination, (i) the principal
            balance of
            such Mortgage Loan after giving effect to payments of principal due,
            whether or
            not received, minus (ii) all amounts previously distributed to the Owner
            with
            respect to the Mortgage Loan representing payments or recoveries of principal
            or
            advances in lieu thereof.

          

          Whole
            Loan Transfer:
            The
            sale or transfer of some or all of the ownership interest in the Mortgage
            Loans
            by the Owner to one or more third parties in whole loan or participation
            format,
            which third party may be Fannie Mae or Freddie Mac.

          

          

          ARTICLE
            II

           

          SERVICING
            OF MORTGAGE LOANS;

          POSSESSION
            OF SERVICING FILES;

          BOOKS
            AND RECORDS;

          DELIVERY
            OF MORTGAGE LOAN DOCUMENTS

          

          
            	 	
                    Section
                      2.01 Servicing
                      of Mortgage Loans.

                  

          

          

          From
            and
            after the Effective Date, the Servicer does hereby agree to service the
            Mortgage
            Loans, but subject to the terms of this Agreement. The rights of the
            Owner to
            receive payments with respect to the Mortgage Loans shall be as set forth
            in
            this Agreement.

          

          Section
            2.02 Maintenance
            of Servicing Files.

          

          The
            Servicer shall maintain a Servicing File consisting of all documents
            necessary
            to service the Mortgage Loans. The possession of each Servicing File
            by the
            Servicer is for the sole purpose of servicing the Mortgage Loan, and
            such
            retention and possession by the Servicer is in a custodial capacity only.
            The
            Servicer acknowledges that the ownership of each Mortgage Loan, including
            the
            Note, the Mortgage, all other Mortgage Loan Documents and all rights,
            benefits,
            proceeds and obligations arising therefrom or in connection therewith,
            has been
            vested in the Owner. All rights arising out of the Mortgage Loans including,
            but
            not limited to, all funds received on or in connection with the Mortgage
            Loans
            and all records or documents with respect to the Mortgage Loans prepared
            by or
            which come into the possession of the Servicer shall be received and
            held by the
            Servicer in trust for the exclusive benefit of the Owner as the owner
            of the
            related Mortgage Loans. Any portion of the related Servicing Files retained
            by
            the Servicer shall be appropriately identified in the Servicer's computer
            system
            to clearly reflect the ownership of the related Mortgage Loans by the
            Owner. The
            Servicer shall release its custody of the contents of the related Servicing
            Files only in accordance with written instructions of the Owner, except
            when
            such release is required as incidental to the Servicer's servicing of
            the
            Mortgage Loans, such written instructions shall not be required.

          

          Section
            2.03 Books
            and Records.

          

          The
            Servicer shall be responsible for maintaining, and shall maintain, a
            complete
            set of books and records for the Mortgage Loans which shall be appropriately
            identified in the Servicer's computer system to clearly reflect the ownership
            of
            the Mortgage Loan by the Owner. In particular, the Servicer shall maintain
            in
            its possession, available for inspection by the Owner, or its designee
            and shall
            deliver to the Owner upon demand, evidence of compliance with all federal,
            state
            and local laws, rules and regulations, and requirements of Fannie Mae
            or Freddie
            Mac, as applicable, including but not limited to documentation as to
            the method
            used in determining the applicability of the provisions of the Flood
            Disaster
            Protection Act of 1973, as amended, to the Mortgaged Property, documentation
            evidencing insurance coverage and eligibility of any condominium project
            for
            approval by Fannie Mae and periodic inspection reports as required by
            Section
            4.13. To the extent that original documents are not required for purposes
            of
            realization of Liquidation Proceeds or Insurance Proceeds, documents
            maintained
            by the Servicer may be in the form of microfilm or microfiche or such
            other
            reliable means of recreating original documents, including but not limited
            to,
            optical imagery techniques so long as the Servicer complies with the
            requirements of the Fannie Mae Guide.

          

          The
            Servicer shall maintain with respect to each Mortgage Loan and shall
            make
            available for inspection by any Owner or its designee the related Servicing
            File
            (or copies thereof) upon reasonable request during the time the Owner
            retains
            ownership of a Mortgage Loan and thereafter in accordance with applicable
            laws
            and regulations.

          

          
            	 	
                    Section
                      2.04. Transfer
                      of Mortgage Loans.

                  

          

          

          The
            Servicer shall keep at its servicing office books and records in which,
            subject
            to such reasonable regulations as it may prescribe from time to time,
            the
            Servicer shall note transfers of Mortgage Loans. No transfer of a Mortgage
            Loan
            may be made unless such transfer is in compliance with the terms hereof.
            For the
            purposes of this Agreement, the Servicer shall be under no obligation
            to deal
            with any person with respect to this Agreement or any Mortgage Loan unless
            a
            notice of the transfer of such Mortgage Loan has been delivered to the
            Servicer
            in accordance with this Section 2.04. The Owner may, subject to the terms
            of
            this Agreement, sell and transfer one or more of the Mortgage Loans in
            accordance with Sections 10.02 and 11.12, provided,
            however, that the transferee will not be deemed to be an Owner hereunder
            binding
            upon the Servicer unless such transferee shall agree in writing to be
            bound by
            the terms of this Agreement and an assignment and assumption of this
            Agreement
            reasonably acceptable to the Servicer. The Owner also shall advise the
            Servicer
            in writing of the transfer. Upon receipt of notice of the permitted transfer,
            the Servicer shall mark its books and records to reflect the ownership
            of the
            Mortgage Loans of such assignee, and shall release the previous Owner
            from its
            obligations hereunder with respect to the Mortgage Loans sold or
            transferred.

          

          Section
            2.05 Delivery
            of Mortgage Loan Documents.

          

          The
            Servicer shall forward to the Custodian on behalf of the Owner original
            documents evidencing an assumption, modification, consolidation or extension
            of
            any Mortgage Loan entered into in accordance with Section 4.01 or 6.01
            promptly
            after their execution; provided, however, that the Servicer shall provide
            the
            Custodian on behalf of the Owner with a certified true copy of any such
            document
            submitted for recordation promptly after its execution, and shall provide
            the
            original of any document submitted for recordation or a copy of such
            document
            certified by the appropriate public recording office to be a true and
            complete
            copy of the original within 180 days of its execution. If delivery is
            not
            completed within 180 days solely due to delays in making such delivery
            by reason
            of the fact that such documents shall not have been returned by the appropriate
            recording office, the Servicer shall continue to use its best efforts
            to effect
            delivery as soon as possible thereafter.

          

          From
            time
            to time the Servicer may have a need for Mortgage Loan Documents to be
            released
            by the Custodian. If the Servicer shall require any of the Mortgage Loan
            Documents, the Servicer shall notify the Custodian in writing of such
            request in
            the form of the request for release attached hereto as Exhibit
            D.
            The
            Custodian shall deliver to the Servicer promptly, and in no event later
            than
            within five (5) Business Days, any requested Mortgage Loan Document previously
            delivered to the Custodian, provided that such documentation is promptly
            returned to the Custodian when the Servicer no longer requires possession
            of the
            document, and provided that during the time that any such documentation
            is held
            by the Servicer, such possession is in trust for the benefit of the
            Owner.

          

          
            	 	
                    Section
                      2.06 Quality
                      Control Procedures.

                  

          

          

          The
            Servicer must have an internal quality control program that verifies,
            on a
            regular basis, the existence and accuracy of the legal documents, credit
            documents, property appraisals, and underwriting decisions. The program
            must be
            capable of evaluating and monitoring the overall quality of its servicing
            activities. The purpose of the program is to ensure that the Mortgage
            Loans are
            serviced in accordance with prudent mortgage banking practices and accounting
            principles; guard against dishonest, fraudulent, or negligent acts; and
            guard
            against errors and omissions by officers, employees, or other authorized
            persons.

          

          ARTICLE
            III

          

          REPRESENTATIONS
            AND WARRANTIES

          OF
            THE
            SERVICER

          

          The
            Servicer represents, warrants and covenants to the Owner that as of the
            Effective Date or as of such date specifically provided herein:

          

          (a) The
            Servicer is a validly existing corporation in good standing under the
            laws of
            the State of its organization and is qualified to transact business in,
            is in
            good standing under the laws of, and possesses all licenses necessary
            for the
            conduct of its business in, each state in which any Mortgaged Property
            is
            located or is otherwise exempt or not required under applicable law to
            effect
            such qualification or license and no demand for such qualification or
            license
            has been made upon the Servicer by any such state, and in any event the
            Servicer
            is in compliance with the laws of each such State to the extent necessary
            to
            ensure the enforceability of each Mortgage Loan and the servicing of
            the
            Mortgage Loans in accordance with the terms of this Agreement;

          

          (b) The
            Servicer has full power and authority to execute, deliver and perform,
            and to
            enter into and consummate all transactions contemplated by this Agreement
            and to
            conduct its business as presently conducted, has duly authorized the
            execution,
            delivery and performance of this Agreement, has duly executed and delivered
            this
            Agreement, and this Agreement constitutes a legal, valid and binding
            obligation
            of the Servicer, enforceable against it in accordance with its terms
            subject to
            bankruptcy laws and other similar laws of general application affecting
            rights
            of creditors and subject to the application of the rules of equity, including
            those respecting the availability of specific performance;

          

          (c) None
            of
            the execution and delivery of this Agreement, the consummation of the
            transactions contemplated thereby and hereby, or the fulfillment of or
            compliance with the terms and conditions of this Agreement will conflict
            with
            any of the terms, conditions or provisions of the Servicer's articles
            of
            incorporation or by-laws or materially conflict with or result in a material
            breach of any of the terms, conditions or provisions of any legal restriction
            or
            any agreement or instrument to which the Servicer is now a party or by
            which it
            is bound, or constitute a default or result in an acceleration under
            any of the
            foregoing, or result in the material violation of any law, rule, regulation,
            order, judgment or decree to which the Servicer or its property is
            subject;

          

          (d) There
            is
            no litigation pending or, to the Seller’s knowledge, threatened with respect to
            the Servicer which is reasonably likely to have a material adverse effect
            on the
            execution, delivery or enforceability of this Agreement, or which is
            reasonably
            likely to have a material adverse effect on the financial condition of
            the
            Servicer;

          

          (e) No
            consent, approval, authorization or order of any court or governmental
            agency or
            body is required for the execution, delivery and performance by the Servicer
            of
            or compliance by the Servicer with this Agreement or the consummation
            of the
            transactions contemplated by this Agreement except for consents, approvals,
            authorizations and orders which have been obtained;

          

          (f) The
            collection and servicing practices used by the Servicer, with respect
            to each
            Mortgage Note and Mortgage have been in all material respects legal.
            With
            respect to escrow deposits and payments that the Servicer collects, all
            such
            payments are in the possession of, or under the control of, the Servicer,
            and
            there exist no deficiencies in connection therewith for which customary
            arrangements for repayment thereof have not been made. No escrow deposits
            or
            other charges or payments due under the Mortgage Note have been capitalized
            under any Mortgage or the related Mortgage Note;

          

            (g) The
            Servicer is in good standing to service mortgage loans for Fannie Mae
            and
            Freddie Mac and no event has occurred which would make the Servicer unable
            to
            comply with eligibility requirements or which would require notification
            to
            either Fannie Mae or Freddie Mac; 

          

          (h) No
            written statement, report or other document furnished or to be furnished
            pursuant to the Agreement contains or will contain any statement that
            is or will
            be inaccurate or misleading in any material respect or omits to state
            a material
            fact required to be stated therein or necessary to make the information
            and
            statements therein not misleading; 

          

          (i) No
            fraud
or
            misrepresentation of a material fact
            with
            respect to the servicing of a Mortgage Loan has taken place on the part
            of the
            Servicer;

          

          (j) At
            the
            time Servicer commenced servicing the Mortgage Loans, either (i) each
            Mortgagor
            was properly notified with respect to Servicer's servicing of the related
            Mortgage Loan in accordance with the Cranston Gonzalez National Affordable
            Housing Act of 1990, as the same may be amended from time to time, and
            the
            regulations provided
            in
            accordance with the Real Estate Settlement Procedures Act or (ii) such
            notification was not required; 

          

          (k) At
            the
time
            Servicer commenced servicing the Mortgage Loans, all
            applicable taxing authorities and insurance companies (including primary
            mortgage insurance policy insurers, if applicable) and/or agents were
            notified
            of the transfer of the servicing of the Mortgage Loans to Servicer, or
            its
            designee, and Servicer currently receives all related notices, tax bills
            and
            insurance statements. Additionally, any and all costs, fees and expenses
            associated with the Servicer’s commencement of the servicing of the Mortgage
            Loans, including the costs of any insurer notifications, the transfer
            or
            implementation of tax service contracts, flood certification contracts,
            and any
            and all other servicing transfer-related costs and expenses have been
            paid for
            by the Servicer and will, in no event, be the responsibility of the Owner;
            and

          

          (l) The
            collection
            and servicing practices with respect to each Mortgage Note and Mortgage
            have
            been in all material respects legal. With respect to escrow deposits
            and
            payments that the Servicer collects, all such payments are in the possession
            of,
            or under the control of, the Servicer, and there exist no deficiencies
            in
            connection therewith for which customary arrangements for repayment thereof
            have
            not been made. No escrow deposits or other charges or payments due under
            the
            Mortgage Note have been capitalized under any Mortgage or the related
            Mortgage
            Note.

          

          

           

          

          ARTICLE
            IV

           

          ADMINISTRATION
            AND SERVICING OF MORTGAGE LOANS

           

          
            	 	
                    Section
                      4.01 Servicer
                      to Act as Servicer.

                  

          

          The
            Servicer, as independent contract servicer, shall service and administer
            the
            Mortgage Loans in accordance with this Agreement and with Accepted Servicing
            Practices (giving due consideration to the Owner's reliance on the Servicer),
            and shall have full power and authority, acting alone, to do or cause
            to be done
            any and all things in connection with such servicing and administration
            which
            the Servicer may deem necessary or desirable and consistent with the
            terms of
            this Agreement and with Accepted Servicing Practices and shall exercise
            the same
            care that it customarily employs for its own account. Except as set forth
            in
            this Agreement, the Servicer shall service the Mortgage Loans in accordance
            with
            Accepted Servicing Practices in compliance with the servicing provisions
            of the
            Fannie Mae Guide, which include, but are not limited to, provisions regarding
            the liquidation of Mortgage Loans, the collection of Mortgage Loan payments,
            the
            payment of taxes, insurance and other charges, the maintenance of hazard
            insurance with a Qualified Insurer, the maintenance of fidelity bond
            and errors
            and omissions insurance, inspections, the restoration of Mortgaged Property,
            the
            maintenance of Primary Mortgage Insurance Policies, insurance claims,
            and title
            insurance, management of REO Property, permitted withdrawals with respect
            to REO
            Property, liquidation reports, and reports of foreclosures and abandonments
            of
            Mortgaged Property, the transfer of Mortgaged Property, the release of
            Mortgage
            Loan Documents, annual statements, and examination of records and facilities.
            In
            the event of any conflict, inconsistency or discrepancy between any of
            the
            servicing provisions of this Agreement and any of the servicing provisions
            of
            the Fannie Mae Guide, the provisions of this Agreement shall control
            and be
            binding upon the Owner and the Servicer. The Owner shall, upon reasonable
            request, deliver powers-of-attorney to the Servicer sufficient to allow
            the
            Servicer as servicer to execute all documentation requiring execution
            on behalf
            of Owner with respect to the servicing of the Mortgage Loans, including
            satisfactions, partial releases, modifications and foreclosure documentation
            or,
            in the alternative, shall as promptly as reasonably possible, execute
            and return
            such documentation to the Servicer.

          

          Consistent
            with the terms of this Agreement, the Servicer may waive, modify or vary
            any
            term of any Mortgage Loan or consent to the postponement of any such
            term or in
            any manner grant indulgence to any Mortgagor if in the Servicer's reasonable
            and
            prudent determination such waiver, modification, postponement or indulgence
            is
            not materially adverse to the Owner, provided, however, that unless the
            Servicer
            has obtained the prior written consent of the Owner, the Servicer shall
            not
            permit any modification with respect to any Mortgage Loan that would
            change the
            Mortgage Interest Rate, forgive the payment of principal or interest,
            reduce or
            increase the outstanding principal balance (except for actual payments
            of
            principal) or change the final maturity date on such Mortgage Loan. In
            the event
            of any such modification which has been agreed to in writing by the Owner
            and
            which permits the deferral of interest or principal payments on any Mortgage
            Loan, the Servicer shall, on the Business Day immediately preceding the
            related
            Remittance Date in any month in which any such principal or interest
            payment has
            been deferred, deposit in the Custodial Account from its own funds, in
            accordance with Section 4.04 and Section 5.03, the difference between
            (a) such
            month's principal and one month's interest at the related Mortgage Loan
            Remittance Rate on the unpaid principal balance of such Mortgage Loan
            and (b)
            the amount paid by the Mortgagor. The Servicer shall be entitled to
            reimbursement for such advances to the same extent as for all other advances
            pursuant to Section 4.05. Without limiting the generality of the foregoing,
            the
            Servicer shall continue, and is hereby authorized and empowered, to prepare,
            execute and deliver, all instruments of satisfaction or cancellation,
            or of
            partial or full release, discharge and all other comparable instruments,
            with
            respect to the Mortgage Loans and with respect to the Mortgaged
            Properties.

          

          The
            Servicer shall perform all of its servicing responsibilities hereunder
            or may,
            with the Owner's prior written approval, cause a subservicer to perform
            any such
            servicing responsibilities on its behalf, but the use by the Servicer
            of a
            subservicer shall not release the Servicer from any of its obligations
            hereunder
            and the Servicer shall remain responsible hereunder for all acts and
            omissions
            of each subservicer as fully as if such acts and omissions were those
            of the
            Servicer. Any such subservicer that the Owner shall be requested to consent
            to
            must be a Fannie Mae approved seller/servicer or a Freddie Mac seller/servicer
            in good standing and no event shall have occurred, including but not
            limited to,
            a change in insurance coverage, which would make it unable to comply
            with the
            eligibility requirements for lenders imposed by Fannie Mae or for
            seller/servicers by Freddie Mac, or which would require notification
            to Fannie
            Mae or Freddie Mac. The Servicer shall pay all fees and expenses of each
            subservicer from its own funds, and a subservicer's fee shall not exceed
            the
            Servicing Fee.

          

          At
            the
            cost and expense of the Servicer, without any right of reimbursement
            from the
            Custodial Account, the Servicer shall be entitled to terminate the rights
            and
            responsibilities of a subservicer and arrange, with the Owner's prior
            written
            approval, for any servicing responsibilities to be performed by a successor
            subservicer meeting the requirements in the preceding paragraph, provided,
            however, that nothing contained herein shall be deemed to prevent or
            prohibit
            the Servicer, at the Servicer's option, from electing to service the
            related
            Mortgage Loans itself. In the event that the Servicer's responsibilities
            and
            duties under this Agreement are terminated pursuant to Section 8.04,
            9.01 or
            10.01, and if requested to do so by the Owner, the Servicer shall at
            its own
            cost and expense terminate the rights and responsibilities of each subservicer
            effective as of the date of termination of the Servicer. The Servicer
            shall pay
            all fees, expenses or penalties necessary in order to terminate the rights
            and
            responsibilities of each subservicer from the Servicer's own funds without
            reimbursement from the Owner.

          

          Notwithstanding
            any of the provisions of this Agreement relating to agreements or arrangements
            between the Servicer and a subservicer or any reference herein to actions
            taken
            through a subservicer or otherwise, the Servicer shall not be relieved
            of its
            obligations to the Owner and shall be obligated to the same extent and
            under the
            same terms and conditions as if it alone were servicing and administering
            the
            Mortgage Loans. The Servicer shall be entitled to enter into an agreement
            with a
            subservicer for indemnification of the Servicer by the subservicer and
            nothing
            contained in this Agreement shall be deemed to limit or modify such
            indemnification.

          

          Any
            subservicing agreement and any other transactions or services relating
            to the
            Mortgage Loans involving a subservicer shall be deemed to be between
            such
            subservicer and Servicer alone, and the Owner shall have no obligations,
            duties
            or liabilities with respect to such Subservicer including no obligation,
            duty or
            liability of Owner to pay such subservicer's fees and expenses. For purposes
            of
            distributions and advances by the Servicer pursuant to this Agreement,
            the
            Servicer shall be deemed to have received a payment on a Mortgage Loan
            when a
            subservicer has received such payment.

          

          Section
            4.02 Collection
            of Mortgage Loan Payments.

          

          Continuously
            from the Effective Date until the date each Mortgage Loan ceases to be
            subject
            to this Agreement, the Servicer will proceed with reasonable diligence
            to
            collect all payments due under each Mortgage Loan when the same shall
            become due
            and payable and shall, to the extent such procedures shall be consistent
            with
            this Agreement and the terms and provisions of related Primary Mortgage
            Insurance Policy, follow such collection procedures as it follows with
            respect
            to mortgage loans comparable to the Mortgage Loans and held for its own
            account.
            Further, the Servicer will take reasonable care in ascertaining and estimating
            annual ground rents, taxes, assessments, water rates, fire and hazard
            insurance
            premiums, mortgage insurance premiums, and all other charges that, as
            provided
            in the Mortgage, will become due and payable to the end that the installments
            payable by the Mortgagors will be sufficient to pay such charges as and
            when
            they become due and payable.

          

          Section
            4.03 Realization
            Upon Defaulted Mortgage Loans.

          

          The
            Servicer shall use its reasonable efforts, consistent with the procedures
            that
            the Servicer would use in servicing loans for its own account and the
            requirements of the Fannie Mae Guide, to foreclose upon or otherwise
            comparably
            convert the ownership of 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 pursuant to Section 4.01.
            The
            Servicer shall use its reasonable efforts to realize upon defaulted Mortgage
            Loans in such manner as will maximize the receipt of principal and interest
            by
            the Owner, taking into account, among other things, the timing of foreclosure
            proceedings. The foregoing is subject to the provisions that, in any
            case in
            which Mortgaged Property shall have suffered damage, the Servicer shall
            not be
            required to expend its own funds toward the restoration of such property
            unless
            it shall determine in its discretion (i) that such restoration will increase
            the
            proceeds of liquidation of the related Mortgage Loan to the Owner after
            reimbursement to itself for such expenses, and (ii) that such expenses
            will be
            recoverable by the Servicer through Insurance Proceeds or Liquidation
            Proceeds
            from the related Mortgaged Property, as contemplated in Section 4.05.
            The
            Servicer shall notify the Owner in writing of the commencement of foreclosure
            proceedings. The Servicer shall be responsible for all costs and expenses
            incurred by it in any such proceedings or functions as Servicing Advances;
            provided, however, that it shall be entitled to reimbursement therefor
            from the
            related Mortgaged Property, as contemplated in Section 4.05. Notwithstanding
            anything to the contrary contained herein, in connection with a foreclosure
            or
            acceptance of a deed in lieu of foreclosure, in the event the Servicer
            has
            reasonable cause to believe that a Mortgaged Property is contaminated
            by
            hazardous or toxic substances or wastes, or if the Owner otherwise requests
            an
            environmental inspection or review of such Mortgaged Property, such an
            inspection or review is to be conducted by a qualified inspector. Upon
            completion of the inspection, the Servicer shall promptly provide the
            Owner with
            a written report of the environmental inspection. After reviewing the
            environmental inspection report, the Owner shall determine how the Servicer
            shall proceed with respect to the Mortgaged Property.

          

          Section
            4.04 Establishment
            of Custodial Accounts; Deposits in Custodial Accounts.

          

          The
            Servicer shall segregate and hold all funds collected and received pursuant
            to
            each Mortgage Loan separate and apart from any of its own funds and general
            assets and shall establish and maintain one or more Custodial Accounts.
            Each
            Custodial Account shall be established with a Qualified Depository. To
            the
            extent such funds are not deposited in a Custodial Account, such funds
            may be
            invested in Permitted Investments for the benefit of the Owner (with
            any income
            earned thereon for the benefit of the Servicer). Funds deposited in the
            Custodial Account may be drawn on by the Servicer in accordance with
            Section
            4.05. The creation of any Custodial Account shall be evidenced by a letter
            agreement in the form shown in Exhibit
            B
            hereto.
            The original of such letter agreement shall be furnished to the Owner
            upon
            request. The Servicer acknowledges and agrees that the Servicer shall
            bear any
            losses incurred with respect to Permitted Investments. The amount of
            any such
            losses shall be immediately deposited by the Servicer in the Custodial
            Account,
            as appropriate, out of the Servicer's own funds, with no right to reimbursement
            therefor.

          

          The
            Servicer shall deposit in a mortgage clearing account on a daily basis,
            and in
            the Custodial Account or Accounts no later than the second Business Day
            after
            receipt of funds and retain therein the following payments and
            collections:

          

          (i) all
            payments on account of principal, including Principal Prepayments, on
            the
            Mortgage Loans received after the Cut-off Date;

          

          (ii) all
            payments on account of interest on the Mortgage Loans adjusted to the
            related
            Mortgage Loan Remittance Rate received after the Cut-off Date;

          

          (iii) all
            Liquidation Proceeds and REO Disposition Proceeds received after the
            Cut-off
            Date;

          

          (iv) any
            net
            amounts received by the Servicer after the Cut-off Date in connection
            with any
            REO Property pursuant to Section 4.13;

          

          (v) all
            Insurance Proceeds received after the Cut-off Date including amounts
            required to
            be deposited pursuant to Sections 4.08 and 4.10, other than proceeds
            to be held
            in the Escrow Account and applied to the restoration or repair of the
            Mortgaged
            Property or released to the Mortgagor in accordance with the Servicer's
            normal
            servicing procedures, the loan documents or applicable law;

          

          (vi) all
            Condemnation Proceeds affecting any Mortgaged Property received after
            the
            Cut-off Date other than proceeds to be held in the Escrow Account and
            applied to
            the restoration or repair of the Mortgaged Property or released to the
            Mortgagor
            in accordance with the Servicer's normal servicing procedures, the loan
            documents or applicable law;

          

          (vii) any
            Monthly Advances as provided in Section 5.03;

          

          (viii) any
            amounts received after the Cut-off Date and required to be deposited
            in the
            Custodial Account pursuant to 6.02; and

          

          (ix) with
            respect to each full or partial Principal Prepayment received after the
            Cut-off
            date, any Prepayment Interest Shortfalls, to the extent of the Servicer’s
            aggregate Servicing Fee received with respect to the related Due
            Period.

          

          The
            foregoing requirements for deposit in the Custodial Account shall be
            exclusive,
            it being understood and agreed that, without limiting the generality
            of the
            foregoing, payments in the nature of late payment charges and assumption
            fees,
            to the extent permitted by Section 6.01, need not be deposited by the
            Servicer
            in the Custodial Account. Any interest paid on funds deposited in the
            Custodial
            Account by the Qualified Depository shall accrue to the benefit of the
            Servicer
            and the Servicer shall be entitled to retain and withdraw such interest
            from the
            Custodial Account pursuant to Section 4.05(iv).

          

          Section
            4.05 Permitted
            Withdrawals From the Custodial Account.

          

          The
            Servicer may, from time to time, make withdrawals from the Custodial
            Account for
            the following purposes:

          

          (i)
            to
            make payments to the Owner in the amounts and in the manner provided
            for in
            Section 5.01;

          

          (ii)
            to
            reimburse itself for Monthly Advances, the Servicer's right to reimburse
            itself
            pursuant to this subclause (ii) being limited to amounts received on
            the related
            Mortgage Loan which represent late collections (net of the related Servicing
            Fees) of principal and/or interest respecting which any such advance
            was
            made;

          

          (iii)
            to
            reimburse itself for unreimbursed Servicing Advances and unreimbursed
            Monthly
            Advances, the Servicer's right to reimburse itself pursuant to this subclause
            (iii) with respect to any Mortgage Loan being limited to Liquidation
            Proceeds,
            Condemnation Proceeds and Insurance Proceeds received after the Cut-off
            Date
            related to such Mortgage Loan;

          

          (iv)
            to
            pay to itself as servicing compensation (a) any interest earned on funds
            in the
            Custodial Account (all such interest to be withdrawn monthly not later
            than each
            Remittance Date) and (b) any payable Servicing Fee;

          

          (v)
            to
            reimburse itself for any Nonrecoverable Advances:

          

          (vi)
            to
            transfer funds to another Qualified Depository in accordance with Section
            4.09
            hereof;

          

          (vii)
            to
            remove funds inadvertently placed in the Custodial Account in error by
            the
            Servicer; and

          

          (viii)
            to
            clear and terminate the Custodial Account upon the termination of this
            Agreement.

          

          Section
            4.06 Establishment
            of Escrow Accounts; Deposits in Escrow Accounts.

          

          The
            Servicer shall segregate and hold all funds collected and received pursuant
            to
            each Mortgage Loan which constitute Escrow Payments separate and apart
            from any
            of its own funds and general assets and shall establish and maintain
            one or more
            Escrow Accounts. Each Escrow Account shall be established with a Qualified
            Depository. To the extent such funds are not deposited in an Escrow Account,
            such funds may be invested in Permitted Investments. Funds deposited
            in an
            Escrow Account may be drawn on by the Servicer in accordance with Section
            4.07.
            The creation of any Escrow Account shall be evidenced by a letter agreement
            in
            the form shown in Exhibit
            C.
            The
            original of such letter agreement shall be furnished to the Owner upon
            request.
            The Servicer acknowledges and agrees that the Servicer shall bear any
            losses
            incurred with respect to Permitted Investments. The amount of any such
            losses
            shall be immediately deposited by the Servicer in the Escrow Account,
            as
            appropriate, out of the Servicer's own funds, with no right to reimbursement
            therefor.

          

          The
            Servicer shall deposit in a mortgage clearing account on a daily basis,
            and in
            the Escrow Account or Accounts no later than the second Business Day
            after
            receipt of funds and retain therein:

          

          (i)
            all
            Escrow Payments collected on account of the Mortgage Loans, for the purpose
            of
            effecting timely payment of any items as are required under the terms
            of this
            Agreement;

          

          (ii)
            all
            Insurance Proceeds which are to be applied to the restoration or repair
            of any
            Mortgaged Property; and

          

          (iii)
            all
            Servicing Advances for Mortgagors whose Escrow Payments are insufficient
            to
            cover escrow disbursements.

          

          The
            Servicer shall make withdrawals from an Escrow Account only to effect
            such
            payments as are required under this Agreement, and for such other purposes
            as
            shall be as set forth in and in accordance with Section 4.07. The Servicer
            shall
            be entitled to retain any interest paid on funds deposited in an Escrow
            Account
            by the Qualified Depository other than interest on escrowed funds required
            by
            law to be paid to the Mortgagor and, to the extent required by law, the
            Servicer
            shall pay interest on escrowed funds to the Mortgagor notwithstanding
            that the
            Escrow Account is non-interest bearing or that interest paid thereon
            is
            insufficient for such purposes.

          

          Section
            4.07 Permitted
            Withdrawals From Escrow Account.

          

          Withdrawals
            from the Escrow Account may be made by the Servicer only:

          

          (i) to
            effect
            timely payments of ground rents, taxes, assessments, water rates, fire
            and
            hazard insurance premiums, Primary Mortgage Insurance Policy premiums,
            if
            applicable, and comparable items;

          

          (ii) to
            reimburse Servicer for any Servicing Advance made by Servicer with respect
            to a
            related Mortgage Loan but only from amounts received on the related Mortgage
            Loan which represent late payments or collections of Escrow Payments
            thereunder;

          

          (iii) to
            refund
            to the Mortgagor any funds as may be determined to be overages;

          

          (iv) for
            transfer to the Custodial Account in connection with an acquisition of
            REO
            Property;

          

          (v) for
            application to restoration or repair of the Mortgaged Property;

          

          (vi) to
            pay to
            the Servicer, or to the Mortgagor to the extent required by law, any
            interest
            paid on the funds deposited in the Escrow Account;

          

          (vii) to
            pay to
            the Mortgagors or other parties Insurance Proceeds deposited in accordance
            with
            Section 4.06; 

          

          (viii) to
            remove
            funds inadvertently placed in an Escrow Account in error by the Servicer;
            and

          

          (ix) to
            clear
            and terminate the Escrow Account on the termination of this Agreement.
            

          

          As
            part
            of its servicing duties, the Servicer shall pay to the Mortgagors interest
            on
            funds in an Escrow Account, to the extent required by law, and to the
            extent
            that interest earned on funds in the Escrow Account is insufficient,
            shall pay
            such interest from its own funds, without any reimbursement
            therefor.

          

          Section
            4.08 Payment
            of Taxes, Insurance and Other Charges; Maintenance of Primary Mortgage
            Insurance
            Policies; Collections Thereunder.

          

          With
            respect to each Mortgage Loan, the Servicer shall maintain accurate records
            reflecting the status of ground rents, taxes, assessments, water rates
            and other
            charges which are or may become a lien upon the Mortgaged Property and
            the
            status of Primary Mortgage Insurance Policy premiums and fire and hazard
            insurance coverage and shall obtain, from time to time, all bills for
            the
            payment of such charges, including renewal premiums and shall effect
            payment
            thereof prior to the applicable penalty or termination date and at a
            time
            appropriate for securing maximum discounts allowable, employing for such
            purpose
            deposits of the Mortgagor in the Escrow Account which shall have been
            estimated
            and accumulated by the Servicer in amounts sufficient for such purposes,
            as
            allowed under the terms of the Mortgage or applicable law. To the extent
            that
            the Mortgage does not provide for Escrow Payments, the Servicer shall
            determine
            that any such payments are made by the Mortgagor at the time they first
            become
            due. The Servicer assumes full responsibility for the timely payment
            of all such
            bills and shall effect timely payments of all such bills irrespective
            of the
            Mortgagor's faithful performance in the payment of same or the making
            of the
            Escrow Payments and shall make advances from its own funds to effect
            such
            payments.

          

          The
            Servicer will maintain in full force and effect Primary Mortgage Insurance
            Policies issued by a Qualified Insurer with respect to each Mortgage
            Loan for
            which such coverage is herein required. Such coverage will be maintained
            until
            the ratio of the current outstanding principal balance of the related
            Mortgage
            Loan to the appraised value of the related Mortgaged Property, based
            on the most
            recent appraisal of the Mortgaged Property performed by a Qualified Appraiser,
            such appraisal to be included in the Servicing File, is reduced to 80.00%
            or
            less. The Servicer will not cancel or refuse to renew any Primary Mortgage
            Insurance Policy that is required to be kept in force under this Agreement
            unless a replacement Primary Mortgage Insurance Policy for such canceled
            or
            nonrenewed policy is obtained from and maintained with a Qualified Insurer.
            The
            Servicer shall not take any action which would result in non-coverage
            under any
            applicable Primary Mortgage Insurance Policy of any loss which, but for
            the
            actions of the Servicer would have been covered thereunder. In connection
            with
            any assumption or substitution agreement entered into or to be entered
            into
            pursuant to Section 6.01, the Servicer shall promptly notify the insurer
            under
            the related Primary Mortgage Insurance Policy, if any, of such assumption
            or
            substitution of liability in accordance with the terms of such policy
            and shall
            take all actions which may be required by such insurer as a condition
            to the
            continuation of coverage under the Primary Mortgage Insurance Policy.
            If such
            Primary Mortgage Insurance Policy is terminated as a result of such assumption
            or substitution of liability, the Servicer shall obtain a replacement
            Primary
            Mortgage Insurance Policy as provided above.

          

          In
            connection with its activities as servicer, the Servicer agrees to prepare
            and
            present, on behalf of itself and the Owner, claims to the insurer under
            any
            Private Mortgage Insurance Policy in a timely fashion in accordance with
            the
            terms of such Primary Mortgage Insurance Policy and, in this regard,
            to take
            such action as shall be necessary to permit recovery under any Primary
            Mortgage
            Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to Section
            4.04,
            any amounts collected by the Servicer under any Primary Mortgage Insurance
            Policy shall be deposited in the Custodial Account, subject to withdrawal
            pursuant to Section 4.05.

          

          Section
            4.09 Transfer
            of Accounts.

           

          The
            Servicer may transfer the Custodial Account or the Escrow Account to
            a different
            Qualified Depository from time to time. The Servicer shall notify the
            Owner of
            any such transfer within 15 Business Days of transfer.

          

          Section
            4.10 Maintenance
            of Hazard Insurance.

          

          The
            Servicer shall cause to be maintained for each Mortgage Loan fire and
            hazard
            insurance with extended coverage as is customary in the area where the
            Mortgaged
            Property is located in an amount which is equal to the lesser of (i)
            the maximum
            insurable value of the improvements securing such Mortgage Loan or (ii)
            the
            greater of (a) the outstanding principal balance of the Mortgage Loan,
            and (b)
            the percentage such that the proceeds thereof shall be sufficient to
            prevent the
            Mortgagor and/or the Mortgagee from becoming a co-insurer. If the Mortgaged
            Property is in an area identified in the Federal Register by the Federal
            Emergency Management Agency as being a special flood hazard area that
            has
            federally-mandated flood insurance requirements, the Servicer will cause
            to be
            maintained a flood insurance policy meeting the requirements of the current
            guidelines of the Federal Insurance Administration with a generally acceptable
            insurance carrier, in an amount representing coverage not less than the
            least of
            (i) the outstanding principal balance of the Mortgage Loan, (ii) the
            maximum
            insurable value of the improvements securing such Mortgage Loan or (iii)
            the
            maximum amount of insurance which is available under the Flood Disaster
            Protection Act of 1973, as amended. The Servicer shall also maintain
            on the REO
            Property, fire and hazard insurance with extended coverage in an amount
            which is
            at least equal to the maximum insurable value of the improvements which
            are a
            part of such property, liability insurance and, to the extent required
            and
            available under the Flood Disaster Protection Act of 1973, as amended,
            flood
            insurance in an amount as provided above. Any amounts collected by the
            Servicer
            under any such policies other than amounts to be deposited in the Escrow
            Account
            and applied to the restoration or repair of the Mortgaged Property or
            REO
            Property, or released to the Mortgagor in accordance with the Servicer's
            normal
            servicing procedures, shall be deposited in the Custodial Account, subject
            to
            withdrawal pursuant to Section 4.05. It is understood and agreed that
            no other
            additional insurance need be required by the Servicer or the Mortgagor
            or
            maintained on property acquired in respect of the Mortgage Loans, other
            than
            pursuant to the Fannie Mae Guide or such applicable state or federal
            laws and
            regulations as shall at any time be in force and as shall require such
            additional insurance. All such policies shall be endorsed with standard
            mortgagee clauses with loss payable to the Servicer and its successors
            and/or
            assigns and shall provide for at least thirty days prior written notice
            of any
            cancellation, reduction in the amount or material change in coverage
            to the
            Servicer. The Servicer shall not interfere with the Mortgagor's freedom
            of
            choice in selecting either his insurance carrier or agent, provided,
            however,
            that the Servicer shall not accept any such insurance policies from insurance
            companies unless such companies currently reflect a General Policy Rating
            in
            Best's Key Rating Guide currently acceptable to Fannie Mae and are licensed
            to
            do business in the state wherein the property subject to the policy is
            located.

          

          Section
            4.11 Adjustments
            to Mortgage Interest Rate and Monthly Payment.

          

          On
            each
            applicable Adjustment Date, the Mortgage Interest Rate shall be adjusted, in
            compliance with the requirements of the related Mortgage and Mortgage
            Note, to
            equal the sum of the Index plus the Margin (rounded in accordance with
            the
            related Mortgage Note) subject to the applicable Periodic Rate Cap and
            Lifetime
            Rate Cap, as set forth in the Mortgage Note. The Servicer shall execute
            and
            deliver the notices required by each Mortgage and Mortgage Note and applicable
            laws and regulations regarding interest rate adjustments.

          

          Section
            4.12 Fidelity
            Bond, Errors and Omissions Insurance.

          

          The
            Servicer shall maintain, at its own expense, a blanket fidelity bond
            and an
            errors and omissions insurance policy, with broad coverage with responsible
            companies on all officers, employees or other persons acting in any capacity
            with regard to the Mortgage Loans and who handle funds, money, documents
            and
            papers relating to the Mortgage Loans. The Fidelity Bond and errors and
            omissions insurance shall be in the form of the Mortgage Banker's Blanket
            Bond
            and shall protect and insure the Servicer against losses, including forgery,
            theft, embezzlement, fraud, errors and omissions and negligent acts of
            such
            persons. Such Fidelity Bond and errors and omissions insurance shall
            also
            protect and insure the Servicer against losses in connection with the
            failure to
            maintain any insurance policies required pursuant to this Agreement and
            the
            release or satisfaction of a Mortgage Loan without having obtained payment
            in
            full of the indebtedness secured thereby. No provision of this Section
            4.12
            requiring the Fidelity Bond and errors and omissions insurance shall
            diminish or
            relieve the Servicer from its duties and obligations as set forth in
            this
            Agreement. The minimum coverage under any such Fidelity Bond and insurance
            policy shall be at least equal to the corresponding amounts required
            by Fannie
            Mae in the Fannie Mae Guide or by Freddie Mac in the Freddie Mac Guide.
            The
            Servicer shall, upon request of Owner, deliver to the Owner a certificate
            from
            the surety and the insurer as to the existence of the Fidelity Bond and
            errors
            and omissions insurance policy and shall obtain a statement from the
            surety and
            the insurer that such Fidelity Bond or insurance policy shall in no event
            be
            terminated or materially modified without thirty days prior written notice
            to
            the Owner. The Servicer shall notify the Owner within five Business Days
            of
            receipt of notice that such Fidelity Bond or insurance policy will be,
            or has
            been, materially modified or terminated. The Owner and its successors
            or assigns
            as their interests may appear must be named as loss payees on the Fidelity
            Bond
            and as additional insured on the errors and omissions policy.

           

          Section
            4.13 Title,
            Management and Disposition of REO Property.

          

          In
            the
            event that title to any Mortgaged Property is acquired in foreclosure
            or by deed
            in lieu of foreclosure, the deed or certificate of sale shall be taken
            in the
            name of the Owner or its designee. Any such Person or Persons holding
            such title
            other than the Owner shall acknowledge in writing that such title is
            being held
            as nominee for the benefit of the Owner.

          

          The
            Servicer shall notify the Owner in accordance with prudent servicing
            practices
            of each acquisition of REO Property upon such acquisition, and thereafter
            assume
            the responsibility for marketing such REO Property in accordance with
            Accepted
            Servicing Practices. Thereafter, the Servicer shall continue to provide
            certain
            administrative services to the Owner relating to such REO Property as
            set forth
            in this Section 4.13. The REO Property must be sold within three years
            following
            the end of the calendar year of the date of acquisition, unless a REMIC
            election
            has been made with respect to the arrangement under which the Mortgage
            Loans and
            REO Property are held and (i) the Owner shall have been supplied with
            an Opinion
            of Counsel to the effect that the holding by the related trust of such
            Mortgaged
            Property subsequent to such three-year period (and specifying the period
            beyond
            such three-year period for which the Mortgaged Property may be held)
            will not
            result in the imposition of taxes on “prohibited transactions” of the related
            trust as defined in Section 860F of the Code, or cause the related REMIC
            to fail
            to qualify as a REMIC, in which case the related trust may continue to
            hold such
            Mortgaged Property (subject to any conditions contained in such Opinion
            of
            Counsel), or (ii) the Owner (at the Servicer’s expense) or the Servicer shall
            have applied for, prior to the expiration of such three-year period,
            an
            extension of such three-year period in the manner contemplated by Section
            856(e)(3) of the Code, in which case the three-year period shall be extended
            by
            the applicable period. If a period longer than three years is permitted
            under
            the foregoing sentence and is necessary to sell any REO Property, (i)
            the
            Servicer shall report monthly to the Owner as to progress being made
            in selling
            such REO Property and (ii) if, with the written consent of the Owner,
            a purchase
            money mortgage is taken in connection with such sale, such purchase money
            mortgage shall name the Servicer as mortgagee, and such purchase money
            mortgage
            shall not be held pursuant to this Agreement, but instead a separate
            participation agreement between the Servicer and Owner shall be entered
            into
            with respect to such purchase money mortgage.

          

          The
            Servicer shall not permit the creation of any “interests” (within the meaning of
            Section 860G of the Code) in any REMIC. The Servicer shall not enter
            into any
            arrangement by which a REMIC will receive a fee or other compensation
            for
            services nor permit a REMIC to receive any income from assets other than
            “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
            investments” as defined in Section 860G(a)(5) of the Code.

          

          

          Notwithstanding
            any other provision of this Agreement, if a REMIC election has been made,
            no
            Mortgaged Property held by a REMIC shall be rented (or allowed to continue
            to be
            rented) or otherwise used for the production of income by or on behalf
            of the
            related trust or sold in such a manner or pursuant to any terms that
            would (i)
            cause such Mortgaged Property to fail to qualify at any time as “foreclosure
            property” within a meaning of Section 860G(a)(8) of the Code, (ii) subject the
            related trust to the imposition of any federal or state income taxes
            on “net
            income from foreclosure property” with respect to such Mortgaged Property within
            the meaning of Section 860G(c) of the Code, or (iii) cause the sale of
            such
            Mortgaged Property to result in the receipt by the related trust or any
            income
            from non-permitted assets as described in Section 860F(a) (2)(B) of the
            Code,
            unless the Servicer has agreed to indemnify and hold harmless the related
            trust
            with respect to the imposition of any such taxes.

          

          The
            Servicer shall, either itself or through an agent selected by the Servicer,
            and
            in accordance with the Fannie Mae Guide, manage, conserve, protect and
            operate
            each REO Property in the same manner that it manages, conserves, protects
            and
            operates other foreclosed property for its own account, and in the same
            manner
            that similar property in the same locality as the REO Property is managed.
            Each
            REO Disposition shall be carried out by the Servicer at such price and
            upon such
            terms and conditions as the Servicer deems to be in the best interest
            of the
            Owner. The REO Disposition Proceeds from the sale of the REO Property
            shall be
            promptly deposited in the Custodial Account. As soon as practical thereafter,
            the expenses of such sale shall be paid and the Servicer shall reimburse
            itself
            for any related Servicing Advances, or Monthly Advances made pursuant
            to Section
            5.03.

          

          The
            Servicer shall cause each REO Property to be inspected promptly upon
            the
            acquisition of title thereto and shall cause each REO Property to be
            inspected
            at least monthly thereafter or more frequently as may be required by
            the
            circumstances. The Servicer shall make or cause the inspector to make
            a written
            report of each such inspection. Such reports shall be retained in the
            Servicing
            File and copies thereof shall be forwarded by the Servicer to the
            Owner.

          

          Notwithstanding
            anything to the contrary set forth in this Section 4.13, the parties
            hereto
            hereby agree that the Owner, at its option, shall be entitled to manage,
            conserve, protect and operate each REO Property for its own benefit (such
            option, an "REO Option"). In connection with the exercise of an REO Option,
            the
            prior two paragraphs and the related provisions of Section 4.03 and Section
            4.04(iii) (such provisions, the “REO Marketing Provisions”) shall be revised as
            follows. Following the acquisition of any Mortgaged Property, the Servicer
            shall
            submit a detailed invoice to the Owner for all related Servicing Advances
            and,
            upon exercising the REO Option, the Owner shall promptly reimburse the
            Servicer
            for such amounts. In the event the REO Option is exercised with respect
            to an
            REO Property, Section 4.04 (iii) shall not be applicable thereto. References
            made in Section 4.03 with respect to the reimbursement of Servicing Advances
            shall, for purposes of such REO Property, be deemed to be covered by
            this
            paragraph. The Owner acknowledges that, in the event it exercises an
            REO Option,
            with respect to the related REO Property, there shall be no breach by
            the
            Servicer based upon or arising out of the Servicer's failure to comply
            with the
            REO Marketing Provisions.

          

           

          ARTICLE
            V

          

          PAYMENTS
            TO THE OWNER

          

          Section
            5.01 Remittances.

          

          On
            each
            Remittance Date, the Servicer shall remit to the Owner (i) all amounts
            credited
            to the Custodial Account as of the close of business on the related preceding
            Determination Date, except (a) Partial Principal Prepayments received
            on or
            after the first day of the month in which the Remittance Date occurs
            shall be
            remitted to the Owner on the next following Remittance Date, (b) Full
            Principal
            Prepayments received on or before the 15th
            day of
            the month in which a Remittance Date occurs shall be remitted to the
            Owner on
            the Remittance Date of such month, and (c) Full Principal Prepayments
            received
            after the 15th
            day of
            the month shall be remitted to the Owner on the next following Remittance
            Date,
            each net of charges against or withdrawals from the Custodial Account
            pursuant
            to Section 4.05, plus, to the extent not already deposited in the Custodial
            Account, the sum of (ii) all Monthly Advances, if any, which the Servicer
            is
            obligated to distribute pursuant to Section 5.03 and (iii) all Prepayment
            Interest Shortfalls the Servicer is required to make up pursuant to Section
            4.04, minus (iv) any amounts attributable to Monthly Payments collected
            after
            the Cut-off Date but due on a Due Date or Dates subsequent to the last
            day of
            the related Due Period, which amounts shall be remitted on the related
            Remittance Date next succeeding the Due Period for such amounts.

          

          With
            respect to any remittance received by the Owner after the Business Day
            on which
            such payment was due, the Servicer shall pay to the Owner interest on
            any such
            late payment at an annual rate equal to the Prime Rate, adjusted as of
            the date
            of each change, plus two percentage points, but in no event greater than
            the
            maximum amount permitted by applicable law. Such interest shall be deposited
            in
            the Custodial Account by the Servicer on the date such late payment is
            made and
            shall cover the period commencing with the day following such Business
            Day and
            ending with the Business Day on which such payment is made, both inclusive.
            Such
            interest shall be remitted along with the distribution payable on the
            next
            succeeding related Remittance Date. The payment by the Servicer of any
            such
            interest shall not be deemed an extension of time for payment or a waiver
            of any
            Event of Default by the Servicer.

          

          Section
            5.02 Statements
            to the Owner.

          

          The
            Servicer shall furnish to the Owner an individual Mortgage Loan accounting
            report (a “Report”), as of the last Business Day of each month, in the
            Servicer's assigned loan number order to document Mortgage Loan payment
            activity
            on an individual Mortgage Loan basis. With respect to each month, such
            Report
            shall be received by the Owner (i) no later than the fifth Business Day
            of the
            following month of the related Remittance Date on a disk or tape or other
            computer-readable format, in such format as may be mutually agreed upon
            by both
            the Owner and the Servicer, and (ii) no later than the tenth Business
            Day of the
            following month of the related Remittance Date in hard copy, which Report
            shall
            contain the following:

          

          
            	(i)  	
                    with
                      respect to each Monthly Payment, the amount of such remittance
                      allocable
                      to interest

                  

          

          

          
            	(ii)  	
                    the
                      amount of servicing compensation received by the Servicer during
                      the prior
                      distribution period;

                  

          

          

          
            	(iii)  	
                    the
                      aggregate Stated Principal Balance of the Mortgage Loans;
                      

                  

          

          

          
            	(iv)  	
                    the
                      number and aggregate outstanding principal balances of Mortgage
                      Loans (a)
                      delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days
                      or more; (b)
                      as to which foreclosure has commenced; and (c) as to which
                      REO Property
                      has been acquired; and

                  

          

          

          
            	(v)  	
                    such
                      other reports as may reasonably be required by the
                      Owner.

                  

          

          

          

          The
            Servicer shall also provide a trial balance, sorted in the Owner's assigned
            loan
            number order, and such other loan level scheduled-scheduled remittance
            information as described on Exhibit
            E,
            in
            electronic tape form, with each such Report.

          

          The
            Servicer shall prepare and file any and all information statements or
            other
            filings required to be delivered to any governmental taxing authority
            or to
            Owner pursuant to any applicable law with respect to the Mortgage Loans
            and the
            transactions contemplated hereby. In addition, the Servicer shall provide
            the
            Owner with such information concerning the Mortgage Loans as is necessary
            for
            the Owner to prepare its federal income tax return as the Owner may reasonably
            request from time to time.

          

          In
            addition, not more than 60 days after the end of each calendar year,
            the
            Servicer shall furnish to each Person who was an Owner at any time during
            such
            calendar year an annual statement in accordance with the requirements
            of
            applicable federal income tax law as to the aggregate of remittances
            of
            principal and interest for the applicable portion of such year.

          

          Section
            5.03 Monthly
            Advances by the Servicer.

          

          Not
            later
            than the close of business on the Business Day preceding each Remittance
            Date,
            the Servicer shall deposit in the Custodial Account an amount equal to
            all
            payments not previously advanced by the Servicer, whether or not deferred
            pursuant to Section 4.01, of Monthly Payments, adjusted to the related
            Mortgage
            Loan Remittance Rate, which are delinquent at the close of business on
            the
            related Determination Date; provided, however, that the amount of any
            such
            deposit may be reduced by (i) the Amount Held for Future Distribution
            (as
            defined below) then on deposit in the Custodial Account, plus (ii) with
            respect
            to the initial Remittance Date, the Non-held Early Pay Amount (as defined
            below). Any portion of the Amount Held for Future Distribution used to
            pay
            Monthly Advances shall be replaced by the Servicer by deposit into the
            Custodial
            Account on any future Remittance Date to the extent that the funds that
            are
            available in the Custodial Account for remittance to the Owner on such
            Remittance Date are less than the amount of payments required to be made
            to the
            Owner on such Remittance Date. 

          

          The
            “Amount Held for Future Distribution” as to any Remittance Date shall be the
            total of the amounts held in the Custodial Account at the close of business
            on
            the preceding Determination Date which were received after the Cut-off
            Date on
            account of (i) Liquidation Proceeds, Insurance Proceeds, and Partial
            Principal
            Prepayments received or made in the month of such Remittance Date, (ii)
            Full
            Principal Payments received after the 15th
            day of
            the month in the month of such Remittance Date, and (iii) payments which
            represent early receipt of scheduled payments of principal and interest
            due on a
            date or dates subsequent to the related Due Date. The "Non-held Early
            Pay
            Amount" shall be the total of the amounts on account of payments which
            represent
            early receipt of scheduled payments of principal and interest received
            on or
            prior to the Cut-off Date.

          

          The
            Servicer's obligation to make such Monthly Advances as to any Mortgage
            Loan will
            continue through the final disposition or liquidation of the Mortgaged
            Property,
            unless the Servicer deems such advance to be nonrecoverable from Liquidation
            Proceeds, REO Disposition Proceeds or Insurance Proceeds with respect
            to the
            applicable Mortgage Loan. In such latter event, the Servicer shall deliver
            to
            the Owner an Officer's Certificate of the Servicer to the effect that
            an officer
            of the Servicer has reviewed the related Servicing File and has obtained
            a
            recent appraisal and has made the reasonable determination that any additional
            advances are nonrecoverable from Liquidation or Insurance Proceeds with
            respect
            to the applicable Mortgage Loan.

          

          Section
            5.04 Liquidation
            Reports.

          

          Upon
            the
            foreclosure sale of any Mortgaged Property or the acquisition thereof
            by the
            Owner pursuant to a deed-in--lieu of foreclosure, the Servicer shall
            submit to
            the Owner a liquidation report with respect to such Mortgaged Property
            in such
            form as the Servicer and the Owner shall agree. The Servicer shall also
            provide
            reports on the status of REO Property containing such information as
            Owner may
            reasonably require.

          

           

          ARTICLE
            VI

          

          GENERAL
            SERVICING PROCEDURES

          

          Section
            6.01 Assumption
            Agreements.

          

          The
            Servicer will, to the extent it has knowledge of any conveyance or prospective
            conveyance by any Mortgagor of a Mortgaged Property (whether by absolute
            conveyance or by contract of, sale, and whether or not the Mortgagor
            remains or
            is to remain liable under the Mortgage Note and/or the Mortgage), exercise
            its
            rights to accelerate the maturity of such Mortgage Loan under any "due-on-sale"
            clause to the extent permitted by law; provided, however, that the Servicer
            shall not exercise any such rights if prohibited by law or the terms
            of the
            Mortgage Note from doing so or if the exercise of such rights would impair
            or
            threaten to impair any recovery under the related Primary Mortgage Insurance
            Policy, if any. If the Servicer reasonably believes it is unable under
            applicable law to enforce such "due-on-sale" clause, the Servicer, with
            the
            approval of the Owner (such approval not to be unreasonably withheld),
            will
            enter into an assumption agreement with the person to whom the Mortgaged
            Property has been conveyed or is proposed to be conveyed, pursuant to
            which such
            person becomes liable under the Mortgage Note and, to the extent permitted
            by
            applicable state law, the Mortgagor remains liable thereon. Where an
            assumption
            is allowed pursuant to this Section 6.01, the Servicer, with the prior
            consent
            of the primary mortgage insurer, if any, is authorized to enter into
            a
            substitution of liability agreement with the person to whom the Mortgaged
            Property has been conveyed or is proposed to be conveyed pursuant to
            which the
            original mortgagor is released from liability and such Person is substituted
            as
            mortgagor and becomes liable under the related Mortgage Note. Any such
            substitution of liability agreement shall be in lieu of an assumption
            agreement.

          

          In
            connection with any such assumption or substitution of liability, the
            Servicer
            shall follow the underwriting practices and procedures of the Fannie
            Mae Guide.
            With respect to an assumption or substitution of liability, the Mortgage
            Interest Rate borne by the related Mortgage Note and the amount of the
            Monthly
            Payment may not be changed. The Servicer shall notify the Owner that
            any such
            substitution of liability or assumption agreement has been completed
            by
            forwarding to the Owner the original of any such substitution of liability
            or
            assumption agreement, which document shall be added to the related Mortgage
            Loan
            Documents and shall, for all purposes, be considered a part of such related
            mortgage file to the same extent as all other documents and instruments
            constituting a part thereof. All fees collected by the Servicer for entering
            into an assumption or substitution of liability agreement shall belong
            to the
            Servicer.

          

          Notwithstanding
            the foregoing paragraphs of this section or any other provision of this
            Agreement, the Servicer shall not be deemed to be in default, breach
            or any
            other violation of its obligations hereunder by reason of any assumption
            of a
            Mortgage Loan by operation of law or any assumption which the Servicer
            may be
            restricted by law from preventing, for any reason whatsoever. For purposes
            of
            this Section 6.01, the term "assumption" is deemed to also include a
            sale of the
            Mortgaged Property subject to the Mortgage that is not accompanied by
            an
            assumption or substitution of liability agreement.

          

          Section
            6.02 Satisfaction
            of Mortgages and Release of Mortgage Loan Documents.

          

          Upon
            the
            payment in full of any Mortgage Loan, the Servicer will immediately notify
            the
            Custodian with a certification and request for release by a Servicing
            Officer,
            which certification shall include a statement to the effect that all
            amounts
            received in connection with such payment which are required to be deposited
            in
            the Custodial Account pursuant to Section 4.04 have been so deposited,
            and a
            request for delivery to the Servicer of the portion of the Mortgage Loan
            Documents held by the Custodian, and unless the related Mortgage Loans
            are the
            subject of a Pass-Through Transfer, such request is to be acknowledged
            by the
            Owner. Upon receipt of such certification and request, the Owner shall
            promptly
            release or cause the Custodian to promptly release the related Mortgage
            Loan
            Documents to the Servicer and the Servicer shall prepare and deliver
            for
            execution by the Owner or at the Owner's option execute under the authority
            of a
            power of attorney delivered to the Servicer by the Owner any satisfaction
            or
            release. No expense incurred in connection with any instrument of satisfaction
            or deed of reconveyance shall be chargeable to the Custodial
            Account.

          

          In
            the
            event the Servicer satisfies or releases a Mortgage without having obtained
            payment in full of the indebtedness secured by the Mortgage or should
            it
            otherwise prejudice any right the Owner may have under the mortgage instruments,
            the Servicer, upon written demand, shall remit within two Business Days
            to the
            Owner the then outstanding principal balance of the related Mortgage
            Loan by
            deposit thereof in the Custodial Account. The Servicer shall maintain
            the
            Fidelity Bond insuring the Servicer against any loss it may sustain with
            respect
            to any Mortgage Loan not satisfied in accordance with the procedures
            set forth
            herein.

          

          From
            time
            to time and as appropriate for the servicing or foreclosure of the Mortgage
            Loans, including for the purpose of collection under any Primary Mortgage
            Insurance Policy, upon request of the Servicer and delivery to the Custodian
            of
            a servicing receipt signed by a Servicing Officer (and unless the related
            Mortgage Loans are the subject of a Pass-Through Transfer, acknowledged
            by the
            Owner), the Custodian shall release the portion of the Mortgage Loan
            Documents
            held by the Custodian to the Servicer. Such servicing receipt shall obligate
            the
            Servicer to promptly return the related Mortgage Loan Documents to the
            Custodian, when the need therefor by the Servicer no longer exists, unless
            the
            Mortgage Loan has been liquidated and the Liquidation Proceeds relating
            to the
            Mortgage Loan have been deposited in the Custodial Account or such documents
            have been delivered to an attorney, or to a public trustee or other public
            official as required by law, for purposes of initiating or pursuing legal
            action
            or other proceedings for the foreclosure of the Mortgaged Property either
            judicially or non-judicially, and the Servicer has promptly delivered
            to the
            Owner or the Custodian a certificate of a Servicing Officer certifying
            as to the
            name and address of the Person to which such documents were delivered
            and the
            purpose or purposes of such delivery. Upon receipt of a certificate of
            a
            Servicing Officer stating that such Mortgage Loan was liquidated, the
            servicing
            receipt shall be released by the Owner or the Custodian, as applicable,
            to the
            Servicer.

          

          Section
            6.03 Servicing
            Compensation.

          

          As
            compensation for its services hereunder, the Servicer shall be entitled
            to
            withdraw from the Custodial Account or to retain from interest payments
            on the
            Mortgage Loans the amounts provided for as the Servicer's Servicing Fee.
            Additional servicing compensation in the form of assumption fees, as
            provided in
            Section 6.01, late payment charges and other ancillary fees shall be
            retained by
            the Servicer to the extent not required to be deposited in the Custodial
            Account. The Servicer shall be required to pay all expenses incurred
            by it in
            connection with its servicing activities hereunder and shall not be entitled
            to
            reimbursement therefor except as specifically provided for.

          

          Section
            6.04 Annual
            Statement as to Compliance.

          

          The
            Servicer will deliver to the Owner not later than 90 days following the
            end of
            each fiscal year of the Servicer, an Officers' Certificate stating, as
            to each
            signatory thereof, that (i) a review of the activities of the Servicer
            during
            the preceding calendar year and of performance under this Agreement has
            been
            made under such officers' supervision, and (ii) to the best of such officers'
            knowledge, based on such review, the Servicer has fulfilled all of its
            obligations under this Agreement throughout such year, or, if there has
            been a
            default in the fulfillment of any such obligation, specifying each such
            default
            known to such officers and the nature and status thereof except for such
            defaults as such Officers in their good faith judgment believe to be
            immaterial.

          

          Section
            6.05 Annual
            Independent Certified Public Accountants' Servicing Report.

          

          Not
            later
            than 90 days following the end of each fiscal year of the Servicer, the
            Servicer
            at its expense shall cause a firm of independent public accountants which
            is a
            member of the American Institute of Certified Public Accountants to furnish
            a
            statement to the Owner to the effect that such firm has examined certain
            documents and records relating to the Servicer's servicing of mortgage
            loans of
            the same type as the Mortgage Loans pursuant to servicing agreements
            substantially similar to this Agreement, which agreements may include
            this
            Agreement, and that, on the basis of such an examination, conducted
            substantially in accordance with the Uniform Single Attestation Program
            for
            Mortgage Bankers, such firm is of the opinion that the Servicer's servicing
            has
            been conducted in compliance with the agreements examined pursuant to
            this
            Section 6.05, except for (i) such exceptions as such firm shall believe
            to be
            immaterial, and (ii) such other exceptions as shall be set forth in such
            statement.

          

          Section
            6.06 Owner's
            Right to Examine Servicer Records.

          

          The
            Owner
            shall have the right to examine and audit, at its expense, upon reasonable
            notice to the Servicer, during business hours or at such other times
            as might be
            reasonable under applicable circumstances, any and all of the books,
            records,
            documentation or other information of the Servicer, or held by another
            for the
            Servicer or on its behalf or otherwise, which relate to the performance
            or
            observance by the Servicer of the terms, covenants or conditions of this
            Agreement.

          

          The
            Servicer shall provide to the Owner and any supervisory agents or examiners
            representing a state or federal governmental agency having jurisdiction
            over the
            Owner, including but not limited to OTS, FDIC and other similar entities,
            access
            to any documentation regarding the Mortgage Loans in the possession of
            the
            Servicer which may be required by any applicable regulations. Such access
            shall
            be afforded without charge, upon reasonable request, during normal business
            hours and at the offices of the Servicer, and in accordance with the
            applicable
            federal government agency, FDIC, OTS, or any other similar
            regulations.

          

          Section
            6.07 Compliance
            with REMIC Provisions.

          

          If
            a
            REMIC election has been made with respect to the arrangement under which
            the
            Mortgage Loans and REO Property are held, the Servicer shall not take
            any
            action, cause the REMIC 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 (i) endanger the status of the REMIC as a REMIC
            or (ii)
            result in the imposition of a tax upon the REMIC (including but not limited
            to
            the tax on “prohibited transactions” as defined in Section 860F(a)(2) of the
            Code and the tax on “contribution” to a REMIC set forth in Section 860G(d) of
            the Code unless the Servicer has received an Opinion of Counsel (at the
            expense
            of the party seeking to take such actions) to the effect that the contemplated
            action will not endanger such REMIC status or result in the imposition
            of any
            such tax.

          

          Section
            6.08 Non-solicitation.

          

          The
            Servicer shall not knowingly conduct any solicitation exclusively targeted
            to
            the Mortgagors for the purpose of inducing or encouraging the early prepayment
            or refinancing of the related Mortgage Loans. It is understood and agreed
            that
            promotions undertaken by the Servicer or any agent or affiliate of the
            Servicer
            which are directed to the general public at large, including, without
            limitation, mass mailings based on commercially acquired mailing lists,
            newspaper, radio and television advertisements shall not constitute solicitation
            under this section. Nothing
            contained herein shall prohibit the Servicer from (i) distributing to
            Mortgagors
            any general advertising including information brochures, coupon books,
            or other
            similar documentation which indicates services the Seller offers, including
            refinances or (ii) providing financing of home equity loans to Mortgagors
            at the
            Mortgagor’s request.

          

          

          ARTICLE
            VII

          

          REPORTS
            TO BE PREPARED BY SERVICER

          

          Section
            7.01 Servicer
            Shall Provide Information as Reasonably Required.

          

          The
            Servicer shall furnish to the Owner upon request, during the term of
            this
            Agreement, such periodic, special or other reports or information, whether
            or
            not provided for herein, as shall be necessary, reasonable or appropriate
            with
            respect to the purposes of this Agreement. The Servicer may negotiate
            with the
            Owner for a reasonable fee for providing such report or information,
            unless (i)
            the Servicer is required to supply such report or information pursuant
            to any
            other section of this Agreement, or (ii) the report or information has
            been
            requested in connection with Internal Revenue Service, OTS, FDIC or other
            regulatory agency requirements. All such reports or information shall
            be
            provided by and in accordance with all reasonable instructions and directions
            given by the Owner. The
            Servicer agrees to execute and deliver all such instruments and take
            all such
            action as the Owner, from time to time, may reasonably request in order
            to
            effectuate the purpose and to carry out the terms of this Agreement.
            

          

           

          ARTICLE
            VIII

          

          THE
            SERVICER

          

          Section
            8.01 Indemnification;
            Third Party Claims.

          

          The
            Servicer agrees to indemnify the Owner and hold it harmless from and
            against any
            and all claims, losses, damages, penalties, fines, forfeitures, legal
            fees and
            related costs, judgments, and any other costs, fees and expenses that
            the Owner
            may sustain in any way related to the failure of the Servicer to perform
            in any
            way its duties and service the Mortgage Loans in strict compliance with
            the
            terms of this Agreement and for breach of any representation or warranty
            of the
            Servicer contained herein. The Servicer shall immediately notify the
            Owner if a
            claim is made by a third party with respect to this Agreement or the
            Mortgage
            Loans, assume (with the consent of the Owner and with counsel reasonably
            satisfactory to the Owner) the defense of any such claim and pay all
            expenses in
            connection therewith, including counsel fees, and promptly pay, discharge
            and
            satisfy any judgment or decree which may be entered against it or the
            Owner in
            respect of such claim but failure to so notify the Owner shall not limit
            its
            obligations hereunder. The Servicer agrees that it will not enter into
            any
            settlement of any such claim without the consent of the Owner unless
            such
            settlement includes an unconditional release of the Owner from all liability
            that is the subject matter of such claim. The provisions of this Section
            8.01
            shall survive termination of this Agreement. In no event will either
            Purchaser
            or Seller be liable to the other party to this Agreement for incidental
            or
            consequential damages, including, without limitation, loss of profit
            or loss of
            business or business opportunity, regardless of the form of action whether
            in
            contract, tort or otherwise.

          

          Section
            8.02 Merger
            or Consolidation of the Servicer.

          

          The
            Servicer will keep in full effect its existence, rights and franchises
            as a
            corporation under the laws of the state of its incorporation except as
            permitted
            herein, 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
            or any
            of the Mortgage Loans and to perform its duties under this
            Agreement.

          

          Any
            Person into which the Servicer may be merged or consolidated, or any
            corporation
            resulting from any merger, conversion or consolidation to which the Servicer
            shall be a party, or any Person succeeding to the business of the Servicer
            whether or not related to loan servicing, shall be the successor of the
            Servicer
            hereunder, without the execution or filing of any paper or any further
            act on
            the part of any of the parties hereto, anything herein to the contrary
            notwithstanding; provided, however, that the successor or surviving Person
            shall
            be an institution (i) having a GAAP net worth of not less than $25,000,000,
            (ii)
            the deposits of which are insured by the FDIC, SAIF and/or BIF, or which
            is a
            HUD-approved mortgagee whose primary business is in origination and servicing
            of
            first lien mortgage loans, and (iii) which is a Fannie Mae or Freddie
            Mac
            approved seller/servicer in good standing.

          

          
            	 	
                    Section
                      8.03 Limitation
                      on Liability of the Servicer and Others.

                  

          

          

          Neither
            the Servicer nor any of the officers, employees or agents of the Servicer
            shall
            be under any liability to the Owner for any action taken or for refraining
            from
            the taking of any action in good faith pursuant to this Agreement, or
            for errors
            in judgment made in good faith; provided, however, that this provision
            shall not
            protect the Servicer or any such person against any breach of warranties
            or
            representations made herein, or failure to perform in any way its obligations
            in
            compliance with any standard of care set forth in this Agreement, or
            any
            liability which would otherwise be imposed by reason of negligence or
            any breach
            of the terms and conditions of this Agreement. The Servicer and any officer,
            employee or agent of the Servicer may rely in good faith on any document
            of any
            kind prima facie properly executed and submitted by the Owner respecting
            any
            matters arising hereunder. The Servicer shall not be under any obligation
            to
            appear in, prosecute or defend any legal action which is not incidental
            to its
            duties to service the Mortgage Loans in accordance with this Agreement
            and which
            in its opinion may involve it in any expenses or liability; provided,
            however,
            that the Servicer may, with the consent of the Owner, which consent shall
            not be
            unreasonably withheld, 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. In such event, the reasonable legal expenses and costs
            of such
            action and any liability resulting therefrom shall be expenses, costs
            and
            liabilities for which the Owner will be liable, and the Servicer shall
            be
            entitled to be reimbursed therefor from the Owner upon written
            demand.

          

          
            	 	
                    Section
                      8.04 Servicer
                      Not to Resign.

                  

          

          

          The
            Servicer shall not resign from the obligations and duties hereby imposed
            on it
            except by mutual consent of the Servicer and the Owner or upon the determination
            that its duties hereunder are no longer permissible under applicable
            law and
            such incapacity cannot be cured by the Servicer. Any such determination
            permitting the resignation of the Servicer shall be evidenced by an Opinion
            of
            Counsel to such effect delivered to the Owner which Opinion of Counsel
            shall be
            in form and substance acceptable to the Owner. No such resignation shall
            become
            effective until a successor shall have assumed the Servicer's responsibilities
            and obligations hereunder in the manner provided in Section 11.01.

          

          Section
            8.05 No
            Transfer of Servicing.

          

            With
            respect to the retention of the Servicer to service the Mortgage Loans
            hereunder, the Servicer acknowledges that the Owner has acted in reliance
            upon
            the Servicer's independent status, the adequacy of its servicing facilities,
            plan, personnel, records and procedures, its integrity, reputation and
            financial
            standing and the continuance thereof. Without in any way limiting the
            generality
            of this section, the Servicer shall not either assign this Agreement
            or the
            servicing hereunder or delegate its rights or duties hereunder or any
            portion
            thereof, or sell or otherwise dispose of all or substantially all of
            its
            property or assets, without the prior written approval of the Owner,
            which
            approval shall not be unreasonably withheld; provided that the Servicer
            may
            assign the Agreement and the servicing hereunder without the consent
            of Owner to
            an affiliate of the Servicer to which all servicing of the Servicer is
            assigned
            so long as (i) such affiliate is a Fannie Mae and Freddie Mac approved
            servicer
            and (ii) if it is intended that such affiliate be spun off to the shareholders
            of the Servicer, such affiliate have a GAAP net worth of at least $10,000,000
            and (iii) such affiliate shall deliver to the Owner a certification pursuant
            to
            which such affiliate shall agree to be bound by the terms and conditions
            of this
            Agreement and shall certify that such affiliate is a Fannie Mae and Freddie
            Mac
            approved servicer in good standing.

          

           

          ARTICLE
            IX

           

          DEFAULT 

           

          Section
            9.01 Events
            of Default.

           

          In
            case
            one or more of the following Events of Default by the Servicer shall
            occur and
            be continuing, that is to say:

          

          (i) any
            failure by the Servicer to remit to the Owner any payment required to
            be made
            under the terms of this Agreement which continues unremedied for a period
            of
            three (3) Business Days after written notice thereof
            (it
            being understood that this subparagraph shall not affect Servicer's obligation
            pursuant to Section 5.01 to pay default interest on any remittance received
            by
            the Owner after the Business Day on which such payment was due); or

          

          (ii) any
            failure on the part of the Servicer duly to observe or perform in any
            material
            respect any other of the covenants or agreements on the part of the Servicer
            set
            forth in this Agreement, the breach of which has a material adverse effect
            and
            which continue unremedied for a period of sixty days (except that such
            number of
            days shall be fifteen in the case of a failure to pay any premium for
            any
            insurance policy required to be maintained under this Agreement and such
            failure
            shall be deemed to have a material adverse effect) after the date on
            which
            written notice of such failure, requiring the same to be remedied, shall
            have
            been given to the Servicer by the Owner; or

          

          (iii) a
            decree
            or order of a court or agency or supervisory authority having jurisdiction
            for
            the appointment of a conservator or receiver or liquidator in any insolvency,
            bankruptcy, readjustment of debt, marshaling of assets and liabilities
            or
            similar proceedings, or for the winding-up or liquidation of its affairs,
            shall
            have been entered against the Servicer and such decree or order shall
            have
            remained in force undischarged or unstayed for a period of sixty days;
            or

          

          (iv) the
            Servicer shall consent to the appointment of a conservator or receiver
            or
            liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
            of
            assets and liabilities or similar proceedings of or relating to the Servicer
            or
            of or relating to all or substantially all of its property; or

          

          (v) the
            Servicer shall admit in writing its inability to pay its debts generally
            as they
            become due, file a petition to take advantage of any applicable insolvency
            or
            reorganization statute, make an assignment for the benefit of its creditors,
            or
            voluntarily suspend payment of its obligations; or

          

          (vi) the
            Servicer ceases to be approved by either Fannie Mae or Freddie Mac (to
            the
            extent such entities are then operating in a capacity similar to that
            in which
            they operate on the Closing Date) as a mortgage loan servicer for more
            than
            thirty days to the extent such entities perform similar functions;
            or

          

          (vii) the
            Servicer attempts to assign its right to servicing compensation hereunder
            or the
            Servicer attempts, without the consent of the Owner, to sell or otherwise
            dispose of all or substantially all of its property or assets or to assign
            this
            Agreement or the servicing responsibilities hereunder or to delegate
            its duties
            hereunder or any portion thereof except as otherwise permitted
            herein.

           

          then,
            and
            in each and every such case, so long as an Event of Default shall not
            have been
            remedied, the Owner, by notice in writing to the Servicer may, in addition
            to
            whatever rights the Owner may have under Section 8.01 and at law or equity
            to
            damages, including injunctive relief and specific performance, terminate
            all the
            rights and obligations of the Servicer under this Agreement and in and
            to the
            Mortgage Loans and the proceeds thereof without compensating the Servicer
            for
            the same. On or after the receipt by the Servicer of such written notice,
            all
            authority and power of the Servicer under this Agreement, whether with
            respect
            to the Mortgage Loans or otherwise, shall pass to and be vested in the
            successor
            appointed pursuant to Section 11.01. Upon written request from the Owner,
            the
            Servicer shall prepare, execute and deliver, any and all documents and
            other
            instruments, place in such successor's possession all Servicing Files,
            and 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 or assignment of the Mortgage Loans and related documents,
            or
            otherwise, at the Servicer's sole expense. The Servicer agrees to cooperate
            with
            the Owner and such successor in effecting the termination of the Servicer's
            responsibilities and rights hereunder, including, without limitation,
            the
            transfer to such successor for administration by it of all cash amounts
            which
            shall at the time be credited by the Servicer to the Custodial Account
            or Escrow
            Account or thereafter received with respect to the Mortgage Loans or
            any REO
            Property.

          

          
            	 	
                    Section
                      9.02 Waiver
                      of Defaults.

                  

          

          

          The
            Owner
            may waive only by written notice any default by the Servicer in the performance
            of its obligations hereunder and its consequences. Upon any such waiver
            of a
            past default, such default 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
            default
            or impair any right consequent thereon except to the extent expressly
            so waived
            in writing.

          

           

          ARTICLE
            X

          

          TERMINATION

          

          Section
            10.01 Termination.

          

          The
            respective obligations and responsibilities of the Servicer shall terminate
            upon: (i) the later of the final payment or other liquidation (or any
            advance
            with respect thereto) of the last Mortgage Loan or the disposition of
            all REO
            Property and the remittance of all funds due hereunder; or (ii) by mutual
            consent of the Servicer and the Owner in writing; or (iii) termination
            by the
            Owner pursuant to Section 9.01. Simultaneously with any such termination
            and the
            transfer of servicing hereunder, the Servicer shall be entitled to be
            reimbursed
            for any outstanding Servicing Advances and Monthly Advances. 

          

          Section
            10.02 Removal
            of Mortgage Loans from Inclusion under this Agreement upon a Whole
 Loan
            Transfer or a Pass-Through Transfer.

          

          The
            Servicer acknowledges and the Owner agrees that with respect to some
            or all of
            the Mortgage Loans, the Owner may effect either (1) one or more Whole
            Loan
            Transfers, or (2) one or more Pass-Through Transfers.

          

          The
            Servicer shall cooperate with the Owner in connection with any Whole
            Loan
            Transfer or Pass-Through Transfer contemplated by the Owner pursuant
            to this
            Section. In connection therewith, and without limitation, the Owner shall
            deliver any reconstitution agreement or other document related to the
            Whole Loan
            Transfer or Pass-Through Transfer to the Servicer at least 15 days prior
            to such
            transfer (or 30 days if such transfer is to take place in March, June,
            September
            or December) and the Servicer shall execute any such reconstitution agreement
            which contains provisions substantially similar to those herein or otherwise
            reasonably acceptable to the Owner and the Servicer and which restates
            the
            representations and warranties contained in Article III as of the date
            of
            transfer (except to the extent any such representation or warranty is
            not
            accurate on such date). 

          

          With
            respect to each Whole Loan Transfer or Pass--Through Transfer, as the
            case may
            be, effected by the Owner, Owner (i) shall reimburse Servicer for all
            reasonable
            out-of-pocket third party costs and expenses related thereto and (ii)
            shall pay
            Servicer a reasonable amount representing time and effort expended by
            Servicer
            related thereto (which amount shall be reasonably agreed upon by Servicer
            and
            Owner prior to the expenditure of such time and effort); provided,
            however,
            that
            for each Whole Loan Transfer and/or Pass--Through Transfer, the sum of
            such
            amounts described in subsections (i) and (ii) above shall in no event
            exceed
            $5,000. For purposes of this paragraph, all Whole Loan Transfers and/or
            Pass--Through Transfers made to the same entity within the same accounting
            cycle
            shall be considered one Whole Loan Transfer or Pass--Through
            Transfer.

          

          All
            Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer
            or
            Pass-Through Transfer shall be subject to this Agreement and shall continue
            to
            be serviced in accordance with the terms of this Agreement and with respect
            thereto this Agreement shall remain in full force and effect.

          

           

           

          ARTICLE
            XI

          

          MISCELLANEOUS
            PROVISIONS

          

          Section
            11.01 Successor
            to the Servicer.

          

          Prior
            to
            termination of the Servicer's responsibilities and duties under this
            Agreement
            pursuant to Sections 8.04, 9.01 or 10.01(ii), the Owner shall (i) succeed
            to and
            assume all of the Servicer's responsibilities, rights, duties and obligations
            under this Agreement, or (ii) appoint a successor having the characteristics
            set
            forth in Section 8.02 hereof and which shall succeed to all rights and
            assume
            all of the responsibilities, duties and liabilities of the Servicer under
            this
            Agreement prior to the termination of the Servicer's responsibilities,
            duties
            and liabilities under this Agreement. In connection with such appointment
            and
            assumption, the Owner may make such arrangements for the compensation
            of such
            successor out of payments on Mortgage Loans as the Owner and such successor
            shall agree. In the event that the Servicer's duties, responsibilities
            and
            liabilities under this Agreement should be terminated pursuant to the
            aforementioned sections, the Servicer shall discharge such duties and
            responsibilities during the period from the date it acquires knowledge
            of such
            termination until the effective date thereof with the same degree of
            diligence
            and prudence which it is obligated to exercise under this Agreement,
            and shall
            take no action whatsoever that might impair or prejudice the rights or
            financial
            condition of its successor. The resignation or removal of the Servicer
            pursuant
            to the aforementioned sections shall not become effective until a successor
            shall be appointed pursuant to this section and shall in no event relieve
            the
            Servicer of the representations and warranties made pursuant to Article
            III and
            the remedies available to the Owner under Section 8.01, it being understood
            and
            agreed that the provisions of such Article III and Section 8.01 shall
            be
            applicable to the Servicer notwithstanding any such resignation or termination
            of the Servicer, or the termination of this Agreement.

          

          Any
            successor appointed as provided herein shall execute, acknowledge and
            deliver to
            the Servicer and to the Owner an instrument accepting such appointment,
            whereupon such successor shall become fully vested with all the rights,
            powers,
            duties, responsibilities, obligations and liabilities of the Servicer,
            with like
            effect as if originally named as a party to this Agreement. Any termination
            or
            resignation of the Servicer or this Agreement pursuant to Section 8.04,
            9.01 or
            10.01 shall not affect any claims that the Owner may have against the
            Servicer
            arising prior to any such termination or resignation.

          

          The
            Servicer shall promptly deliver to the successor the funds in the Custodial
            Account and the Escrow Account and the Servicing Files and related documents
            and
            statements held by it hereunder and the Servicer shall account for all
            funds.
            The Servicer shall execute and deliver such instruments and do such other
            things
            all as may reasonably be required to more fully and definitely vest and
            confirm
            in the successor all such rights, powers, duties, responsibilities, obligations
            and liabilities of the Servicer. The successor shall make such arrangements
            as
            it may deem appropriate to reimburse the Servicer for unrecovered Servicing
            Advances which the successor retains hereunder and which would otherwise
            have
            been recovered by the Servicer pursuant to this Agreement but for the
            appointment of the successor servicer.

          

          Upon
            a
            successor's acceptance of appointment as such, the Servicer shall notify
            the
            Owner of such appointment.

          

          Section
            11.02 Amendment.

           

          This
            Agreement may be amended from time to time by the Servicer and the Owner
            by
            written agreement signed by the Servicer and the Owner.

          

          Section
            11.03 Recordation
            of Agreement.

          

          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 of all the properties subject
            to the
            Mortgages are situated, and in any other appropriate public recording
            office or
            elsewhere, such recordation to be effected by the Owner at the Owner's
            expense
            on direction of the Owner accompanied by an opinion of counsel to the
            effect
            that such recordation materially and beneficially affects the interest
            of the
            Owner or is necessary for the administration or servicing the Mortgage
            Loans.

          

          Section
            11.04 Governing
            Law.

           

          THIS
            AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
            LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
            CONFLICTS
            OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
            SHALL BE
            DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          

          Section
            11.05 Notices.

          

          Any
            demands, notices or other communications permitted or required hereunder
            shall
            be in writing and shall be deemed conclusively to have been given if
            personally
            delivered at or mailed by registered mail, postage prepaid, and return
            receipt
            requested or transmitted by telecopier and confirmed by a similar mailed
            writing, as follows:

          

          (i)                        
             if
            to the
            Servicer:

          

          500
            Enterprise Road

          Horsham,
            Pennsylvania 19044

          Attention:
            Mr. Frank Ruhl

          Telecopier
            No.: (215) 682-3396

          

          (ii)                      
             if
            to the
            Owner:

          

          Mac
            Arthur Ridge II, 

          909
            Hidden Ridge Drive, Suite 200

          Irving,
            Texas 75038

          Attention:
            Mr. Edward Raice

          Telecopier
            No.: (972) 444-2810 

          

          or
            such
            other address as may hereafter be furnished to the other party by like
            notice.
            Any such demand, notice, or communication hereunder shall be deemed to
            have been
            received on the date delivered to or received at the premises of the
            address (as
            evidenced, in the case of registered or certified mail, by the date noted
            on the
            return receipt).

          

          Section
            11.06 Severability
            of Provisions.

          

          Any
            part,
            provision, representation or warranty of this Agreement which is prohibited
            or
            which is held to be void or unenforceable shall be ineffective to the
            extent of
            such prohibition or unenforceability without invalidating the remaining
            provisions hereof. Any part, provision, representation or warranty of
            this
            Agreement which is prohibited or unenforceable or is held to be void
            or
            unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
            to the extent of such prohibition or unenforceability without invalidating
            the
            remaining provisions hereof, and any such prohibition or unenforceability
            in any
            jurisdiction as to any Mortgage Loan shall not invalidate or render
            unenforceable such provision in any other jurisdiction. To the extent
            permitted
            by applicable law, the parties hereto waive any provision of law which
            prohibits
            or renders void or unenforceable any provision hereof. If the invalidity
            of any
            part, provision, representation or warranty of this Agreement shall deprive
            any
            party of the economic benefit intended to be conferred by this Agreement,
            the
            parties shall negotiate, in good faith, to develop a structure the economic
            effect of which is nearly as possible the same as the economic effect
            of this
            Agreement without regard to such invalidity.

          

          Section
            11.07 Exhibits.

           

          The
            exhibits to this Agreement are hereby incorporated and made a part hereof
            and
            are an integral part of this Agreement.

          

          Section
            11.08 General
            Interpretive Principles.

          

          For
            purposes of this Agreement, except as otherwise expressly provided or
            unless the
            context otherwise requires:

          

          (i) the
            terms
            defined in this Agreement have the meanings assigned to them in this
            Agreement
            and include the plural as well as the singular, and the use of any gender
            herein
            shall be deemed to include the other gender;

          

          (ii) accounting
            terms not otherwise defined herein have the meanings assigned to them
            in
            accordance with generally accepted accounting principles;

          

          (iii) references
            herein to "Articles," "Sections," "Subsections," "Paragraphs," and other
            subdivisions without reference to a document are to designated Articles,
            Sections, Subsections, Paragraphs and other subdivisions of this
            Agreement;

          

          (iv) a
            reference to a Subsection without further reference to a Section is a
            reference
            to such Subsection as contained in the same Section in which the reference
            appears, and this rule shall also apply to Paragraphs and other
            subdivisions;

          

          (v) the
            words
            "herein," "hereof," "hereunder" and other words of similar import refer
            to this
            Agreement as a whole and not to any particular provision; and 

          

          (vi) the
            term
            "include" or "including" shall mean without limitation by reason of
            enumeration.

          

          Section
            11.09 Reproduction
            of Documents.

          

          This
            Agreement and all documents relating hereto, including, without limitation,
            (i)
            consents, waivers and modifications which may hereafter be executed,
            (ii)
            documents received by any party at the closing, and (iii) financial statements,
            certificates and other information previously or hereafter furnished,
            may be
            reproduced by any photographic, photostatic, microfilm, micro-card, miniature
            photographic or other similar process. The parties agree that any such
            reproduction shall be admissible in evidence as the original itself in
            any
            judicial or administrative proceeding, whether or not the original is
            in
            existence and whether or not such reproduction was made by a party in
            the
            regular course of business, and that any enlargement, facsimile or further
            reproduction of such reproduction shall likewise be admissible in
            evidence.

          

          Section
            11.10 Confidentiality
            of Information.

          

          Each
            party recognizes that, in connection with this Agreement, it may become
            privy to
            non-public information regarding the financial condition, operations
            and
            prospects of the other party. Except as required to be disclosed by law,
            each
            party agrees to keep all non-public information regarding the other party
            strictly confidential, and to use all such information solely in order
            to
            effectuate the purpose of this Agreement.

          

          Section
            11.11 Recordation
            of Assignments of Mortgage.

          

          To
            the
            extent permitted by applicable law, each of the Assignments of Mortgage
            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
            Servicer at the Owner's expense.

          

          Section
            11.12 Assignment
            by the Owner.

          

          The
            Owner
            shall have the right, without the consent of the Servicer hereof, to
            assign, in
            whole or in part, its interest under this Agreement with respect to some
            or all
            of the Mortgage Loans, and designate any person to exercise any rights
            of the
            Owner hereunder, by executing an assignment and assumption agreement
            reasonably
            acceptable to the Servicer and the assignee or designee shall accede
            to the
            rights and obligations hereunder of the Owner with respect to such Mortgage
            Loans. In no event shall Owner sell a partial interest in any Mortgage
            Loan. All
            references to the Owner in this Agreement shall be deemed to include
            its
            assignees or designees. It is understood and agreed between the Owners
            and the
            Servicer that no more than five (5) Persons shall have the right of owner
            under
            this Agreement at any one time.

          

          Section
            11.13 No
            Partnership.

          

          Nothing
            herein contained shall be deemed or construed to create a co-partnership
            or
            joint venture between the parties hereto and the services of the Servicer
            shall
            be rendered as an independent contractor and not as agent for
            Owner.

          

          Section
            11.14 Execution;
            Successors and Assigns.

          

          This
            Agreement may be executed in one or more counterparts and by the different
            parties hereto on separate counterparts, each of which, when so executed,
            shall
            be deemed to be an original; such counterparts, together, shall constitute
            one
            and the same agreement. Subject to Section 8.04, this Agreement shall
            inure to
            the benefit of and be binding upon the Servicer and the Owner and their
            respective successors and assigns.

          

          Section
            11.15 Entire
            Agreement.

          

          Each
            of
            the Servicer and the Owner acknowledge that no representations, agreements
            or
            promises were made to it by the other party or any of its employees other
            than
            those representations, agreements or promises specifically contained
            herein.
            This Agreement sets forth the entire understanding between the parties
            hereto
            and shall be binding upon all successors of both parties.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

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

          

          

          GMAC
            MORTGAGE CORPORATION

          Servicer

          

          By:
            _______________________________

          Name:
            

          Title:

          

          

          EMC
            MORTGAGE CORPORATION

          Owner

          

          

          By: ________________________________

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            A

          

          MORTGAGE
            LOAN SCHEDULE

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            B

          

          CUSTODIAL
            ACCOUNT LETTER AGREEMENT

           

          (date)

          

          

          To:______________________

          _________________________

          _________________________

          (the
            "Depository")

          

          As
            "Servicer" under the Servicing Agreement, dated as of  ,
            (the
            "Agreement"), we hereby authorize and request you to establish an account,
            as a
            Custodial Account pursuant to Section 4.04 of the Agreement, to be designated
            as
            "[Servicer] Custodial Account, in trust for [Owner], Owner of Whole Loan
            Mortgages, and various Mortgagors." All deposits in the account shall
            be subject
            to withdrawal therefrom by order signed by the Servicer. You may refuse
            any
            deposit which would result in violation of the requirement that the account
            be
            fully insured as described below. This letter is submitted to you in
            duplicate.
            Please execute and return one original to us.

          

          By:____________________

          Name:__________________

          Title:___________________

          

          The
            undersigned, as "Depository", hereby certifies that the above described
            account
            has been established under Account Number __________, at the office of
            the
            depository indicated above, and agrees to honor withdrawals on such account
            as
            provided above. The full amount deposited at any time in the account
            will be
            insured up to applicable limits by the Federal Deposit Insurance Corporation
            through the Bank Insurance Fund or the Savings Association Insurance
            Fund or
            will be invested in Permitted Investments as defined in the
            Agreement.

          

          [                           
            ]

          (name
            of
            Depository)

          By:____________________

          Name:__________________

          Title:___________________

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            C

          

          ESCROW
            ACCOUNT LETTER AGREEMENT

          (date)

          

          To:___________________________

          ______________________________

          ______________________________

          (the
            "Depository")

          

          As
            "Servicer" under the Servicing Agreement, dated as of  
            (the
            "Agreement"), we hereby authorize and request you to establish an account,
            as an
            Escrow Account pursuant to Section 4.06 of the Agreement, to be designated
            as
            "[Servicer] Escrow Account, in trust for [Owner], Owner of Whole Loan
            Mortgages,
            and various Mortgagors." All deposits in the account shall be subject
            to
            withdrawal therefrom by order signed by the Servicer. You may refuse
            any deposit
            which would result in violation of the requirement that the account be
            fully
            insured as described below. This letter is submitted to you in duplicate.
            Please
            execute and return one original to us.

          

          By:____________________

          Name:__________________

          Title:___________________

          

          The
            undersigned, as "Depository", hereby certifies that the above described
            account
            has been established under Account Number __________, at the office of
            the
            depository indicated above, and agrees to honor withdrawals on such account
            as
            provided above. The full amount deposited at any time in the account
            will be
            insured up to applicable limits by the Federal Deposit Insurance Corporation
            through the Bank Insurance Fund or the Savings Association Insurance
            Fund or
            will be invested in Permitted Investments as defined in the
            Agreement.

          

          [                              
            ]

          (name
            of
            Depository)

          By:____________________

          Name:__________________

          Title:___________________

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            D

          

          REQUEST
            FOR RELEASE

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            E

          

          LOAN
            LEVEL SCHEDULED-SCHEDULED

          REMITTANCE
            TAPE LAYOUT

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          Amendment
            No. 1 to the Servicing Agreement

          

          This
            is
            Amendment No. 1 dated October 1, 2001 to that certain Servicing Agreement
            (the
“Agreement”) dated
            as
            of May 1, 2001 between
            EMC MORTGAGE CORPORATION, as Owner
            and
            GMAC MORTGAGE CORPORATION, as Servicer.

          

          W
            I T N E
            S S E T H :

          

          WHEREAS,
            the Owner is the owner of the Mortgage Loans and the Servicer is the
            servicer of
            the Mortgage Loans; and

          

          WHEREAS,
            the Owner and the Servicer wish to amend the Agreement;

          

          NOW,
            THEREFORE, in consideration of the mutual agreements hereinafter set
            forth, and
            for other good and valuable consideration, the receipt and adequacy of
            which is
            hereby acknowledged, the Purchaser and the Seller agree that the following
            amendment shall be made to the Agreement: 

          

          (a)
            The
            following shall replace (i)(a), (b) and (c) in the first paragraph of
            Section
            5.01: 

          

          “(i)
            all
            amounts credited to the Custodial Account as of the close of business
            on the
            related preceding Determination Date, except Principal Prepayments received
            on
            or after the first day of the month in which the Remittance Date occurs
            shall be
            remitted to the Owner on the next following Remittance Date,”

          

          (b)
            Capitalized terms used herein and not defined shall have the meanings
            set forth
            in the Agreement.

          

          (c)
            THIS
            AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
            LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
            CONFLICTS
            OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
            SHALL BE
            DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          

          (d)
            Except as such amendments are made herein, the Agreement shall remain
            in full
            force and effect.

          

          [SIGNATURES
            COMMENCE ON THE FOLLOWING PAGE]

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

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

           

          EMC
            MORTGAGE CORPORATION

          Owner

          

          By:________________________

          Name:
            

          Title:
            

          

          

          

          GMAC
            MORTGAGE CORPORATION

          Servicer

          

          By:
            _______________________

          Name:

          Title:

           

          
 

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          Amendment
            No. 2 to the Servicing Agreement

          

          This
            is
            Amendment No. 1 dated July 31, 2002 to that certain Servicing Agreement
            (the
“Agreement”) dated
            as
            of May 1, 2001 between
            EMC MORTGAGE CORPORATION, as Owner
            and
            GMAC MORTGAGE CORPORATION, as Servicer.

          

          W
            I T N E
            S S E T H :

          

          WHEREAS,
            the Owner is the owner of the Mortgage Loans and the Servicer is the
            servicer of
            the Mortgage Loans; and

          

          WHEREAS,
            the Owner and the Servicer wish to amend the Agreement;

          

          NOW,
            THEREFORE, in consideration of the mutual agreements hereinafter set
            forth, and
            for other good and valuable consideration, the receipt and adequacy of
            which is
            hereby acknowledged, the Purchaser and the Seller agree that the following
            amendment shall be made to the Agreement: 

          

          
            	(a)  	
                    The
                      definition of “Permitted Investments” in Section 1.01 of the Agreement is
                      amended by deleting (viii) in such
                      definition.

                  

          

          

          (b)
            Capitalized terms used herein and not defined shall have the meanings
            set forth
            in the Agreement.

          

          (c)
            THIS
            AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
            LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
            CONFLICTS
            OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
            SHALL BE
            DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          

          (d)
            Except as such amendments are made herein, the Agreement shall remain
            in full
            force and effect.

          

          [SIGNATURES
            COMMENCE ON THE FOLLOWING PAGE]

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

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

           

          EMC
            MORTGAGE CORPORATION

          Owner

          

          By:________________________

          Name:
            

          Title:
            

          

          

          

          GMAC
            MORTGAGE CORPORATION

          Servicer

          

          By:
            _______________________

          Name:

          Title:

           

          
 

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          AMENDMENT
            NUMBER THREE

          to
            the

          

          SERVICING
            AGREEMENT

          

          Dated
            as
            of December 20, 2005

          

          between

          

          EMC
            MORTGAGE CORPORATION, 

          as
            Owner

          

          and

          

          GMAC
            MORTGAGE CORPORATION,

          as
            Servicer

          

          This
            AMENDMENT NUMBER THREE (this “Amendment”) is made and entered into this
            20th
            day of
            December, 2005, by and between EMC Mortgage Corporation, a Delaware corporation,
            as owner (the “Owner”) and GMAC Mortgage Corporation, as servicer (the
“Servicer”) in connection with the Servicing Agreement, dated as of May 1, 2001,
            between the above mentioned parties (the “Agreement”). This Amendment is made
            pursuant to Section 11.02 of the Agreement.

          

          RECITALS

          WHEREAS,
             the
            parties hereto have entered into the Agreement; 

          

          WHEREAS,
            the Agreement provides that the parties thereto may enter into an amendment
            to
            the Agreement;

          

          WHEREAS,
            the parties hereto desire to amend the Agreement as set forth in this
            Amendment;
            and

          

          NOW,
            THEREFORE, in consideration of the premises and for other good and valuable
            consideration, the receipt and sufficiency of which is hereby acknowledged,
            the
            parties hereto agree as follows:

          

          1. Capitalized
            terms used herein and not defined herein shall have the meanings assigned
            to
            such terms in the Agreement. 

          

          2. Article
            I
            of the Agreement is hereby amended effective as of the date hereof by
            adding the
            following definitions to Section 1.01: 

          

          Commission
            or SEC:
            The
            Securities and Exchange Commission.

          

          Depositor:
            The
            depositor, as such term is defined in Regulation AB, with respect to
            any
            Securitization Transaction.

          

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

          

          Master
            Servicer:
            With
            respect to any Securitization Transaction, the “master servicer,” if any,
            identified in the related transaction document.

          

          Pass-Through
            Transfer:
            Any
            transaction involving either (1) a sale or other transfer of some or
            all of the
            Mortgage Loans directly or indirectly to an issuing entity in connection
            with an
            issuance of publicly offered or privately placed, rated or unrated
            mortgage-backed securities or (2) an issuance of publicly offered or
            privately
            placed, rated or unrated securities, the payments on which are determined
            primarily by reference to one or more portfolios of residential mortgage
            loans
            consisting, in whole or in part, of some or all of the Mortgage
            Loans.

          

          Qualified
            Correspondent:
            Any
            Person from which the Servicer purchased Mortgage Loans, provided that
            the
            following conditions are satisfied: (i) such Mortgage Loans were originated
            pursuant to an agreement between the Servicer and such Person that contemplated
            that such Person would underwrite mortgage loans from time to time, for
            sale to
            the Servicer, in accordance with underwriting guidelines designated by
            the
            Servicer (“Designated Guidelines”) or guidelines that do not vary materially
            from such Designated Guidelines; (ii) such Mortgage Loans were in fact
            underwritten as described in clause (i) above and were acquired by the
            Servicer
            within 180 days after origination; (iii) either (x) the Designated Guidelines
            were, at the time such Mortgage Loans were originated, used by the Servicer
            in
            origination of mortgage loans of the same type as the Mortgage Loans
            for the
            Servicer’s own account or (y) the Designated Guidelines were, at the time such
            Mortgage Loans were underwritten, designated by the Servicer on a consistent
            basis for use by lenders in originating mortgage loans to be purchased
            by the
            Servicer; and (iv) the Servicer employed, at the time such Mortgage Loans
            were
            acquired by the Servicer, pre-purchase or post-purchase quality assurance
            procedures (which may involve, among other things, review of a sample
            of
            mortgage loans purchased during a particular time period or through particular
            channels) designed to ensure that Persons from which it purchased mortgage
            loans
            properly applied the underwriting criteria designated by the
            Servicer.

          

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

          

          Securities
            Act:
            The
            Securities Act of 1933, as amended.

          

          Securitization
            Transaction:
            Any
            transaction involving either (1) a sale or other transfer of some or
            all of the
            Mortgage Loans directly or indirectly to an issuing entity in connection
            with an
            issuance of publicly offered or privately placed, rated or unrated
            mortgage-backed securities or (2) an issuance of publicly offered or
            privately
            placed, rated or unrated securities, the payments on which are determined
            primarily by reference to one or more portfolios of residential mortgage
            loans
            consisting, in whole or in part, of some or all of the Mortgage
            Loans.

          

          Servicing
            Criteria:
            As of
            any date of determination, the “servicing criteria” set forth in Item 1122(d) of
            Regulation AB, or any amendments thereto, a summary of the requirements
            of which
            as of the date hereof is attached hereto as Exhibit G for convenience
            of
            reference only. In the event of a conflict or inconsistency between the
            terms of
            Exhibit G and the text of Item 1122(d) of Regulation AB, the text of
            Item
            1122(d) of Regulation AB shall control (or those Servicing Criteria otherwise
            mutually agreed to by the Owner, Servicer and any Person that will be
            responsible for signing any Sarbanes Certification with respect to a
            Securitization Transaction in response to evolving interpretations of
            Regulation
            AB and incorporated into a revised Exhibit G).

          

          Static
            Pool Information:
            Static
            pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
            AB.

          

          Subcontractor:
            Any
            vendor, subcontractor or other Person that is not responsible for the
            overall
            servicing (as “servicing” is commonly understood by participants in the
            mortgage-backed securities market) of Mortgage Loans but performs one
            or more
            discrete functions identified in Item 1122(d) of Regulation AB with respect
            to
            Mortgage Loans under the direction or authority of the Servicer or a
            Subservicer. 

          

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

          

          Third-Party
            Originator:
            Each
            Person, other than a Qualified Correspondent, that originated Mortgage
            Loans
            acquired by the Servicer.

          

          3. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new clause (m):

          

          (m) As
            of the
            date of each Pass-Through Transfer, and except as has been otherwise
            disclosed
            to the Owner, any Master Servicer and any Depositor: (1) the Servicer
            is not
            aware and has not received notice that any default or servicing related
            performance trigger has occurred as to any other securitization due to
            any act
            or failure to act of the Servicer; (2) no material noncompliance with
            applicable
            servicing criteria as to any other securitization involving residential
            mortgage
            loans involving the Servicer as servicer has been disclosed or reported
            by the
            Servicer; (3) the Servicer has not been terminated as servicer in a residential
            mortgage loan securitization, either due to a servicing default or to
            application of a servicing performance test or trigger; (4) no material
            changes
            to the Servicer’s servicing policies and procedures with respect to the
            servicing function it will perform under this Agreement or any Reconstitution
            Agreement has occurred in the preceding three years; (5) there are no
            aspects of
            the Servicer’s financial condition that could have a material adverse impact on
            the performance by the Servicer of its servicing obligations hereunder;
            (6)
            there are no legal proceedings pending, or known to be contemplated by
            governmental authorities, against the Servicer that could be material
            to
            investors in the securities issued in such Pass-Through Transfer; and
            (7) there
            are no affiliations, relationships or transactions relating to the Servicer
            of a
            type that are described under Item 1119 of Regulation AB.

          

          4. Article
            IV of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 4.14:

          

          Section
            4.14 Financial
            Statements.

          

          Upon
            request by the Purchaser, the Servicer shall provide its financial statements
            of
            its parent for the previous two fiscal years.

          

          5. The
            Agreement is hereby amended effective as of the date hereof by moving
            clauses
            (a) through (m) of Article III to Section 3.01.

          

          6. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Section 3.02:

          

          Section
            3.02 Updates.

          

          (a) If
            so
            requested by the Owner or any Depositor on any date, the Servicer shall,
            within
            five Business Days,
            and in
            no event later than seven Business Days
            following such request, confirm in writing the accuracy of the representations
            and warranties set forth in clause (m) of this Article III or, if any
            such
            representation and warranty is not accurate as of the date of such request,
            provide reasonably adequate disclosure of the pertinent facts, in writing,
            to
            the requesting party.

          

          (b) If
            so
            requested by the Owner or any Depositor for the purpose of satisfying
            its
            reporting obligation under the Exchange Act with respect to any class
            of
            asset-backed securities, the Servicer shall (or shall cause each Subservicer
            to)
            (i) notify the Owner, any Master Servicer and any Depositor in writing
            of (A)
            any material litigation or governmental proceedings pending against the
            Servicer
            or any Subservicer, (B) any affiliations or relationships that develop
            following
            the closing date of a Pass-Through Transfer between the Servicer or any
            Subservicer and any of the parties specified in clause (7) of paragraph
            (m) of
            Section 3.01 (and any other parties identified in writing by the requesting
            party) with respect to such Pass-Through Transfer, (C)
            any
            Event of Default under the terms of this Agreement or any Reconstitution
            Agreement, (D) any merger, consolidation or sale of substantially all
            of the
            assets of the Servicer, and (E) the Servicer’s entry into an agreement with a
            Subservicer to perform or assist in the performance of any of the Servicer’s
            obligations under this Agreement or any Reconstitution Agreement and
            (ii)
            provide
            to the Owner and any Depositor a description of such proceedings, affiliations
            or relationships.

          

          All
            notification pursuant to this Section 3.02(b), other than those pursuant
            to
            Section 3.02(b)(i)(A), should be sent to:

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-3751

          Email:
            sellerapproval@bear.com

          

          With
            a
            copy to:

          

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New,
            York, NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

          

          Notifications
            pursuant to Section 3.01(b)(i)(A) should be sent to: 

          

          EMC
            Mortgage Corporation

          Two
            Mac
            Arthur Ridge

          909
            Hidden Ridge Drive, Suite 200

          Irving,
            TX 75038

          Attention:
            Associate General Counsel for Loan Administration

          Facsimile:
            (972) 831-2555

          

          With
            copies to:

          

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New,
            York, NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-3751

          Email:
            sellerapproval@bear.com

          

          (c) As
            a
            condition to the succession to the Servicer or any Subservicer as servicer
            or
            subservicer under this Agreement or any Reconstitution Agreement by any
            Person
            (i) into which the Servicer or such Subservicer may be merged or consolidated,
            or (ii) which may be appointed as a successor to the Servicer or any
            Subservicer, the Servicer shall provide to the Owner, any Master Servicer
            and
            any Depositor, at least fifteen (15) calendar days prior to the effective
            date
            of such succession or appointment, (x) written notice to the Owner, any
            Master
            Servicer and any Depositor of such succession or appointment and (y)
            in writing
            and in form and substance reasonably satisfactory to the Owner, any Master
            Servicer and such Depositor, all information reasonably requested by
            the Owner,
            any Master Servicer or any Depositor in order to comply with its reporting
            obligation under Item 6.02 of Form 8-K with respect to any class of asset-backed
            securities.

          

          7. Article
            IV of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following after the first sentence of Section 4.01:

          

          In
            addition, the Servicer shall furnish information regarding the borrower
            credit
            files related to such Mortgage Loan to credit reporting agencies in compliance
            with the provisions of the Fair Credit Reporting Act and the applicable
            implementing regulations.

          

          8. Article
            IV of the Agreement is hereby amended effective as of the date hereof
            by
            revising the first paragraph of Section 4.03 by adding the following
            after the
            first sentence:

          

          In
            determining the delinquency status of any Mortgage Loan, the Servicer
            will use
            delinquency recognition policies as utilized by the Servicer in connection
            with
            the servicing of mortgage loans on its own securitizations.

          

          9. Article
            V
            of the Agreement is hereby amended effective as of the date hereof by
            deleting
            Section 5.02 in its entirety and replacing it with the following:

          

          Section
            5.02 Statements
            to the Owner.

          

          The
            Servicer shall furnish to the Owner an individual Mortgage Loan accounting
            report (a “Report”), as of the last Business Day of each month, in the
            Servicer's assigned loan number order to document Mortgage Loan payment
            activity
            on an individual Mortgage Loan basis. With respect to each month, such
            Report
            shall be received by the Owner (i) no later than the fifth Business Day
            of the
            following month of the related Remittance Date on a disk or tape or other
            computer-readable format, in such format as may be mutually agreed upon
            by both
            the Owner and the Servicer, and (ii) no later than the tenth Business
            Day of the
            following month of the related Remittance Date in hard copy, which Report
            shall
            contain the following:

          

          (i) with
            respect to each Mortgage Loan and each Monthly Payment, the amount of
            such
            remittance allocable to principal (including a separate breakdown of
            any
            Principal Prepayment, including the date of such prepayment, and any
            prepayment
            penalties or premiums, along with a detailed report of interest on principal
            prepayment amounts remitted in accordance with Section 4.04);

          

          (ii) with
            respect to each Mortgage Loan and each Monthly Payment, the amount of
            such
            remittance allocable to interest;

          

          (iii) with
            respect to each Mortgage Loan, the amount of servicing compensation received
            by
            the Servicer during the prior distribution period;

          

          (iv) the
            Stated Principal Balance of each Mortgage Loan and the aggregate Stated
            Principal Balance of all Mortgage Loans as of the first day of the distribution
            period and the last day of the distribution period;

          

          (v) with
            respect to each Mortgage Loan, the current Mortgage Interest Rate;

          

          (vi) with
            respect to each Mortgage Loan, the aggregate amount of any Insurance
            Proceeds,
            Condemnation Proceeds, Liquidation Proceeds and REO Disposition Proceeds
            received during the prior distribution period;

          

          (vii) with
            respect to each Mortgage Loan, the amount of any Prepayment Interest
            Shortfalls
            paid by the Servicer in accordance with Section 4.04(viii) during the
            prior
            distribution period; 

          

          (viii) with
            respect to each Mortgage Loan, the Stated Principal Balance of each Mortgage
            Loan (a) delinquent as grouped in the following intervals through final
            liquidation of such Mortgage Loan: 30 to 59 days, 60 to 89 days, 90 days
            or
            more; (b) as to which foreclosure has commenced; and (c) as to which
            REO
            Property has been acquired;

          

          (ix) with
            respect to each Mortgage Loan, and in the aggregate for all Mortgage
            Loans, the
            amount of any Monthly Advances made by the Servicer during the prior
            distribution period; 

          

          (x) with
            respect to each Mortgage Loan, the amount of any Servicing Advances made
            by the
            Servicer with respect to such Mortgage Loan, and the aggregate amount
            of
            Servicing Advances for all Mortgage Loans during the prior distribution
            period;

          

          (xi) with
            respect to each Mortgage Loan, a description of any Nonrecoverable Advances
            made
            by the Servicer with respect to such Mortgage Loan including the amount,
            terms
            and general purpose of such Nonrecoverable Advances, and the aggregate
            amount of
            Nonrecoverable Advances for all Mortgage Loans during the prior distribution
            period;

          

          (xii) with
            respect to any Mortgage Loan, a description of any material modifications,
            extensions or waivers to the terms, fees, penalties or payments of such
            Mortgage
            Loan during the prior distribution period or that have cumulatively become
            material over time;

          

          (xiii) with
            respect to each Mortgage Loan, the Stated Principal Balance of any substitute
            Mortgage Loan provided by the Servicer and the Stated Principal Balance
            of any
            Mortgage Loan that has been replaced by a substitute Mortgage Loan in
            accordance
            with Section 3.03 herein;

          

          (xiv) with
            respect to each Mortgage Loan, the Stated Principal Balance of any Mortgage
            Loan
            that has been repurchased by the Servicer in accordance with Section
            3.03
            herein.

          

          For
            any
            Mortgage Loan in a Pass-Through Transfer, the Servicer shall also furnish
            the
            following items in the Report to the Master Servicer, provided that if
            these
            items are included in the report to the Owner they need not be incorporated
            in
            the Report:

          

          (i) the
            beginning and ending balances of the Custodial Account and Escrow
            Account;

          

          (ii) with
            respect to each Mortgage Loan, a description of any Monthly Advances,
            Servicing
            Advances and Nonrecoverable Advances reimbursed to the Servicer with
            respect to
            such Mortgage Loan during the prior distribution period pursuant to Section
            4.05, and the source of funds for such reimbursement, and the aggregate
            amount
            of any Monthly Advances, Servicing Advances and Nonrecoverable Advances
            reimbursed to the Servicer for all Mortgage Loans during the prior distribution
            period pursuant to Section 4.05; and

          

          (iii) a
            description of any material breach of a representation or warranty set
            forth in
            Section 3.01 or Section 3.02 herein or of any other breach of a covenant
            or
            condition contained herein and the status of any resolution of such
            breach.

          

          In
            addition, the Servicer shall provide to the Owner such other information
            known
            or available to the Servicer that is necessary in order to provide the
            distribution and pool performance information as required under Item
            1121 of
            Regulation AB, as amended from time to time, as determined by the Owner
            in its
            reasonable discretion. Notwithstanding the foregoing, the Servicer shall
            be
            under no obligation to provide information that the Owner deems required
            under
            Regulation AB if (i) the Servicer does not reasonably believe that such
            information is required under Regulation AB and (ii) the Servicer is
            not
            providing such information for (A) its own securitizations, or (B) any
            third
            party securitizations with mortgage loans serviced by the Servicer[,
            unless the
            Owner pays all reasonable actual costs incurred by the Servicer in connection
            with the preparation and delivery of such information and the Servicer
            is given
            reasonable time to establish the necessary systems and procedures to
            produce
            such information; provided, however, that the costs incurred by the Servicer
            in
            connection with establishing the necessary systems and procedures will
            be split
            pro rata with any other purchaser that makes a request for similar
            information.

          

          The
            Servicer shall also provide a monthly report, in the form of Exhibit
            E hereto,
            or such other form as is mutually acceptable to the Servicer, the Owner
            and any
            Master Servicer, Exhibit H or such other agreeable format with respect
            to
            defaulted mortgage loans and Exhibit I, with respect to realized losses
            and
            gains, with each such report. 

          

          The
            Servicer shall prepare and file any and all information statements or
            other
            filings required to be delivered to any governmental taxing authority
            or to
            Owner pursuant to any applicable law with respect to the Mortgage Loans
            and the
            transactions contemplated hereby. In addition, the Servicer shall provide
            Owner
            with such information concerning the Mortgage Loans as is necessary for
            Owner to
            prepare its federal income tax return as Owner may reasonably request
            from time
            to time.

          

          In
            addition, not more than sixty (60) days after the end of each calendar
            year, the
            Servicer shall furnish to each Person who was an Owner at any time during
            such
            calendar year an annual statement in accordance with the requirements
            of
            applicable federal income tax law as to the aggregate of remittances
            for the
            applicable portion of such year.

          

          10. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by
            deleting Section 6.04 in its entirety and replacing it with the
            following:

          

          Section
            6.04 Annual
            Statement as to Compliance; Annual Certification.

          

          (a) The
            Servicer will deliver to the Owner and any Master Servicer, using its
            best
            efforts to deliver on March 1, but in no event later than March 15, of
            each
            calendar year beginning in 2007, an Officers’ Certificate acceptable to the
            Owner (an “Annual Statement of Compliance”) stating, as to each signatory
            thereof, that (i) a review of the activities of the Servicer during the
            preceding calendar year and of performance under this Agreement or other
            applicable servicing agreement has been made under such officers’ supervision
            and (ii) to the best of such officers’ knowledge, based on such review, the
            Servicer has fulfilled all of its obligations under this Agreement or
            other
            applicable servicing agreement in all material respects throughout such
            year,
            or, if there has been a failure to fulfill any such obligation in any
            material
            respect, specifying each such failure known to such officer and the nature
            and
            status of cure provisions thereof. Such Annual Statement of Compliance
            shall
            contain no restrictions or limitations on its use.

          

          (b) With
            respect to any Mortgage Loans that are the subject of a Pass-Through
            Transfer,
            using its best efforts to deliver on March 1, but in no event later than
            March
            15, of each calendar year beginning in 2007, an officer of the Servicer
            shall
            execute and deliver an Officers’ Certificate (an “Annual Certification”) to the
            Owner, any Master Servicer and any related Depositor for the benefit
            of each
            such entity and such entity’s affiliates and the officers, directors and agents
            of any such entity and such entity’s affiliates, in the form attached hereto as
            Exhibit F.

          

          In
            the
            event that the Servicer fails to timely comply with this Section 6.04
            after the
            cure period set forth herein, commencing on March 15th of the related
            year, the
            Owner shall use its commercially reasonable efforts to obtain written
            or verbal
            statements or assurances from the Commission, by March 30th of the related
            year
            (or such extension of time granted by the Commission so that it can review
            the
            facts surrounding any requests made by the Owner) that such failure to
            provide
            the required Assessment of Compliance and Attestation Report on a timely
            basis,
            and a one time additional failure by the Servicer to comply with this
            Section
            6.04, will not result in any adverse effect on the Owner or its affiliates
            with
            respect to any Shelf Registration on Form S-3 of the Owner or any of
            its
            affiliates. Any costs or expenses incurred by the Owner in obtaining
            such
            statement or assurances from the Commission shall be reimbursed to the
            Owner by
            the Servicer. In the event that the Owner is unable to receive any such
            assurances from the Commission after the use of such commercially reasonable
            efforts by March 30th (or any extension period granted by the Commission)
            of the
            related year, such failure by the Servicer to comply with this Section
            6.04
            shall be deemed an Event of Default, automatically at such time, without
            notice
            and without any cure period, and Owner may, in addition to whatever rights
            the
            Owner may have under Section 8.01, subject to the limitation expressed
            therein,
            and at law or equity or to damages, including injunctive relief and specific
            performance, terminate all the rights and obligations of the Servicer
            under this
            Agreement and in and to the Mortgage Loans and the proceeds thereof without
            compensating the Servicer for the same, as provided in Section 9.01 .
            Such
            termination shall be considered with cause pursuant to Section 10.01
            of this
            Agreement. This paragraph shall supersede any other provision in this
            Agreement
            or any other agreement to the contrary.

          

          Failure
            to provide the Annual Statement of Compliance or Annual Certification
            will be
            treated as a failure of the Servicer to perform its duties under the
            Agreement
            and will be subject to the indemnification provisions of Section 8.01,
            subject
            to the limitation expressed therein, of the Agreement.
            This
            indemnification is understood by the parties hereto to cover any gross
            negligence, bad faith or willful misconduct of the Servicer in connection
            with
            its performance hereunder. For any indemnification from the Servicer
            to any
            Master Servicer, the Servicer in no event will be liable for punitive
            or
            consequential damages, regardless of the form of action, whether in contract,
            tort or otherwise.

          

          If
            the
            indemnification provided for therein is unavailable or insufficient to
            hold
            harmless the Owner, each affiliate of the Owner, and each of the following
            parties participating in a Pass-Through Transfer: each sponsor and issuing
            entity; each Person (including, but not limited to, any Master Servicer,
            if
            applicable) responsible for the preparation, execution or filing of any
            report
            required to be filed with the Commission with respect to such Pass-Through
            Transfer, or for execution of a certification pursuant to Rule 13a-14(d)
            or Rule
            15d-14(d) under the Exchange Act with respect to such Pass-Through Transfer;
            each broker dealer acting as underwriter, placement agent or initial
            purchaser,
            each Person who controls any of such parties or the Depositor (within
            the
            meaning of Section 15 of the Securities Act and Section 20 of the Exchange
            Act);
            and the respective present and former directors, officers, employees,
            agents and
            affiliates of each of the foregoing and of the Depositor (each, an “Indemnified
            Party”), then the Servicer agrees that it shall contribute to the amount paid
            or
            payable by such Indemnified Party as a result of any claims, losses,
            damages or
            liabilities incurred by such Indemnified Party in such proportion as
            is
            appropriate to reflect the relative fault of such Indemnified Party on
            the one
            hand and the Servicer on the other. 

          

          In
            the
            case of any failure of performance described above, the Servicer shall
            promptly
            reimburse the Owner, any Depositor, as applicable, and each Person responsible
            for the preparation, execution or filing of any report required to be
            filed with
            the Commission with respect to such Securitization Transaction, or for
            execution
            of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under
            the
            Exchange Act with respect to such Securitization Transaction, for all
            costs
            reasonably incurred by each such party in order to obtain the information,
            report, certification, accountants’ letter or other material not delivered as
            required by the Servicer, any Subservicer or any Subcontractor.

          

          This
            indemnification shall survive the termination of this Agreement or the
            termination of any party to this Agreement.

          

          11. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by
            deleting Section 6.05 in its entirety and replacing it with the
            following:

          

          Section
            6.05 [Reserved].
            

          

          12. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 6.09:

          

          Section
            6.09 Assessment
            of Compliance with Servicing Criteria.

          

          On
            and
            after January 1, 2006, the Servicer shall service and administer, and
            shall
            cause each subservicer to servicer or administer, the Mortgage Loans
            in
            accordance with all applicable requirements of the Servicing
            Criteria.

          

          With
            respect to any Mortgage Loans that are the subject of a Pass-Through
            Transfer,
            the Servicer shall use its best efforts to deliver to the Owner or its
            designee,
            any Master Servicer and any Depositor on March 1, but in no event later
            than
            March 15 of each calendar year beginning in 2007 a report (an “Assessment of
            Compliance”) reasonably satisfactory to the Owner, any Master Servicer and any
            Depositor regarding the Servicer’s assessment of compliance with the Servicing
            Criteria during the preceding calendar year as required by Rules 13a-18
            and
            15d-18 of the Exchange Act and Item 1122 of Regulation AB or as otherwise
            required by the Master Servicer. Such report shall be addressed to the
            Owner and
            such Depositor and signed by an authorized officer of the Servicer, and
            shall
            address each of the Servicing Criteria specified on a certification
            substantially in the form of Exhibit G hereto delivered to the Owner
            concurrently with the execution of this Agreement.

          

          With
            respect to any Mortgage Loans that are the subject of a Pass-Through
            Transfer,
            the Servicer shall use its best efforts to deliver to the Owner or its
            designee,
            any Master Servicer and any Depositor on March 1, but in no event later
            than
            March 15 of each calendar year beginning in 2007 a report (an “Attestation
            Report”) by a registered public accounting firm that attests to, and reports
            on,
            the Assessment of Compliance made by the Servicer, as required by Rules
            13a-18
            and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB or as
            otherwise
            required by the Master Servicer, which Attestation Report must be made
            in
            accordance with standards for attestation reports issued or adopted by
            the
            Public Servicer Accounting Oversight Board.

          

          The
            Servicer shall cause each Subservicer, and each Subcontractor determined
            by the
            Servicer pursuant to Section 11.19 to be “participating in the servicing
            function” within the meaning of Item 1122 of Regulation AB, to deliver to the
            Owner, any Master Servicer and any Depositor an assessment of compliance
            and
            accountants’ attestation as and when provided in Sections 6.09. Each assessment
            of compliance provided by a Subservicer shall address each of the Servicing
            Criteria specified on a certification substantially in the form of Exhibit
            G
            hereto delivered to the Owner concurrently with the execution of this
            Agreement
            or, in the case of a Subservicer subsequently appointed as such, on or
            prior to
            the date of such appointment.

          

          In
            the
            event that the Servicer fails to timely comply with this Section 6.09
            after the
            cure period set forth herein, commencing on March 15th of the related
            year, the
            Owner shall use its commercially reasonable efforts to obtain written
            or verbal
            statements or assurances from the Commission, by March 30th of the related
            year
            (or such extension of time granted by the Commission so that it can review
            the
            facts surrounding any requests made by the Owner) that such failure to
            provide
            the required Assessment of Compliance and Attestation Report on a timely
            basis,
            and a one time additional failure by the Servicer to comply with this
            Section
            6.09, will not result in any adverse effect on the Owner or its affiliates
            with
            respect to any Shelf Registration on Form S-3 of the Owner or any of
            its
            affiliates. Any costs or expenses incurred by the Owner in obtaining
            such
            statement or assurances from the Commission shall be reimbursed to the
            Owner by
            the Servicer. In the event that the Owner is unable to receive any such
            assurances from the Commission after the use of such commercially reasonable
            efforts by March 30th (or any extension period granted by the Commission)
            of the
            related year, such failure by the Servicer to comply with this Section
            6.09
            shall be deemed an Event of Default, automatically at such time, without
            notice
            and without any cure period, and Owner may, in addition to whatever rights
            the
            Owner may have under Section 8.01, subject to the limitation expressed
            therein,
            and at law or equity or to damages, including injunctive relief and specific
            performance, terminate all the rights and obligations of the Servicer
            under this
            Agreement and in and to the Mortgage Loans and the proceeds thereof without
            compensating the Servicer for the same, as provided in Section 9.01 .
            Such
            termination shall be considered with cause pursuant to Section 10.01
            of this
            Agreement. This paragraph shall supersede any other provision in this
            Agreement
            or any other agreement to the contrary.

          

          Failure
            to provide the Assessment of Compliance or Attestation Report will be
            treated as
            a failure of the Servicer to perform its duties under the Agreement and
            will be
            subject to the indemnification provisions of Section 8.01, subject to
            the
            limitation expressed therein, of the Agreement. This indemnification
            is
            understood by the parties hereto to cover any gross negligence bad faith
            or
            willful misconduct of the Servicer in connection with its performance
            hereunder.
            For any indemnification from the Servicer to any Master Servicer, the
            Servicer
            in no event will be liable for punitive or consequential damages, regardless
            of
            the form of action, whether in contract, tort or otherwise.

          

          If
            the
            indemnification provided for therein is unavailable or insufficient to
            hold
            harmless the Owner, each affiliate of the Owner, and each of the following
            parties participating in a Pass-Through Transfer: each sponsor and issuing
            entity; each Person (including, but not limited to, any Master Servicer,
            if
            applicable) responsible for the preparation, execution or filing of any
            report
            required to be filed with the Commission with respect to such Pass-Through
            Transfer, or for execution of a certification pursuant to Rule 13a-14(d)
            or Rule
            15d-14(d) under the Exchange Act with respect to such Pass-Through Transfer;
            each broker dealer acting as underwriter, placement agent or initial
            purchaser,
            each Person who controls any of such parties or the Depositor (within
            the
            meaning of Section 15 of the Securities Act and Section 20 of the Exchange
            Act);
            and the respective present and former directors, officers, employees,
            agents and
            affiliates of each of the foregoing and of the Depositor (each, an “Indemnified
            Party”), then the Servicer agrees that it shall contribute to the amount paid
            or
            payable by such Indemnified Party as a result of any claims, losses,
            damages or
            liabilities incurred by such Indemnified Party in such proportion as
            is
            appropriate to reflect the relative fault of such Indemnified Party on
            the one
            hand and the Servicer on the other. 

          

          In
            the
            case of any failure of performance described above, the Servicer shall
            promptly
            reimburse the Owner, any Depositor, as applicable, and each Person responsible
            for the preparation, execution or filing of any report required to be
            filed with
            the Commission with respect to such Securitization Transaction, or for
            execution
            of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under
            the
            Exchange Act with respect to such Securitization Transaction, for all
            costs
            reasonably incurred by each such party in order to obtain the information,
            report, certification, accountants’ letter or other material not delivered as
            required by the Servicer, any Subservicer or any Subcontractor.

          

          This
            indemnification shall survive the termination of this Agreement or the
            termination of any party to this Agreement.

          

          13. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 6.10:

          

          Section
            6.10 Intent
            of the Parties; Reasonableness.

          

          The
            Owner
            and the Servicer acknowledge and agree that a purpose of Section 3.01(m),
            4.14,
            Sections 5.02, 6.04, 6.09 and 10.02 of this Agreement is to facilitate
            compliance by the Owner and any Depositor with the provisions of Regulation
            AB
            and related rules and regulations of the Commission. None of the Owner,
            any
            Master Servicer or any Depositor 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 compliance with the Securities Act,
            the
            Exchange Act and the rules and regulations of the Commission thereunder.
            The
            Servicer acknowledges that interpretations of the requirements of Regulation
            AB
            may change over time, whether due to interpretive guidance provided by
            the
            Commission or its staff, consensus among participants in the asset-backed
            securities markets, advice of counsel, or otherwise, and agrees to comply
            with
            requests made by the Owner or any Depositor in good faith for delivery
            of
            information under these provisions on the basis of evolving interpretations
            of
            Regulation AB. In connection with any Pass-Through Transfer, the Servicer
            shall
            cooperate fully with the Owner to deliver to the Owner (including any
            of its
            assignees or designees) and any Depositor, any and all statements, reports,
            certifications, records and any other information necessary in the good
            faith
            determination of the Owner or any Depositor to permit the Owner or such
            Depositor to comply with the provisions of Regulation AB, together with
            such
            disclosures relating to the Servicer, any Subservicer, any Third-Party
            Originator and the Mortgage Loans, or the servicing of the Mortgage Loans,
            reasonably believed by the Owner or any Depositor to be necessary in
            order to
            effect such compliance.

          

          Notwithstanding
            anything to the contrary herein, the Servicer shall be under no obligation
            to
            provide information that the Owner deems required under Regulation AB
            if (i) the
            Servicer does not reasonably believe that such information is required
            under
            Regulation AB and (ii) the Servicer is not providing such information
            for its
            own securitizations unless the Owner pays all reasonable costs incurred
            by the
            Servicer in connection with the preparation and delivery of such information
            and
            the Servicer is given reasonable time to establish the necessary systems
            and
            procedures to produce such information; provided, however, that the costs
            incurred by the Servicer in connection with establishing the necessary
            systems
            and procedures will be split pro rata with any other purchaser that makes
            a
            request for similar information.

          

          14. Article
            IX of the Agreement is hereby amended effective as of the date hereof
            by
            deleting the first sentence of the last paragraph of Section 9.01 and
            replacing
            it with the following (new text underlined):

          

          then,
            and
            in each and every such case, so long as an Event of Default shall not
            have been
            remedied, the Owner, by notice in writing to the Servicer (or
            as
            otherwise stated herein, in which case, automatically and without
            notice)
            may, in
            addition to whatever rights the Owner may have under Section 8.01, subject
            to
            the limitation expressed therein, and at law or equity to damages, including
            injunctive relief and specific performance, terminate all the rights
            and
            obligations of the Servicer (and
            if
            the Servicer is servicing any of the Mortgage Loans in a Securitization
            Transaction, appoint a successor servicer reasonably acceptable to any
            Master
            Servicer for such Securitization Transaction)
            under
            this Agreement and in and to the Mortgage Loans and the proceeds thereof
            without
            compensating the Servicer for the same. On or after the receipt by the
            Servicer
            of such written notice, all authority and power of the Servicer under
            this
            Agreement, whether with respect to the Mortgage Loans or otherwise, shall
            pass
            to and be vested in the successor appointed pursuant to Section 11.01.
            Upon
            written request from the Owner, the Servicer shall prepare, execute and
            deliver,
            any and all documents and other instruments, place in such successor's
            possession all Servicing Files, and 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 or assignment of the
            Mortgage
            Loans and related documents, or otherwise, at the Servicer's sole expense.
            The
            Servicer agrees to cooperate with the Owner and such successor in effecting
            the
            termination of the Servicer's responsibilities and rights hereunder,
            including,
            without limitation, the transfer to such successor for administration
            by it of
            all cash amounts which shall at the time be credited by the Servicer
            to the
            Custodial Account or Escrow Account or thereafter received with respect
            to the
            Mortgage Loans or any REO Property.

          

          15. Article
            IX of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following at the end of the last paragraph of Section 9.01:

          

          The
            Servicer shall promptly reimburse the Owner (or any designee of the Owner,
            such
            as a Master Servicer) and any Depositor, as applicable, for all reasonable
            expenses incurred by the Owner (or such designee) or such Depositor,
            as such are
            incurred, in connection with the termination of the Servicer as servicer
            and the
            transfer of servicing of the Mortgage Loans to a successor servicer.
            The
            provisions of this paragraph shall not limit whatever rights the Owner
            or any
            Depositor may have under other provisions of this Agreement and/or any
            applicable Reconstitution Agreement or otherwise, whether in equity or
            at law,
            such as an action for damages, specific performance or injunctive
            relief.

          

          16. Article
            X
            of the Agreement is hereby amended effective as of the date hereof by
            restating
            Section 10.02 in its entirety as follows:

          

          Section
            10.02. Cooperation
            of Servicer with a Reconstitution.

          

          The
            Servicer and the Owner agree that with respect to some or all of the
            Mortgage
            Loans, on or after the related Closing Date, on one or more dates (each
            a
“Reconstitution Date”) at the Owner’s sole option, the Owner may effect a sale
            (each, a “Reconstitution”) of some or all of the Mortgage Loans then subject to
            this Agreement, without recourse, to:

          

          (1) one
            or
            more third party purchasers in one or more in whole loan transfers (each,
            a
“Whole Loan Transfer”); or

          

          (2) one
            or
            more trusts or other entities to be formed as part of one or more Pass-Through
            Transfers.

          

          With
            respect to each Whole Loan Transfer or Pass-Through Transfer, as the
            case may
            be, the
            Servicer shall (i) following request by the Owner or any Depositor, use
            best
            efforts to provide within five, and in no event later than seven Business
            Days
            the Owner and such Depositor (or, as applicable, cause each Subservicer
            to
            provide), in writing and in form and substance reasonably satisfactory
            to the
            Owner and such Depositor, the information and materials specified in
            paragraphs
            (a), (b), (c) and (d) of this Section, and (ii) as promptly as practicable
            following notice to or discovery by the Servicer, provide to the Owner
            and any
            Depositor (in writing and in form and substance reasonably satisfactory
            to the
            Owner and such Depositor) the information specified in paragraph (d)
            of this
            Section.

          

          (a) If
            so
            requested by the Owner or any Depositor, the Servicer shall provide such
            information regarding the Servicer, as servicer of the Mortgage Loans,
            and each
            Subservicer (each of the Servicer and each Subservicer, for purposes
            of this
            clause (a), a “Servicer”), as is requested for the purpose of compliance with
            Item 1108 of Regulation AB. Such information shall include, at a
            minimum:

          

          (1) the
            Servicer’s form of organization;

          

          (2) a
            description of how long the Servicer has been servicing residential mortgage
            loans; a general discussion of the Servicer’s experience in servicing assets of
            any type as well as a more detailed discussion of the Servicer’s experience in,
            and procedures for, the servicing function it will perform under this
            Agreement
            and any Reconstitution Agreements; information regarding the size, composition
            and growth of the Servicer’s portfolio of residential mortgage loans of a type
            similar to the Mortgage Loans and information on factors related to the
            Servicer
            that may be material, in the good faith judgment of the Owner or any
            Depositor,
            to any analysis of the servicing of the Mortgage Loans or the related
            asset-backed securities, as applicable, including, without
            limitation:

          

          (i) whether
            any prior securitizations of mortgage loans of a type similar to the
            Mortgage
            Loans involving the Servicer have defaulted or experienced an early amortization
            or other performance triggering event because of servicing during the
            three-year
            period immediately preceding the related Securitization
            Transaction;

          

          (ii) the
            extent of outsourcing the Servicer utilizes;

          

          (iii) whether
            there has been previous disclosure of material noncompliance with the
            applicable
            servicing criteria with respect to other securitizations of residential
            mortgage
            loans involving the Servicer as a servicer during the three-year period
            immediately preceding the related Securitization Transaction;

          

          (iv) whether
            the Servicer has been terminated as servicer in a residential mortgage
            loan
            securitization, either due to a servicing default or to application of
            a
            servicing performance test or trigger; and

          

          (v) such
            other information as the Owner or any Depositor may reasonably request
            for the
            purpose of compliance with Item 1108(b)(2) of Regulation AB;

          

          (3) a
            description of any material changes during the three-year period immediately
            preceding the related Securitization Transaction to the Servicer’s policies or
            procedures with respect to the servicing function it will perform under
            this
            Agreement and any Reconstitution Agreements for mortgage loans of a type
            similar
            to the Mortgage Loans;

          

          (4) information
            regarding the Servicer’s financial condition, to the extent that there is a
            material risk that an adverse financial event or circumstance involving
            the
            Servicer could have a material adverse effect on the performance by the
            Servicer
            of its servicing obligations under this Agreement or any Reconstitution
            Agreement;

          

          (5) information
            regarding advances made by the Servicer on the Mortgage Loans and the
            Servicer’s
            overall servicing portfolio of residential mortgage loans for the three-year
            period immediately preceding the related Securitization Transaction,
            which may
            be limited to a statement by an authorized officer of the Servicer to
            the effect
            that the Servicer has made all advances required to be made on residential
            mortgage loans serviced by it during such period, or, if such statement
            would
            not be accurate, information regarding the percentage and type of advances
            not
            made as required, and the reasons for such failure to advance;

          

          (6) a
            description of the Servicer’s processes and procedures designed to address any
            special or unique factors involved in servicing loans of a similar type
            as the
            Mortgage Loans;

          

          (7) a
            description of the Servicer’s processes for handling delinquencies, losses,
            bankruptcies and recoveries, such as through liquidation of mortgaged
            properties, sale of defaulted mortgage loans or workouts; and

          

          (8) information
            as to how the Servicer defines or determines delinquencies and charge-offs,
            including the effect of any grace period, re-aging, restructuring, partial
            payments considered current or other practices with respect to delinquency
            and
            loss experience.

          

          (b) If
            so
            requested by the Owner or any Depositor for the purpose of satisfying
            its
            reporting obligation under the Exchange Act with respect to any class
            of
            asset-backed securities, the Servicer shall (or shall cause each Subservicer
            to)
            (i) notify the Servicer, any Master Servicer and any Depositor in writing
            of (A)
            any material litigation or governmental proceedings involving the Company
            or any
            Subservicer, (B) any affiliations or relationships that develop following
            the
            closing date of a Securitization Transaction between the Owner or any
            Subservicer and any of the parties specified in clause (D) of paragraph
            (a) of
            this Section (and any other parties identified in writing by the requesting
            party) with respect to such Securitization Transaction, (C) any Event
            of Default
            under the terms of this Agreement or any Reconstitution Agreement, (D)
            any
            merger, consolidation or sale of substantially all of the assets of the
            Owner,
            and (E) the Owner’s entry into an agreement with a Subservicer to perform or
            assist in the performance of any of the Owner’s obligations under this Agreement
            or any Reconstitution Agreement and (ii) provide to the Servicer and
            any
            Depositor a description of such proceedings, affiliations or
            relationships.

          

          As
            a
            condition to the succession to the Owner or any Subservicer as servicer
            or
            subservicer under this Agreement or any Reconstitution Agreement by any
            Person
            (i) into which the Owner or such Subservicer may be merged or consolidated,
            or
            (ii) which may be appointed as a successor to the Owner or any Subservicer,
            the
            Owner shall provide to the Servicer, any Master Servicer, and any Depositor,
            at
            least 15 calendar days prior to the effective date of such succession
            or
            appointment, (x) written notice to the Servicer and any Depositor of
            such
            succession or appointment and (y) in writing and in form and substance
            reasonably satisfactory to the Servicer and such Depositor, all information
            reasonably requested by the Servicer or any Depositor in order to comply
            with
            its reporting obligation under Item 6.02 of Form 8-K with respect to
            any class
            of asset-backed securities; 

          

          In
            addition to such information as the Owner, as servicer, is obligated
            to provide
            pursuant to other provisions of this Agreement, not later than ten days
            prior to
            the deadline for the filing of any distribution report on Form 10-D in
            respect
            of any Securitization Transaction that includes any of the Mortgage Loans
            serviced by the Owner or any Subservicer, the Owner or such Subservicer,
            as
            applicable, shall, to the extent the Owner or such Subservicer has knowledge,
            provide to the party responsible for filing such report (including, if
            applicable, the Master Servicer) notice of the occurrence of any of the
            following events along with all information, data, and materials related
            thereto
            as may be required to be included in the related distribution report
            on Form
            10-D (as specified in the provisions of Regulation AB referenced
            below):

          

          (A) any
            material modifications, extensions or waivers of pool asset terms, fees,
            penalties or payments during the distribution period or that have cumulatively
            become material over time (Item 1121(a)(11) of Regulation AB);

          

          (B) material
            breaches of pool asset representations or warranties or transaction covenants
            (Item 1121(a)(12) of Regulation AB); and

          

          (C) information
            regarding new asset-backed securities issuances backed by the same pool
            assets,
            any pool asset changes (such as, additions, substitutions or repurchases),
            and
            any material changes in origination, underwriting or other criteria for
            acquisition or selection of pool assets (Item 1121(a)(14) of Regulation
            AB);
            and

          

          The
            Owner
            shall provide to the Servicer, any Master Servicer and any Depositor,
            evidence
            of the authorization of the person signing any certification or statement,
            copies or other evidence of Fidelity Bond Insurance and Errors and Omission
            Insurance policy, financial information and reports, and such other information
            related to the Owner or any Subservicer or the Owner or such Subservicer’s
            performance hereunder.

          

          Notwithstanding
            the foregoing, the Servicer shall be under no obligation to provide information
            that the Owner deems required under Regulation AB if (i) the Servicer
            does not
            reasonably believe that such information is required under Regulation
            AB and
            (ii) the Servicer is not providing such information for (A) its own
            securitizations, or (B) any third party securitizations with mortgage
            loans
            serviced by the Servicer[, unless the Owner pays all reasonable actual
            costs
            incurred by the Servicer in connection with the preparation and delivery
            of such
            information and the Servicer is given reasonable time to establish the
            necessary
            systems and procedures to produce such information; provided, however,
            that the
            costs incurred by the Servicer in connection with establishing the necessary
            systems and procedures will be split pro rata with any other purchaser
            that
            makes a request for similar information..

          

          All
            Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
            remain
            subject to, and serviced in accordance with the terms of, this Agreement
            and the
            related Term Sheet, and with respect thereto this Agreement and the related
            Term
            Sheet shall remain in full force and effect.

          

          17. Article
            XI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 11.16:

          

          Section
            11.16. Use
            of
            Subservicers and Subcontractors.

          

          (a) The
            Servicer shall not hire or otherwise utilize the services of any Subservicer
            to
            fulfill any of the obligations of the Servicer as servicer under this
            Agreement
            or any Reconstitution Agreement unless the Servicer complies with the
            provisions
            of paragraph (b) of this Section. The Servicer shall not hire or otherwise
            utilize the services of any Subcontractor, and shall not permit any Subservicer
            to hire or otherwise utilize the services of any Subcontractor, to fulfill
            any
            of the obligations of the Servicer as servicer under this Agreement or
            any
            Reconstitution Agreement unless the Servicer complies with the provisions
            of
            paragraph (d) of this Section. 

          

          (b) It
            shall
            not be necessary for the Servicer to seek the consent of the Owner to
            the
            utilization of any subservicer. The Servicer shall cause any Subservicer
            used by
            the Servicer (or by any Subservicer) for the benefit of the Owner and
            any
            Depositor to comply with the provisions of this Section and with Sections
            3.01(m), 4.14, 6.04, 6.09 and 10.02 of this Agreement to the same extent
            as if
            such Subservicer were the Servicer, and to provide the information required
            with
            respect to such Subservicer under Section 3.02(b) of this Agreement.
            The
            Servicer shall be responsible for obtaining from each Subservicer and
            delivering
            to the Owner, any Master Servicer and any Depositor any Annual Statement
            of
            Compliance required to be delivered by such Subservicer under Section
            6.04(a),
            any Assessment of Compliance and Attestation Report required to be delivered
            by
            such Subservicer under Section 6.09 and any Annual Certification required
            under
            Section 6.04(b) as and when required to be delivered.

          

          (c) The
            Servicer shall promptly upon request provide to the Owner, any Master
            Servicer
            and any Depositor (or any designee of the Depositor, such as an administrator)
            a
            written description (in form and substance satisfactory to the Owner,
            any Master
            Servicer and such Depositor) of the role and function of each Subcontractor
            utilized by the Servicer or any Subservicer, specifying (i) the identity
            of each
            such Subcontractor, (ii) which (if any) of such Subcontractors are
“participating in the servicing function” within the meaning of Item 1122 of
            Regulation AB, and (iii) which elements of the Servicing Criteria will
            be
            addressed in assessments of compliance provided by each Subcontractor
            identified
            pursuant to clause (ii) of this paragraph.

          

          (d) As
            a
            condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
            Regulation AB, the Servicer shall cause any such Subcontractor used by
            the
            Servicer (or by any Subservicer) for the benefit of the Owner and any
            Depositor
            to comply with the provisions of Sections 6.09 and 10.02 of this Agreement
            to
            the same extent as if such Subcontractor were the Servicer. The Servicer
            shall
            be responsible for obtaining from each Subcontractor and delivering to
            the Owner
            and any Depositor any Assessment of Compliance and Attestation Report
            and the
            other certificates required to be delivered by such Subservicer and such
            Subcontractor under Section 6.09, in each case as and when required to
            be
            delivered.

          

          18. Article
            XI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 11.17:

          

          For
            purposes of this Agreement, and with respect to any Mortgage Loan in
            a
            Pass-Through Transfer, the related Master Servicer shall be considered
            a third
            party beneficiary to this Agreement, entitled to all the rights and benefits
            hereof as if it were a direct party to this Agreement, with respect to
            such
            Mortgage Loans.

          

          19. The
            Agreement is hereby amended effective as of the date hereof by deleting
            Exhibit
            E in its entirety and replacing it with the following:

          

          EXHIBIT
            E

          

          REPORTING
            DATA FOR MONTHLY REPORT

          

          
            	
                    Standard
                      File Layout - Master Servicing

                  
	
                    Column
                      Name

                  	
                    Description

                  	
                    Decimal

                  	
                    Format
                      Comment

                  	
                    Max
                      Size

                  
	
                    SER_INVESTOR_NBR

                  	
                    A
                      value assigned by the Servicer to define a group of loans.

                  	 	
                    Text
                      up to 10 digits

                  	
                    20

                  
	
                    LOAN_NBR

                  	
                    A
                      unique identifier assigned to each loan by the investor.

                  	 	
                    Text
                      up to 10 digits

                  	
                    10

                  
	
                    SERVICER_LOAN_NBR

                  	
                    A
                      unique number assigned to a loan by the Servicer. This may
                      be different
                      than the LOAN_NBR.

                  	 	
                    Text
                      up to 10 digits

                  	
                    10

                  
	
                    BORROWER_NAME

                  	
                    The
                      borrower name as received in the file. It is not separated
                      by first and
                      last name.

                  	 	
                    Maximum
                      length of 30 (Last, First)

                  	
                    30

                  
	
                    SCHED_PAY_AMT

                  	
                    Scheduled
                      monthly principal and scheduled interest payment that a borrower
                      is
                      expected to pay, P&I constant.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NOTE_INT_RATE

                  	
                    The
                      loan interest rate as reported by the Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    NET_INT_RATE

                  	
                    The
                      loan gross interest rate less the service fee rate as reported
                      by the
                      Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    SERV_FEE_RATE

                  	
                    The
                      servicer's fee rate for a loan as reported by the
                      Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    SERV_FEE_AMT

                  	
                    The
                      servicer's fee amount for a loan as reported by the
                      Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NEW_PAY_AMT

                  	
                    The
                      new loan payment amount as reported by the Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NEW_LOAN_RATE

                  	
                    The
                      new loan rate as reported by the Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    ARM_INDEX_RATE

                  	
                    The
                      index the Servicer is using to calculate a forecasted
                      rate.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    ACTL_BEG_PRIN_BAL

                  	
                    The
                      borrower's actual principal balance at the beginning of the
                      processing
                      cycle.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    ACTL_END_PRIN_BAL

                  	
                    The
                      borrower's actual principal balance at the end of the processing
                      cycle.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    BORR_NEXT_PAY_DUE_DATE

                  	
                    The
                      date at the end of processing cycle that the borrower's next
                      payment is
                      due to the Servicer, as reported by Servicer.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    SERV_CURT_AMT_1

                  	
                    The
                      first curtailment amount to be applied.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_DATE_1

                  	
                    The
                      curtailment date associated with the first curtailment
                      amount.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    CURT_ADJ_
                      AMT_1

                  	
                    The
                      curtailment interest on the first curtailment amount, if
                      applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_AMT_2

                  	
                    The
                      second curtailment amount to be applied.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_DATE_2

                  	
                    The
                      curtailment date associated with the second curtailment
                      amount.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    CURT_ADJ_
                      AMT_2

                  	
                    The
                      curtailment interest on the second curtailment amount, if
                      applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_AMT_3

                  	
                    The
                      third curtailment amount to be applied.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_DATE_3

                  	
                    The
                      curtailment date associated with the third curtailment
                      amount.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    CURT_ADJ_AMT_3

                  	
                    The
                      curtailment interest on the third curtailment amount, if
                      applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PIF_AMT

                  	
                    The
                      loan "paid in full" amount as reported by the Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PIF_DATE

                  	
                    The
                      paid in full date as reported by the Servicer.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	 	 	 	
                    Action
                      Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                      65=Repurchase,70=REO

                  	
                    2

                  
	
                    ACTION_CODE

                  	
                    The
                      standard FNMA numeric code used to indicate the default/delinquent
                      status
                      of a particular loan.

                  
	
                    INT_ADJ_AMT

                  	
                    The
                      amount of the interest adjustment as reported by the
                      Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SOLDIER_SAILOR_ADJ_AMT

                  	
                    The
                      Soldier and Sailor Adjustment amount, if applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NON_ADV_LOAN_AMT

                  	
                    The
                      Non Recoverable Loan Amount, if applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    LOAN_LOSS_AMT

                  	
                    The
                      amount the Servicer is passing as a loss, if applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_BEG_PRIN_BAL

                  	
                    The
                      scheduled outstanding principal amount due at the beginning
                      of the cycle
                      date to be passed through to investors.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_END_PRIN_BAL

                  	
                    The
                      scheduled principal balance due to investors at the end of
                      a processing
                      cycle.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_PRIN_AMT

                  	
                    The
                      scheduled principal amount as reported by the Servicer for
                      the current
                      cycle -- only applicable for Scheduled/Scheduled Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_NET_INT

                  	
                    The
                      scheduled gross interest amount less the service fee amount
                      for the
                      current cycle as reported by the Servicer -- only applicable
                      for
                      Scheduled/Scheduled Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    ACTL_PRIN_AMT

                  	
                    The
                      actual principal amount collected by the Servicer for the current
                      reporting cycle -- only applicable for Actual/Actual
                      Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    ACTL_NET_INT

                  	
                    The
                      actual gross interest amount less the service fee amount for
                      the current
                      reporting cycle as reported by the Servicer -- only applicable
                      for
                      Actual/Actual Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PREPAY_PENALTY_
                      AMT

                  	
                    The
                      penalty amount received when a borrower prepays on his loan
                      as reported by
                      the Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PREPAY_PENALTY_
                      WAIVED

                  	
                    The
                      prepayment penalty amount for the loan waived by the
                      servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    MOD_DATE

                  	
                    The
                      Effective Payment Date of the Modification for the loan.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    MOD_TYPE

                  	
                    The
                      Modification Type.

                  	 	
                    Varchar
                      - value can be alpha or numeric

                  	
                    30

                  
	
                    DELINQ_P&I_ADVANCE_AMT

                  	
                    The
                      current outstanding principal and interest advances made by
                      Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  

          

          

          

          20. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit F:

          

          EXHIBIT
            F

          

          FORM
            OF
            SERVICER CERTIFICATION

          

          Re: The
            [ ]
            agreement dated as of [ l,
            200[ ]
            (the “Agreement”), among [IDENTIFY PARTIES]

          

          I,
            ____________________________, the _______________________ of [NAME OF
            SERVICER]
            (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master
            Servicer] [Securities Administrator] [Trustee], and their officers, with
            the
            knowledge and intent that they will rely upon this certification,
            that:

          

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

          

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

          

          Based
            on
            my knowledge, all of the Company Servicing Information required to be
            provided
            by the Company under the Agreement has been provided to the [Depositor]
            [Master
            Servicer] [Securities Administrator] [Trustee];

          

          I
            am
            responsible for reviewing the activities performed by the Company as
            servicer
            under the Agreement, and based on my knowledge and the compliance review
            conducted in preparing the Compliance Statement and except as disclosed
            in the
            Compliance Statement, the Servicing Assessment or the Attestation Report,
            the
            Company has fulfilled its obligations under the Agreement in all material
            respects; and

          

          The
            Compliance Statement required to be delivered by the Company pursuant
            to this
            Agreement, and the Servicing Assessment and Attestation Report required
            to be
            provided by the Company and by any Subservicer and Subcontractor pursuant
            to the
            Agreement, have been provided to the [Depositor] [Master Servicer]. Any
            material
            instances of noncompliance described in such reports have been disclosed
            to the
            [Depositor] [Master Servicer]. Any material instance of noncompliance
            with the
            Servicing Criteria has been disclosed in such reports.

          

          

          21. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit G:

          

          EXHIBIT
            G

          

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

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

          

          
            	
                    Servicing
                      Criteria 

                  	
                    Applicable
                      Servicing Criteria

                  
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                     

                  	
                    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.

                  	 
	
                    1122(d)(2)(ii)

                  	
                    Disbursements
                      made via wire transfer on behalf of an obligor or to an investor
                      are made
                      only by authorized personnel.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    1122(d)(2)(vi)

                  	
                    Unissued
                      checks are safeguarded so as to prevent unauthorized
                      access.

                  	 
	
                    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.

                  	 
	
                     

                  	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                     

                  	
                    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.

                  	 
	
                    1122(d)(4)(ii)

                  	
                    Mortgage
                      loan and related documents are safeguarded as required by the
                      transaction
                      agreements

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                     

                  	
                     

                  	
                     

                  

          

          

           

          [NAME
            OF
            COMPANY] [NAME OF SUBSERVICER]

           

          Date: _________________________

          

           

          By: __________________________

          Name:
            

          Title:
            

          

          22. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit H:

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

          EXHIBIT
            H

          

           

          REPORTING
            DATA FOR DEFAULTED LOANS

          

          Standard
            File Layout - Delinquency Reporting

          

          
            	
                    Column/Header
                      Name

                  	
                    Description

                  	
                    Decimal

                  	
                    Format
                      Comment

                  
	
                    SERVICER_LOAN_NBR

                  	
                    A
                      unique number assigned to a loan by the Servicer. This may
                      be different
                      than the LOAN_NBR

                  	 	
                     

                  
	
                    LOAN_NBR

                  	
                    A
                      unique identifier assigned to each loan by the originator.

                  	 	
                     

                  
	
                    CLIENT_NBR

                  	
                    Servicer
                      Client Number

                  	 	 
	
                    SERV_INVESTOR_NBR

                  	
                    Contains
                      a unique number as assigned by an external servicer to identify
                      a group of
                      loans in their system.

                  	 	
                     

                  
	
                    BORROWER_FIRST_NAME

                  	
                    First
                      Name of the Borrower.

                  	 	 
	
                    BORROWER_LAST_NAME

                  	
                    Last
                      name of the borrower.

                  	 	 
	
                    PROP_ADDRESS

                  	
                    Street
                      Name and Number of Property

                  	 	
                     

                  
	
                    PROP_STATE

                  	
                    The
                      state where the property located.

                  	 	
                     

                  
	
                    PROP_ZIP

                  	
                    Zip
                      code where the property is located.

                  	 	
                     

                  
	
                    BORR_NEXT_PAY_DUE_DATE

                  	
                    The
                      date that the borrower's next payment is due to the servicer
                      at the end of
                      processing cycle, as reported by Servicer.

                  	 	
                    MM/DD/YYYY

                  
	
                    LOAN_TYPE

                  	
                    Loan
                      Type (i.e. FHA, VA, Conv)

                  	 	
                     

                  
	
                    BANKRUPTCY_FILED_DATE

                  	
                    The
                      date a particular bankruptcy claim was filed.

                  	 	
                    MM/DD/YYYY

                  
	
                    BANKRUPTCY_CHAPTER_CODE

                  	
                    The
                      chapter under which the bankruptcy was filed.

                  	 	
                     

                  
	
                    BANKRUPTCY_CASE_NBR

                  	
                    The
                      case number assigned by the court to the bankruptcy
                      filing.

                  	 	
                     

                  
	
                    POST_PETITION_DUE_DATE

                  	
                    The
                      payment due date once the bankruptcy has been approved by the
                      courts

                  	 	
                    MM/DD/YYYY

                  
	
                    BANKRUPTCY_DCHRG_DISM_DATE

                  	
                    The
                      Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                      Discharged
                      and/or a Motion For Relief Was Granted. 

                  	 	
                    MM/DD/YYYY

                  
	
                    LOSS_MIT_APPR_DATE

                  	
                    The
                      Date The Loss Mitigation Was Approved By The Servicer

                  	 	
                    MM/DD/YYYY

                  
	
                    LOSS_MIT_TYPE

                  	
                    The
                      Type Of Loss Mitigation Approved For A Loan Such As;

                  	 	 
	
                    LOSS_MIT_EST_COMP_DATE

                  	
                    The
                      Date The Loss Mitigation /Plan Is Scheduled To End/Close

                  	 	
                    MM/DD/YYYY

                  
	
                    LOSS_MIT_ACT_COMP_DATE

                  	
                    The
                      Date The Loss Mitigation Is Actually Completed

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_APPROVED_DATE

                  	
                    The
                      date DA Admin sends a letter to the servicer with instructions
                      to begin
                      foreclosure proceedings.

                  	 	
                    MM/DD/YYYY

                  
	
                    ATTORNEY_REFERRAL_DATE

                  	
                    Date
                      File Was Referred To Attorney to Pursue Foreclosure

                  	 	
                    MM/DD/YYYY

                  
	
                    FIRST_LEGAL_DATE

                  	
                    Notice
                      of 1st legal filed by an Attorney in a Foreclosure Action

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_SALE_EXPECTED_DATE

                  	
                    The
                      date by which a foreclosure sale is expected to occur.

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_SALE_DATE

                  	
                    The
                      actual date of the foreclosure sale.

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_SALE_AMT

                  	
                    The
                      amount a property sold for at the foreclosure sale.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    EVICTION_START_DATE

                  	
                    The
                      date the servicer initiates eviction of the borrower.

                  	 	
                    MM/DD/YYYY

                  
	
                    EVICTION_COMPLETED_DATE

                  	
                    The
                      date the court revokes legal possession of the property from
                      the
                      borrower.

                  	 	
                    MM/DD/YYYY

                  
	
                    LIST_PRICE

                  	
                    The
                      price at which an REO property is marketed.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    LIST_DATE

                  	
                    The
                      date an REO property is listed at a particular price.

                  	 	
                    MM/DD/YYYY

                  
	
                    OFFER_AMT

                  	
                    The
                      dollar value of an offer for an REO property.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    OFFER_DATE_TIME

                  	
                    The
                      date an offer is received by DA Admin or by the Servicer.

                  	 	
                    MM/DD/YYYY

                  
	
                    REO_CLOSING_DATE

                  	
                    The
                      date the REO sale of the property is scheduled to close.

                  	 	
                    MM/DD/YYYY

                  
	
                    REO_ACTUAL_CLOSING_DATE

                  	
                    Actual
                      Date Of REO Sale

                  	 	
                    MM/DD/YYYY

                  
	
                    OCCUPANT_CODE

                  	
                    Classification
                      of how the property is occupied.

                  	 	
                     

                  
	
                    PROP_CONDITION_CODE

                  	
                    A
                      code that indicates the condition of the property.

                  	 	
                     

                  
	
                    PROP_INSPECTION_DATE

                  	
                    The
                      date a property inspection is performed.

                  	 	
                    MM/DD/YYYY

                  
	
                    APPRAISAL_DATE

                  	
                    The
                      date the appraisal was done.

                  	 	
                    MM/DD/YYYY

                  
	
                    CURR_PROP_VAL

                  	
                     The
                      current "as is" value of the property based on brokers price
                      opinion or
                      appraisal.

                  	
                    2

                  	
                     

                  
	
                    REPAIRED_PROP_VAL

                  	
                    The
                      amount the property would be worth if repairs are completed
                      pursuant to a
                      broker's price opinion or appraisal.

                  	
                    2

                  	
                     

                  
	
                    If
                      applicable:

                  	
                     

                  	 	
                     

                  
	
                    DELINQ_STATUS_CODE

                  	
                    FNMA
                      Code Describing Status of Loan

                  	 	 
	
                    DELINQ_REASON_CODE

                  	
                    The
                      circumstances which caused a borrower to stop paying on a loan.
                      Code
                      indicates the reason why the loan is in default for this
                      cycle.

                  	 	 
	
                    MI_CLAIM_FILED_DATE

                  	
                    Date
                      Mortgage Insurance Claim Was Filed With Mortgage Insurance
                      Company.

                  	 	
                    MM/DD/YYYY

                  
	
                    MI_CLAIM_AMT

                  	
                    Amount
                      of Mortgage Insurance Claim Filed

                  	 	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    MI_CLAIM_PAID_DATE

                  	
                    Date
                      Mortgage Insurance Company Disbursed Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    MI_CLAIM_AMT_PAID

                  	
                    Amount
                      Mortgage Insurance Company Paid On Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    POOL_CLAIM_FILED_DATE

                  	
                    Date
                      Claim Was Filed With Pool Insurance Company

                  	 	
                    MM/DD/YYYY

                  
	
                    POOL_CLAIM_AMT

                  	
                    Amount
                      of Claim Filed With Pool Insurance Company

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    POOL_CLAIM_PAID_DATE

                  	
                    Date
                      Claim Was Settled and The Check Was Issued By The Pool
                      Insurer

                  	 	
                    MM/DD/YYYY

                  
	
                    POOL_CLAIM_AMT_PAID

                  	
                    Amount
                      Paid On Claim By Pool Insurance Company

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_A_CLAIM_FILED_DATE

                  	
                     Date
                      FHA Part A Claim Was Filed With HUD

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_A_CLAIM_AMT

                  	
                     Amount
                      of FHA Part A Claim Filed

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_A_CLAIM_PAID_DATE

                  	
                     Date
                      HUD Disbursed Part A Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_A_CLAIM_PAID_AMT

                  	
                     Amount
                      HUD Paid on Part A Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_B_CLAIM_FILED_DATE

                  	
                      Date
                      FHA Part B Claim Was Filed With HUD

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_B_CLAIM_AMT

                  	
                      Amount
                      of FHA Part B Claim Filed

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_B_CLAIM_PAID_DATE

                  	
                       Date
                      HUD Disbursed Part B Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_B_CLAIM_PAID_AMT

                  	
                     Amount
                      HUD Paid on Part B Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    VA_CLAIM_FILED_DATE

                  	
                     Date
                      VA Claim Was Filed With the Veterans Admin

                  	 	
                    MM/DD/YYYY

                  
	
                    VA_CLAIM_PAID_DATE

                  	
                     Date
                      Veterans Admin. Disbursed VA Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    VA_CLAIM_PAID_AMT

                  	
                     Amount
                      Veterans Admin. Paid on VA Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  

          

           

          

          Exhibit
            2: Standard
            File Codes - Delinquency Reporting

           

          The
            Loss
            Mit Type
            field
            should show the approved Loss Mitigation Code as follows: 

           

          
            	·  	
                    ASUM-Approved
                      Assumption

                  

          

           

          
            	·  	
                    BAP-Borrower
                      Assistance Program

                  

          

           

          
            	·  	
                    CO-
                      Charge Off

                  

          

           

          
            	·  	
                    DIL-
                      Deed-in-Lieu

                  

          

           

          
            	·  	
                    FFA-
                      Formal Forbearance Agreement

                  

          

           

          
            	·  	
                    MOD-
                      Loan Modification

                  

          

           

          
            	·  	
                    PRE-
                      Pre-Sale

                  

          

           

          
            	·  	
                    SS-
                      Short Sale

                  

          

           

          
            	·  	
                    MISC-Anything
                      else approved by the PMI or Pool
                      Insurer

                  

          

          

           

          NOTE:
            Wells
            Fargo Bank will accept alternative Loss Mitigation Types to those above,
            provided that they are consistent with industry standards. If Loss Mitigation
            Types other than those above are used, the Servicer must supply Wells
            Fargo Bank
            with a description of each of the Loss Mitigation Types prior to sending
            the
            file.

           

          The
            Occupant
            Code
            field
            should show the current status of the property code as follows:

           

          
            	·  	
                    Mortgagor

                  

          

           

          
            	·  	
                    Tenant

                  

          

           

          
            	·  	
                    Unknown
                      

                  

          

           

          
            	·  	
                    Vacant

                  

          

           

          The
            Property
            Condition
            field
            should show the last reported condition of the property as follows:

           

          
            	·  	
                    Damaged

                  

          

           

          
            	·  	
                    Excellent

                  

          

           

          
            	·  	
                    Fair

                  

          

           

          
            	·  	
                    Gone

                  

          

           

          
            	·  	
                    Good

                  

          

           

          
            	·  	
                    Poor

                  

          

           

          
            	·  	
                    Special
                      Hazard

                  

          

           

          
            	·  	
                    Unknown

                  

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          

          Exhibit
            2: Standard
            File Codes - Delinquency Reporting, Continued

           

          The
            FNMA
            Delinquent Reason Code
            field
            should show the Reason for Delinquency as follows: 

          

          
            	
                    Delinquency
                      Code

                  	
                    Delinquency
                      Description

                  
	
                    001

                  	
                    FNMA-Death
                      of principal mortgagor

                  
	
                    002

                  	
                    FNMA-Illness
                      of principal mortgagor

                  
	
                    003

                  	
                    FNMA-Illness
                      of mortgagor’s family member

                  
	
                    004

                  	
                    FNMA-Death
                      of mortgagor’s family member

                  
	
                    005

                  	
                    FNMA-Marital
                      difficulties

                  
	
                    006

                  	
                    FNMA-Curtailment
                      of income

                  
	
                    007

                  	
                    FNMA-Excessive
                      Obligation

                  
	
                    008

                  	
                    FNMA-Abandonment
                      of property

                  
	
                    009

                  	
                    FNMA-Distant
                      employee transfer

                  
	
                    011

                  	
                    FNMA-Property
                      problem

                  
	
                    012

                  	
                    FNMA-Inability
                      to sell property

                  
	
                    013

                  	
                    FNMA-Inability
                      to rent property

                  
	
                    014

                  	
                    FNMA-Military
                      Service

                  
	
                    015

                  	
                    FNMA-Other

                  
	
                    016

                  	
                    FNMA-Unemployment

                  
	
                    017

                  	
                    FNMA-Business
                      failure

                  
	
                    019

                  	
                    FNMA-Casualty
                      loss

                  
	
                    022

                  	
                    FNMA-Energy
                      environment costs

                  
	
                    023

                  	
                    FNMA-Servicing
                      problems

                  
	
                    026

                  	
                    FNMA-Payment
                      adjustment

                  
	
                    027

                  	
                    FNMA-Payment
                      dispute

                  
	
                    029

                  	
                    FNMA-Transfer
                      of ownership pending

                  
	
                    030

                  	
                    FNMA-Fraud

                  
	
                    031

                  	
                    FNMA-Unable
                      to contact borrower

                  
	
                    INC

                  	
                    FNMA-Incarceration

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          Exhibit
            2: Standard
            File Codes - Delinquency Reporting, Continued

           

          The
            FNMA
            Delinquent Status Code
            field
            should show the Status of Default as follows: 

          

          
            	
                    Status
                      Code

                  	
                    Status
                      Description

                  
	
                    09

                  	
                    Forbearance

                  
	
                    17

                  	
                    Pre-foreclosure
                      Sale Closing Plan Accepted

                  
	
                    24

                  	
                    Government
                      Seizure

                  
	
                    26

                  	
                    Refinance

                  
	
                    27

                  	
                    Assumption

                  
	
                    28

                  	
                    Modification

                  
	
                    29

                  	
                    Charge-Off

                  
	
                    30

                  	
                    Third
                      Party Sale

                  
	
                    31

                  	
                    Probate

                  
	
                    32

                  	
                    Military
                      Indulgence

                  
	
                    43

                  	
                    Foreclosure
                      Started

                  
	
                    44

                  	
                    Deed-in-Lieu
                      Started

                  
	
                    49

                  	
                    Assignment
                      Completed

                  
	
                    61

                  	
                    Second
                      Lien Considerations

                  
	
                    62

                  	
                    Veteran’s
                      Affairs-No Bid

                  
	
                    63

                  	
                    Veteran’s
                      Affairs-Refund

                  
	
                    64

                  	
                    Veteran’s
                      Affairs-Buydown

                  
	
                    65

                  	
                    Chapter
                      7 Bankruptcy

                  
	
                    66

                  	
                    Chapter
                      11 Bankruptcy

                  
	
                    67

                  	
                    Chapter
                      13 Bankruptcy

                  

          

           

          

          

          23. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit I:

           

           

          EXHIBIT
            I

          

          REPORTING
            DATA FOR REALIZED LOSSES AND GAINS

          

          Calculation
            of Realized Loss/Gain Form 332- Instruction Sheet

          

          NOTE:
            Do not net or combine items. Show all expenses individually and all credits
            as
            separate line items. Claim packages are due on the remittance report
            date. Late
            submissions may result in claims not being passed until the following
            month. The
            Servicer is responsible to remit all funds pending loss approval and
            /or
            resolution of any disputed items. 

           

          1.  

          2.  The
            numbers on the 332 form correspond with the numbers listed below.

           

          Liquidation
            and Acquisition Expenses:

           

          1.          
             The
            Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
            an
            Amortization Schedule from date of default through liquidation breaking
            out the
            net interest and servicing fees advanced is required.

           

          2.          
             The
            Total
            Interest Due less the aggregate amount of servicing fee that would have
            been
            earned if all delinquent payments had been made as agreed. For documentation,
            an
            Amortization Schedule from date of default through liquidation breaking
            out the
            net interest and servicing fees advanced is required.

          

          3.         
              Accrued
            Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
            Loan
            as calculated on a monthly basis. For documentation, an Amortization
            Schedule
            from date of default through liquidation breaking out the net interest
            and
            servicing fees advanced is required.

          

          4-12.    
             Complete
            as applicable. Required documentation:

           

          *
            For
            taxes and insurance advances - see page 2 of 332 form - breakdown required
            showing period of
            coverage, base tax, interest, penalty. Advances prior to default require
            evidence of servicer efforts to recover advances.

          *
            For
            escrow advances - complete payment history  (to
            calculate advances from last positive escrow balance forward)

          *
            Other
            expenses -  copies of corporate advance history showing all payments

          *
            REO
            repairs > $1500 require explanation

          *
            REO
            repairs >$3000 require evidence of at least 2 bids.

          *
            Short
            Sale or Charge Off require P&L supporting the decision and WFB’s approved
            Officer Certificate 

          *
            Unusual
            or extraordinary items may require further documentation. 

           

          13.      
              The
            total
            of lines 1 through 12.

          

          3.  Credits:
            

           

          14-21.  
             Complete
            as applicable. Required documentation:

           

          *
            Copy of
            the HUD 1 from the REO sale. If a 3rd
            Party
            Sale, bid instructions and Escrow Agent / Attorney Letter
            of
            Proceeds Breakdown.

          *
            Copy of
            EOB for any MI or gov't guarantee 

          *
            All
            other credits need to be clearly defined on the 332
            form      
     

           

          
            	 	
                    22.

                  	
                    The
                      total of lines 14 through 21.

                  

          

           

          Please
            Note: For
            HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b)
            for Part
            B/Supplemental proceeds.

           

          Total
            Realized Loss (or Amount of Any Gain)

           

          23.        
             The
            total
            derived from subtracting line 22 from 13. If the amount represents a
            realized
            gain, show the amount in parenthesis ( ). 

           

          
            Calculation
              of Realized Loss/Gain Form 332

            

             

            Prepared
              by: __________________   Date:
              _____________________

            Phone:
              ______________________           
Email Address:_____________________

             

            
              	
                       
                        Servicer Loan No.

                    	 	
                       
                        Servicer Name

                    	 	
                       
                        Servicer Address 

                       

                    

            

             

            WELLS
              FARGO BANK, N.A. Loan No._________________________________________

             

            Borrower's
              Name: _________________________________________________________

            Property
              Address: _________________________________________________________

             

            Liquidation
              Type: REO Sale  
              3rd
              Party Sale  
Short
              Sale 
Charge
              Off 

             

            Was
              this loan granted a Bankruptcy deficiency or cramdown  Yes                            
              No

            If
“Yes”,
              provide deficiency or cramdown amount
              ________________________________________

             

            Liquidation
              and Acquisition Expenses:

            

              
                	
                        (1)

                      	
                        Actual
                          Unpaid Principal Balance of Mortgage Loan

                      	
                        $
                          _______________

                      	
                        (1)

                      
	
                        (2)

                      	
                        Interest
                          accrued at Net Rate

                      	
                        ________________

                      	
                        (2)

                      
	
                        (3)

                      	
                        Accrued
                          Servicing Fees

                      	
                        ________________

                      	
                        (3)

                      
	
                        (4)

                      	
                        Attorney's
                          Fees

                      	
                        ________________

                      	
                        (4)

                      
	
                        (5)

                      	
                        Taxes
                          (see page 2)

                      	
                        ________________

                      	
                        (5)

                      
	
                        (6)

                      	
                        Property
                          Maintenance

                      	
                        ________________

                      	
                        (6)

                      
	
                        (7)

                      	
                        MI/Hazard
                          Insurance Premiums (see page 2)

                      	
                        ________________

                      	
                        (7)

                      
	
                        (8)

                      	
                        Utility
                          Expenses

                      	
                        ________________

                      	
                        (8)

                      
	
                        (9)

                      	
                        Appraisal/BPO

                      	
                        ________________

                      	
                        (9)

                      
	
                        (10)

                      	
                        Property
                          Inspections

                      	
                        ________________

                      	
                        (10)

                      
	
                        (11)

                      	
                        FC
                          Costs/Other Legal Expenses

                      	
                        ________________

                      	
                        (11)

                      
	
                        (12)

                      	
                        Other
                          (itemize)

                      	
                        $________________

                      	
                        (12)

                      
	
                        Cash
                          for Keys__________________________

                      	 	
                        ________________

                      	 
	
                        HOA/Condo
                          Fees_______________________

                      	 	
                        ________________

                      	 
	
                        ______________________________________

                      	 	
                        ________________

                      	 
	
                        ______________________________________

                      	 	
                        ________________

                      	 
	
                        Total
                          Expenses

                      	 	
                        $
                          _______________

                      	
                        (13)

                      
	
                        Credits:

                      	 	 	 
	
                        (14)

                      	
                        Escrow
                          Balance

                      	
                        $
                          _______________

                      	
                        (14)

                      
	
                        (15)

                      	
                        HIP
                          Refund

                      	
                        ________________

                      	
                        (15)

                      
	
                        (16)

                      	
                        Rental
                          Receipts

                      	
                        ________________

                      	
                        (16)

                      
	
                        (17)

                      	
                        Hazard
                          Loss Proceeds

                      	
                        ________________

                      	
                        (17)

                      
	
                        (18)

                      	
                        Primary
                          Mortgage Insurance / Gov’t Insurance

                      	
                        ________________

                      	
                        (18a)

                      
	 	
                        HUD
                          Part A

                      	 	 
	 	
                        HUD
                          Part B

                      	
                        ________________

                      	
                        (18b)

                      
	
                        (19)

                      	
                        Pool
                          Insurance Proceeds

                      	
                        ________________

                      	
                        (19)

                      
	
                        (20)

                      	
                        Proceeds
                          from Sale of Acquired Property

                      	
                        ________________

                      	
                        (20)

                      
	
                        (21)

                      	
                        Other
                          (itemize)

                      	
                        ________________

                      	
                        (21)

                      
	
                        _________________________________________

                      	 	
                        _________________

                      	 
	
                        _________________________________________

                      	
                         

                      	
                        _________________

                      	 
	
                        Total
                          Credits

                      	
                         $________________                    
                          

                      	
                         

                      	
                        (22)

                      
	
                        Total
                          Realized Loss (or Amount of Gain)

                      	
                         $________________

                      	
                         

                      	
                        (23)

                      

            

          

          Escrow
            Disbursement Detail

          

          

          
            	
                    Type

                    (Tax
                      /Ins.)

                  	
                    Date
                      Paid

                  	
                    Period
                      of Coverage

                  	
                    Total
                      Paid

                  	
                    Base
                      Amount

                  	
                    Penalties

                  	
                    Interest

                  
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

          

          

          

          

          24. Except
            as
            amended above, the Agreement shall continue to be in full force and effect
            in
            accordance with its terms.

          

          25. This
            Amendment may be executed by one or more of the parties hereto on any
            number of
            separate counterparts and of said counterparts taken together shall be
            deemed to
            constitute one and the same instrument.

          

          [SIGNATURE
            PAGES FOLLOW]

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

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

           

          EMC
            MORTGAGE CORPORATION,

          as
            Owner

           

          By: __________________________________

          Name:
            

          Title:
            

           

          GMAC
            MORTGAGE CORPORATION,

          as
            Servicer

           

          By:      ________________________________

          Name:
            

          Title:  

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          R-2

         

        FORM
          OF
          GMACM ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT 

         

        

          ASSIGNMENT,
            ASSUMPTION AND RECOGNITION AGREEMENT

           

          This
            Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) is made
            and entered into as of January 16, 2007 (the “Closing Date”), among EMC Mortgage
            Corporation (the “Assignor”), Citibank, N.A., not individually but solely as
            trustee for the holders of SACO I Trust, Mortgage-Backed Certificates,
            Series
            2007-1 (the “Assignee”) and GMAC Mortgage, LLC (the “Company”).

           

          Whereas,
            the Assignor purchased mortgage loans from the Company (the “Mortgage Loans”)
            pursuant to that certain Mortgage Loan Purchase and Interim Servicing
            Agreement
            dated as of February 1, 2006, and the related Term Sheets, between the
            Company
            and Opteum Financial Services f/k/a Homestar Mortgage Services, LLC (“Opteum”)
            and those certain Assignment, Assignment, Assumption and Recognition
            Agreements
            dated July 28, 2006 and November 7, 2006 among the Assignor, the Company
            and
            Opteum; that certain Mortgage Loan Purchase and Interim Servicing Agreement
            dated as of January 1, 2006, and the related Term Sheet, between the
            Company and
            Aames Capital Corporation (“Aames”) and those certain Assignment, Assumption and
            Recognition Agreements dated February 15, 2006, August 30, 2006 and September
            26, 2006 among the Assignor, the Company and Aames; that certain Mortgage
            Loan
            Purchase and Interim Servicing Agreement dated as of February 1, 2006,
            and the
            related Term Sheets, between the Company and SouthStar and those certain
            Assignment, Assumption and Recognition Agreements dated July 26, 2006,
            August 2,
            2006 and October 31, 2006 among the Assignor, the Company and SouthStar;
            that
            certain Mortgage Loan Purchase and Interim Servicing Agreement dated
            as of
            January 1, 2006, and the related Term Sheet, between the Company and
            Silver
            State Financial Services, Inc. (“Silver State”) and those certain Assignment,
            Assumption and Recognition Agreements dated May 19, 2006, June 30, 2006,
            July
            19, 2006, August 31, 2006, September 15, 2006 and September 29, 2006
            among the
            Assignor, the Company and Silver State; that certain Mortgage Loan Purchase
            and
            Interim Servicing Agreement dated as of January 1, 2006, and the related
            Term
            Sheet, between the Company and ACT Lending Corporation dba ACT Mortgage
            Capital
            and American Mortgage Services (“ACT”) and those certain Assignment, Assumption
            and Recognition Agreements dated September 7, 2006, September 14, 2006,
            September 21, 2006, October 11, 2006, October 18, 2006, October 27, 2006,
            October 31, 2006, November 14, 2006 and November 16, 2006 among the Assignor,
            the Company and ACT; that certain Mortgage Loan Purchase and Interim
            Servicing
            Agreement dated as of April 1, 2006, and the related Term Sheet, between
            the
            Company and ComUnity Lending, Incorporated (“ComUnity”) and those certain
            Assignment, Assumption and Recognition Agreements dated September 11,
            2006,
            September 18, 2006, September 20, 2006, September 29, 2006, October 11,
            2006 and
            November 3, 2006 among the Assignor, the Company and ComUnity; that certain
            Mortgage Loan Purchase and Interim Servicing Agreement dated as of October
            1,
            2006, and the related Term Sheets, between the Company and First NLC
            Financial
            Services (“First NLC”) and that certain Assignment, Assumption and Recognition
            Agreement dated October 13, 2006 among the Assignor, the Company and
            First NLC;
            that certain Mortgage Loan Purchase and Interim Servicing Agreement dated
            as of
            March 1, 2006, and the related Term Sheet, between the Company and Steward
            Financial Inc. (“Steward”) and that certain Assignment, Assumption and
            Recognition Agreement dated as of October 25, 2006 among the Assignor,
            the
            Company and Steward (collectively, the “Purchase Agreements”).

          

          Whereas,
            the Assignor and the Company entered into that certain Servicing Agreement,
            dated as of May 1, 2001, as amended by Amendment No. 1, dated as of October
            1,
            2001, Amendment No. 2, dated as of July 31, 2002 and the Amended and
            Restated
            Amendment No. 3, dated as of December 20, 2005 (as amended, the “Servicing
            Agreement”), pursuant to which the Company agreed to service the Mortgage
            Loans.

          

          In
            consideration of the mutual promises and agreements contained herein,
            and for
            other good and valuable consideration, the receipt and sufficiency of
            which are
            hereby acknowledged, the parties hereto agree that the Mortgage Loans
            listed on
Attachment
            1
            annexed
            hereto (the “Assigned Loans”) shall be subject to the terms of this AAR
            Agreement. Any capitalized term used and not otherwise defined herein
            shall have
            the meaning assigned to such term in the Servicing Agreement.

          

          Assignment
            and Assumption

           

          1.  Except
            as
            expressly provided for herein, the Assignor hereby grants, transfers
            and assigns
            to the Assignee all of its right, title and interest in, to and under
            (a) the
            Assigned Loans and (b) as it relates to the Assigned Loans, the Servicing
            Agreement. Notwithstanding anything to the contrary contained herein,
            the
            Assignor is not assigning to the Assignee any of its right, title and
            interest
            in, to and under the Servicing Agreement with respect to any other mortgage
            loan
            other than the Assigned Loans. Notwithstanding anything to the contrary
            contained herein, the Assignor specifically reserves and does not assign
            to the
            Assignee any right, title and interest in, to or under the representations
            and
            warranties contained in Section 7.01 and Section 7.02 of the Purchase
            Agreements, and any obligation of the Company to cure, repurchase or
            substitute
            for a mortgage loan and to indemnify the Assignor with respect to a breach
            of
            such representations and warranties pursuant to Section 7.03 and Section
            12.01
            of the Purchase Agreements, and the Assignor is retaining the right to
            enforce
            the representations and warranties and the obligations of the Company
            set forth
            in those sections against the Company. Except as is otherwise expressly
            provided
            herein, the Assignor makes no representations, warranties or covenants
            to the
            Assignee and the Assignee acknowledges that the Assignor has no obligations
            to
            the Assignee under the terms of the Servicing Agreement or otherwise
            relating to
            the transaction contemplated herein (including, but not limited to, any
            obligation to indemnify the Assignee).

           

          Assignor
            acknowledges and agrees that upon execution of this AAR Agreement, the
            Assignee
            shall become the “Owner” under the Servicing Agreement, and all representations,
            warranties and covenants by the “Servicer” to the “Owner” under the Servicing
            Agreement including, but not limited to, the rights to receive indemnification,
            shall accrue to Assignee by virtue of this AAR Agreement.

           

          Representations,
            Warranties and Covenants

           

          2.  Assignor
            warrants and represents to, and covenants with, Assignee and Company
            as of the
            date hereof that:

           

          
            	a.  	
                    Attached
                      hereto as Attachment
                      2
                      is
                      a true and correct copy of the Servicing Agreement, which Servicing
                      Agreement is in full force and effect as of the date hereof
                      and the
                      provisions of which have not been waived, amended or modified
                      in any
                      respect, nor has any notice of termination been given
                      thereunder;

                  

          

           

          
            	b.  	
                    Assignor
                      is the lawful owner of the Assigned Loans with full right to
                      transfer the
                      Assigned Loans and any and all of its interests, rights and
                      obligations
                      under the Servicing Agreement as they relate to the Assigned
                      Loans, free
                      and clear from any and all claims and encumbrances; and upon
                      the transfer
                      of the Assigned Loans to Assignee as contemplated herein, Assignee
                      shall
                      have good title to each and every Assigned Loan, as well as
                      any and all of
                      Assignee’s interests, rights and obligations under the Servicing Agreement
                      as they relate to the Assigned Loans, free and clear of any
                      and all liens,
                      claims and encumbrances;

                  

          

           

          
            	c.  	
                    There
                      are no offsets, counterclaims or other defenses available to
                      the Company
                      with respect to the Assigned Loans, the Purchase Agreements
                      or the
                      Servicing Agreement;

                  

          

           

          
            	d.  	
                    Assignor
                      has no knowledge of, and has not received notice of, any waivers
                      under, or
                      any modification of, any Assigned
                      Loan;

                  

          

           

          
            	e.  	
                    Assignor
                      is duly organized, validly existing and in good standing under
                      the laws of
                      the jurisdiction of its incorporation, and has all requisite
                      power and
                      authority to acquire, own and sell the Assigned
                      Loans;

                  

          

           

          
            	f.  	
                    Assignor
                      has full corporate power and authority to execute, deliver
                      and perform its
                      obligations under this AAR Agreement, and to consummate the
                      transactions
                      set forth herein. The consummation of the transactions contemplated
                      by
                      this AAR Agreement is in the ordinary course of Assignor’s business and
                      will not conflict with, or result in a breach of, any of the
                      terms,
                      conditions or provisions of Assignor’s charter or by-laws or any legal
                      restriction, or any material agreement or instrument to which
                      Assignor is
                      now a party or by which it is bound, or result in the violation
                      of any
                      law, rule, regulation, order, judgment or decree to which Assignor
                      or its
                      property is subject. The execution, delivery and performance
                      by Assignor
                      of this AAR Agreement and the consummation by it of the transactions
                      contemplated hereby, have been duly authorized by all necessary
                      corporate
                      action on part of Assignor. This AAR Agreement has been duly
                      executed and
                      delivered by Assignor and, upon the due authorization, execution
                      and
                      delivery by Assignee and the parties hereto, will constitute
                      the valid and
                      legally binding obligation of Assignor enforceable against
                      Assignor in
                      accordance with its terms except as enforceability may be limited
                      by
                      bankruptcy, reorganization, insolvency, moratorium or other
                      similar laws
                      now or hereafter in effect relating to creditors’ rights generally, and by
                      general principles of equity regardless of whether enforceability
                      is
                      considered in a proceeding in equity or at law;
                      and

                  

          

           

          
            	g.  	
                    No
                      consent, approval, order or authorization of, or declaration,
                      filing or
                      registration with, any governmental entity is required to be
                      obtained or
                      made by Assignor in connection with the execution, delivery
                      or performance
                      by Assignor of this AAR Agreement, or the consummation by it
                      of the
                      transactions contemplated hereby. Neither Assignor nor anyone
                      acting on
                      its behalf has offered, transferred, pledged, sold or otherwise
                      disposed
                      of the Assigned Loans or any interest in the Assigned Loans,
                      or solicited
                      any offer to buy or accept a transfer, pledge or other disposition
                      of the
                      Assigned Loans, or any interest in the Assigned Loans or otherwise
                      approached or negotiated with respect to the Assigned Loans,
                      or any
                      interest in the Assigned Loans 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 which would constitute a
                      distribution of
                      the Assigned Loans under the Securities Act of 1933, as amended
                      (the “1933
                      Act”)
                      or
                      which would render the disposition of the Assigned Loans a
                      violation of
                      Section 5 of the 1933 Act or require registration pursuant
                      thereto.

                  

          

           

          3.  The
            Assignee warrants and represents to, and covenants with, the Assignor
            and the
            Company as of the date hereof that:

           

          
            	a.  	
                    Assignee
                      is duly organized, validly existing and in good standing under the laws of
                      the jurisdiction of its organization and has all requisite
                      power and
                      authority to hold the Assigned Loans as trustee on behalf of
                      the holders
                      of SACO I Trust, Mortgage-Backed Certificates, Series
                      2007-1;

                  

          

           

          
            	b.  	
                    Assignee
                      has full corporate power and authority to execute, deliver
                      and perform
                      under this AAR Agreement, and to consummate the transactions
                      set forth
                      herein. The consummation of the transactions contemplated by
                      this AAR
                      Agreement is in the ordinary course of Assignee’s business and will not
                      conflict with, or result in a breach of, any of the terms,
                      conditions or
                      provisions of Assignee’s charter or by-laws or any legal restriction, or
                      any material agreement or instrument to which Assignee is now
                      a party or
                      by which it is bound, or result in the violation of any law,
                      rule,
                      regulation, order, judgment or decree to which Assignee or
                      its property is
                      subject. The execution, delivery and performance by Assignee
                      of this AAR
                      Agreement and the consummation by it of the transactions contemplated
                      hereby, have been duly authorized by all necessary corporate
                      action on
                      part of Assignee. This AAR Agreement has been duly executed
                      and delivered
                      by Assignee and, upon the due authorization, execution and
                      delivery by
                      Assignor and the parties hereto, will constitute the valid
                      and legally
                      binding obligation of Assignee enforceable against Assignee
                      in accordance
                      with its terms except as enforceability may be limited by bankruptcy,
                      reorganization, insolvency, moratorium or other similar laws
                      now or
                      hereafter in effect relating to creditors’ rights generally, and by
                      general principles of equity regardless of whether enforceability
                      is
                      considered in a proceeding in equity or at
                      law;

                  

          

           

          
            	c.  	
                    No
                      consent, approval, order or authorization of, or declaration,
                      filing or
                      registration with, any governmental entity is required to be
                      obtained or
                      made by Assignee in connection with the execution, delivery
                      or performance
                      by Assignee of this AAR Agreement, or the consummation by it
                      of the
                      transactions contemplated hereby; and

                  

          

           

          
            	d.  	
                    The
                      Assignee assumes all of the rights of the Owner under the Servicing
                      Agreement with respect to the Assigned Loans other than the
                      right to
                      enforce the obligations of the Servicer under the Servicing
                      Agreement.

                  

          

           

          4.  The
            Company warrants and represents to, and covenants with, Assignee and
            Assignor,
            as of the date hereof, that:

           

          
            	a.  	
                    Attached
                      hereto as Attachment
                      2
                      is
                      a true and correct copy of the Servicing Agreement, which agreement
                      is in
                      full force and effect as of the date hereof and the provisions
                      of which
                      have not been waived, amended or modified in any respect, nor
                      has any
                      notice of termination been given
                      thereunder;

                  

          

           

          
            	b.  	
                    Company
                      is duly organized, validly existing and in good standing under
                      the laws of
                      the jurisdiction of its formation, and has all requisite power
                      and
                      authority to service the Assigned Loans and otherwise to perform
                      its
                      obligations under the Servicing
                      Agreement;

                  

          

           

          
            	c.  	
                    Company
                      has full corporate power and authority to execute, deliver
                      and perform its
                      obligations under this AAR Agreement, and to consummate the
                      transactions
                      set forth herein. The consummation of the transactions contemplated
                      by
                      this AAR Agreement is in the ordinary course of Company’s business and
                      will not conflict with, or result in a breach of, any of the
                      terms,
                      conditions or provisions of Company’s limited liability company agreement
                      or any legal restriction, or any material agreement or instrument
                      to which
                      Company is now a party or by which it is bound, or result in
                      the violation
                      of any law, rule, regulation, order, judgment or decree to
                      which Company
                      or its property is subject. The execution, delivery and performance
                      by
                      Company of this AAR Agreement and the consummation by it of
                      the
                      transactions contemplated hereby, have been duly authorized
                      by all
                      necessary corporate action on part of Company. This AAR Agreement
                      has been
                      duly executed and delivered by Company, and, upon the due authorization,
                      execution and delivery by Assignor and Assignee, will constitute
                      the valid
                      and legally binding obligation of Company, enforceable against
                      Company in
                      accordance with its terms except as enforceability may be limited
                      by
                      bankruptcy, reorganization, insolvency, moratorium or other
                      similar laws
                      now or hereafter in effect relating to creditors’ rights generally, and by
                      general principles of equity regardless of whether enforceability
                      is
                      considered in a proceeding in equity or at
                      law;

                  

          

           

          
            	d.  	
                    No
                      consent, approval, order or authorization of, or declaration,
                      filing or
                      registration with, any governmental entity is required to be
                      obtained or
                      made by Company in connection with the execution, delivery
                      or performance
                      by Company of this AAR Agreement, or the consummation by it
                      of the
                      transactions contemplated hereby; 

                  

          

           

          
            	e.  	
                    Company
                      shall establish a Custodial Account and an Escrow Account under
                      the
                      Servicing Agreement in favor of Assignee with respect to the
                      Assigned
                      Loans separate from the Custodial Account and Escrow Account
                      previously
                      established under the Servicing Agreement in favor of Assignor;
                      

                  

          

           

          
            	f.  	
                    Pursuant
                      to Section 10.02 of the Servicing Agreement, the Company hereby
                      restates
                      the representations and warranties set forth in Article III
                      of the
                      Servicing Agreement with respect to the Company and the Assigned
                      Loans as
                      of the date hereof, provided that Section 3.01(a) is hereby
                      amended by
                      deleting “corporation” and replacing it with “limited liability
                      corporation”; and

                  

          

           

          
            	g.  	
                    Neither
                      this AAR Agreement nor any certification, statement, report
                      or other
                      agreement, document or instrument furnished or to be furnished
                      by the
                      Company pursuant to this AAR Agreement contains or will contain
                      any
                      materially untrue statement of fact or omits or will omit to
                      state a fact
                      necessary to make the statements contained therein not
                      misleading.

                  

          

           

          5.  Company
            warrants and represents to, and covenants with, Assignor and Bear Stearns
            Asset
            Backed Securities I LLC (“BSABS I”) as of the date hereof:

           

          
            	a.  	
                    Company
                      is not aware and has not received notice that any default,
                      early
                      amortization or other performance triggering event has occurred
                      as to any
                      other securitization due to any act or failure to act of the
                      Company;

                  

          

           

          
            	b.  	
                    No
                      material noncompliance with the applicable servicing criteria
                      with respect
                      to other securitizations of residential mortgage loans involving
                      the
                      Company as servicer has been disclosed or reported by the
                      Company;

                  

          

           

          
            	c.  	
                    Company
                      has not been terminated as servicer in a residential mortgage
                      loan
                      securitization, either due to a servicing default or to application
                      of a
                      servicing performance test or
                      trigger;

                  

          

           

          
            	d.  	
                    No
                      material changes to the Company’s policies or procedures with respect to
                      the servicing function it will perform under the Servicing
                      Agreement and
                      this AAR Agreement for mortgage loans of a type similar to
                      the Assigned
                      Loans have occurred during the three-year period immediately
                      preceding the
                      date hereof;

                  

          

           

          
            	e.  	
                    There
                      are no aspects of the Company’s financial condition that could have a
                      material adverse effect on the performance by the Company of
                      its servicing
                      obligations under the Servicing Agreement and this AAR
                      Agreement;

                  

          

           

          
            	f.  	
                    There
                      are no material legal or governmental proceedings pending (or
                      known to be
                      contemplated) against the Company, any Subservicer or any third-party
                      originator; and

                  

          

           

          
            	g.  	
                    There
                      are no affiliations, relationships or transactions relating
                      to the Company
                      or any Subservicer with respect to this Securitization Transaction
                      and any
                      party thereto of a type described in Item 1119 of Regulation
                      AB.

                  

          

           

          Notwithstanding
            anything to the contrary in the Agreement, the Company shall (or shall
            cause any
            Third-Party Originator to) (i) immediately notify Assignor and BSABS
            I in
            writing of (A) legal proceedings pending against the Company, or proceedings
            known to be contemplated by governmental authorities against the Company
            which
            in the judgment of the Company would be, in each case, material to purchasers
            of
            securities backed by the Assigned Loans, (B) any affiliations or relationships
            of the type described in Item 1119(b) of Regulation AB that develop following
            the date hereof between the Company and any of the above listed parties
            or other
            parties identified in writing by the Assignor or BSABS I with respect
            to the
            Securitization Transaction and (ii) provide to the Assignor and BSABS
            I a
            description of such proceedings, affiliations or relationships.

          

          Each
            such
            notice/update should be sent to the Assignor by e-mail to
            regABnotifications@bear.com. Additionally, all such notifications, other
            than
            those pursuant to (i)(A) above, should be sent to:

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-3751

          Email:
            sellerapproval@bear.com

          

          With
            a
            copy to:

          

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New,
            York, NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

          

          Notifications
            pursuant to (i)(A) above should be sent to: 

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Associate General Counsel for Loan Administration

          Facsimile:
            (469) 759-4714

          

          With
            copies to:

          

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New,
            York, NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-3751

          Email:
            sellerapproval@bear.com

          

          6.  Assignor
            hereby agrees to indemnify and hold the Assignee (and its successors
            and
            assigns) harmless against any and all claims, losses, penalties, fines,
            forfeitures, legal fees and related costs, judgments, and any other costs,
            fees
            and expenses that Assignee (and its successors and assigns) may sustain
            in any
            way related to any breach of the representations or warranties of Assignor
            set
            forth in this AAR Agreement or the breach of any covenant or condition
            contained
            herein.

           

          7.  It
            is
            expressly understood and agreed by the parties hereto that insofar as
            this AAR
            Agreement is executed on behalf of the Assignee (i) this AAR Agreement
            is
            executed and delivered by Citibank, N.A., not in its individual capacity
            but
            solely as trustee under the Pooling and Servicing Agreement, dated as
            of
            December 1, 2006 (the “Pooling and Servicing Agreement”), among the Assignor,
            BSABS I, Citibank, N.A., as trustee and Wells Fargo Bank, National Association
            as securities administrator and master servicer, in the exercise of the
            powers
            and authority conferred and vested in it, (ii) each of the representations,
            undertakings and agreements herein made on the part of the Assignee is
            made and
            intended not as representations, warranties, covenants, undertakings
            and
            agreements by Citibank, N.A. in its individual capacity, but is made
            and
            intended for the purpose of binding only the Assignee, (iii) under no
            circumstances shall Citibank, N.A. in its individual capacity be personally
            liable for the payment of any indebtedness or expenses of the Assignee
            or be
            liable for the breach or failure of any obligation, representation, warranty
            or
            covenant made or undertaken by the Assignee under this AAR Agreement
            and (iv)
            any recourse against the Assignee in respect of any obligations it may
            have
            under or pursuant to the terms of this AAR Agreement shall be limited
            solely to
            the assets it may hold as trustee of SACO I Trust, Series 2007-1.

           

          Recognition
            of Assignee

           

          8.  From
            and
            after the date hereof, Company shall recognize Assignee as owner of the
            Assigned
            Loans, and will service the Assigned Loans for Assignee as if Assignee
            and
            Company had entered into a separate servicing agreement for the servicing
            of the
            Assigned Loans in the form of the Servicing Agreement (as modified herein),
            the
            terms of which are incorporated herein by reference. The Company acknowledges
            that the Assigned Loans will be part of a REMIC, and will service the
            Assigned
            Loans in accordance with the Servicing Agreement but in no event in a
            manner
            that would (i) cause any REMIC to fail to qualify as a REMIC or (ii)
            result in
            the imposition of a tax upon any REMIC (including but not limited to
            the tax on
            prohibited transactions as defined in Section 860F(a)(2) of the Code
            and the tax
            on contributions to a REMIC set forth in Section 860G(d) of the Code).
            It is the
            intention of Assignor, Company and Assignee that this AAR Agreement shall
            be
            binding upon and for the benefit of the respective successors and assigns
            of the
            parties hereto. Neither Company nor Assignor shall amend or agree to
            amend,
            modify, waive, or otherwise alter any of the terms or provisions of the
            Servicing Agreement which amendment, modification, waiver or other alteration
            would in any way affect the Assigned Loans without the prior written
            consent of
            Assignee.

           

          9.  The
            Company shall prepare for and deliver to the Assignee, the Master Servicer
            and
            the Securities Administrator, a statement with respect to each Mortgaged
            Property acquired through foreclosure or deed-in-lieu of foreclosure
            in
            connection with a defaulted Assigned Loan (“REO Property”) that has been rented
            showing the aggregate rental income received and all expenses incurred
            in
            connection with the management and maintenance of such REO Property at
            such
            times as is necessary to enable the Assignee (or the securities administrator,
            if any) to comply with the reporting requirements of the REMIC provisions
            of the
            Code. The net monthly rental income, if any, from such REO Property shall
            be
            deposited in the related collection account no later than the close of
            business
            on each determination date. The Company shall perform, or caused to be
            performed, the tax reporting and withholding related to foreclosures,
            abandonments and cancellation of indebtedness income as specified by
            Sections
            1445, 6050J and 6050P of the Code by preparing and filing such tax and
            information returns, as may be required. 

           

          Modification
            of Servicing Agreement

           

          10.  The
            Company and Assignor hereby amend the Servicing Agreement as
            follows:

           

          
            	(a)  	
                    The
                      following definitions are added to Article I of the Servicing
                      Agreement:

                  

          

           

          Assignee:
            Citibank, N.A., as trustee for the holders of SACO I Trust, Mortgage-Backed
            Certificates, Series 2007-1.

           

          Class
            X Certificateholder:
            Any
            holder of a certificate designated as a “Class X Certificate” on the face
            thereof. 

           

          Master
            Servicer:
            Wells
            Fargo Bank, National Association, or its successors in interest who meet
            the
            qualifications of the Pooling and Servicing Agreement and this
            Agreement.

           

          Pooling
            and Servicing Agreement:
            That
            certain pooling and servicing agreement, dated as of December 1, 2006,
            among
            Bear Stearns Asset Backed Securities I LLC, the Trustee, Wells Fargo
            Bank,
            National Association as securities administrator, the Master Servicer
            and the
            Owner.

           

          Prepayment
            Charge:
            Any
            prepayment premium, penalty or charge payable by a Mortgagor in connection
            with
            any Principal Prepayment on a Mortgage Loan pursuant to the terms of
            the related
            Mortgage Note.

           

          Prepayment
            Period:
            As to
            any Remittance Date and each Mortgage Loan, the calendar month prior
            to the
            month in which such Remittance Date occurs.

           

          Subsequent
            Recoveries:
            As of
            any Remittance Date, surplus amounts held by the Servicer to cover estimated
            expenses (including, but not limited to, recoveries in respect of the
            representations and warranties made by the Servicer pursuant to the Purchase
            Agreements, as amended, between the Servicer and the Owner) specifically
            related
            to a Mortgage Loan that was the subject of a liquidation or final disposition
            of
            any REO Property as of the end of the prior calendar month that resulted
            in a
            realized loss. 

           

          Trustee:
            Citibank, N.A., or its successor in interest, or any successor trustee
            appointed
            as provided in the Pooling and Servicing Agreement.

           

          
            	(b)  	
                    The
                      definition of “Business Day” is deleted in its entirety and replaced with
                      the following:

                  

          

           

          Business
            Day:
            Any day
            other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the
            States of
            New York, Illinois, Maryland or Minnesota (iii) a day on which banks
            in the
            States of New York, Illinois, Maryland or Minnesota are authorized or
            obligated
            by law or executive order to be closed.

           

          
            	(c)  	
                    The
                      definition of Qualified Depository is deleted in its entirety
                      and replaced
                      with the following:

                  

          

           

          Qualified
            Depository:
            A
            separate and segregated account established with a depository, the accounts
            of
            which are insured by the FDIC through BIF or the SAIF and the short term
            debt
            ratings of which are rated in the highest rating category by Standard
&
Poor's Rating Services, a division of The McGraw-Hill Companies Inc.,
            Moody's
            Investors Services, Inc., or Fitch, Inc.

           

          
            	(d)  	
                    Section
                      4.04 of the Servicing Agreement is hereby amended by deleting
                      the word
                      “and” from clause (viii) of Section 4.04, deleting the period and
                      adding
                      “;” to the end of clause (ix) of Section 4.04 and inserting the
                      following
                      as clauses (x) and (xi) to Section 4.04 of the Servicing
                      Agreement:

                  

          

           

          (x)
             the
            amount of any Prepayment Charges collected with respect to the Mortgage
            Loans
            and the amount of any Prepayment Charges paid by the Servicer in connection
            with
            the waiver of a Prepayment Charge in a manner that is not permitted under
            this
            Agreement; and

           

          (xi) all
            Subsequent Recoveries with respect to any Mortgage Loan, other than proceeds
            to
            be applied to the restoration or repair of the Mortgage Property or released
            to
            the Mortgagor in accordance with the Servicer’s normal servicing procedures.

           

          
            	(e)  	
                    Section
                      4.05 of the Servicing Agreement is hereby amended by deleting
                      the “;” at
                      the end of clause (viii) of Section 4.05, adding a period at
                      the end of
                      clause (viii) of Section 4.05 and deleting the following in
                      its entirety
                      from Section 4.05 of the Servicing Agreement:

                  

          

           

          provided,
            however, that prior to such reimbursements to the Servicer pursuant to
            this
            Section 4.05, the Servicer shall submit a claim for reimbursement to
            the Owner
            for approval of such reimbursements. The “Process for Submitting Claims” to be
            followed by the Servicer in submitting claims for reimbursement is attached
            hereto as Exhibit J to this Agreement and the “Claims Summary Form” to be
            submitted by the Servicer in submitting claims for reimbursement is attached
            hereto as Exhibit K to this Agreement. 

          

          
            	(f)  	
                    Section
                      5.02 of the Servicing Agreement is hereby amended by deleting
                      the period
                      and adding “;” to the end of clause (xiii) of Section 5.02 and inserting
                      the following clause (xiv) to Section 5.02 of the Servicing
                      Agreement:

                  

          

           

          (viv) each
            Mortgage Loan that has been charged off and released from the trust fund
            pursuant and transferred to the Class X Certificateholder pursuant to
            Section
            5.03 of this Agreement.

          

          
            	(g)  	
                    Section
                      5.03 of the Servicing Agreement is hereby amended by inserting
                      as the
                      second and third pagraphs in the section the following:
                      

                  

          

           

          The
            Servicer shall discontinue making advances with respect to any Mortgage
            Loan
            that becomes 60 days delinquent. In addition, subject to Section 4.03
            of this
            Agreement, the Servicer must charge off a Mortgage Loan at the time such
            Mortgage Loan, as applicable, becomes 180 days delinquent unless the
            Servicer
            reasonably believes that it may be able to obtain a net recovery through
            foreclosure proceedings or other conversion of the related Mortgage Loan.
            Once a
            Mortgage Loan is charged off, the Servicer shall not be entitled to any
            additional Servicing Fee for such Mortgage Loan, except to the extent
            of any
            unpaid Servicing Fees and expenses which shall be reimbursable from any
            recoveries on such Mortgage Loan, and the Mortgage Loan shall be treated
            as a
            liquidated loan giving rise to a realized loss. If the Servicer determines
            that
            a significant net recovery is possible through foreclosure proceedings
            or other
            disposition of the related Mortgage Loan that becomes 60 days delinquent,
            the
            Servicer may continue making advances on such Mortgage Loan.

           

          Unless
            Subsequent Recoveries are anticipated, as applicable, on a particular
            Mortgage
            Loan that is charged off as described in the preceding paragraph, such
            charged
            off Mortgage Loan will be released from the trust fund, and will be transferred
            to the Class X Certificateholder. If
            any
            Subsequent Recoveries are anticipated on such charged off Mortgage Loans,
            the
            release of such Mortgage Loan from the trust fund will be delayed until
            the
            distribution date after receipt of such Subsequent Recoveries. After
            the release
            of any charged off Mortgage Loan, the Class X Certificateholders will
            be
            entitled to any amounts subsequently received in respect of any such
            released
            Mortgage Loans, subject to any fees or expenses owed to the Master Servicer.
            Such Class X Certificateholder may designate any servicer to service
            any such
            released Mortgage Loan and the Class X Certificateholder may sell any
            such
            released Mortgage Loan to a third party. To
            the
            extent the servicing of such released Mortgage Loan is not transferred
            to the
            Servicer, the servicing of such released Mortgage Loan and the fees therefor
            shall be governed by this Agreement. 

           

          
            	(h)  	
                    The
                      following is added as Section 6.11 of the Servicing
                      Agreement:

                  

          

           

          Section
            6.11  No
            Waiver of Prepayment Charges

           

          The Servicer
            may waive the collection of any otherwise applicable Prepayment Charge
            or reduce
            the amount thereof actually collected, but only if: (i) the enforceability
            thereof will have been limited by bankruptcy, insolvency, moratorium,
            receivership and other similar laws relating to creditors’ rights generally,
            (ii) the enforcement thereof is illegal, or any local, state or federal
            agency
            has threatened legal action if the Prepayment Charge is enforced, (iii)
            the
            mortgage debt has been accelerated in connection with a foreclosure or
            other
            involuntary payment or (iv) such waiver is standard and customary in servicing
            similar Mortgage Loans and relates to a default or a reasonably foreseeable
            default and would, in the reasonable judgment of the Servicer, maximize
            recovery
            of total proceeds taking into account the value of such Prepayment Charge
            and
            the related Mortgage Loan.
            If a
            Prepayment Charge is waived, but does not meet the standards described
            above,
            then the Servicer is required to pay the amount of such waived Prepayment
            Charge
            by remitting such amount to the Master Servicer by the Remittance
            Date.

           

          
            	(i)  	
                    Section
                      8.01 of the Servicing Agreement is hereby amended by adding
                      the following
                      paragraph at the end of the
                      section:

                  

          

           

          The
            Servicer shall indemnify and hold harmless each of the Owner, any Depositor
            and
            any Master Servicer and their respective officers, directors and affiliates
            from
            and against any losses, damages, penalties, fines, forfeitures, reasonable
            and
            necessary legal fees and related costs, judgments and other costs and
            expenses
            arising out of or based upon a breach of the obligations of the Servicer
            under
            Sections 6.04, 6.09, 10.02 or 11.16 or the Servicer’s negligence, bad faith or
            willful misconduct in connection therewith. In addition, the Servicer
            shall
            indemnify and hold harmless each of the Owner, any Depositor and any
            Master
            Servicer and their officers, directors and affiliates from and against
            any
            losses, damages, penalties, fines, forfeitures, reasonable and necessary
            legal
            fees and related costs, judgments and other costs and expenses arising
            out of or
            based upon (i) any untrue statement or alleged untrue statement of any
            material
            fact contained in any back-up certification, the Annual Statement of
            Compliance,
            the Assessment of Compliance, any Attestation Report or any other information
            provided by or on behalf of the Servicer or on behalf of any subservicer
            or
            subcontractor of the Servicer pursuant to Sections 6.04, 6.09, 10.02
            or 11.16
            (the “Servicer Information”), or (ii) the omission or alleged omission to state
            therein a material fact required to be stated therein or necessary to
            make the
            statements therein, in light of the circumstances in which they were
            made, not
            misleading.

           

          

          
            	(j)  	
                    Exhibit
                      G of the Servicing Agreement is deleted in its entirety and
                      replaced with
                      the following:

                  

          

           

          EXHIBIT
            G

          

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

          The
            assessment of compliance to be delivered by [the Company] [Name of Subservicer]
            shall address, at a minimum, the criteria identified as below as “Applicable
            Servicing Criteria”:

          

          
            	
                    Servicing
                      Criteria 

                  	
                    Applicable
                      Servicing Criteria

                  
	
                    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

                  
	
                    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

                  
	
                     

                  	
                    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.

                  	
                    x

                  
	
                    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.

                  	
                    x

                  
	
                    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.

                  	
                    x

                  
	
                    1122(d)(4)(vii)

                  	
                    Loss
                      mitigation or recovery actions (e.g., forbearance plans, modifications
                      and
                      deeds in lieu of foreclosure, foreclosures and repossessions,
                      as
                      applicable) are initiated, conducted and concluded in accordance
                      with the
                      timeframes or other requirements established by the transaction
                      agreements.

                  	
                    x

                  
	
                    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).

                  	
                    x

                  
	
                    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.

                  	
                    x

                  
	
                    1122(d)(4)(x)

                  	
                    Regarding
                      any funds held in trust for an obligor (such as escrow accounts):
                      (A) such
                      funds are analyzed, in accordance with the obligor’s 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.

                  	
                    x

                  
	
                    1122(d)(4)(xi)

                  	
                    Payments
                      made on behalf of an obligor (such as tax or insurance payments)
                      are made
                      on or before the related penalty or expiration dates, as indicated
                      on the
                      appropriate bills or notices for such payments, provided that
                      such support
                      has been received by the servicer at least 30 calendar days
                      prior to these
                      dates, or such other number of days specified in the transaction
                      agreements.

                  	
                    x

                  
	
                    1122(d)(4)(xii)

                  	
                    Any
                      late payment penalties in connection with any payment to be
                      made on behalf
                      of an obligor are paid from the servicer’s funds and not charged to the
                      obligor, unless the late payment was due to the obligor’s error or
                      omission.

                  	
                    x

                  
	
                    1122(d)(4)(xiii)

                  	
                    Disbursements
                      made on behalf of an obligor are posted within two business
                      days to the
                      obligor’s records maintained by the servicer, or such other number
                      of days
                      specified in the transaction agreements.

                  	
                    x

                  
	
                    1122(d)(4)(xiv)

                  	
                    Delinquencies,
                      charge-offs and uncollectible accounts are recognized and recorded
                      in
                      accordance with the transaction agreements.

                  	
                    x

                  
	
                    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.

                  	 
	
                     

                  	
                     

                  	
                     

                  

          

          

           

          [NAME
            OF
            COMPANY] [NAME OF SUBSERVICER]

           

          Date: _________________________

          

           

          By: _________________________

          Name:
            

          Title:
            

           

          

          
            	(k)  	
                    Exhibit
                      J of the Servicing Agreement is deleted in its entirety.
                      

                  

          

           

          
            	(l)  	
                    Exhibit
                      K of the Servicing Agreement is deleted in its entirety.
                      

                  

          

           

          Miscellaneous

           

          11.  All
            demands, notices and communications related to the Assigned Loans, the
            Servicing
            Agreement and this AAR Agreement shall be in writing and shall be deemed
            to have
            been duly given if personally delivered at or mailed by registered mail,
            postage
            prepaid, as follows:

           

          
            	a.  	
                    In
                      the case of Company,

                  

          

          GMAC
            Mortgage, LLC

          500
            Enterprise Road

          Horsham,
            Pennsylvania 19044

          Attention:
            Mr. Frank Ruhl

          Telecopier
            No.: (215) 682-3396

           

          
            	b.  	
                    In
                      the case of Assignor,

                  

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            Texas 75067

          Attention:
            President or General Counsel

          Telecopier
            No.: (469) 759-4714

          

          
            	c.  	
                    In
                      the case of Assignee,

                  

          

          Citibank,
            N.A., as Trustee

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          Attention:
            SACO 2007-1

          Telecopier
            No.: (212) 816-5527

          

          12.  The
            Company hereby acknowledges that Wells Fargo Bank, National Association
            (the
“Master Servicer”) has been appointed as the master servicer of the Assigned
            Loans pursuant to the Pooling and Servicing Agreement, dated as of December
            1,
            2006, among the Assignor, the Assignee, BSABS I, Wells Fargo Bank, National
            Association as securities administrator and the Master Servicer, and
            therefor
            has the right to enforce all obligations of the Company, as they relate
            to the
            Assigned Loans, under the Servicing Agreement. Such right will include,
            without
            limitation, the right to terminate the Company under the Servicing Agreement
            upon the occurrence of an event of default thereunder, the right to receive
            all
            remittances required to be made by the Company under the Servicing Agreement,
            the right to receive all monthly reports and other data required to be
            delivered
            by the Company under the Servicing Agreement, the right to examine the
            books and
            records of the Company, indemnification rights, and the right to exercise
            certain rights of consent and approval relating to actions taken by the
            Company.
            The Company shall make all distributions under the Servicing Agreement,
            as they
            relate to the Assigned Loans, to the Master Servicer by wire transfer
            of
            immediately available funds to:

           

          Wells
            Fargo Bank, National Association

          ABA#
            121000248

          Account
            Name: SAS Clearing

          Account
            #
            3970771416

          For
            Further Credit to: SACO 2007-1, Account # 50979100

          

          and
            the
            Company shall deliver all reports required to be delivered under the
            Servicing
            Agreement, as they relate to the Assigned Loans, to the Assignee at the
            address
            set forth in Section 10 herein and to the Master Servicer at:

           

          Wells
            Fargo Bank, National Association.

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attention:
            Client Manager SACO 2007-1 Telecopier No: (410) 715-2380

          

          13.  THIS
            AAR
            AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
            OF NEW
            YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTION
            5-1401
            OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
            AND
            REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
            SUCH
            LAWS.

           

          14.  No
            term
            or provision of this AAR Agreement may be waived or modified unless such
            waiver
            or modification is in writing and signed by the party against whom such
            waiver
            or modification is sought to be enforced.

           

          15.  This
            AAR
            Agreement shall inure to the benefit of the successors and assigns of
            the
            parties hereto. Any entity into which Assignor, Assignee or Company may
            be
            merged or consolidated shall, without the requirement for any further
            writing,
            be deemed Assignor, Assignee or Company, respectively, hereunder.

           

          16.  This
            AAR
            Agreement shall survive the conveyance of the Assigned Loans, the assignment
            of
            the Servicing Agreement to the extent of the Assigned Loans by Assignor
            to
            Assignee and the termination of the Servicing Agreement and the Purchase
            Agreements.

           

          17.  This
            AAR
            Agreement may be executed simultaneously in any number of counterparts.
            Each
            counterpart shall be deemed to be an original and all such counterparts
            shall
            constitute one and the same instrument.

           

          18.  In
            the
            event that any provision of this AAR Agreement conflicts with any provision
            of
            the Servicing Agreement with respect to the Assigned Loans, the terms
            of this
            AAR Agreement shall control.

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, the parties hereto have executed this Agreement on the
            date
            first above written.

           

          

           

          
            	
                     

                    EMC
                      MORTAGE CORPORATION,

                    the
                      Assignor

                  	 	
                     

                    CITIBANK,
                      N.A., not individually but solely as trustee for the holders
                      of SACO I
                      Trust, Mortgage-Backed Certificates, Series 2007-1, the
                      Assignee

                  
	 	 	
                     

                  
	
                    By:
                      ______________________________________

                  	 	
                     

                    By:
                      _____________________________

                  
	
                    Name: 
                      ___________________________________

                    Title: 
                      ____________________________________

                  	 	
                    Name:___________________________

                    Title:
                      ____________________________ 

                  
	 	 	 
	
                    GMAC
                      MORTGAGE, LLC,

                    the
                      Company

                  	 
	 	 
	
                    By:
                      ______________________________________

                  	 
	
                    Name:
                      ____________________________________

                    Title:
                      ____________________________________

                  	 
	 
	 

          

          Acknowledged
            and Agreed

           

          
            	
                    WELLS
                      FARGO BANK, NATIONAL ASSOCIATION

                    the
                      Master Servicer

                  

          

           

          
            	
                    By:
                      ______________________________________

                  
	
                    Name: ___________________________________

                  
	
                    Title: 
                      ____________________________________

                     

                     

                    BEAR
                      STEARNS ASSET BACKED SECURITIES I LLC

                     

                    By:
                      _____________________________________

                    Name: ___________________________________

                    Title: 
                      ___________________________________

                  

          

          

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            1

          

          ASSIGNED
            LOANS

          

          [Provided
            Upon Request]

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            2

          

          SERVICING
            AGREEMENT

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          R-3

        

        FORM
          OF
          HOMEBANC SERVICING AGREEMENT 

         

        

           

          

          

          

          EMC
            MORTGAGE CORPORATION 

          Purchaser,
            

           

          

          HOMEBANC
            MORTGAGE CORPORATION

          Company,

           

          
 

          PURCHASE,
            WARRANTIES AND SERVICING AGREEMENT

          Dated
            as
            of January 1, 2004

          

          

          

          

          

          (Fixed
            and Adjustable Rate Mortgage Loans)

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          TABLE
            OF CONTENTS

          
            	 	 
	
                    ARTICLE
                      I

                  
	 	 
	
                    Section
                      1.01 

                  	
                    Defined
                      Terms

                  
	 	 
	
                    ARTICLE
                      II

                  
	 	 
	
                    Section
                      2.01 

                  	
                    Agreement
                      to Purchase

                  
	
                    Section
                      2.02 

                  	
                    Purchase
                      Price

                  
	
                    Section
                      2.03 

                  	
                    Servicing
                      of Mortgage Loans

                  
	
                    Section
                      2.04 

                  	
                    Record
                      Title and Possession of Mortgage Files; Maintenance of Servicing
                      Files

                  
	
                    Section
                      2.05 

                  	
                    Books
                      and Records

                  
	
                    Section
                      2.06 

                  	
                    Transfer
                      of Mortgage Loans

                  
	
                    Section
                      2.07 

                  	
                    Delivery
                      of Mortgage Loan Documents

                  
	
                    Section
                      2.08 

                  	
                    Quality
                      Control Procedures

                  
	
                    Section
                      2.09 

                  	
                    Near-term
                      Principal Prepayments; Near Term Payment Defaults

                  
	
                    Section
                      2.10 

                  	
                    Modification
                      of Obligations

                  
	 	 
	
                    ARTICLE
                      III

                  
	 	 
	
                    Section
                      3.01 

                  	
                    Representations
                      and Warranties of the Company

                  
	
                    Section
                      3.02 

                  	
                    Representations
                      and Warranties as to Individual Mortgage Loans

                  
	
                    Section
                      3.03 

                  	
                    Repurchase;
                      Substitution

                  
	
                    Section
                      3.04 

                  	
                    Representations
                      and Warranties of the Purchaser

                  
	 	 
	
                    ARTICLE
                      IV

                  
	 	 
	
                    Section
                      4.01 

                  	
                    Company
                      to Act as Servicer

                  
	
                    Section
                      4.02 

                  	
                    Collection
                      of Mortgage Loan Payments

                  
	
                    Section
                      4.03 

                  	
                    Realization
                      Upon Defaulted Mortgage Loans

                  
	
                    Section
                      4.04 

                  	
                    Establishment
                      of Custodial Accounts; Deposits in Custodial Accounts

                  
	
                    Section
                      4.05 

                  	
                    Permitted
                      Withdrawals from the Custodial Account

                  
	
                    Section
                      4.06 

                  	
                    Establishment
                      of Escrow Accounts; Deposits in Escrow Accounts

                  
	
                    Section
                      4.07 

                  	
                    Permitted
                      Withdrawals From Escrow Account

                  
	
                    Section
                      4.08 

                  	
                    Payment
                      of Taxes, Insurance and Other Charges; Maintenance of Primary
                      Mortgage
                      Insurance Policies; Collections Thereunder

                  
	
                    Section
                      4.09 

                  	
                    Transfer
                      of Accounts

                  
	
                    Section
                      4.10 

                  	
                    Maintenance
                      of Hazard Insurance

                  
	
                    Section
                      4.11 

                  	
                    Maintenance
                      of Mortgage Impairment Insurance Policy

                  
	
                    Section
                      4.12 

                  	
                    Fidelity
                      Bond, Errors and Omissions Insurance

                  
	
                    Section
                      4.13 

                  	
                    Title,
                      Management and Disposition of REO Property

                  
	
                    Section
                      4.14 

                  	
                    Notification
                      of Maturity Date

                  
	 	 
	
                    ARTICLE
                      V

                  
	 	 
	
                    Section
                      5.01 

                  	
                    Distributions

                  
	
                    Section
                      5.02 

                  	
                    Statements
                      to the Purchaser

                  
	
                    Section
                      5.03 

                  	
                    Monthly
                      Advances by the Company

                  
	
                    Section
                      5.04 

                  	
                    Liquidation
                      Reports

                  
	 	 
	
                    ARTICLE
                      VI

                  
	 	 
	
                    Section
                      6.01 

                  	
                    Assumption
                      Agreements

                  
	
                    Section
                      6.02 

                  	
                    Satisfaction
                      of Mortgages and Release of Mortgage Files

                  
	
                    Section
                      6.03 

                  	
                    Servicing
                      Compensation

                  
	
                    Section
                      6.04 

                  	
                    Annual
                      Statement as to Compliance

                  
	
                    Section
                      6.05 

                  	
                    Annual
                      Independent Certified Public Accountants’ Servicing
                      Report

                  
	
                    Section
                      6.06 

                  	
                    Purchaser’s
                      Right to Examine Company Records

                  
	
                    Section
                      6.07 

                  	
                    Annual
                      Certification

                  
	 	 
	
                    ARTICLE
                      VII

                  
	 	 
	
                    Section
                      7.01 

                  	
                    Company
                      Shall Provide Information as Reasonably Required

                  
	 	 
	
                    ARTICLE
                      VIII

                  
	 	 
	
                    Section
                      8.01 

                  	
                    Indemnification;
                      Third Party Claims

                  
	
                    Section
                      8.02 

                  	
                    Merger
                      or Consolidation of the Company

                  
	
                    Section
                      8.03 

                  	
                    Limitation
                      on Liability of the Company and Others

                  
	
                    Section
                      8.04 

                  	
                    Company
                      Not to Assign or Resign

                  
	
                    Section
                      8.05 

                  	
                    No
                      Transfer of Servicing

                  
	 	 
	
                    ARTICLE
                      IX

                  
	 	 
	
                    Section
                      9.01 

                  	
                    Events
                      of Default

                  
	
                    Section
                      9.02 

                  	
                    Waiver
                      of Defaults

                  
	 	 
	
                    ARTICLE
                      X

                  
	 	 
	
                    Section
                      10.01 

                  	
                    Termination

                  
	
                    ARTICLE
                      XI

                  
	 	 
	
                    Section
                      11.01 

                  	
                    Successor
                      to the Company

                  
	
                    Section
                      11.02 

                  	
                    Amendment

                  
	
                    Section
                      11.03 

                  	
                    Recordation
                      of Agreement

                  
	
                    Section
                      11.04 

                  	
                    Governing
                      Law

                  
	
                    Section
                      11.05 

                  	
                    Notices

                  
	
                    Section
                      11.06 

                  	
                    Severability
                      of Provisions

                  
	
                    Section
                      11.07 

                  	
                    Exhibits

                  
	
                    Section
                      11.08 

                  	
                    General
                      Interpretive Principles

                  
	
                    Section
                      11.09 

                  	
                    Reproduction
                      of Documents

                  
	
                    Section
                      11.10 

                  	
                    Confidentiality
                      of Information

                  
	
                    Section
                      11.11 

                  	
                    Recordation
                      of Assignment of Mortgage

                  
	
                    Section
                      11.12 

                  	
                    Assignment
                      by Purchaser

                  
	
                    Section
                      11.13 

                  	
                    No
                      Partnership

                  
	
                    Section
                      11.14 

                  	
                    Execution:
                      Successors and Assigns

                  
	
                    Section
                      11.15 

                  	
                    Entire
                      Agreement

                  
	
                    Section
                      11.16 

                  	
                    No
                      Solicitation

                  
	
                    Section
                      11.17 

                  	
                    Closing

                  
	
                    Section
                      11.18 

                  	
                    Cooperation
                      of Company with Reconstitution

                  
	 	 
	 	 
	
                    EXHIBITS

                     

                  
	
                    A
                      

                  	
                    Contents
                      of Mortgage File

                  
	
                    B
                      

                  	
                    Custodial
                      Account Letter Agreement

                  
	
                    C
                      

                  	
                    Escrow
                      Account Letter Agreement

                  
	
                    D
                      

                  	
                    Form
                      of Assignment, Assumption and Recognition Agreement

                  
	
                    E
                      

                  	
                    Form
                      of Trial Balance

                  
	
                    F
                      

                  	
                    [reserved]

                  
	
                    G
                      

                  	
                    Request
                      for Release of Documents and Receipt

                  
	
                    H
                      

                  	
                    Company’s
                      Underwriting Guidelines

                  
	
                    I
                      

                  	
                    Form
                      of Term Sheet

                  

          

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          This
            is a
            Purchase, Warranties and Servicing Agreement, dated as of January 1,
            2004 and is
            executed between EMC MORTGAGE CORPORATION, as Purchaser, with offices
            located at
            Mac Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas
            75038 (the
            "Purchaser"), and HomeBanc Mortgage Corporation, with its executive offices
            located at 2002
            Summit Boulevard, Suite 100, Atlanta, GA 30319 (the "Company").

          

          W I T N E S S E T H
            :

          

          WHEREAS,
            the Purchaser has heretofore agreed to purchase from the Company and
            the Company
            has heretofore agreed to sell to the Purchaser, from time to time, certain
            Mortgage Loans on a servicing retained basis; 

          

          WHEREAS,
            each of the Mortgage Loans is secured by a mortgage, deed of trust or
            other
            security instrument creating a first lien on a residential dwelling located
            in
            the jurisdiction indicated on the Mortgage Loan Schedule, which is annexed
            to
            the related Term Sheet; and

          

          WHEREAS,
            the Purchaser and the Company wish to prescribe the representations and
            warranties of the Company with respect to itself and the Mortgage Loans
            and the
            management, servicing and control of the Mortgage Loans;

          

          NOW,
            THEREFORE, in consideration of the mutual agreements hereinafter set
            forth, and
            for other good and valuable consideration, the receipt and adequacy of
            which is
            hereby acknowledged, the Purchaser and the Company agree as
            follows:

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          ARTICLE
            I

          

          DEFINITIONS

          

          Section
            1.01 Defined
            Terms.

          

          Whenever
            used in this Agreement, the following words and phrases, unless the context
            otherwise requires, shall have the following meaning specified in this
            Article:

          

          Accepted
            Servicing Practices:
            With
            respect to any Mortgage Loan, those mortgage servicing practices (including
            collection procedures) of prudent mortgage banking institutions which
            service
            mortgage loans of the same type as such Mortgage Loan in the jurisdiction
            where
            the related Mortgaged Property is located, and which are in accordance
            with
            Fannie Mae servicing practices and procedures, for MBS pool mortgages,
            as
            defined in the Fannie Mae Guides including future updates. 

          

          Adjustment
            Date:
            As to
            each adjustable rate Mortgage Loan, the date on which the Mortgage Interest
            Rate
            is adjusted in accordance with the terms of the related Mortgage
            Note.

          

          Agreement:
            This
            Purchase, Warranties and Servicing Agreement including all exhibits hereto,
            amendments hereof and supplements hereto.

          

          Appraised
            Value:
            With
            respect to any Mortgaged Property, the value thereof as determined by
            an
            appraisal made for the originator of the Mortgage Loan at the time of
            origination of the Mortgage Loan by an appraiser who met the requirements
            of the
            Company and Fannie Mae, or as determined by use of an AVM, provided,
            however,
            that the use of an AVM shall be permitted only upon the presentation
            by the
            Company to the Purchaser of an approval letter acceptable to the Purchaser
            from
            each of the Rating Agencies, which letters shall state that use of an
            AVM shall
            have no adverse effect in any material respect on the interests of any
            certificateholder of the related securitization.

          

          Assignment:
            An
            individual assignment of the Mortgage, notice of transfer or equivalent
            instrument, in recordable form, sufficient under the laws of the jurisdiction
            wherein the related Mortgaged Property is located to reflect of record
            the sale
            or transfer of the Mortgage Loan.

           

          BIF:
            The
            Bank Insurance Fund, or any successor thereto.

          

          Business
            Day:
            Any day
            other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the
            State of
            New York or Georgia, or (iii) a day on which banks in the State of New
            York or
            Georgia are authorized or obligated by law or executive order to be
            closed.

          

          Closing
            Date:
            With
            respect to any Mortgage Loan, the date stated on the related Term Sheet.
            

           

          Code:  The
            Internal Revenue Code of 1986, or any successor statute thereto.

          

          Company:
            HomeBanc Mortgage Corporation their successors in interest and assigns,
            as
            permitted by this Agreement.

          

          Company's
            Officer's Certificate:
            A
            certificate signed by the Chairman of the Board, President, any Vice
            President
            or Treasurer of Company stating the date by which Company expects to
            receive any
            missing documents sent for recording from the applicable recording
            office.

          

          Condemnation
            Proceeds:
            All
            awards or settlements in respect of a Mortgaged Property, whether permanent
            or
            temporary, partial or entire, by exercise of the power of eminent domain
            or
            condemnation, to the extent not required to be released to a Mortgagor
            in
            accordance with the terms of the related Mortgage Loan Documents.

          

          Confirmation:
            The
            trade confirmation letter between the Purchaser and the Company which
            relates to
            the Mortgage Loans.

          

          Co-op
            Lease:
            With
            respect to a Co-op Loan, the lease with respect to a dwelling unit occupied
            by
            the Mortgagor and relating to the stock allocated to the related dwelling
            unit.

          

          Co-op
            Loan:
            A
            Mortgage Loan secured by the pledge of stock allocated to a dwelling
            unit in a
            residential cooperative housing corporation and a collateral assignment
            of the
            related Co-op Lease.

          

          Current
            Appraised Value: With
            respect to any Mortgaged Property, the value thereof as determined by
            an
            appraisal made for the Company (by an appraiser who met the requirements
            of the
            Company and Fannie Mae), or through the use of an AVM, at the request
            of a
            Mortgagor for the purpose of canceling a Primary Mortgage Insurance Policy
            in
            accordance with federal, state and local laws and regulations or otherwise
            made
            at the request of the Company or Mortgagor. 

          

          Current
            LTV: The
            ratio
            of the Stated Principal Balance of a Mortgage Loan to the Current Appraised
            Value of the Mortgaged Property.

          

          Custodial
            Account:
            Each
            separate demand account or accounts created and maintained pursuant to
            Section
            4.04 which shall be entitled "HBMC Custodial Account, in trust for the
            Purchaser, Owner of Adjustable Rate Mortgage Loans" and shall be established
            in
            an Eligible Account, in the name of the Person that is the "Purchaser"
            with
            respect to the related Mortgage Loans.

           

          Custodian:
            With
            respect to any Mortgage Loan, the entity stated on the related Term Sheet,
            and
            its successors and assigns, as custodian for the Purchaser. 

          

          Cut-off
            Date:
            With
            respect to any Mortgage Loan, the date stated on the related Term Sheet.
            

          

          Determination
            Date:
            The
            15th day (or if such 15th day is not a Business Day, the Business Day
            immediately preceding such 15th day) of the month of the related Remittance
            Date.

          

          Due
            Date:
            The day
            of the month on which the Monthly Payment is due on a Mortgage Loan,
            exclusive
            of any days of grace, which is the first day of the month.

          

          Due
            Period:
            With
            respect to any Remittance Date, the period commencing on the second day
            of the
            month preceding the month of such Remittance Date and ending on the first
            day of
            the month of the Remittance Date.

          

          Eligible
            Account:
            An
            account established and maintained: (i) within FDIC insured accounts
            created,
            maintained and monitored by the Company so that all funds deposited therein
            are
            fully insured, or (ii) as a trust account with the corporate trust department
            of
            a depository institution or trust company organized under the laws of
            the United
            States of America or any one of the states thereof or the District of
            Columbia
            which is not affiliated with the Company (or any sub-servicer) or (iii)
            with an
            entity which is an institution whose deposits are insured by the FDIC,
            the
            unsecured and uncollateralized long-term debt obligations of which shall
            be
            rated “A2” or higher by Standard & Poor’s and “A” or higher by Fitch, Inc.
            or one of the two highest short-term ratings by any applicable Rating
            Agency,
            and which is either (a) a federal savings association duly organized,
            validly
            existing and in good standing under the federal banking laws, (b) an
            institution
            duly organized, validly existing and in good standing under the applicable
            banking laws of any state, (c) a national banking association under the
            federal
            banking laws, or (d) a principal subsidiary of a bank holding company,
            or (iv)
            if ownership of the Mortgage Loans is evidenced by mortgaged-backed securities,
            the equivalent required ratings of each Rating Agency, and held such
            that the
            rights of the Purchaser and the owner of the Mortgage Loans shall be
            fully
            protected against the claims of any creditors of the Company (or any
            sub-servicer) and of any creditors or depositors of the institution in
            which
            such account is maintained or (v) in a separate non-trust account without
            FDIC
            or other insurance in an Eligible Institution. In the event that a Custodial
            Account is established pursuant to clause (iii), (iv) or (v) of the preceding
            sentence, the Company shall provide the Purchaser with written notice
            on the
            Business Day following the date on which the applicable institution fails
            to
            meet the applicable ratings requirements.

          

          Eligible
            Institution:
            An
            institution having (i) the highest short-term debt rating, and one of
            the two
            highest long-term debt ratings of each Rating Agency; or (ii) with respect
            to
            any Custodial Account, an unsecured long-term debt rating of at least
            one of the
            two highest unsecured long-term debt ratings of each Rating Agency.

          

          Equity
            Take-Out Refinanced Mortgage Loan:
            A
            Refinanced Mortgage Loan the proceeds of which were in excess of the
            outstanding
            principal balance of the existing mortgage loan as defined in the Fannie
            Mae
            Guide(s). 

          

          Escrow
            Account:
            Each
            separate trust account or accounts created and maintained pursuant to
            Section
            4.06 which shall be entitled "HBMC Escrow Account, in trust for the Purchaser,
            Owner of Adjustable Rate Mortgage Loans, and various Mortgagors" and
            shall be
            established in an Eligible Account, in the name of the Person that is
            the
            "Purchaser" with respect to the related Mortgage Loans.

          

          Escrow
            Payments:
            With
            respect to any Mortgage Loan, the amounts constituting ground rents,
            taxes,
            assessments, water rates, sewer rents, municipal charges, mortgage insurance
            premiums, fire and hazard insurance premiums, condominium charges, and
            any other
            payments required to be escrowed by the Mortgagor with the mortgagee
            pursuant to
            the Mortgage or any other document.

          

          Event
            of Default:
            Any one
            of the conditions or circumstances enumerated in Section 9.01.

          

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

          

          Fannie
            Mae Guide(s):
            The
            Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
            or additions thereto.

          

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

          

          FHLMC:
            The
            Federal Home Loan Mortgage Corporation, or any successor thereto.

          

          FHLMC
            Guide:
            The
            FHLMC Single Family Seller/Servicer Guide and all amendments or additions
            thereto.

          

          Fidelity
            Bond:
            A
            fidelity bond to be maintained by the Company pursuant to Section
            4.12.

          

          FIRREA:
            The
            Financial Institutions Reform, Recovery, and Enforcement Act of
            1989.

          

          GAAP:
            Generally accepted accounting principles, consistently applied.

          

          HUD:
            The
            United States Department of Housing and Urban Development or any successor
            thereto.

          

          Index:
            With
            respect to any adjustable rate Mortgage Loan, the index identified on
            the
            Mortgage Loan Schedule and set forth in the related Mortgage Note for
            the
            purpose of calculating the interest rate thereon.

          

          Initial
            Rate Cap: As
            to
            each adjustable rate Mortgage Loan, where applicable, the maximum increase
            or
            decrease in the Mortgage Interest Rate on the first Adjustment
            Date.

          

          Insurance
            Proceeds:
            With
            respect to each Mortgage Loan, proceeds of insurance policies insuring
            the
            Mortgage Loan or the related Mortgaged Property.

          

          Interest
            Only Mortgage Loan:
            A
            Mortgage Loan for which an interest-only payment feature is allowed during
            the
            period prior to the first Adjustment Date.

           

          Lender
            Paid Mortgage Insurance Rate:
            The
            Lender Paid Mortgage Insurance Rate shall be a rate per annum equal to
            the
            percentage shown on the Mortgage Loan Schedule.

          

          Lender
            Primary Mortgage Insurance Policy:
            Any
            Primary Mortgage Insurance Policy for which premiums are paid by the
            Company.

          

          Lifetime
            Rate Cap:
            As to
            each adjustable rate Mortgage Loan, the maximum Mortgage Interest Rate
            over the
            term of such Mortgage Loan. 

          

          Liquidation
            Proceeds:
            Cash
            received in connection with the liquidation of a defaulted Mortgage Loan,
            whether through the sale or assignment of such Mortgage Loan, trustee's
            sale,
            foreclosure sale or otherwise.

          

          Loan-to-Value
            Ratio or LTV:
            With
            respect to any Mortgage Loan, the ratio of the original outstanding principal
            amount of the Mortgage Loan, to (i) the Appraised Value of the Mortgaged
            Property as of the Origination Date with respect to a Refinanced Mortgage
            Loan,
            and (ii) the lesser of the Appraised Value of the Mortgaged Property
            as of the
            Origination Date or the purchase price of the Mortgaged Property with
            respect to
            all other Mortgage Loans.

          

          Margin:
            With
            respect to each adjustable rate Mortgage Loan, the fixed percentage amount
            set
            forth in each related Mortgage Note which is added to the Index in order
            to
            determine the related Mortgage Interest Rate, as set forth in the Mortgage
            Loan
            Schedule.

          

          Master
            Servicer:
            Wells
            Fargo Bank Minnesota, National Association, its successors in interest
            and
            assigns, or any successor thereto designated by the Purchaser.

           

          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.

           

          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
            Advance:
            The
            aggregate of the advances made by the Company on any Remittance Date
            pursuant to
            Section 5.03.

          

          Monthly
            Payment:
            The
            scheduled monthly payment of principal and interest on a Mortgage Loan,
            or in
            the case of an Interest Only Mortgage Loan, payments of (i) interest,
            or (ii)
            principal and interest, if applicable, on a Mortgage Loan which is payable
            by a
            Mortgagor under the related Mortgage Note.

          

          Mortgage:
            The
            mortgage, deed of trust or other instrument securing a Mortgage Note
            which
            creates a first lien on an unsubordinated estate in fee simple in real
            property
            securing the Mortgage Note.

          

          Mortgage
            File:
            The
            mortgage documents pertaining to a particular Mortgage Loan which are
            specified
            in Exhibit A hereto and any additional documents required to be added
            to the
            Mortgage File pursuant to this Agreement.

          

          Mortgage
            Impairment Insurance Policy:
            A
            mortgage impairment or blanket hazard insurance policy as required by
            Section
            4.11.

          

          Mortgage
            Interest Rate:
            The
            annual rate at which interest accrues on any Mortgage Loan, which may
            be
            adjusted from time to time for an adjustable rate Mortgage Loan, in accordance
            with the provisions of the related Mortgage Note.

          

          Mortgage
            Loan:
            An
            individual mortgage loan which is the subject of this Agreement, each
            Mortgage
            Loan originally sold and subject to this Agreement being identified on
            the
            Mortgage Loan Schedule attached to the related Term Sheet, which Mortgage
            Loan
            includes without limitation the Mortgage File, the Monthly Payments,
            Principal
            Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
            REO Disposition Proceeds, and all other rights, benefits, proceeds and
            obligations arising from or in connection with such Mortgage Loan, excluding
            replaced or repurchased mortgage loans.

          

          Mortgage
            Loan Documents:
            The
            documents listed in
            Exhibit A.

          

          Mortgage
            Loan Remittance Rate:
            With
            respect to each Mortgage Loan, the annual rate of interest remitted to
            the
            Purchaser, which shall be equal to the Mortgage Interest Rate minus the
            Servicing Fee Rate minus the Lender Paid Mortgage Insurance Rate.

          

          Mortgage
            Loan Schedule:
            The
            schedule of Mortgage Loans annexed to the related Term Sheet, such schedule
            setting forth the following information with respect to each Mortgage
            Loan in
            the related Mortgage Loan Package:

          

          (1) the
            Company's Mortgage Loan identifying number;

          

          (2) the
            Mortgagor's first and last name;

          

          (3)
             the
            street address of the Mortgaged Property including the city, state and
            zip
            code;

          

          (4) a
            code
            indicating whether the Mortgaged Property is owner-occupied, a second
            home or an
            investor property;

          

          (5) the
            type
            of residential property constituting the Mortgaged Property;

          

          	(6)  	
                  the
                    original months to maturity of the Mortgage
                    Loan;

                

          

          (7)  the
            remaining months to maturity from the related Cut-off Date, based on
            the
            original amortization schedule and, if different, the maturity expressed
            in the
            same manner but based on the actual amortization schedule;

          

          (8) the
            Sales
            Price, if applicable, Appraised Value and Loan-to-Value Ratio, at
            origination;

          

          (9) the
            Mortgage Interest Rate as of origination and as of the related Cut-off
            Date;
            with respect to each adjustable rate Mortgage Loan, the initial Adjustment
            Date,
            the next Adjustment Date immediately following the related Cut-off Date,
            the
            Index, the Margin, the Initial Rate Cap, if any, Periodic Rate Cap, if
            any,
            minimum Mortgage Interest Rate under the terms of the Mortgage Note and
            the
            Lifetime Rate Cap;

          

          (10) the
            Origination Date of the Mortgage Loan;

          

          (11) the
            stated maturity date;

          

          (12) the
            amount of the Monthly Payment at origination;

          

          (13) the
            amount of the Monthly Payment as of the related Cut-off Date;

          

          (14) the
            original principal amount of the Mortgage Loan; 

          

          (15) the
            scheduled Stated Principal Balance of the Mortgage Loan as of the close
            of
            business on the related Cut-off Date, after deduction of payments of
            principal
            due on or before the related Cut-off Date whether or not collected;

          

          (16)
            a
            code indicating the purpose of the Mortgage Loan (i.e., purchase, rate
            and term
            refinance, equity take-out refinance); 

          

          (17)
            a
            code indicating the documentation style (i.e. full, alternative, etc.);
            

          

          (18) the
            number of times during the twelve (12) month period preceding the related
            Closing Date that any Monthly Payment has been received after the month
            of its
            scheduled due date;

          

          (19) the
            date
            on which the first payment is or was due; 

          

          	(20)  	
                  a
                    code indicating whether or not the Mortgage Loan is the subject
                    of a
                    Primary Mortgage Insurance Policy and the name of the related
                    insurance
                    carrier; 

                

          

          (21)
             a
            code
            indicating whether or not the Mortgage Loan is currently convertible
            and the
            conversion spread; 

          

          (22)
             the
            last
            Due Date on which a Monthly Payment was actually applied to the unpaid
            principal
            balance of the Mortgage Loan.

          

          (23)
             product
            type (i.e. fixed, adjustable, 3/1, 5/1, etc.); 

          

          	(24)  	
                  credit
                    score and/or mortgage score, if
                    applicable;

                

          

          	(25)  	
                  a
                    code indicating whether or not the Mortgage Loan has a prepayment
                    penalty
                    and if so, the amount and term thereof; 

                

          

          (26)  the
            Current Appraised Value of the Mortgage Loan and Current LTV, if applicable;
            

          

          (27)  a
            code
            indicating whether the Mortgage Loan is a MERS Mortgage Loan and the
            MERS
            number, if applicable;
            and

          

          (28) a
            code
            indicating whether or not the Mortgage Loan is the subject of a Lender
            Primary
            Mortgage Insurance Policy and the name of the related insurance carrier
            and the
            Lender Paid Mortgage Insurance Rate; 

          

          With
            respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule
            attached to the related Term Sheet shall set forth the following information,
            as
            of the related Cut-off Date:

          

          (1) the
            number of Mortgage Loans;

          

          (2) the
            current aggregate outstanding principal balance of the Mortgage
            Loans;

          

          (3) the
            weighted average Mortgage Interest Rate of the Mortgage Loans; 

          

          (4) the
            weighted average maturity of the Mortgage Loans; and

          

          (5)
             the
            weighted average months to next Adjustment Date;

           

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

          

          Mortgaged
            Property:
            The
            underlying real property securing repayment of a Mortgage Note, consisting
            of a
            single parcel of real estate or contiguous parcels of real estate bearing
            one
            legal description and tax assessment number and considered to be real
            estate
            under the laws of the state in which such real property is located which
            may
            include condominium units and planned unit developments, improved by
            a
            residential dwelling; except that with respect to real property located
            in
            jurisdictions in which the use of leasehold estates for residential properties
            is a widely-accepted practice, a leasehold estate of the Mortgage, the
            term of
            which is equal to or longer than the term of the Mortgage. 

          

          Mortgagor:
            The
            obligor on a Mortgage Note. 

          

          Net
            Liquidation Proceeds:
            As to
            any Mortgage Loan, Liquidation Proceeds net of unreimbursed Servicing
            Advances,
            Servicing Fees and Monthly Advances and expenses incurred by the Company
            in
            connection with the liquidation of the Mortgage Loan and the related
            Mortgaged
            Property.

          

          Nonrecoverable
            Advance:
            Any
            advance previously made by the Company pursuant to Section 5.03 or any
            Servicing
            Advance which, in the good faith judgment of the Company, may not be
            ultimately
            recoverable by the Company from Liquidation Proceeds or otherwise. The
            determination by the Company that it has made a Nonrecoverable Advance,
            shall be
            evidenced by an Officer’s Certificate of the Company delivered to the Purchaser
            and the Master Servicer and detailing the reasons for such
            determination.

          

          OCC:
            Office
            of the Comptroller of the Currency, its successors and assigns.

          

          Officers'
            Certificate:
            A
            certificate signed by the Chairman of the Board, the Vice Chairman of
            the Board,
            the President, a Senior Vice President or a Vice President or by the
            Treasurer
            or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
            of
            the Company, and delivered to the Purchaser as required by this
            Agreement.

          

          Opinion
            of Counsel:
            A
            written opinion of counsel, who may be an employee of the party on behalf
            of
            whom the opinion is being given, reasonably acceptable to the
            Purchaser.

          

          Origination
            Date:
            The
            date on which a Mortgage Loan funded, which date shall not, in connection
            with a
            Refinanced Mortgage Loan, be the date of the funding of the debt being
            refinanced, but rather the closing of the debt currently outstanding
            under the
            terms of the Mortgage Loan Documents. 

          

          OTS:
            Office
            of Thrift Supervision, its successors and assigns.

          

          Periodic
            Rate Cap:
            As to
            each adjustable rate Mortgage Loan, the maximum increase or decrease
            in the
            Mortgage Interest Rate on any Adjustment Date, as set forth in the related
            Mortgage Note and the related Mortgage Loan Schedule.

          

          Permitted
            Investments:
            Any one
            or more of the following obligations or securities:

          

          (i) direct
            obligations of, and obligations fully guaranteed by the United States
            of America
            or any agency or instrumentality of the United States of America the
            obligations
            of which are backed by the full faith and credit of the United States
            of
            America; 

          

          
            	 	
                    (ii)
                      (a) demand or time deposits, federal funds or bankers' acceptances
                      issued
                      by any depository institu-tion or trust company 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 banking
                      authorities,
                      provided that the commercial paper and/or the short-term deposit
                      rating
                      and/or the long-term unsecured debt obligations or deposits
                      of such
                      depository institution or trust company at the time of such
                      investment or
                      contractual commitment providing for such investment are rated
                      in one of
                      the two highest rating categories by each Rating Agency and
                      (b) any other
                      demand or time deposit or certificate of deposit that is fully
                      insured by
                      the FDIC;

                  

          

          

          
            	 	
                    (iii)
                      repurchase obligations with a term not to exceed thirty (30)
                      days and with
                      respect to (a) any security described in clause (i) above and
                      entered into
                      with a depository institution or trust company (acting as principal)
                      described in clause (ii)(a) above;

                  

          

          

          
            	 	
                    (iv)
                      securities bearing interest or sold at a discount issued by
                      any
                      corporation incorporated under the laws of the United States
                      of America or
                      any state thereof that are rated in one of the two highest
                      rating
                      categories by each Rating Agency at the time of such in-vestment
                      or
                      contractual commitment providing for such investment; provided,
                      however,
                      that securities issued by any particular corporation will not
                      be Permitted
                      Investments to the extent that investments therein will cause
                      the then
                      outstanding principal amount of secur-ities issued by such
                      corporation and
                      held as Permitted Investments to exceed 10% of the aggregate
                      outstand-ing
                      principal balances of all of the Mortgage Loans and Permitted
                      Investments;

                  

          

          

          
            	 	
                    (v)
                      commercial paper (including both non-interest-bearing discount
                      obligations
                      and interest-bearing obliga-tions payable on demand or on a
                      specified date
                      not more than one year after the date of issuance there-of)
                      which are
                      rated in one of the two highest rating categories by each Rating
                      Agency at
                      the time of such investment;

                  

          

          

          
            	 	
                    (vi)
                      any other demand, money market or time deposit, obligation,
                      security or
                      investment as may be acceptable to each Rating Agency as evidenced
                      in
                      writing by each Rating Agency; and

                  

          

          

          
            	 	
                    (vii)
                      any money market funds the collateral of which consists of
                      obligations
                      fully guaranteed by the United States of America or any agency
                      or
                      instru-ment-al-ity of the United States of America the obligations
                      of
                      which are backed by the full faith and credit of the United
                      States of
                      America (which may include repurchase obligations secured by
                      collateral
                      described in clause (i)) and other securities and which money
                      market funds
                      are rated in one of the two highest rating categories by each
                      Rating
                      Agency. 

                  

          

          

          provided,
            however,
            that no
            instrument or security shall be a Permitted Investment if such instrument
            or
            security evidences a right to receive only interest payments with respect
            to the
            ob-li-ga-tions underlying such instrument or if such security provides
            for
            payment of both principal and interest with a yield to matur-ity in excess
            of
            120% of the yield to maturity at par or if such investment or security
            is
            purchased at a price greater than par.

          

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

          

          Prepayment
            Interest Shortfall:
            With
            respect to any Remittance Date, for each Mortgage Loan that was the subject
            of a
            Principal Prepayment during the related Prepayment Period, an amount
            equal to
            the excess of one month’s interest at the applicable Mortgage Loan Remittance
            Rate on the amount of such Principal Prepayment over the amount of interest
            (adjusted to the Mortgage Loan Remittance Rate) actually paid by the
            related
            Mortgagor with respect to such Prepayment Period.

          

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

          

          Primary
            Mortgage Insurance Policy:
            Each
            primary policy of mortgage insurance represented to be in effect pursuant
            to
            Section 3.02(hh), or any replacement policy therefor obtained by the
            Company
            pursuant to Section 4.08.

          

          Prime
            Rate:
            The
            prime rate announced to be in effect from time to time as published as
            the
            average rate in the Wall Street Journal (Northeast Edition).

          

          Principal
            Prepayment:
            Any
            payment or other recovery of principal on a Mortgage Loan full or partial
            which
            is received in advance of its scheduled Due Date, including any prepayment
            penalty or premium thereon and which is not accompanied by an amount
            of interest
            representing scheduled interest due on any date or dates in any month
            or months
            subsequent to the month of prepayment. 

           

          Purchase
            Price:
            As
            defined in Section 2.02.

          

          Purchaser:
            EMC
            Mortgage Corporation, its successors in interest and assigns.

          

          Qualified
            Appraiser:
            An
            appraiser, duly appointed by the Company, who had no interest, direct
            or
            indirect in the Mortgaged Property or in any loan made on the security
            thereof,
            and whose compensation is not affected by the approval or disapproval
            of the
            Mortgage Loan, and such appraiser and the appraisal made by such appraiser
            both
            satisfy the requirements of Title XI of FIRREA and the regulations promulgated
            thereunder and the requirements of Fannie Mae, all as in effect on the
            date the
            Mortgage Loan was originated.

          

          Qualified
            Insurer:
            An
            insurance company duly qualified as such under the laws of the states
            in which
            the Mortgaged Properties are located, duly authorized and licensed in
            such
            states to transact the applicable insurance business and to write the
            insurance
            provided, approved as an insurer by Fannie Mae or FHLMC. 

          

          Rating
            Agency:
            Standard & Poor's, Fitch, Inc. or, in the event that some or all of the
            ownership of the Mortgage Loans is evidenced by mortgage-backed securities,
            the
            nationally recognized rating agencies issuing ratings with respect to
            such
            securities, if any.

           

          Refinanced
            Mortgage Loan:
            A
            Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
            prior to the origination of such Mortgage Loan and the proceeds of which
            were
            used in whole or part to satisfy an existing mortgage.

          

          REMIC:
            A "real
            estate mortgage investment conduit," as such term is defined in Section
            860D of
            the Code.

          

          REMIC
            Provisions:
            The
            provisions of the federal income tax law relating to REMICs, which appear
            at
            Sections 860A through 860G of the Code, and the related provisions and
            regulations promulgated thereunder, as the foregoing may be in effect
            from time
            to time.

          

          Remittance
            Date:
            The
            18th day of any month, beginning with the First Remittance Date, or if
            such 18th
            day is not a Business Day, the first Business Day immediately preceding
            such
            18th day.

          

          REO
            Disposition:
            The
            final sale by the Company of any REO Property.

          

          REO
            Disposition Proceeds:
            Amounts
            received by the Company in connection with a related REO
            Disposition.

          

          REO
            Property:
            A
            Mortgaged Property acquired by the Company on behalf of the Purchaser
            as
            described in Section 4.13.

          

          Repurchase
            Price:
            With
            respect to any Mortgage Loan, a price equal to (i) the product of the
            greater of
            100% or the percentage of par as stated in the Confirmation multiplied
            by the
            Stated Principal
            Balance
            of such Mortgage Loan on the repurchase date, plus
            (ii)
            interest on such outstanding principal balance at the Mortgage Loan Remittance
            Rate from the last date through which interest has been paid and distributed
            to
            the Purchaser to the end of the month of repurchase, plus, (iii) third
            party
            expenses incurred in connection with the transfer of the Mortgage Loan
            being
            repurchased; less amounts received or advanced in respect of such repurchased
            Mortgage Loan which are being held in the Custodial Account for distribution
            in
            the month of repurchase.

          

          SAIF:
            The
            Savings Association Insurance Fund, or any successor thereto.

          

          Servicing
            Advances:
            All
            customary, reasonable and necessary "out of pocket" costs and expenses
            (including reasonable attorneys' fees and disbursements) incurred in
            the
            performance by the Company of its servicing obligations, including, but
            not
            limited to, the cost of (a) the preservation, restoration and protection
            of the
            Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
            or any legal work or advice specifically related to servicing the Mortgage
            Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
            drug seizures, elections, foreclosures by subordinate or superior lienholders,
            and other legal actions incidental to the servicing of the Mortgage Loans
            (provided that such expenses are reasonable and that the Company specifies
            the
            Mortgage Loan(s) to which such expenses relate and, upon Purchaser’s request,
            provides documentation supporting such expense (which documentation would
            be
            acceptable to Fannie Mae), and provided further that any such enforcement,
            administrative or judicial proceeding does not arise out of a breach
            of any
            representation, warranty or covenant of the Company hereunder), (c) the
            management and liquidation of the Mortgaged Property if the Mortgaged
            Property
            is acquired in full or partial satisfaction of the Mortgage, (d) taxes,
            assessments, water rates, sewer rates and other charges which are or
            may become
            a lien upon the Mortgaged Property, and Primary Mortgage Insurance Policy
            premiums and fire and hazard insurance coverage, (e) any expenses reasonably
            sustained by the Company with respect to the liquidation of the Mortgaged
            Property in accordance with the terms of this Agreement and (f) compliance
            with
            the obligations under Section 4.08. 

          

          Servicing
            Fee:
            With
            respect to each Mortgage Loan, the amount of the annual fee the Purchaser
            shall
            pay to the Company, which shall, for a period of one full month, be equal
            to
            one-twelfth of the product of (a) the Servicing Fee Rate and (b) the
            outstanding
            principal balance of such Mortgage Loan. Such fee shall be payable monthly,
            computed on the basis of the same principal amount and period respecting
            which
            any related interest payment on a Mortgage Loan is computed. The obligation
            of
            the Purchaser to pay the Servicing Fee is limited to, and the Servicing
            Fee is
            payable solely from, the interest portion of such Monthly Payment collected
            by
            the Company, or as otherwise provided under Section 4.05 and in accordance
            with
            the Fannie Mae Guide(s). 

           

          Servicing
            Fee Rate:
            As set
            forth in the Term Sheet.

          

          Servicing
            File:
            With
            respect to each Mortgage Loan, the file retained by the Company, which
            may be in
            electronic media so long as original documents are not required for purposes
            of
            realization of Liquidation Proceeds, REO Disposition Proceeds, Condemnation
            Proceeds or Insurance Proceeds, consisting of all documents in the Mortgage
            File
            which are not delivered to the Purchaser and the Mortgage Loan Documents
            listed
            in Exhibit A, the originals of such Mortgage Loan Documents which are
            delivered
            to the Purchaser or its designee pursuant to Section 2.04.

          

          Servicing
            Officer:
            Any
            officer of the Company involved in, or responsible for, the administration
            and
            servicing of the Mortgage Loans whose name appears on a list of servicing
            officers furnished by the Company to the Purchaser upon request, as such
            list
            may from time to time be amended.

          

          Stated
            Principal Balance:
            As to
            each Mortgage Loan as of any date of determination, (i) the principal
            balance of
            such Mortgage Loan at the Cut-off Date after giving effect to payments
            of
            principal due on or before such date, whether or not received, minus
            (ii) all
            amounts previously distributed to the Purchaser with respect to the Mortgage
            Loan representing payments or recoveries of principal or advances in
            lieu
            thereof.

          

          Subservicer:
            Any
            subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
            Agreement. Any subservicer shall meet the qualifications set forth in
            Section
            4.01.

          

          Subservicing
            Agreement:
            An
            agreement between the Company and a Subservicer, if any, for the servicing
            of
            the Mortgage Loans.

          

          Term
            Sheet:
            A
            supplemental agreement in the form attached hereto as Exhibit I which
            shall be
            executed and delivered by the Company and the Purchaser to provide for
            the sale
            and servicing pursuant to the terms of this Agreement of the Mortgage
            Loans
            listed on Schedule I attached thereto, which supplemental agreement shall
            contain certain specific information relating to such sale of such Mortgage
            Loans and may contain additional covenants relating to such sale of such
            Mortgage Loans.

          

          

          ARTICLE
            II

          

          PURCHASE
            OF MORTGAGE LOANS; SERVICING OF MORTGAGE LOANS;

          RECORD
            TITLE AND POSSESSION OF MORTGAGE FILES;

          BOOKS
            AND RECORDS; CUSTODIAL AGREEMENT;

          DELIVERY
            OF MORTGAGE LOAN DOCUMENTS

          

          Section
            2.01 Agreement
            to Purchase.

          

          The
            Company agrees to sell and the Purchaser agrees to purchase the Mortgage
            Loans
            having an aggregate Stated Principal Balance on the related Cut-off Date
            set
            forth in the related Term Sheet in an amount as set forth in the Confirmation,
            or in such other amount as agreed by the Purchaser and the Company as
            evidenced
            by the actual aggregate Stated Principal Balance of the Mortgage Loans
            accepted
            by the Purchaser on the related Closing Date, with servicing retained
            by the
            Company. The Company shall deliver the related Mortgage Loan Schedule
            attached
            to the related Term Sheet for the Mortgage Loans to be purchased on the
            related
            Closing Date to the Purchaser at least two (2) Business Days prior to
            the
            related Closing Date. The Mortgage Loans shall be sold pursuant to this
            Agreement, and the related Term Sheet shall be executed and delivered
            on the
            related Closing Date.

          

          Section
            2.02 Purchase
            Price.

          

          The
            Purchase Price for each Mortgage Loan shall be the percentage of par
            as stated
            in the Confirmation (subject to adjustment as provided therein), multiplied
            by
            the Stated Principal Balance, as of the related Cut-off Date, of the
            Mortgage
            Loan listed on the related Mortgage Loan Schedule attached to the related
            Term
            Sheet, after application of scheduled payments of principal due on or
            before the
            related Cut-off Date whether or not collected. 

          

          In
            addition to the Purchase Price as described above, the Purchaser shall
            pay to
            the Company, at closing, accrued interest on the Stated Principal Balance
            of
            each Mortgage Loan as of the related Cut-off Date at the Mortgage Loan
            Remittance Rate of each Mortgage Loan from the related Cut-off Date through
            the
            day prior to the related Closing Date, inclusive.

          

          The
            Purchase Price plus accrued interest as set forth in the preceding paragraph
            shall be paid on the related Closing Date by wire transfer of immediately
            available funds.

          

          Purchaser
            shall be entitled to (1) all scheduled principal due after the related
            Cut-off
            Date, (2) all other recoveries of principal collected on or after the
            related
            Cut-off Date (provided, however, that all scheduled payments of principal
            due on
            or before the related Cut-off Date and collected by the Company or any
            successor
            servicer after the related Cut-off Date shall belong to the Company),
            and (3)
            all payments of interest on the Mortgage Loans net of applicable Servicing
            Fees
            (minus that portion of any such payment which is allocable to the period
            prior
            to the related Cut-off Date). The outstanding principal balance of each
            Mortgage
            Loan as of the related Cut-off Date is determined after application of
            payments
            of principal due on or before the related Cut-off Date whether or not
            collected,
            together with any unscheduled principal prepayments collected prior to
            the
            related Cut-off Date; provided, however, that payments of scheduled principal
            and interest prepaid for a Due Date beyond the related Cut-off Date shall
            not be
            applied to the principal balance as of the related Cut-off Date. Such
            prepaid
            amounts shall be the property of the Purchaser. The Company shall deposit
            any
            such prepaid amounts into the Custodial Account, which account is established
            for the benefit of the Purchaser for subsequent remittance by the Company
            to the
            Purchaser.

          

          Section
            2.03 Servicing
            of Mortgage Loans.

          

          Simultaneously
            with the execution and delivery of each Term Sheet, the Company does
            hereby
            agree to directly service the Mortgage Loans listed on the related Mortgage
            Loan
            Schedule attached to the related Term Sheet subject to the terms of this
            Agreement and the related Term Sheet. The rights of the Purchaser to
            receive
            payments with respect to the related Mortgage Loans shall be as set forth
            in
            this Agreement.

          

          Section
            2.04 Record
            Title and Possession of Mortgage Files;
            Maintenance of Servicing Files.

          

          As
            of the
            related Closing Date, the Company sold, transferred, assigned, set over
            and
            conveyed to the Purchaser, without recourse, and the Company hereby acknowledges
            that the Purchaser has, but subject to the terms of this Agreement and
            the
            related Term Sheet, all the right, title and interest of the Company
            in and to
            the Mortgage Loans. Company will deliver the Mortgage Files to the Custodian
            designated by Purchaser, on or before the related Closing Date, at the
            expense
            of the Company. The Company shall maintain a Servicing File, which shall
            contain
            all documents necessary to service the Mortgage Loans. The possession
            of each
            Servicing File by the Company is at the will of the Purchaser, for the
            sole
            purpose of servicing the related Mortgage Loan, and such retention and
            possession by the Company is in a custodial capacity only. From the related
            Closing Date, the ownership of each Mortgage Loan, including the Mortgage
            Note,
            the Mortgage, the contents of the related Mortgage File and all rights,
            benefits, proceeds and obligations arising therefrom or in connection
            therewith,
            has been vested in the Purchaser. All rights arising out of the Mortgage
            Loans
            including, but not limited to, all funds received on or in connection
            with the
            Mortgage Loans and all records or documents with respect to the Mortgage
            Loans
            prepared by or which come into the possession of the Company shall be
            received
            and held by the Company in trust for the benefit of the Purchaser as
            the owner
            of the Mortgage Loans. Any portion of the Mortgage Files retained by
            the Company
            shall be appropriately identified in the Company's computer system to
            clearly
            reflect the ownership of the Mortgage Loans by the Purchaser. The Company
            shall
            release its custody of the contents of the Mortgage Files only in accordance
            with written instructions of the Purchaser, except when such release
            is required
            as incidental to the Company's servicing of the Mortgage Loans or is
            in
            connection with a repurchase of any Mortgage Loan or Loans with respect
            thereto
            pursuant to this Agreement and the related Term Sheet, such written instructions
            shall not be required.

          

          Section
            2.05  Books
            and Records.

          

          The
            sale
            of each Mortgage Loan has been reflected on the Company's balance sheet
            and
            other financial statements as a sale of assets by the Company. The Company
            shall
            be responsible for maintaining, and shall maintain, a complete set of
            books and
            records for the Mortgage Loans that shall be appropriately identified
            in the
            Company's computer system to clearly reflect the ownership of the Mortgage
            Loan
            by the Purchaser. In particular, the Company shall maintain in its possession,
            available for inspection by the Purchaser, or its designee and shall
            deliver to
            the Purchaser upon demand, evidence of compliance with all federal, state
            and
            local laws, rules and regulations, and requirements of Fannie Mae or
            FHLMC, as
            applicable, including but not limited to documentation as to the method
            used in
            determining the applicability of the provisions of the Flood Disaster
            Protection
            Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
            insurance coverage of any condominium project as required by Fannie Mae
            or
            FHLMC, and periodic inspection reports as required by Section 4.13. To
            the
            extent that original documents are not required for purposes of realization
            of
            Liquidation Proceeds or Insurance Proceeds, documents maintained by the
            Company
            may be in the form of microfilm or microfiche.

          

          The
            Company shall maintain with respect to each Mortgage Loan and shall make
            available for inspection by any Purchaser or its designee the related
            Servicing
            File during the time the Purchaser retains ownership of a Mortgage Loan
            and
            thereafter in accordance with applicable laws and regulations.

          

          In
            addition to the foregoing, Company shall provide to any supervisory agents
            or
            examiners that regulate Purchaser, including but not limited to, the
            OTS, the
            FDIC and other similar entities, access, during normal business hours,
            upon
            reasonable advance notice to Company and without charge to Company or
            such
            supervisory agents or examiners, to any documentation regarding the Mortgage
            Loans that may be required by any applicable regulator.

          

          Section
            2.06. Transfer
            of Mortgage Loans.

          

          The
            Company shall keep at its servicing office books and records in which,
            subject
            to such reasonable regulations as it may prescribe, the Company shall
            note
            transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made
            unless
            such transfer is in compliance with the terms hereof. For the purposes
            of this
            Agreement, the Company shall be under no obligation to deal with any
            person with
            respect to this Agreement or any Mortgage Loan unless a notice of the
            transfer
            of such Mortgage Loan has been delivered to the Company in accordance
            with this
            Section 2.06 and the books and records of the Company show such person
            as the
            owner of the Mortgage Loan. The Purchaser may, subject to the terms of
            this
            Agreement, sell and transfer one or more of the Mortgage Loans, provided,
            however, that the transferee will not be deemed to be a Purchaser hereunder
            binding upon the Company unless such transferee shall agree in writing
            to be
            bound by the terms of this Agreement and an original counterpart of the
            instrument of transfer in an Assignment and Assumption of this Agreement
            substantially in the form of Exhibit D hereto executed by the transferee
            shall
            have been delivered to the Company. The Purchaser also shall advise the
            Company
            of the transfer. Upon receipt of notice of the transfer, the Company
            shall mark
            its books and records to reflect the ownership of the Mortgage Loans
            of such
            assignee, and the previous Purchaser shall be released from its obligations
            hereunder with respect to the Mortgage Loans sold or transferred. 

          

          Section
            2.07 Delivery
            of Mortgage Loan Documents.

          

          The
            Company shall deliver and release to the Purchaser or its designee the
            Mortgage
            Loan Documents in accordance with the terms of this Agreement and the
            related
            Term Sheet. The documents enumerated as items (1), (2), (3), (4), (5),
            (6), (7),
            (8), (9) and (16) in Exhibit A hereto shall be delivered by the Company
            to the
            Purchaser or its designee no later than three (3) Business Days prior
            to the
            related Closing Date pursuant to a bailee letter agreement. All other
            documents
            in Exhibit A hereto, together with all other documents executed in connection
            with the Mortgage Loan that Company may have in its possession, shall
            be
            retained by the Company in trust for the Purchaser. If the Company cannot
            deliver the original recorded Mortgage Loan Documents or the original
            policy of
            title insurance, including riders and endorsements thereto, on the related
            Closing Date, the Company shall, promptly upon receipt thereof and in
            any case
            not later than one hundred twenty (120) days from the related Closing
            Date,
            deliver such original documents, including original recorded documents,
            to the
            Purchaser or its designee (unless the Company is delayed in making such
            delivery
            by reason of the fact that such documents shall not have been returned
            by the
            appropriate recording office). If delivery is not completed within one
            hundred
            twenty (120) days solely due to delays in making such delivery by reason
            of the
            fact that such documents shall not have been returned by the appropriate
            recording office, Company shall deliver such document to Purchaser, or
            its
            designee, within such time period as specified in a Company's Officer's
            Certificate. In the event that documents have not been received by the
            date
            specified in the Company's Officer's Certificate, a subsequent Company's
            Officer's Certificate shall be delivered by such date specified in the
            prior
            Company's Officer's Certificate, stating a revised date for receipt of
            documentation. The procedure shall be repeated until the documents have
            been
            received and delivered. If delivery is not completed within one hundred
            eighty
            (180) days solely due to delays in making such delivery by reason of
            the fact
            that such documents shall not have been returned by the appropriate recording
            office, the Company shall continue to use its best efforts to effect
            delivery as
            soon as possible thereafter, provided that if such documents are not
            delivered
            by the 270th day from the date of the related Closing Date, the Company
            shall
            repurchase the related Mortgage Loans at the Repurchase Price in accordance
            with
            Section 3.03 hereof. 

          

          For
            each
            Mortgage Loan that is not a MERS Mortgage Loan, the Company shall pay
            all
            initial recording fees, if any, for the assignments of mortgage and any
            other
            fees in connection with the transfer of all original documents to the
            Purchaser
            or its designee. Company shall prepare, in recordable form, all assignments
            of
            mortgage necessary to assign the Mortgage Loans to Purchaser, or its
            designee.
            Company shall be responsible for recording the assignments of mortgage.
            

          

          In
            addition, in connection with the assignment of any MERS Mortgage Loan,
            the
            Company agrees that it will cause, at its own expense, the MERS® System to
            indicate that such Mortgage Loans have been assigned by the Company to
            the
            Purchaser in accordance with this Agreement by including (or deleting,
            in the
            case of Mortgage Loans which are repurchased in accordance with this
            Agreement)
            in such computer files the information required by the MERS® System to identify
            the Purchaser of such Mortgage Loans. The Company further agrees that
            it will
            not alter the information referenced in this paragraph with respect to
            any
            Mortgage Loan during the term of this Agreement unless and until such
            Mortgage
            Loan is repurchased in accordance with the terms of this Agreement.

          

          Company
            shall provide an original or duplicate original of the title insurance
            policy to
            Purchaser or its designee no later than ninety (90) days of the receipt
            of the
            recorded documents from the applicable recording office. 

          

          Any
            review by the Purchaser, or its designee, of the Mortgage Files shall
            in no way
            alter or reduce the Company's obligations hereunder.

          

          If
            the
            Purchaser or its designee discovers any defect with respect to a Mortgage
            File,
            the Purchaser shall, or shall cause its designee to, give written specification
            of such defect to the Company which may be given in the exception report
            or the
            certification delivered pursuant to this Section 2.07, or otherwise in
            writing
            and the Company shall cure or repurchase such Mortgage Loan in accordance
            with
            Section 3.03.

          

          The
            Company shall forward to the Purchaser, or its designee, original documents
            evidencing an assumption, modification, consolidation or extension of
            any
            Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
            one
            week of their execution; provided, however, that the Company shall provide
            the
            Purchaser, or its designee, with a certified true copy of any such document
            submitted for recordation within one week of its execution, and shall
            provide
            the original of any document submitted for recordation or a copy of such
            document certified to be a true and complete copy of the original within
            sixty
            (60) days of its submission for recordation.

          

          From
            time
            to time the Company may have a need for Mortgage Loan Documents to be
            released
            from Purchaser, or its designee. Purchaser shall, or shall cause its
            designee,
            upon the written request of the Company, within ten (10) Business Days,
            deliver
            to the Company, any requested documentation previously delivered to Purchaser
            as
            part of the Mortgage File, provided that such documentation is promptly
            returned
            to Purchaser, or its designee, when the Company no longer requires possession
            of
            the document, and provided that during the time that any such documentation
            is
            held by the Company, such possession is in trust for the benefit of Purchaser.
            Company shall indemnify Purchaser, and its designee, from and against
            any and
            all losses, claims, damages, penalties, fines, forfeitures, costs and
            expenses
            (including court costs and reasonable attorney's fees) resulting from
            or related
            to the loss, damage, or misplacement of any documentation delivered to
            Company
            pursuant to this paragraph.

          

          Section
            2.08 Quality
            Control Procedures.

          

          The
            Company must have an internal quality control program that verifies,
            on a
            regular basis, the existence and accuracy of the legal documents, credit
            documents, property appraisals, and underwriting decisions. The program
            must be
            capable of evaluating and monitoring the overall quality of its loan
            production
            and servicing activities. The program is to ensure that the Mortgage
            Loans are
            originated and serviced in accordance with prudent mortgage banking practices
            and accounting principles; guard against dishonest, fraudulent, or negligent
            acts; and guard against errors and omissions by officers, employees,
            or other
            authorized persons.

          

          Section
            2.09
            Near-term Principal Prepayments; Near Term Payment Defaults

          

          In
            the
            event any Principal Prepayment in full is made by a Mortgagor on or prior
            to
            three months after the related Closing Date, the Company shall remit
            to the
            Purchaser an amount equal to the excess, if any, of the Purchase Price
            Percentage over par multiplied by the amount of such Principal Prepayment.
            Such
            remittance shall be made by the Company to Purchaser no later than the
            third
            Business Day following receipt of such Principal Prepayment by the Company.
            

          

          In
            the
            event either of the first three (3) scheduled Monthly Payments which
            are due
            under any Mortgage Loan after the related Cut-off Date are not made during
            the
            month in which such Monthly Payments are due, then not later than five
            (5)
            Business Days after notice to the Company by Purchaser (and at Purchaser’s sole
            option), the Company, shall repurchase such Mortgage Loan from the Purchaser
            pursuant to the repurchase provisions contained in this Subsection
            3.03.

          

          

          Section
            2.10  Modification
            of Obligations.
            Purchaser may, without any notice to Company, extend, compromise, renew,
            release, change, modify, adjust or alter, by operation of law or otherwise,
            any
            of the obligations of the Mortgagors or other persons obligated under
            a Mortgage
            Loan without releasing or otherwise affecting the obligations of Company
            under
            this Agreement, or with respect to such Mortgage Loan, except to the
            extent
            Purchaser’s extension, compromise, release, change, modification, adjustment, or
            alteration affects Company’s ability to collect the Mortgage Loan or realize on
            the security of the Mortgage, but then only to the extent such action
            has such
            effect or reduces the Servicing Fee.

          

          

          

          ARTICLE
            III

          

          REPRESENTATIONS
            AND WARRANTIES OF

          THE
            COMPANY; REPURCHASE; REVIEW OF MORTGAGE LOANS

          

          Section
            3.01 Representations
            and Warranties of the Company. 

          

          The
            Company represents, warrants and covenants to the Purchaser that, as
            of the
            related Closing Date or as of such date specifically provided
            herein:

          

          (a) The
            Company is a corporation, duly organized, validly existing and in good
            standing
            under the laws of the State of Delaware and has all licenses necessary
            to carry
            out its business as now being conducted, and is licensed and qualified
            to
            transact business in and is in good standing under the laws of each state
            in
            which any Mortgaged Property is located or is otherwise exempt under
            applicable
            law from such licensing or qualification or is otherwise not required
            under
            applicable law to effect such licensing or qualification and no demand
            for such
            licensing or qualification has been made upon such Company by any such
            state,
            and in any event such Company is in compliance with the laws of any such
            state
            to the extent necessary to ensure the enforceability of each Mortgage
            Loan and
            the servicing of the Mortgage Loans in accordance with the terms of this
            Agreement;

           

          (b)
            The
            Company has the full power and authority and legal right to hold, transfer
            and
            convey each Mortgage Loan, to sell each Mortgage Loan and to execute,
            deliver
            and perform, and to enter into and consummate all transactions contemplated
            by
            this Agreement and the related Term Sheet and to conduct its business
            as
            presently conducted, has duly authorized the execution, delivery and
            performance
            of this Agreement and the related Term Sheet and any agreements contemplated
            hereby, has duly executed and delivered this Agreement and the related
            Term
            Sheet, and any agreements contemplated hereby, and this Agreement and
            the
            related Term Sheet and each Assignment to the Purchaser and any agreements
            contemplated hereby, constitutes a legal, valid and binding obligation
            of the
            Company, enforceable against it in accordance with its terms, and all
            requisite
            corporate action has been taken by the Company to make this Agreement
            and the
            related Term Sheet and all agreements contemplated hereby valid and binding
            upon
            the Company in accordance with their terms; 

          

          (c)
            Neither the execution and delivery of this Agreement and the related
            Term Sheet,
            nor the origination or purchase of the Mortgage Loans by the Company,
            the sale
            of the Mortgage Loans to the Purchaser, the consummation of the transactions
            contemplated hereby, or the fulfillment of or compliance with the terms
            and
            conditions of this Agreement and the related Term Sheet will conflict
            with any
            of the terms, conditions or provisions of the Company's charter or by-laws
            or
            materially conflict with or result in a material breach of any of the
            terms,
            conditions or provisions of any legal restriction or any agreement or
            instrument
            to which the Company is now a party or by which it is bound, or constitute
            a
            default or result in an acceleration under any of the foregoing, or result
            in
            the material violation of any law, rule, regulation, order, judgment
            or decree
            to which the Company or its properties are subject, or impair the ability
            of the
            Purchaser to realize on the Mortgage Loans.

          

          (d)
            There
            is no litigation, suit, proceeding or investigation pending or, to the
            best of
            Company’s knowledge, threatened, or any order or decree outstanding, with
            respect to the Company which, either in any one instance or in the aggregate,
            is
            reasonably likely to have a material adverse effect on the sale of the
            Mortgage
            Loans, the execution, delivery, performance or enforceability of this
            Agreement
            and the related Term Sheet, or which is reasonably likely to have a material
            adverse effect on the financial condition of the Company.

          

          (e)
            No
            consent, approval, authorization or order of any court or governmental
            agency or
            body is required for the execution, delivery and performance by the Company
            of
            or compliance by the Company with this Agreement or the related Term
            Sheet, or
            the sale of the Mortgage Loans and delivery of the Mortgage Files to
            the
            Purchaser or the consummation of the transactions contemplated by this
            Agreement
            or the related Term Sheet, except for consents, approvals, authorizations
            and
            orders which have been obtained;

          

          (f)
            The
            consummation of the transactions contemplated by this Agreement or the
            related
            Term Sheet is in the ordinary course of business of the Company and Company,
            and
            the transfer, assignment and conveyance of the Mortgage Notes and the
            Mortgages
            by the Company pursuant to this Agreement or the related Term Sheet are
            not
            subject to bulk transfer or any similar statutory provisions in effect
            in any
            applicable jurisdiction;

          

          (g)
            The
            origination and servicing practices used by the Company and any prior
            originator
            or servicer with respect to each Mortgage Note and Mortgage have been
            legal and
            in accordance with applicable laws and regulations and the Mortgage Loan
            Documents, and in all material respects proper and prudent in the mortgage
            origination and servicing business. Each Mortgage Loan has been serviced
            in all
            material respects with Accepted Servicing Practices. With respect to
            escrow
            deposits and payments that the Company, on behalf of an investor, is
            entitled to
            collect, all such payments are in the possession of, or under the control
            of,
            the Company, and there exist no deficiencies in connection therewith
            for which
            customary arrangements for repayment thereof have not been made. All
            escrow
            payments have been collected in full compliance with state and federal
            law and
            the provisions of the related Mortgage Note and Mortgage. As to any Mortgage
            Loan that is the subject of an escrow, escrow of funds is not prohibited
            by
            applicable law and has been established in an amount sufficient to pay
            for every
            escrowed item that remains unpaid and has been assessed but is not yet
            due and
            payable. No escrow deposits or other charges or payments due under the
            Mortgage
            Note have been capitalized under any Mortgage or the related Mortgage
            Note;

          

          (h) The
            Company has no knowledge of any circumstances or condition with respect
            to the
            Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit
            standing that could reasonably be expected to cause investors to regard
            the
            Mortgage Loan as an unacceptable investment, cause such Mortgage Loan
            to become
            delinquent or adversely affect the value or the marketability of the
            Mortgage
            Loan. The Company did not select the Mortgage Loans sold to Purchaser
            based on
            any adverse selection of mortgage loans in its portfolio that met Purchaser’s
            purchase parameters for this transaction (as such parameters are set
            forth in
            the Confirmation), including without limitation, the location or condition
            of
            the Mortgaged Property, payment pattern of the borrower or any other
            factor that
            may adversely affect the expected cost of foreclosing, owning or holding
            the
            Mortgage Loans or related Mortgaged Property or collecting the insurance
            or
            guarantee proceeds related thereto; 

          

          (i) The
            Company will treat the sale of the Mortgage Loans to the Purchaser as
            a sale for
            reporting and accounting purposes and, to the extent appropriate, for
            federal
            income tax purposes; 

          

          (j) Company
            is an approved seller/servicer of residential mortgage loans for Fannie
            Mae,
            FHLMC and HUD, with such facilities, procedures and personnel necessary
            for the
            sound servicing of such mortgage loans. The Company is duly qualified,
            licensed,
            registered and otherwise authorized under all applicable federal, state
            and
            local laws, and regulations, if applicable, and is in good standing to
            sell
            mortgage loans to and service mortgage loans for Fannie Mae and FHLMC
            and no
            event has occurred which would make Company unable to comply with eligibility
            requirements or which would require notification to either Fannie Mae
            or FHLMC;

          

          (k) The
            Company does not believe, nor does it have any cause or reason to believe,
            that
            it cannot perform each and every covenant contained in this Agreement
            or the
            related Term Sheet. The Company is solvent and the sale of the Mortgage
            Loans
            will not cause the Company to become insolvent. The sale of the Mortgage
            Loans
            is not undertaken with the intent to hinder, delay or defraud any of
            the
            Company's creditors;

          

          (l) No
            statement, tape, diskette, form, report or other document prepared by,
            or on
            behalf of, Company pursuant to this Agreement or the related Term Sheet
            or in
            connection with the transactions contemplated hereby, contains or will,
            as of
            the date such documentation is delivered by the Company, contain any
            statement
            that is or will be inaccurate or misleading in any material respect;
            

          

          (m)
             The
            Company acknowledges and agrees that the Servicing Fee represents reasonable
            compensation for performing such services and that the entire Servicing
            Fee
            shall be treated by the Company, for accounting and tax purposes, as
            compensation for the servicing and administration of the Mortgage Loans
            pursuant
            to this Agreement. In the opinion of Company, the consideration received
            by
            Company upon the sale of the Mortgage Loans to Purchaser under this Agreement
            and the related Term Sheet constitutes fair consideration for the Mortgage
            Loans
            under current market conditions. 

          

          (n)
             Company
            has delivered to the Purchaser financial statements of its parent, for
            its last
            two complete fiscal years. All such financial information fairly presents
            the
            pertinent results of operations and financial position for the period
            identified
            and has been prepared in accordance with GAAP consistently applied throughout
            the periods involved, except as set forth in the notes thereto. There
            has been
            no change in the business, operations, financial condition, properties
            or assets
            of the Company since the date of the Company’s financial information that would
            have a material adverse effect on its ability to perform its obligations
            under
            this Agreement;

          

          (o)
             The
            Company has not dealt with any broker, investment banker, agent or other
            person
            that may be entitled to any commission or compensation in connection
            with the
            sale of the Mortgage Loans; 

          

          Section
            3.02 Representations
            and Warranties as to Individual
            Mortgage Loans.

          

          References
            in this Section to percentages of Mortgage Loans refer in each case to
            the
            percentage of the aggregate Stated Principal Balance of the Mortgage
            Loans as of
            the related Cut-off Date, based on the outstanding Stated Principal Balances
            of
            the Mortgage Loans as of the related Cut-off Date, and giving effect
            to
            scheduled Monthly Payments due on or prior to the related Cut-off Date,
            whether
            or not received. References to percentages of Mortgaged Properties refer,
            in
            each case, to the percentages of expected aggregate Stated Principal
            Balances of
            the related Mortgage Loans (determined as described in the preceding
            sentence).
            The Company hereby represents and warrants to the Purchaser, as to each
            Mortgage
            Loan, as of the related Closing Date as follows:

          

            
            (a)
The
            information set forth in the Mortgage Loan Schedule attached to the related
            Term
            Sheet is true, complete and correct in all material respects as of the
            related
            Cut-Off Date;

          

          (b) The
            Mortgage creates a valid, subsisting and enforceable first lien or a
            first
            priority ownership interest in an estate in fee simple in real property
            securing
            the related Mortgage Note subject to principles of equity, bankruptcy,
            insolvency and other laws of general application affecting the rights
            of
            creditors;

          

          (c)
            All
            payments due prior to the related Cut-off Date for such Mortgage Loan
            have been
            made as of the related Closing Date; the Mortgage Loan has not been dishonored;
            there are no material defaults under the terms of the Mortgage Loan;
            the Company
            has not advanced its own funds, or induced, solicited or knowingly received
            any
            advance of funds from a party other than the owner of the Mortgaged Property
            subject to the Mortgage, directly or indirectly, for the payment of any
            amount
            required by the Mortgage Loan. As of the related Closing Date, all of
            the
            Mortgage Loans will have an actual Interest Paid to Date of their related
            Cut-off Date(or later) and will be due for the scheduled monthly payment
            next
            succeeding the Cut-off Date (or later), as evidenced by a posting to
            Company's
            servicing collection system. No payment under any Mortgage Loan is delinquent
            as
            of the related Closing Date nor has any scheduled payment been delinquent
            at any
            time during the twelve (12) months prior to the month of the related
            Closing
            Date. For purposes of this paragraph, a Mortgage Loan will be deemed
            delinquent
            if any payment due thereunder was not paid by the Mortgagor in the month
            such
            payment was due;

          

          (d)
             The
            origination and collection practices used by the Company with respect
            to each
            Mortgage Note and Mortgage have been in all respects legal, proper, prudent
            and
            customary in the mortgage origination and servicing industry. The Mortgage
            Loan
            has been serviced by the Company and any predecessor servicer in accordance
            with
            the terms of the Mortgage Note. With respect to escrow deposits and Escrow
            Payments, if any, all such payments are in the possession of, or under
            the
            control of, the Company and there exist no deficiencies in connection
            therewith
            for which customary arrangements for repayment thereof have not been
            made. No
            escrow deposits or Escrow Payments or other charges or payments due the
            Company
            have been capitalized under any Mortgage or the related Mortgage Note
            and no
            such escrow deposits or Escrow Payments are being held by the Company
            for any
            work on a Mortgaged Property which has not been completed;

          

          (e)
            The
            terms of the Mortgage Note and the Mortgage have not been impaired, waived,
            altered or modified in any respect, except by written instruments which
            have
            been recorded to the extent any such recordation is required by law,
            or,
            necessary to protect the interest of the Purchaser. No instrument of
            waiver,
            alteration or modification has been executed except in connection with
            a
            modification agreement and which modification agreement is part of the
            Mortgage
            File and the terms of which are reflected in the related Mortgage Loan
            Schedule,
            and no Mortgagor has been released, in whole or in part, from the terms
            thereof
            except in connection with an assumption agreement and which assumption
            agreement
            is part of the Mortgage File and the terms of which are reflected in
            the related
            Mortgage Loan Schedule; the substance of any such waiver, alteration
            or
            modification has been approved by the issuer of any related Primary Mortgage
            Insurance Policy, Lender Primary Mortgage Insurance Policy and title
            insurance
            policy, to the extent required by the related policies;

          

          (f)
            The
            Mortgage Note and the Mortgage are not subject to any right of rescission,
            set-off, counterclaim or defense, including, without limitation, the
            defense of
            usury, nor will the operation of any of the terms of the Mortgage Note
            or the
            Mortgage, or the exercise of any right thereunder, render the Mortgage
            Note or
            Mortgage unenforceable, in whole or in part, or subject to any right
            of
            rescission, set-off, counterclaim or defense, including the defense of
            usury,
            and no such right of rescission, set-off, counterclaim or defense has
            been
            asserted with respect thereto; and as of the related Closing Date the
            Mortgagor
            was not a debtor in any state or federal bankruptcy or insolvency
            proceeding;

          

          (g)
            All
            buildings or other customarily insured improvements upon the Mortgaged
            Property
            are insured by an insurer acceptable under the Fannie Mae or FHLMC Guides,
            against loss by fire, hazards of extended coverage and such other hazards
            as are
            provided for in the Fannie Mae or FHLMC Guide, as well as all additional
            requirements set forth in Section 4.10 of this Agreement. All such standard
            hazard policies are in full force and effect and contain a standard mortgagee
            clause naming the Company and its successors in interest and assigns
            as loss
            payee and such clause is still in effect and all premiums due thereon
            have been
            paid. If required by the Flood Disaster Protection Act of 1973, as amended,
            the
            Mortgage Loan is covered by a flood insurance policy meeting the requirements
            of
            the current guidelines of the Federal Insurance Administration which
            policy
            conforms to Fannie Mae or FHLMC requirements and was issued by an insurer
            acceptable to Fannie Mae or FHLMC, as well as all additional requirements
            set
            forth in Section 4.10 of this Agreement. The Mortgage obligates the Mortgagor
            thereunder to maintain all such insurance at the Mortgagor's cost and
            expense,
            and on the Mortgagor's failure to do so, authorizes the holder of the
            Mortgage
            to maintain such insurance at the Mortgagor's cost and expense and to
            seek
            reimbursement therefor from the Mortgagor. Neither the Company (nor any
            prior
            originator or servicer of any of the Mortgage Loans) nor any Mortgagor
            has
            engaged in any act or omission which has impaired or would impair the
            coverage
            of any such policy, the benefits of the endorsement provided for herein,
            or the
            validity and binding effect of either;

          

          (h)
            Any
            and all requirements of any federal, state or local law including, without
            limitation, usury, truth-in-lending, real estate settlement procedures,
            consumer
            credit protection, equal credit opportunity or disclosure laws applicable
            to the
            Mortgage Loan have been complied with in all material respects; none
            of the
            Mortgage Loans are classified as a (a) a “high cost” loan under the Home
            Ownership and Equity Protection Act of 1994 or (b) a “high cost”, “threshold”,
            or “predatory” loan under any other applicable state, federal or local law; the
            Company maintains, and shall maintain, evidence of such compliance as
            required
            by applicable law or regulation and shall make such evidence available
            for
            inspection at the Company's office during normal business hours upon
            reasonable
            advance notice;

          

          (i)
            The
            Mortgage has not been satisfied, canceled or subordinated, in whole or
            in part,
            or rescinded, and the Mortgaged Property has not been released from the
            lien of
            the Mortgage, in whole or in part nor has any instrument been executed
            that
            would effect any such release, cancellation, subordination or rescission.
            The
            Company has not waived the performance by the Mortgagor of any action,
            if the
            Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
            in default, nor has the Company waived any default resulting from any
            action or
            inaction by the Mortgagor;

          

          (j) The
            Mortgage is a valid, subsisting, enforceable and perfected first lien
            on the
            Mortgaged Property, including all buildings on the Mortgaged Property
            and all
            installations and mechanical, electrical, plumbing, heating and air conditioning
            systems affixed to such buildings, and all additions, alterations and
            replacements made at any time with respect to the foregoing securing
            the
            Mortgage Note's original principal balance subject to principles of equity,
            bankruptcy, insolvency and other laws of general application affecting
            the
            rights of creditors. The Mortgage and the Mortgage Note do not contain
            any
            evidence of any security interest or other interest or right thereto.
            Such lien
            is free and clear of all adverse claims, liens and encumbrances having
            priority
            over the first lien of the Mortgage subject only to (1) the lien of
            non-delinquent current real property taxes and assessments not yet due
            and
            payable, (2) covenants, conditions and restrictions, rights of way, easements
            and other matters of the public record as of the date of recording which
            are
            acceptable to mortgage lending institutions generally and either (A)
            which are
            referred to in the lender’s title insurance policy delivered to the originator
            or otherwise considered in the appraisal made for the originator of the
            Mortgage
            Loan, or (B) which do not adversely affect the residential use or Appraised
            Value of the Mortgaged Property as set forth in such appraisal, and (3)
            other
            matters to which like properties are commonly subject which do not individually
            or in the aggregate materially interfere with the benefits of the security
            intended to be provided by the Mortgage or the use, enjoyment, value
            or
            marketability of the related Mortgaged Property. Any security agreement,
            chattel
            mortgage or equivalent document related to and delivered in connection
            with the
            Mortgage Loan establishes and creates a valid, subsisting, enforceable
            and
            perfected first lien and first priority security interest on the property
            described therein, and the Company has the full right to sell and assign
            the
            same to the Purchaser;

          

          (k)
            The Mortgage Note and the related
            Mortgage are original and genuine and each is the legal, valid and binding
            obligation of the maker thereof, enforceable in all respects in accordance
            with
            its terms subject to principles of equity, bankruptcy, insolvency and
            other laws
            of general application affecting the rights of creditors, and the Company
            has
            taken all action necessary to transfer such rights of enforceability
            to the
            Purchaser. All parties to the Mortgage Note and the Mortgage had the
            legal
            capacity to enter into the Mortgage Loan and to execute and deliver the
            Mortgage
            Note and the Mortgage. The Mortgage Loan Documents are on forms acceptable
            to
            Fannie Mae and FHLMC. The Mortgage Note and the Mortgage have been duly
            and
            properly executed by such parties. No fraud, error, omission, misrepresentation,
            negligence or similar occurrence with respect to a Mortgage Loan has
            taken place
            on the part of Company or the Mortgagor, or, to the best of Company’s knowledge,
            information and belief, and after due inquiry, on the part of any other
            party
            involved in the origination or servicing of the Mortgage Loan. The proceeds
            of
            the Mortgage Loan have been fully disbursed and there is no requirement
            for
            future advances thereunder, and any and all requirements as to completion
            of any
            on-site or off-site improvements and as to disbursements of any escrow
            funds
            therefor have been complied with. All costs, fees and expenses incurred
            in
            making or closing the Mortgage Loan and the recording of the Mortgage
            were paid,
            and the Mortgagor is not entitled to any refund of any amounts paid or
            due under
            the Mortgage Note or Mortgage;

          

          (l)
            The
            Company is the sole owner and holder of the Mortgage Loan and the indebtedness
            evidenced by the Mortgage Note. Upon the sale of the Mortgage Loan to
            the
            Purchaser, the Company will retain the Mortgage File or any part thereof
            with
            respect thereto not delivered to the Purchaser or the Purchaser’s designee in
            trust only for the purpose of servicing and supervising the servicing
            of the
            Mortgage Loan. Immediately prior to the transfer and assignment to the
            Purchaser, the Mortgage Loan, including the Mortgage Note and the Mortgage,
            were
            not subject to an assignment, sale or pledge to any person other than
            Purchaser,
            and the Company had good and marketable title to and was the sole owner
            thereof
            and had full right to transfer and sell the Mortgage Loan to the Purchaser
            free
            and clear of any encumbrance, equity, lien, pledge, charge, claim or
            security
            interest and has the full right and authority subject to no interest
            or
            participation of, or agreement with, any other party, to sell and assign
            the
            Mortgage Loan pursuant to this Agreement and following the sale of the
            Mortgage
            Loan, the Purchaser will own such Mortgage Loan free and clear of any
            encumbrance, equity, participation interest, lien, pledge, charge, claim
            or
            security interest. The Company intends to relinquish all rights to possess,
            control and monitor the Mortgage Loan, except for the purposes of servicing
            the
            Mortgage Loan as set forth in this Agreement. After the related Closing
            Date,
            the Company will not have any right to modify or alter the terms of the
            sale of
            the Mortgage Loan and the Company will not have any obligation or right
            to
            repurchase the Mortgage Loan or substitute another Mortgage Loan, except
            as
            provided in this Agreement, or as otherwise agreed to by the Company
            and the
            Purchaser;

          

          (m)
            Each
            Mortgage Loan is covered by an ALTA lender's title insurance policy or
            other
            generally acceptable form of policy or insurance acceptable to Fannie
            Mae or
            FHLMC (including adjustable rate endorsements), issued by a title insurer
            acceptable to Fannie Mae or FHLMC and qualified to do business in the
            jurisdiction where the Mortgaged Property is located, insuring (subject
            to the
            exceptions contained in (j)(1), (2) and (3) above) the Company, its successors
            and assigns, as to the first priority lien of the Mortgage in the original
            principal amount of the Mortgage Loan and against any loss by reason
            of the
            invalidity or unenforceability of the lien resulting from the provisions
            of the
            Mortgage providing for adjustment in the Mortgage Interest Rate and Monthly
            Payment. Where required by state law or regulation, the Mortgagor has
            been given
            the opportunity to choose the carrier of the required mortgage title
            insurance.
            The Company, its successors and assigns, is the sole insured of such
            lender's
            title insurance policy, such title insurance policy has been duly and
            validly
            endorsed to the Purchaser or the assignment to the Purchaser of the Company's
            interest therein does not require the consent of or notification to the insurer
            and such lender's title insurance policy is in full force and effect
            and will be
            in full force and effect upon the consummation of the transactions contemplated
            by this Agreement. No claims have been made under such lender's title
            insurance
            policy, and no prior holder or servicer of the related Mortgage, including
            the
            Company, nor any Mortgagor, has done, by act or omission, anything which
            would
            impair the coverage of such lender's title insurance policy;

          

          (n)
            There
            is no default, breach, violation or event of acceleration existing under
            the
            Mortgage or the related Mortgage Note and no event which, with the passage
            of
            time or with notice and the expiration of any grace or cure period, and
            to the
            knowledge of the Company, would constitute a default, breach, violation
            or event
            permitting acceleration; and neither the Company, nor any prior mortgagee
            has
            waived any default, breach, violation or event permitting
            acceleration;

          

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

          

          (p)
            All
            improvements subject to the Mortgage which were considered in determining
            the
            Appraised Value of the Mortgaged Property lie wholly within the boundaries
            and
            building restriction lines of the Mortgaged Property (and wholly within
            the
            project with respect to a condominium unit) and no improvements on adjoining
            properties encroach upon the Mortgaged Property except those which are
            insured
            against by the title insurance policy referred to in clause (m) above
            and all
            improvements on the property comply with all applicable zoning and subdivision
            laws and ordinances;

          

          (q)
            Each
            Mortgage Loan was originated by or for the Company pursuant to, and conforms
            with, the Company’s underwriting guidelines attached as Exhibit H hereto. The
            Mortgage Loan bears interest at an adjustable rate (if applicable) as
            set forth
            in the related Mortgage Loan Schedule, and Monthly Payments under the
            Mortgage
            Note are due and payable on the first day of each month. The Mortgage
            contains
            the usual and enforceable provisions of the Company at the time of origination
            for the acceleration of the payment of the unpaid principal amount of
            the
            Mortgage Loan if the related Mortgaged Property is sold without the prior
            consent of the mortgagee thereunder;

          

          (r)
            The
            Mortgaged Property is not subject to any material damage. At origination
            of the
            Mortgage Loan there was not, since origination of the Mortgage Loan there
            has
            not been, and there currently is no proceeding pending for the total
            or partial
            condemnation of the Mortgaged Property. The Company has not received
            notification that any such proceedings are scheduled to commence at a
            future
            date;

          

          (s)
            The
            related Mortgage contains customary and enforceable provisions such as
            to render
            the rights and remedies of the holder thereof adequate for the realization
            against the Mortgaged Property of the benefits of the security provided
            thereby,
            including, (1) in the case of a Mortgage designated as a deed of trust,
            by
            trustee's sale, and (2) otherwise by judicial foreclosure. There is no
            homestead
            or other exemption available to the Mortgagor which would interfere with
            the
            right to sell the Mortgaged Property at a trustee's sale or the right
            to
            foreclose the Mortgage;

          

          (t)
            If
            the Mortgage constitutes a deed of trust, a trustee, authorized and duly
            qualified if required under applicable law to act as such, has been properly
            designated and currently so serves and is named in the Mortgage, and
            no fees or
            expenses, except as may be required by local law, are or will become
            payable by
            the Purchaser to the trustee under the deed of trust, except in connection
            with
            a trustee's sale or attempted sale after default by the Mortgagor;

          

          (u)
            The
            Mortgage File contains an appraisal, if required, of the related Mortgaged
            Property signed prior to the final approval of the mortgage loan application
            by
            a Qualified Appraiser, approved by the Company, who had no interest,
            direct or
            indirect, in the Mortgaged Property or in any loan made on the security
            thereof,
            and whose compensation is not affected by the approval or disapproval
            of the
            Mortgage Loan, and the appraisal and appraiser both satisfy the requirements
            of
            Fannie Mae or FHLMC and Title XI of the Federal Institutions Reform,
            Recovery,
            and Enforcement Act of 1989 and the regulations promulgated thereunder,
            all as
            in effect on the date the Mortgage Loan was originated. The appraisal
            is in a
            form acceptable to Fannie Mae or FHLMC;

          

          (v)
            All
            parties which have had any interest in the Mortgage, whether as mortgagee,
            assignee, pledgee or otherwise, are (or, during the period in which they
            held
            and disposed of such interest, were) (A) in compliance with any and all
            applicable licensing requirements of the laws of the state wherein the
            Mortgaged
            Property is located, and (B) (1) organized under the laws of such state,
            or (2)
            qualified to do business in such state, or (3) federal savings and loan
            associations or national banks or a Federal Home Loan Bank or savings
            bank
            having principal offices in such state, or (4) not doing business in
            such
            state;

          

          (w)
            The
            related Mortgage Note is not and has not been secured by any collateral
            except
            the lien of the corresponding Mortgage and the security interest of any
            applicable security agreement or chattel mortgage referred to above and
            such
            collateral does not serve as security for any other obligation;

          

          (x)
            The
            Mortgagor has received and has executed, where applicable, all disclosure
            materials required by applicable law with respect to the making of such
            mortgage
            loans;

          

          (y)
            The
            Mortgage Loan does not contain balloon or "graduated payment" features;
            No
            Mortgage Loan is subject to a buydown agreement or contains any buydown
            provision;

          

          (z)
            The
            Mortgagor is not in bankruptcy and, the Mortgagor is not insolvent and
            the
            Company has no knowledge of any circumstances or conditions with respect
            to the
            Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor's credit
            standing that could reasonably be expected to cause investors to regard
            the
            Mortgage Loan as an unacceptable investment, cause the Mortgage Loan
            to become
            delinquent, or materially adversely affect the value or marketability
            of the
            Mortgage Loan;

          

          (aa)
            Each
            Mortgage Loan bears interest based upon a thirty (30) day month and a
            three
            hundred and sixty (360) day year. The Mortgage Loans have an original
            term to
            maturity of not more than thirty (30) years, with interest payable in
            arrears on
            the first day of each month. As to each adjustable rate Mortgage Loan,
            on each
            applicable Adjustment Date, the Mortgage Interest Rate will be adjusted
            to equal
            the sum of the Index, plus the applicable Margin; provided, that the
            Mortgage
            Interest Rate, on each applicable Adjustment Date, will not increase
            by more
            than the Initial Rate Cap or Periodic Rate Cap, as applicable. Over the
            term of
            each adjustable rate Mortgage Loan, the Mortgage Interest Rate will not
            exceed
            such Mortgage Loan's Lifetime Rate Cap. Each
            Mortgage Note requires a monthly payment which is sufficient, during
            the period
            prior to the first adjustment to the Mortgage Interest Rate, to fully
            amortize
            the outstanding principal balance as of the first day of such period
            over the
            then remaining term of such Mortgage Note and to pay interest at the
            related
            Mortgage Interest Rate; provided however, with respect to any Interest
            Only
            Mortgage Loans, the Mortgage Note allows a Monthly Payment of interest
            only
            during the first 10 years from origination, and after the first 10 years
            from
            origination, the Mortgage Note requires a Monthly Payment of principal
            and
            interest, sufficient to fully amortize the outstanding principal balance
            over
            the then remaining term of such Mortgage Loan.. As to each Mortgage Loan,
            if the
            related Mortgage Interest Rate changes on an adjustment date, the then
            outstanding principal balance will be reamortized over the remaining
            life of
            such Mortgage Loan. No Mortgage Loan contains terms or provisions which
            would
            result in negative amortization. None of the Mortgage Loans contain a
            conversion
            feature which would cause the Mortgage Loan interest rate to convert
            to a fixed
            interest rate. None of the Mortgage Loans are considered agricultural
            loans;

          

          (bb)
            (INTENTIONALLY LEFT BLANK)

          

          (cc)
            (INTENTIONALLY LEFT BLANK)

          

          (dd)
            (INTENTIONALLY LEFT BLANK)

           

          (ee)
            (INTENTIONALLY LEFT BLANK) 

          

          (ff)
            (INTENTIONALLY LEFT BLANK)

          

          (gg)
            (INTENTIONALLY LEFT BLANK)

          

          (hh) In
            the
            event the Mortgage Loan had an LTV at origination greater than 80.00%,
            the
            excess of the principal balance of the Mortgage Loan over 75.0% of the
            Appraised
            Value of the Mortgaged Property with respect to a Refinanced Mortgage
            Loan, or
            the lesser of the Appraised Value or the purchase price of the Mortgaged
            Property with respect to a purchase money Mortgage Loan was insured as
            to
            payment defaults by a Primary Mortgage Insurance Policy issued by a Qualified
            Insurer. No Mortgage Loan has an LTV over 95%. All provisions of such
            Primary
            Mortgage Insurance Policy have been and are being complied with, such
            policy is
            in full force and effect, and all premiums due thereunder have been paid.
            No
            Mortgage Loan requires payment of such premiums, in whole or in part,
            by the
            Purchaser. No action, inaction, or event has occurred and no state of
            facts
            known to the Company exists that has, or will result in the exclusion
            from,
            denial of, or defense to coverage. Any Mortgage Loan subject to a Primary
            Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain
            the
            Primary Mortgage Insurance Policy, subject to state and federal law,
            and to pay
            all premiums and charges in connection therewith. No action has been
            taken or
            failed to be taken, on or prior to the Closing Date which has resulted
            or will
            result in an exclusion from, denial of, or defense to coverage under
            any Primary
            Mortgage Insurance Policy (including, without limitation, any exclusions,
            denials or defenses which would limit or reduce the availability of the
            timely
            payment of the full amount of the loss otherwise due thereunder to the
            insured)
            whether arising out of actions, representations, errors, omissions, negligence,
            or fraud of the Company or the Mortgagor, or for any other reason under
            such
            coverage. The mortgage interest rate for the Mortgage Loan as set forth
            on the
            related Mortgage Loan Schedule is net of any such insurance premium.
            Any
            Mortgage Loan subject to a Lender Primary Mortgage Insurance Policy obligates
            the Company to maintain the Lender Primary Insurance Policy and to pay
            all
            premiums and charges in connection therewith;

          

          (ii) The
            Assignment is in recordable form and is acceptable for recording under
            the laws
            of the jurisdiction in which the Mortgaged Property is located;

          

          (jj) Unless
            otherwise indicated on the Mortgage Loan Schedule, none of the Mortgage
            Loans
            are secured by an interest in a leasehold estate. The Mortgaged Property
            is
            located in the state identified in the related Mortgage Loan Schedule
            and
            consists of a single parcel of real property or contiguous parcels bearing
            one
            legal description and tax assessment number with a detached single family
            residence erected thereon, or a townhouse, or a two-to-four family dwelling,
            or
            an individual condominium unit in a condominium project, or an individual
            unit
            in a planned unit development or a de minimis planned unit development,
            provided, however, that no residence or dwelling is a single parcel of
            real
            property with a manufactured home not affixed to a permanent foundation,
            or a
            mobile home. Any
            condominium unit or planned unit development conforms with the Company’s
            underwriting guidelines. As
            of the
            date of origination, no portion of any Mortgaged Property is used for
            commercial
            purposes, and since the Origination Date to the best of the Company’s knowledge,
            no portion of any Mortgaged Property has been, or currently is, used
            for
            commercial purposes;

          

          (kk) Monthly
            Payments on the Mortgage Loan commenced no more than sixty (60) days
            after the
            funds were disbursed in connection with the Mortgage Loan. The Mortgage
            Note is
            payable on the first day of each month in monthly installments of principal,
            if
            applicable, and interest, which installments are subject to change due
            to the
            adjustments to the Mortgage Interest Rate on each Adjustment Date, with
            interest
            calculated and payable in arrears;

          

          (ll) As
            of the
            Closing Date of the Mortgage Loan, the Mortgage Property was lawfully
            occupied
            under applicable law, and all inspections, licenses and certificates
            required to
            be made or issued with respect to all occupied portions of the Mortgaged
            Property and, with respect to the use and occupancy of the same, including
            but
            not limited to certificates of occupancy and fire underwriting certificates,
            have been made or obtained from the appropriate authorities;

          

          (mm) There
            is
            no pending action or proceeding directly involving the Mortgaged Property
            in
            which compliance with any environmental law, rule or regulation is an
            issue;
            there is no violation of any environmental law, rule or regulation with
            respect
            to the Mortgaged Property; and the Company has not received any notice
            of any
            environmental hazard on the Mortgaged Property and nothing further remains
            to be
            done to satisfy in full all requirements of each such law, rule or regulation
            constituting a prerequisite to use and enjoyment of said property; 

          

          (nn) The
            Mortgagor has not notified the Company, and the Company has no knowledge
            of any
            relief requested or allowed to the Mortgagor under the Soldiers' and
            Sailors'
            Civil Relief Act of 1940;

          

          (oo)
             No
            Mortgage Loan is a construction or rehabilitation Mortgage Loan or was
            made to
            facilitate the trade-in or exchange of a Mortgaged Property;

          

          (pp) The
            Mortgagor for each Mortgage Loan is a natural person or an Illinois land
            trust
            or an inter vivos revocable trust acceptable to Fannie Mae and/or Freddie
            Mac;

          

          (qq) None
            of
            the Mortgage Loans are Co-op Loans; 

          

          (rr)
             With
            respect to each Mortgage Loan that has a prepayment penalty feature,
            each such
            prepayment penalty is enforceable and will be enforced by the Company
            and each
            prepayment penalty is permitted pursuant to federal, state and local
            law. No
            Mortgage Loan will impose a prepayment penalty for a term in excess of
            five
            years from the date such Mortgage Loan was originated. Except as otherwise
            set
            forth on the Mortgage Loan Schedule, with respect to each Mortgage Loan
            that
            contains a prepayment penalty, such prepayment penalty is at least equal
            to the
            lesser of (A) the maximum amount permitted under applicable law and (B)
            six
            months interest at the related Mortgage Interest Rate on the amount prepaid
            in
            excess of 20% of the original principal balance of such Mortgage
            Loan;

          

          (ss)
             With
            respect to each Mortgage Loan either (i) the fair market value of the
            Mortgaged
            Property securing such Mortgage Loan was at least equal to 80 percent
            of the
            original principal balance of such Mortgage Loan at the time such Mortgage
            Loan
            was originated or (ii) (a) the Mortgage Loan is only secured by the Mortgage
            Property and (b) substantially all of the proceeds of such Mortgage Loan
            were
            used to acquire or to improve or protect the Mortgage Property. For the
            purposes
            of the preceding sentence, if the Mortgage Loan has been significantly
            modified
            other than as a result of a default or a reasonable foreseeable default,
            the
            modified Mortgage Loan will be viewed as having been originated on the
            date of
            the modification;

          

          (tt)
            The
            Mortgage Loan was originated by a mortgagee approved by the Secretary
            of Housing
            and Urban Development pursuant to sections 203 and 211 of the National
            Housing
            Act, a savings and loan association, a savings bank, a commercial bank,
            credit
            union, insurance company or similar institution which is supervised and
            examined
            by a federal or state authority; 

          

          (uu)
            None
            of the Mortgage Loans are simple interest Mortgage Loans and none of
            the
            Mortgaged Properties are timeshares; 

          

          (vv)
            All
            of the terms of the Mortgage pertaining to interest rate adjustments,
            payment
            adjustments and adjustments of the outstanding principal balance are
            enforceable, all such adjustments have been properly made, including
            the mailing
            of required notices, and such adjustments do not and will not affect
            the
            priority of the Mortgage lien. With respect to each Mortgage Loan which
            has
            passed its initial Adjustment Date, Company has performed an audit of
            the
            Mortgage Loan to determine whether all interest rate adjustments have
            been made
            in accordance with the terms of the Mortgage Note and Mortgage; and

          

          (ww)
            Each
            Mortgage Note, each Mortgage, each Assignment and any other documents
            required
            pursuant to this Agreement to be delivered to the Purchaser or its designee,
            or
            its assignee for each Mortgage Loan, have been, on or before the related
            Closing
            Date, delivered to the Purchaser or its designee, or its assignee.

          

          Section
            3.03 Repurchase;
            Substitution.

          

          It
            is
            understood and agreed that the representations and warranties set forth
            in
            Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and
            delivery
            of the Mortgage Loan Documents to the Purchaser, or its designee, and
            shall
            inure to the benefit of the Purchaser, notwithstanding any restrictive
            or
            qualified endorsement on any Mortgage Note or Assignment or the examination,
            or
            lack of examination, of any Mortgage File. Upon discovery by either the
            Company
            or the Purchaser of a breach of any of the foregoing representations
            and
            warranties which materially and adversely affects the value of the Mortgage
            Loans or the interest of the Purchaser in any Mortgage Loan, the party
            discovering such breach shall give prompt written notice to the other.
            The
            Company shall have a period of sixty (60) days from the earlier of its
            discovery
            or its receipt of notice of any such breach within which to correct or
            cure such
            breach. The Company hereby covenants and agrees that if any such breach
            is not
            corrected or cured within such sixty day period, the Company shall, at
            the
            Purchaser's option and not later than ninety (90) days of its discovery
            or its
            receipt of notice of such breach, repurchase such Mortgage Loan at the
            Repurchase Price or, with the Purchaser's prior consent and at Purchaser’s sole
            option, substitute a Mortgage Loan as provided below. In the event that
            any such
            breach shall involve any representation or warranty set forth in Section
            3.01,
            and such breach is not cured within sixty (60) days of the earlier of
            either
            discovery by or notice to the Company of such breach, all Mortgage Loans
            shall,
            at the option of the Purchaser, be repurchased by the Company at the
            Repurchase
            Price. Any such repurchase shall be accomplished by wire transfer of
            immediately
            available funds to Purchaser in the amount of the Repurchase Price.

          

          If
            the
            Company is required to repurchase any Mortgage Loan pursuant to this
            Section
            3.03, the Company may, with the Purchaser's prior consent and at Purchaser’s
            sole option, within ninety (90) days from the related Closing Date, remove
            such
            defective Mortgage Loan from the terms of this Agreement and substitute
            another
            mortgage loan for such defective Mortgage Loan, in lieu of repurchasing
            such
            defective Mortgage Loan. Any substitute Mortgage Loan is subject to Purchaser
            acceptability. Any substituted Loans will comply with the representations
            and
            warranties set forth in this Agreement as of the substitution date

          

          The
            Company shall amend the related Mortgage Loan Schedule to reflect the
            withdrawal
            of the removed Mortgage Loan from this Agreement and the substitution
            of such
            substitute Mortgage Loan therefor. Upon such amendment, the Purchaser
            shall
            review the Mortgage File delivered to it relating to the substitute Mortgage
            Loan. In the event of such a substitution, accrued interest on the substitute
            Mortgage Loan for the month in which the substitution occurs and any
            Principal
            Prepayments made thereon during such month shall be the property of the
            Purchaser and accrued interest for such month on the Mortgage Loan for
            which the
            substitution is made and any Principal Prepayments made thereon during
            such
            month shall be the property of the Company. The principal payment on
            a
            substitute Mortgage Loan due on the Due Date in the month of substitution
            shall
            be the property of the Company and the principal payment on the Mortgage
            Loan
            for which the substitution is made due on such date shall be the property
            of the
            Purchaser.

          

          It
            is
            understood and agreed that the obligation of the Company set forth in
            this
            Section 3.03 to cure, repurchase or substitute for a defective Mortgage
            Loan,
            and to indemnify Purchaser pursuant to Section 8.01, constitute the sole
            remedies of the Purchaser respecting a breach of the foregoing representations
            and warranties. If the Company fails to repurchase or substitute for
            a defective
            Mortgage Loan in accordance with this Section 3.03, or fails to cure
            a defective
            Mortgage Loan to Purchaser's reasonable satisfaction in accordance with
            this
            Section 3.03, or to indemnify Purchaser pursuant to Section 8.01, that
            failure
            shall be an Event of Default and the Purchaser shall be entitled to pursue
            all
            remedies available in this Agreement as a result thereof. No provision
            of this
            paragraph shall affect the rights of the Purchaser to terminate this
            Agreement
            for cause, as set forth in Sections 10.01 and 11.01.

          

          Any
            cause
            of action against the Company relating to or arising out of the breach
            of any
            representations and warranties made in Sections 3.01 and 3.02 shall accrue
            as to
            any Mortgage Loan upon (i) the earlier of discovery of such breach by
            the
            Company or notice thereof by the Purchaser to the Company, (ii) failure
            by the
            Company to cure such breach or repurchase such Mortgage Loan as specified
            above,
            and (iii) demand upon the Company by the Purchaser for compliance with
            this
            Agreement.

          

          In
            the
            event that any Mortgage Loan is held by a REMIC, notwithstanding any
            contrary
            provision of this Agreement, with respect to any Mortgage Loan that is
            not in
            default or as to which no default is imminent, no substitution pursuant
            to
            Subsection 3.03 shall be made after the applicable REMIC's "start up
            day" (as
            defined in Section 860G(a) (9) of the Code), unless the Company has obtained
            an
            Opinion of Counsel to the effect that such substitution will not (i)
            result in
            the imposition of taxes on "prohibited transactions" of such REMIC (as
            defined
            in Section 860F of the Code) or otherwise subject the REMIC to tax, or
            (ii)
            cause the REMIC to fail to qualify as a REMIC at any time.

          

          Section
            3.04 Representations
            and Warranties of the Purchaser.

           

          The
            Purchaser represents, warrants and convenants to the Company that, as
            of the
            related Closing Date or as of such date specifically provided
            herein:

          

          (a)  The
            Purchaser is a corporation, dully organized validly existing and in good
            standing under the laws of the State of Delaware and is qualified to
            transact
            business in, is in good standing under the laws of, and possesses all
            licenses
            necessary for the conduct of its business in, each state in which any
            Mortgaged
            Property is located or is otherwise except or not required under applicable
            law
            to effect such qualification or license;

          

          (b)  The
            Purchaser has full power and authority to hold each Mortgage Loan, to
            purchase
            each Mortgage Loan pursuant to this Agreement and the related Term Sheet
            and to
            execute, deliver and perform, and to enter into and consummate all transactions
            contemplated by this Agreement and the related Term Sheet and to conduct
            its
            business as presently conducted, has duly authorized the execution, delivery
            and
            performance of this Agreement and the related Term Sheet, has duly executed
            and
            delivered this Agreement and the related Term Sheet;

          

          (c) None
            of
            the execution and delivery of this Agreement and the related Term Sheet,
            the
            purchase of the Mortgage Loans, the consummation of the transactions
            contemplated hereby, or the fulfillment of or compliance with the terms
            and
            conditions of this Agreement and the related Term Sheet will conflict
            with any
            of the terms, conditions or provisions of the Purchaser’s charter or by-laws or
            materially conflict with or result in a material breach of any of the
            terms,
            conditions or provisions
            of any legal restriction or any agreement or instrument to which the
            Purchaser
            is now a party or by which it is bound, or constitute a default or result
            in an
            acceleration under any of the foregoing, or result in the material violation
            of
            any law, rule, regulation, order, judgment or decree to which the Purchaser
            or
            its property is subject;

          

          (d) There
            is
            no litigation pending or to the best of the Purchaser’s knowledge, threatened
            with respect to the Purchaser which is reasonably likely to have a material
            adverse effect on the purchase of the related Mortgage Loans, the execution,
            delivery or enforceability of this Agreement and the related Term Sheet,
            or
            which is reasonably likely to have a material adverse effect on the financial
            condition of the Purchaser;

          

          (e) No
            consent, approval, authorization or order of any court or governmental
            agency or
            body is required for the execution, delivery and performance by the Purchaser
            of
            or compliance by the Purchaser with this Agreement and the related Term
            Sheet,
            the purchase of the Mortgage Loans or the consummation of the transactions
            contemplated by this Agreement and the related Term Sheet except for
            consents,
            approvals, authorizations and orders which have been obtained;

          

          (f) The
            consummation of the transactions contemplated by this Agreement and the
            related
            Term Sheet is in the ordinary course of business of the Purchaser;

          

          (h) The
            Purchaser will treat the purchase of the Mortgage Loans from the Company
            as a
            purchase for reporting, tax and accounting purposes; and

          

          (i) The
            Purchaser does not believe, nor does it have any cause or reason to believe,
            that it cannot perform each and every of its covenants contained in this
            Agreement and the related Term Sheet.

          

          The
            Purchaser shall indemnify the Company and hold it harmless against any
            claims,
            proceedings, losses, damages, penalties, fines, forfeitures, reasonable
            and
            necessary legal fees and related costs, judgments, and other costs and
            expenses
            resulting from a breach by the Purchaser of the representations and warranties
            contained in this Section 3.04. It is understood and agreed that the
            obligations
            of the Purchaser set forth in this Section 3.04 to indemnify the Seller
            as
            provided herein constitute the sole remedies of the Seller respecting
            a breach
            of the foregoing representations and warranties.

          

          

          ARTICLE
            IV

          

          ADMINISTRATION
            AND SERVICING OF MORTGAGE LOANS

          

          Section
            4.01 Company
            to Act as Servicer.

          

          The
            Company, as independent contract servicer, shall service and administer
            the
            Mortgage Loans in accordance with this Agreement and with Accepted Servicing
            Practices, and shall have full power and authority, acting alone, to
            do or cause
            to be done any and all things in connection with such servicing and
            administration which the Company may deem necessary or desirable and
            consistent
            with the terms of this Agreement and with Accepted Servicing Practices
            and
            exercise the same care that it customarily employs for its own account.
            Except
            as set forth in this Agreement, the Company shall service the Mortgage
            Loans in
            strict compliance with the servicing provisions of the Fannie Mae Guides
            (special servicing option), which include, but are not limited to, provisions
            regarding the liquidation of Mortgage Loans, the collection of Mortgage
            Loan
            payments, the payment of taxes, insurance and other charges, the maintenance
            of
            hazard insurance with a Qualified Insurer, the maintenance of mortgage
            impairment insurance, the maintenance of fidelity bond and errors and
            omissions
            insurance, inspections, the restoration of Mortgaged Property, the maintenance
            of Primary Mortgage Insurance Policies and Lender Primary Mortgage Insurance
            Policies, insurance claims, the title, management and disposition of
            REO
            Property, permitted withdrawals with respect to REO Property, liquidation
            reports, and reports of foreclosures and abandonments of Mortgaged Property,
            the
            transfer of Mortgaged Property, the release of Mortgage Files, annual
            statements, and examination of records and facilities. In the event of
            any
            conflict, inconsistency or discrepancy between any of the servicing provisions
            of this Agreement and the related Term Sheet and any of the servicing
            provisions
            of the Fannie Mae Guides, the provisions of this Agreement shall control
            and be
            binding upon the Purchaser and the Company. 

          

          Consistent
            with the terms of this Agreement, the Company may waive, modify or vary
            any term
            of any Mortgage Loan or consent to the postponement of any such term
            or in any
            manner grant indulgence to any Mortgagor if in the Company's reasonable
            and
            prudent determination such waiver, modification, postponement or indulgence
            is
            not materially adverse to the Purchaser, provided, however, that unless
            the
            Company has obtained the prior written consent of the Purchaser, the
            Company
            shall not permit any modification with respect to any Mortgage Loan that
            would
            change the Mortgage Interest Rate, defer for more than ninety (90) days
            or
            forgive any payment of principal or interest, reduce or increase the
            outstanding
            principal balance (except for actual payments of principal) or change
            the final
            maturity date on such Mortgage Loan. In the event of any such modification
            which
            has been agreed to in writing by the Purchaser and which permits the
            deferral of
            interest or principal payments on any Mortgage Loan, the Company shall,
            on the
            Business Day immediately preceding the Remittance Date in any month in
            which any
            such principal or interest payment has been deferred, deposit in the
            Custodial
            Account from its own funds, in accordance with Section 4.04, the difference
            between (a) such month's principal and one month's interest at the Mortgage
            Loan
            Remittance Rate on the unpaid principal balance of such Mortgage Loan
            and (b)
            the amount paid by the Mortgagor. The Company shall be entitled to reimbursement
            for such advances to the same extent as for all other advances pursuant
            to
            Section 4.05. Without limiting the generality of the foregoing, the Company
            shall continue, and is hereby authorized and empowered, to prepare, execute
            and
            deliver, all instruments of satisfaction or cancellation, or of partial
            or full
            release, discharge and all other comparable instruments, with respect
            to the
            Mortgage Loans and with respect to the Mortgaged Properties. Notwithstanding
            anything herein to the contrary, the Company may not enter into a forbearance
            agreement or similar arrangement with respect to any Mortgage Loan which
            runs
            more than one hundred eighty (180) days after the first delinquent Due
            Date. Any
            such agreement shall be approved by Purchaser and, if required, by the
            Primary
            Mortgage Insurance Policy insurer and Lender Primary Mortgage Insurance
            Policy
            insurer, if required. 

          

          Notwithstanding
            anything in this Agreement to the contrary, if any Mortgage Loan becomes
            subject
            to a Pass-Through Transfer, the Company (a) with respect to such Mortgage
            Loan,
            shall not permit any modification with respect to such Mortgage Loan
            that would
            change the Mortgage Interest Rate and (b) shall not (unless the Mortgagor
            is in
            default with respect to such Mortgage Loan or such default is, in the
            judgment
            of the Company, reasonably foreseeable) make or permit any modification,
            waiver
            or amendment of any term of such Mortgage Loan that would both (i) effect
            an
            exchange or reissuance of such Mortgage Loan under Section 1001 of the
            Code (or
            Treasury regulations promulgated thereunder) or (ii) cause any REMIC
            to fail to
            qualify as a REMIC under the Code or the imposition of any tax on “prohibited
            transactions” or “contributions” after the startup date under the REMIC
            Provisions.

          

          Prior
            to
            taking any action with respect to the Mortgage Loans subject to a Pass-Through
            Transfer, which is not contemplated under the terms of this Agreement,
            the
            Company will obtain an Opinion of Counsel acceptable to the trustee in
            such
            Pass-Through Transfer with respect to whether such action could result
            in the
            imposition of a tax upon any REMIC (including but not limited to the
            tax on
            prohibited transactions as defined in Section 860F(a)(2) of the Code
            and the tax
            on contributions to a REMIC set forth in Section 860G(d) of the Code)(either
            such event, an “Adverse REMIC Event”), and the Company shall not take any such
            actions as to which it has been advised that an Adverse REMIC Event could
            occur.

          

          The
            Company shall not permit the creation of any “interests” (within the meaning of
            Section 860G of the Code) in any REMIC. The Company shall not enter into
            any
            arrangement by which a REMIC will receive a fee or other compensation
            for
            services nor permit a REMIC to receive any income from assets other than
            “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
            investments” as defined in Section 860G(a)(5) of the Code.

          

          In
            servicing and administering the Mortgage Loans, the Company shall employ
            Accepted Servicing Practices, giving due consideration to the Purchaser's
            reliance on the Company. Unless a different time period is stated in
            this
            Agreement or the related Term Sheet, Purchaser shall be deemed to have
            given
            consent in connection with a particular matter if Purchaser does not
            affirmatively grant or deny consent within five (5) Business Days from
            the date
            Purchaser receives a second written request for consent for such matter
            from
            Company as servicer. 

          

          The
            Mortgage Loans may be subserviced by a Subservicer on behalf of the Company
            provided that the Subservicer is an entity that engages in the business
            of
            servicing loans, and in either case shall be authorized to transact business,
            and licensed to service mortgage loans, in the state or states where
            the related
            Mortgaged Properties it is to service are situated, if and to the extent
            required by applicable law to enable the Subservicer to perform its obligations
            hereunder and under the Subservicing Agreement, and in either case shall
            be a
            FHLMC or Fannie Mae approved mortgage servicer in good standing, and
            no event
            has occurred, including but not limited to a change in insurance coverage,
            which
            would make it unable to comply with the eligibility requirements for
            lenders
            imposed by Fannie Mae or for seller/servicers imposed by Fannie Mae or
            FHLMC, or
            which would require notification to Fannie Mae or FHLMC. In addition,
            each
            Subservicer will obtain and preserve its qualifications to do business
            as a
            foreign corporation and its licenses to service mortgage loans, in each
            jurisdiction in which such qualifications and/or licenses are or shall
            be
            necessary to protect the validity and enforceability of this Agreement,
            or any
            of the Mortgage Loans and to perform or cause to be performed its duties
            under
            the related Subservicing Agreement. The Company may perform any of its
            servicing
            responsibilities hereunder or may cause the Subservicer to perform any
            such
            servicing responsibilities on its behalf, but the use by the Company
            of the
            Subservicer shall not release the Company from any of its obligations
            hereunder
            and the Company shall remain responsible hereunder for all acts and omissions
            of
            the Subservicer as fully as if such acts and omissions were those of
            the
            Company. The Company shall pay all fees and expenses of the Subservicer
            from its
            own funds, and the Subservicer's fee shall not exceed the Servicing Fee.
            Company
            shall notify Purchaser promptly in writing upon the appointment of any
            Subservicer.

          

          At
            the
            cost and expense of the Company, without any right of reimbursement from
            the
            Custodial Account, the Company shall be entitled to terminate the rights
            and
            responsibilities of the Subservicer and arrange for any servicing
            responsibilities to be performed by a successor subservicer meeting the
            requirements in the preceding paragraph, provided, however, that nothing
            contained herein shall be deemed to prevent or prohibit the Company,
            at the
            Company's option, from electing to service the related Mortgage Loans
            itself. In
            the event that the Company's responsibilities and duties under this Agreement
            are terminated pursuant to Section 4.13, 8.04, 9.01 or 10.01 and if requested
            to
            do so by the Purchaser, the Company shall at its own cost and expense
            terminate
            the rights and responsibilities of the Subservicer effective as of the
            date of
            termination of the Company. The Company shall pay all fees, expenses
            or
            penalties necessary in order to terminate the rights and responsibilities
            of the
            Subservicer from the Company's own funds without reimbursement from the
            Purchaser.

          

          Notwithstanding
            any of the provisions of this Agreement relating to agreements or arrangements
            between the Company and the Subservicer or any reference herein to actions
            taken
            through the Subservicer or otherwise, the Company shall not be relieved
            of its
            obligations to the Purchaser and shall be obligated to the same extent
            and under
            the same terms and conditions as if it alone were servicing and administering
            the Mortgage Loans. The Company shall be entitled to enter into an agreement
            with the Subservicer for indemnification of the Company by the Subservicer
            and
            nothing contained in this Agreement shall be deemed to limit or modify
            such
            indemnification. The Company will indemnify and hold Purchaser harmless
            from any
            loss, liability or expense arising out of its use of a Subservicer to
            perform
            any of its servicing duties, responsibilities and obligations
            hereunder.

          

          Any
            Subservicing Agreement and any other transactions or services relating
            to the
            Mortgage Loans involving the Subservicer shall be deemed to be between
            the
            Subservicer and Company alone, and the Purchaser shall have no obligations,
            duties or liabilities with respect to the Subservicer including no obligation,
            duty or liability of Purchaser to pay the Subservicer's fees and expenses.
            For
            purposes of distributions and advances by the Company pursuant to this
            Agreement, the Company shall be deemed to have received a payment on
            a Mortgage
            Loan when the Subservicer has received such payment.

          

          Section
            4.02 Collection
            of Mortgage Loan Payments.

          

          Continuously
            from the date hereof until the date each Mortgage Loan ceases to be subject
            to
            this Agreement, the Company will proceed diligently to collect all payments
            due
            under each Mortgage Loan when the same shall become due and payable and
            shall,
            to the extent such procedures shall be consistent with this Agreement,
            Accepted
            Servicing Practices, and the terms and provisions of any related Primary
            Mortgage Insurance Policy and Lender Primary Mortgage Insurance Policy,
            follow
            such collection procedures as it follows with respect to mortgage loans
            comparable to the Mortgage Loans and held for its own account. Further,
            the
            Company will take special care in ascertaining and estimating annual
            escrow
            payments, and all other charges that, as provided in the Mortgage, will
            become
            due and payable, so that the installments payable by the Mortgagors will
            be
            sufficient to pay such charges as and when they become due and
            payable.

          

          In
            no
            event will the Company waive its right to any prepayment penalty or premium
            without the prior written consent of Purchaser and Company will use diligent
            efforts to collect same when due except as otherwise provided in the
            prepayment
            penalty rider to the Mortgage. 

          

          Section
            4.03 Realization
            Upon Defaulted Mortgage

          

          The
            Company shall use its best efforts, consistent with the procedures that
            the
            Company would use in servicing loans for its own account, consistent
            with
            Accepted Servicing Practices, any Primary Mortgage Insurance Policies
            and Lender
            Primary Mortgage Insurance Policies and the best interest of Purchaser,
            to
            foreclose upon or otherwise comparably convert the ownership of 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 pursuant to Section 4.01. Foreclosure or comparable proceedings
            shall
            be initiated within ninety (90) days of default for Mortgaged Properties
            for
            which no satisfactory arrangements can be made for collection of delinquent
            payments, subject to state and federal law and regulation. The Company
            shall use
            its best efforts to realize upon defaulted Mortgage Loans in such manner
            as will
            maximize the receipt of principal and interest by the Purchaser, taking
            into
            account, among other things, the timing of foreclosure proceedings. The
            foregoing is subject to the provisions that, in any case in which a Mortgaged
            Property shall have suffered damage, the Company shall not be required
            to expend
            its own funds toward the restoration of such property unless it shall
            determine
            in its discretion (i) that such restoration will increase the proceeds
            of
            liquidation of the related Mortgage Loan to the Purchaser after reimbursement
            to
            itself for such expenses, and (ii) that such expenses will be recoverable
            by the
            Company through Insurance Proceeds, Condemnation Proceeds, REO Disposition
            Proceeds or Liquidation Proceeds from the related Mortgaged Property,
            as
            contemplated in Section 4.05. Company shall obtain prior approval of
            Purchaser
            as to repair or restoration expenses in excess of ten thousand dollars
            ($10,000). The Company shall notify the Purchaser in writing of the commencement
            of foreclosure proceedings and not less than five (5) days prior to the
            acceptance or rejection of any offer of reinstatement. The Company shall
            be
            responsible for all costs and expenses incurred by it in any such proceedings
            or
            functions; provided, however, that it shall be entitled to reimbursement
            thereof
            from the related property, as contemplated in Section 4.05. Notwithstanding
            anything to the contrary contained herein, in connection with a foreclosure
            or
            acceptance of a deed in lieu of foreclosure, in the event the Company
            has
            reasonable cause to believe that a Mortgaged Property is contaminated
            by
            hazardous or toxic substances or wastes, or if the Purchaser otherwise
            requests
            an environmental inspection or review of such Mortgaged Property, such
            an
            inspection or review is to be conducted by a qualified inspector at the
            Purchaser's expense. Upon completion of the inspection, the Company shall
            promptly provide the Purchaser with a written report of the environmental
            inspection. After reviewing the environmental inspection report, the
            Purchaser
            shall determine how the Company shall proceed with respect to the Mortgaged
            Property. 

          

          Notwithstanding
            anything to the contrary contained herein, the Purchaser may, at the
            Purchaser's
            sole option, terminate the Company as servicer of any Mortgage Loan which
            becomes ninety (90) days or greater delinquent in payment of a scheduled
            Monthly
            Payment, without payment of any termination fee with respect thereto,
            provided
            that the Company shall on the date said termination takes effect be reimbursed
            for any unreimbursed advances of the Company's funds made pursuant to
            Section
            5.03 and any unreimbursed Servicing Advances and Servicing Fees in each
            case
            relating to the Mortgage Loan underlying such delinquent Mortgage Loan
            notwithstanding anything to the contrary set forth in Section 4.05. In
            the event
            of any such termination, the provisions of Section 11.01 hereof shall
            apply to
            said termination and the transfer of servicing responsibilities with
            respect to
            such delinquent Mortgage Loan to the Purchaser or its designee.

          

          In
            the
            event that a Mortgage Loan becomes part of a REMIC, and becomes REO Property,
            such property shall be disposed of by the Company, with the consent of
            Purchaser
            as required pursuant to this Agreement, before the close of the third
            taxable
            year following the taxable year in which the Mortgage Loan became an
            REO
            Property, unless the Company provides to the trustee under such REMIC
            an opinion
            of counsel to the effect that the holding of such REO Property subsequent
            to the
            close of the third taxable year following the taxable year in which the
            Mortgage
            Loan became an REO Property, will not result in the imposition of taxes
            on
            "prohibited transactions" as defined in Section 860F of the Code, or
            cause the
            transaction to fail to qualify as a REMIC at any time that certificates
            are
            outstanding. Company shall manage, conserve, protect and operate each
            such REO
            Property for the certificateholders solely for the purpose of its prompt
            disposition and sale in a manner which does not cause such property to
            fail to
            qualify as "foreclosure property" within the meaning of Section 860F(a)(2)(E)
            of
            the Code, or any "net income from foreclosure property" which is subject
            to
            taxation under the REMIC provisions of the Code. Pursuant to its efforts
            to sell
            such property, the Company shall either itself or through an agent selected
            by
            Company, protect and conserve such property in the same manner and to
            such an
            extent as is customary in the locality where such property is located.
            Additionally, Company shall perform the tax withholding and reporting
            related to
            Sections 1445 and 6050J of the Code 

          

          Section
            4.04 Establishment
            of Custodial Accounts; Deposits inCustodial Accounts.

          

          The
            Company shall segregate and hold all funds collected and received pursuant
            to
            each Mortgage Loan separate and apart from any of its own funds and general
            assets and shall establish and maintain one or more Custodial Accounts.
            The
            Custodial Account shall be an Eligible Account. Funds ,deposited in the
            Custodial Account shall at all times be insured by the FDIC up to the
            FDIC
            insurance limits, or must be invested in Permitted Investments for the
            benefit
            of the Purchaser. Funds deposited in the Custodial Account may be drawn
            on by
            the Company in accordance with Section 4.05. The creation of any Custodial
            Account shall be evidenced by a letter agreement in the form shown in
            Exhibit B
            hereto. The original of such letter agreement shall be furnished to the
            Purchaser on the Closing Date, and upon the request of any subsequent
            Purchaser.

          

          The
            Company shall deposit in a mortgage clearing account on a daily basis,
            and in
            the Custodial Account or Accounts no later than 48 hours after receipt
            of funds,
            and retain therein the following payments and collections received or
            made by it
            subsequent to the Cut-off Date, or received by it prior to the Cut-off
            Date but
            allocable to a period subsequent thereto, other than in respect of principal
            and
            interest on the Mortgage Loans due on or before the Cut-off Date:

          

          (i) all
            payments on account of principal, including Principal Prepayments and
            related
            penalties, on the Mortgage Loans;

          

          (ii)
            all
            payments on account of interest on the Mortgage Loans adjusted to the
            Mortgage
            Loan Remittance Rate;

          

          (iii)
            all
            Net Liquidation Proceeds;

          

          (iv)
            any
            amounts required to be deposited by the Company in connection with any
            REO
            Property pursuant to Section 4.13 and in connection therewith, the Company
            shall
            provide the Purchaser with written detail itemizing all of such
            amounts;

          

          (v)
            all
            Insurance Proceeds including amounts required to be deposited pursuant
            to
            Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
            Account and applied to the restoration or repair of the Mortgaged Property
            or
            released to the Mortgagor in accordance with Accepted Servicing Practices,
            the
            Mortgage Loan Documents or applicable law;

          

          (vi)
            all
            Condemnation Proceeds affecting any Mortgaged Property which are not
            released to
            the Mortgagor in accordance with Accepted Servicing Practices, the loan
            documents or applicable law;

          

          (vii)
            any
            Monthly Advances;

          

          (viii)
            with respect to each full or partial Principal Prepayment, any Prepayment
            Interest Shortfalls, to the extent of the Company’s aggregate Servicing Fee
            received with respect to the related Prepayment Period;

          

          (ix)
            any
            amounts required to be deposited by the Company pursuant to Section 4.10
            in
            connection with the deductible clause in any blanket hazard insurance
            policy,
            such deposit shall be made from the Company's own funds, without reimbursement
            therefor; and

          

          (x)
            any
            amounts required to be deposited in the Custodial Account pursuant to
            Section
            4.01, 4.13 or 6.02.

          

          The
            foregoing requirements for deposit in the Custodial Account shall be
            exclusive,
            it being understood and agreed that, without limiting the generality
            of the
            foregoing, payments in the nature of late payment charges and assumption
            fees,
            to the extent permitted by Section 6.01, need not be deposited by the
            Company in
            the Custodial Account. Any interest paid on funds deposited in the Custodial
            Account by the depository institution shall accrue to the benefit of
            the Company
            and the Company shall be entitled to retain and withdraw such interest
            from the
            Custodial Account pursuant to Section 4.05 (iv). The Purchaser shall
            not be
            responsible for any losses suffered with respect to investment of funds
            in the
            Custodial Account.

          

          Section
            4.05 Permitted
            Withdrawals From the Custodial Account.

          

          The
            Company may, from time to time, withdraw from the Custodial Account for
            the
            following purposes:

          

          (i) to
            make
            payments to the Purchaser in the amounts and in the manner provided for
            in
            Section 5.01;

          

          (ii)
            to
            reimburse itself for Monthly Advances, the Company's right to reimburse
            itself
            pursuant to this subclause (ii) being limited to amounts received on
            the related
            Mortgage Loan which represent late collections (net of the related Servicing
            Fees) of principal and/or interest respecting which any such advance
            was made,
            it being understood that, in the case of such reimbursement, the Company's
            right
            thereto shall be prior to the rights of the Purchaser, except that, where
            the
            Company is required to repurchase a Mortgage Loan, pursuant to Section
            3.03, the
            Company's right to such reimbursement shall be subsequent to the payment
            to the
            Purchaser of the Repurchase Price pursuant to such Section and all other
            amounts
            required to be paid to the Purchaser with respect to such Mortgage
            Loan;

          

          (iii)
            to
            reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
            Fees(or REO administration fees described in Section 4.13), the Company's
            right
            to reimburse itself pursuant to this subclause (iii) with respect to
            any
            Mortgage Loan being limited to related proceeds from Liquidation Proceeds,
            Condemnation Proceeds and Insurance Proceeds in accordance with the relevant
            provisions of the Fannie Mae Guides or as otherwise set forth in this
            Agreement;
            any recovery shall be made upon liquidation of the REO Property; 

          

          (iv) to
            pay to
            itself as part of its servicing compensation (a) any interest earned
            on funds in
            the Custodial Account (all such interest to be withdrawn monthly not
            later than
            each Remittance Date), (b) the Servicing Fee from that portion of any
            payment or
            recovery as to interest with respect to a particular Mortgage Loan;

          

          (v) to
            pay to
            itself with respect to each Mortgage Loan that has been repurchased pursuant
            to
            Section 3.03 all amounts received thereon and not distributed as of the
            date on
            which the related repurchase price is determined,

          

          (vi) to
            transfer funds to another Eligible Account in accordance with Section
            4.09
            hereof;

          

          (vii)to
            remove funds inadvertently placed in the Custodial Account by the Company;
            

          

          (vi)  to
            clear
            and terminate the Custodial Account upon the termination of this Agreement;
            and

          

          (vii)
            to
            reimburse itself for any Nonrecoverable Advances.

          

          Section
            4.06 Establishment
            of Escrow Accounts; Deposits
            in Escrow Accounts.

          

          The
            Company shall segregate and hold all funds collected and received pursuant
            to
            each Mortgage Loan which constitute Escrow Payments separate and apart
            from any
            of its own funds and general assets and shall establish and maintain
            one or more
            Escrow Accounts. The Escrow Account shall be an Eligible Account. Funds
            deposited in each Escrow Account shall at all times be insured in a manner
            to
            provide maximum insurance under the insurance limitations of the FDIC,
            or must
            be invested in Permitted Investments. Funds
            deposited in the Escrow Account may be drawn on by the Company in accordance
            with Section 4.07. The creation of any Escrow Account shall be evidenced
            by a
            letter agreement in the form shown in Exhibit C. The original of such
            letter
            agreement shall be furnished to the Purchaser on the Closing Date, and
            upon
            request to any subsequent purchaser.

          

          The
            Company shall deposit in a mortgage clearing account on a daily basis,
            and in
            the Escrow Account or Accounts no later than 48 hours after receipt of
            funds,
            and retain therein:

          

          (i) all
            Escrow Payments collected on account of the Mortgage Loans, for the purpose
            of
            effecting timely payment of any such items as required under the terms
            of this
            Agreement;

          

          (ii) all
            Insurance Proceeds which are to be applied to the restoration or repair
            of any
            Mortgaged Property; and

          

          (iii)
            all
            Servicing Advances for Mortgagors whose Escrow Payments are insufficient
            to
            cover escrow disbursements.

          

          The
            Company shall make withdrawals from the Escrow Account only to effect
            such
            payments as are required under this Agreement, and for such other purposes
            as
            shall be as set forth or in accordance with Section 4.07. The Company
            shall be
            entitled to retain any interest paid on funds deposited in the Escrow
            Account by
            the depository institution to the extent permitted by law and, to the
            extent
            required by law, the Company shall pay interest on escrowed funds to
            the
            Mortgagor in accordance with applicable law.. The
            Purchaser shall not be responsible for any losses suffered with respect
            to
            investment of funds in the Escrow Account.

          

          Section
            4.07 Permitted
            Withdrawals From Escrow Account.

          

          Withdrawals
            from the Escrow Account may be made by Company only:

          

          (i) to
            effect
            timely payments of ground rents, taxes, assessments, water rates, Primary
            Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
            premiums, condominium assessments and comparable items;

          

          (ii) to
            reimburse Company for any Servicing Advance made by Company with respect
            to a
            related Mortgage Loan but only from amounts received on the related Mortgage
            Loan which represent late payments or collections of Escrow Payments
            thereunder;

          

          (iii)to
            refund to the Mortgagor any funds as may be determined to be
            overages;

          

          (iv) for
            transfer to the Custodial Account in accordance with the terms of this
            Agreement;

          

          (v) for
            application to restoration or repair of the Mortgaged Property;

          

          (vi) to
            pay to
            the Company, or to the Mortgagor to the extent required by law, any interest
            paid on the funds deposited in the Escrow Account;

          

          (vii)
            to
            clear and terminate the Escrow Account on the termination of this Agreement.
            As
            part of its servicing duties, the Company shall pay to the Mortgagors
            interest
            on funds in Escrow Account, to the extent required by law, and to the
            extent
            that interest earned on funds in the Escrow Account is insufficient,
            shall pay
            such interest from its own funds, without any reimbursement therefor;
            and

          

          (viii)
            to
            pay to the Mortgagors or other parties Insurance Proceeds deposited in
            accordance with Section 4.06.

          

          Section
            4.08 Payment
            of Taxes, Insurance and Other Charges;
            Maintenance of Primary Mortgage Insurance
            Policies; Collections Thereunder.

           

          With
            respect to each Mortgage Loan, the Company shall maintain accurate records
            reflecting the status of ground rents, taxes, assessments, water rates
            and other
            charges which are or may become a lien upon the Mortgaged Property and
            the
            status of primary mortgage insurance premiums and fire and hazard insurance
            coverage and shall obtain, from time to time, all bills for the payment
            of such
            charges, including renewal premiums and shall effect payment thereof
            prior to
            the applicable penalty or termination date and at a time appropriate
            for
            securing maximum discounts allowable, employing for such purpose deposits
            of the
            Mortgagor in the Escrow Account which shall have been estimated and accumulated
            by the Company in amounts sufficient for such purposes, as allowed under
            the
            terms of the Mortgage or applicable law. To the extent that the Mortgage
            does
            not provide for Escrow Payments, the Company shall determine that any
            such
            payments are made by the Mortgagor at the time they first become due.
            The
            Company assumes full responsibility for the timely payment of all such
            bills and
            shall effect timely payments of all such bills irrespective of the Mortgagor's
            faithful performance in the payment of same or the making of the Escrow
            Payments
            and shall make advances from its own funds to effect such payments.

          

          The
            Company will maintain in full force and effect Primary Mortgage Insurance
            Policies or Lender Primary Mortgage Insurance Policies issued by a Qualified
            Insurer with respect to each Mortgage Loan for which such coverage is
            herein
            required. Such coverage will be terminated only with the approval of
            Purchaser,
            or as required by applicable law or regulation. The Company will not
            cancel or
            refuse to renew any Primary Mortgage Insurance Policy or Lender Primary
            Mortgage
            Insurance Policy in effect on the Closing Date that is required to be
            kept in
            force under this Agreement unless a replacement Primary Mortgage Insurance
            Policy or Lender Primary Mortgage Insurance Policy for such canceled
            or
            nonrenewed policy is obtained from and maintained with a Qualified Insurer.
            The
            Company shall not take any action which would result in non-coverage
            under any
            applicable Primary Mortgage Insurance Policy or Lender Primary Mortgage
            Insurance Policy of any loss which, but for the actions of the Company
            would
            have been covered thereunder. In connection with any assumption or substitution
            agreement entered into or to be entered into pursuant to Section 6.01,
            the
            Company shall promptly notify the insurer under the related Primary Mortgage
            Insurance Policy or Lender Primary Mortgage Insurance Policy, if any,
            of such
            assumption or substitution of liability in accordance with the terms
            of such
            policy and shall take all actions which may be required by such insurer
            as a
            condition to the continuation of coverage under the Primary Mortgage
            Insurance
            Policy or Lender Primary Mortgage Insurance Policy. If such Primary Mortgage
            Insurance Policy or Lender Primary Mortgage Insurance Policy is terminated
            as a
            result of such assumption or substitution of liability, the Company shall
            obtain
            a replacement Primary Mortgage Insurance Policy or Lender Primary Mortgage
            Insurance Policy as provided above.

          

          In
            connection with its activities as servicer, the Company agrees to prepare
            and
            present, on behalf of itself and the Purchaser, claims to the insurer
            under any
            Private Mortgage Insurance Policy in a timely fashion in accordance with
            the
            terms of such Primary Mortgage Insurance Policy or Lender Primary Mortgage
            Insurance Policy and, in this regard, to take such action as shall be
            necessary
            to permit recovery under any Primary Mortgage Insurance Policy or Lender
            Primary
            Mortgage Insurance Policy respecting a defaulted Mortgage Loan. Pursuant
            to
            Section 4.04, any amounts collected by the Company under any Primary
            Mortgage
            Insurance Policy or Lender Primary Mortgage Insurance Policy shall be
            deposited
            in the Custodial Account, subject to withdrawal pursuant to Section
            4.05.

          

          Section
            4.09 Transfer
            of Accounts.

          

          The
            Company may transfer the Custodial Account or the Escrow Account to a
            different
            Eligible Account from time to time. Such transfer shall be made only
            upon
            obtaining the prior written consent of the Purchaser, which consent will
            not be
            unreasonably withheld.

          

          Section
            4.10 Maintenance
            of Hazard Insurance.

          

          The
            Company shall cause to be maintained for each Mortgage Loan fire and
            hazard
            insurance with extended coverage as is acceptable to Fannie Mae or FHLMC
            and
            customary in the area where the Mortgaged Property is located in an amount
            which
            is equal to the lesser of (i) the maximum insurable value of the improvements
            securing such Mortgage Loan or (ii) the greater of (a) the outstanding
            principal
            balance of the Mortgage Loan, and (b) an amount such that the proceeds
            thereof
            shall be sufficient to prevent the Mortgagor and/or the mortgagee from
            becoming
            a co-insurer. If required by the Flood Disaster Protection Act of 1973,
            as
            amended, each Mortgage Loan shall be covered by a flood insurance policy
            meeting
            the requirements of the current guidelines of the Federal Insurance
            Administration in effect with an insurance carrier acceptable to Fannie
            Mae or
            FHLMC, in an amount representing coverage not less than the least of
            (i) the
            outstanding principal balance of the Mortgage Loan, (ii) the maximum
            insurable
            value of the improvements securing such Mortgage Loan or (iii) the maximum
            amount of insurance which is available under the Flood Disaster Protection
            Act
            of 1973, as amended. If at any time during the term of the Mortgage Loan,
            the
            Company determines in accordance with applicable law and pursuant to
            the Fannie
            Mae Guides that a Mortgaged Property is located in a special flood hazard
            area
            and is not covered by flood insurance or is covered in an amount less
            than the
            amount required by the Flood Disaster Protection Act of 1973, as amended,
            the
            Company shall notify the related Mortgagor that the Mortgagor must obtain
            such
            flood insurance coverage, and if said Mortgagor fails to obtain the required
            flood insurance coverage within forty-five (45) days after such notification,
            the Company shall immediately force place the required flood insurance
            on the
            Mortgagor’s behalf. The Company shall also maintain on each REO Property, fire
            and hazard insurance with extended coverage in an amount which is at
            least equal
            to the maximum insurable value of the improvements which are a part of
            such
            property, and, to the extent required and available under the Flood Disaster
            Protection Act of 1973, as amended, flood insurance in an amount as provided
            above. Any amounts collected by the Company under any such policies other
            than
            amounts to be deposited in the Escrow Account and applied to the restoration
            or
            repair of the Mortgaged Property or REO Property, or released to the
            Mortgagor
            in accordance with Accepted Servicing Practices, shall be deposited in
            the
            Custodial Account, subject to withdrawal pursuant to Section 4.05. It
            is
            understood and agreed that no other additional insurance need be required
            by the
            Company of the Mortgagor or maintained on property acquired in respect
            of the
            Mortgage Loan, other than pursuant to this Agreement, the Fannie Mae
            Guides or
            such applicable state or federal laws and regulations as shall at any
            time be in
            force and as shall require such additional insurance. All such policies
            shall be
            endorsed with standard mortgagee clauses with loss payable to the Company
            and
            its successors and/or assigns and shall provide for at least thirty (30)
            days
            prior written notice of any cancellation, reduction in the amount or
            material
            change in coverage to the Company. The Company shall not interfere with
            the
            Mortgagor's freedom of choice in selecting either his insurance carrier
            or
            agent, provided, however, that the Company shall not accept any such
            insurance
            policies from insurance companies unless such companies are Qualified
            Insurers.

          

          Section
            4.11 Maintenance
            of Mortgage Impairment Insurance
            Policy.

          

          In
            the
            event that the Company shall obtain and maintain a blanket policy issued
            by an
            insurer acceptable to Fannie Mae or FHLMC insuring against hazard losses
            on all
            of the Mortgage Loans, then, to the extent such policy provides coverage
            in an
            amount equal to the amount required pursuant to Section 4.10 and otherwise
            complies with all other requirements of Section 4.10, it shall conclusively
            be
            deemed to have satisfied its obligations as set forth in Section 4.10,
            it being
            understood and agreed that such policy may contain a deductible clause,
            in which
            case the Company shall, in the event that there shall not have been maintained
            on the related Mortgaged Property or REO Property a policy complying
            with
            Section 4.10, and there shall have been a loss which would have been
            covered by
            such policy, deposit in the Custodial Account the amount not otherwise
            payable
            under the blanket policy because of such deductible clause. In connection
            with
            its activities as servicer of the Mortgage Loans, the Company agrees
            to prepare
            and present, on behalf of the Purchaser, claims under any such blanket
            policy in
            a timely fashion in accordance with the terms of such policy. Upon request
            of
            the Purchaser, the Company shall cause to be delivered to the Purchaser
            a
            certified true copy of such policy and shall use its best efforts to
            obtain a
            statement from the insurer thereunder that such policy shall in no event
            be
            terminated or materially modified without thirty (30) days' prior written
            notice
            to the Purchaser.

          

          Section
            4.12 Fidelity
            Bond, Errors and Omissions Insurance.

          

          The
            Company shall maintain, at its own expense, a blanket fidelity bond and
            an
            errors and omissions insurance policy, with broad coverage with responsible
            companies on all officers, employees or other persons acting in any capacity
            with regard to the Mortgage Loan to handle funds, money, documents and
            papers
            relating to the Mortgage Loan. The Fidelity Bond shall be in the form
            of the
            Mortgage Banker's Blanket Bond and shall protect and insure the Company
            against
            losses, including forgery, theft, embezzlement and fraud of such persons.
            The
            errors and omissions insurance shall protect and insure the Company against
            losses arising out of errors and omissions and negligent acts of such
            persons.
            Such errors and omissions insurance shall also protect and insure the
            Company
            against losses in connection with the failure to maintain any insurance
            policies
            required pursuant to this Agreement and the release or satisfaction of
            a
            Mortgage Loan without having obtained payment in full of the indebtedness
            secured thereby. No provision of this Section 4.12 requiring the Fidelity
            Bond
            or errors and omissions insurance shall diminish or relieve the Company
            from its
            duties and obligations as set forth in this Agreement. The minimum coverage
            under any such bond and insurance policy shall be at least equal to the
            corresponding amounts required by Fannie Mae in the Fannie Mae Guides.
            Upon
            request by the Purchaser, the Company shall deliver to the Purchaser
            a
            certificate from the surety and the insurer as to the existence of the
            Fidelity
            Bond and errors and omissions insurance policy and shall obtain a statement
            from
            the surety and the insurer that such Fidelity Bond or insurance policy
            shall in
            no event be terminated or materially modified without thirty (30) days'
            prior
            written notice to the Purchaser. The Company shall notify the Purchaser
            within
            five (5) business days of receipt of notice that such Fidelity Bond or
            insurance
            policy will be, or has been, materially modified or terminated. The Purchaser
            (or any party having the status of Purchaser hereunder) and any subsidiary
            thereof and their successors or assigns as their interests may appear
            must be
            named as loss payees on the Fidelity Bond and as additional insured on
            the
            errors and omissions policy. Upon request by Purchaser, Company shall
            provide
            Purchaser with an insurance certificate certifying coverage under this
            Section
            4.12, and will provide an update to such certificate upon request, or
            upon
            renewal or material modification of coverage.

          

          Section
            4.13 Title,
            Management and Disposition of REO Property.
            

          

          In
            the
            event that title to the Mortgaged Property is acquired in foreclosure
            or by deed
            in lieu of foreclosure, the deed or certificate of sale shall be taken
            in the
            name of the Purchaser or its designee, or in the event the Purchaser
            or its
            designee is not authorized or permitted to hold title to real property
            in the
            state where the REO Property is located, or would be adversely affected
            under
            the "doing business" or tax laws of such state by so holding title, the
            deed or
            certificate of sale shall be taken in the name of such Person or Persons
            as
            shall be consistent with an opinion of counsel obtained by the Company
            from an
            attorney duly licensed to practice law in the state where the REO Property
            is
            located. Any Person or Persons holding such title other than the Purchaser
            shall
            acknowledge in writing that such title is being held as nominee for the
            benefit
            of the Purchaser.

          

          The
            Company shall notify the Purchaser in accordance with the Fannie Mae
            Guides of
            each acquisition of REO Property upon such acquisition (and, in any event,
            shall
            provide notice of the consummation of any foreclosure sale within three
            (3)
            Business Days of the date Company receives notice of such consummation),
            together with a copy of the drive by appraisal or brokers price opinion
            of the
            Mortgaged Property obtained in connection with such acquisition, and
            thereafter
            assume the responsibility for marketing such REO property in accordance
            with
            Accepted Servicing Practices. Thereafter, the Company shall continue
            to provide
            certain administrative services to the Purchaser relating to such REO
            Property
            as set forth in this Section 4.13. No Servicing Fee shall be assessed
            or
            otherwise accrue on any REO Property from and after the date on which
            it becomes
            an REO Property. 

          

          The
            Company shall, either itself or through an agent selected by the Company,
            and in
            accordance with the Fannie Mae Guides manage, conserve, protect and operate
            each
            REO Property in the same manner that it manages, conserves, protects
            and
            operates other foreclosed property for its own account, and in the same
            manner
            that similar property in the same locality as the REO Property is managed.
            The
            Company shall cause each REO Property to be inspected promptly upon the
            acquisition of title thereto and shall cause each REO Property to be
            inspected
            at least monthly thereafter or more frequently as required by the circumstances.
            The Company shall make or cause to be made a written report of each such
            inspection. Such reports shall be retained in the Mortgage File and copies
            thereof shall be forwarded by the Company to the Purchaser.

          

          The
            Company shall use its best efforts to dispose of the REO Property as
            soon as
            possible and shall sell such REO Property in any event within one year
            after
            title has been taken to such REO Property, unless the Company determines,
            and
            gives an appropriate notice to the Purchaser to such effect, that a longer
            period is necessary for the orderly liquidation of such REO Property.
            If a
            longer period than one (1) year is permitted under the foregoing sentence
            and is
            necessary to sell any REO Property, the Company shall report monthly
            to the
            Purchaser as to the progress being made in selling such REO Property.
            No REO
            Property shall be marketed for less than the Appraised Value, without
            the prior
            consent of Purchaser. No REO Property shall be sold for less than ninety
            five
            percent (95%) of its Appraised Value, without the prior consent of Purchaser.
            All requests for reimbursement of Servicing Advances shall be in accordance
            with
            the Fannie Mae Guides. The disposition of REO Property shall be carried
            out by
            the Company at such price, and upon such terms and conditions, as the
            Company
            deems to be in the best interests of the Purchaser (subject to the above
            conditions) only with the prior written consent of the Purchaser. Company
            shall
            provide monthly reports to Purchaser in reference to the status of the
            marketing
            of the REO Properties.

          

          Notwithstanding
            anything to the contrary contained herein, the Purchaser may, at the
            Purchaser's
            sole option, terminate the Company as servicer of any such REO Property
            without
            payment of any termination fee with respect thereto, provided that the
            Company
            shall on the date said termination takes effect be reimbursed for any
            unreimbursed advances of the Company's funds made pursuant to Section
            5.03 and
            any unreimbursed Servicing Advances and Servicing Fees in each case relating
            to
            the Mortgage Loan underlying such REO Property notwithstanding anything
            to the
            contrary set forth in Section 4.05. In the event of any such termination,
            the
            provisions of Section 11.01 hereof shall apply to said termination and
            the
            transfer of servicing responsibilities with respect to such REO Property
            to the
            Purchaser or its designee. Within five (5) Business Days of any such
            termination, the Company shall, if necessary convey such property to
            the
            Purchaser and shall further provide the Purchaser with the following
            information
            regarding the subject REO Property: the related drive by appraisal or
            brokers
            price opinion, and copies of any related Mortgage Impairment Insurance
            Policy
            claims. In addition, within five (5) Business Days, the Company shall
            provide
            the Purchaser with the following information regarding the subject REO
            Property:
            the related trustee’s deed upon sale and copies of any related hazard insurance
            claims, or repair bids.

          

          Section
            4.14 Notification
            of Maturity Date.

          

          With
            respect to each Mortgage Loan, the Company shall execute and deliver
            to the
            Mortgagor any and all necessary notices required under applicable law
            and the
            terms of the related Mortgage Note and Mortgage regarding the maturity
            date if
            required under applicable law.

          

           

           

          ARTICLE
            V

          

          PAYMENTS
            TO THE PURCHASER

          

          Section
            5.01 Distributions.

          

          On
            each
            Remittance Date, the Company shall distribute by wire transfer of immediately
            available funds to the Purchaser (i) all amounts credited to the Custodial
            Account as of the close of business on the preceding Determination Date,
            net of
            charges against or withdrawals from the Custodial Account pursuant to
            Section
            4.05, plus (ii) all Monthly Advances, if any, which the Company is obligated
            to
            distribute pursuant to Section 5.03, plus, (iii) interest at the Mortgage
            Loan
            Remittance Rate on any Principal Prepayment from the date of such Principal
            Prepayment through the end of the month for which disbursement is made
            provided
            that the Company’s obligation as to payment of such interest shall be limited to
            the Servicing Fee earned during the month of the distribution, minus
            (iv) any
            amounts attributable to Monthly Payments collected but due on a Due Date
            or
            Dates subsequent to the preceding Determination Date, which amounts shall
            be
            remitted on the Remittance Date next succeeding the Due Period for such
            amounts.
            It is understood that, by operation of Section 4.04, the remittance on
            the first
            Remittance Date with respect to Mortgage Loans purchased pursuant to
            the related
            Term Sheet is to include principal collected after the Cut-off Date through
            the
            preceding Determination Date plus interest, adjusted to the Mortgage
            Loan
            Remittance Rate collected through such Determination Date exclusive of
            any
            portion thereof allocable to the period prior to the Cut-off Date, with
            the
            adjustments specified in clauses (ii), (iii) and (iv) above.

          

          With
            respect to any remittance received by the Purchaser after the Remittance
            Date,
            the Company shall pay to the Purchaser interest on any such late payment
            at an
            annual rate equal to the Prime Rate, adjusted as of the date of each
            change plus
            two (2) percentage points, but in no event greater than the maximum amount
            permitted by applicable law. Such interest shall cover the period commencing
            with the day following the Business Day such payment was due and ending
            with the
            Business Day on which such payment is made to the Purchaser, both inclusive.
            The
            payment by the Company of any such interest shall not be deemed an extension
            of
            time for payment or a waiver of any Event of Default by the Company.
            On each
            Remittance Date, the Company shall provide a remittance report detailing
            all
            amounts being remitted pursuant to this Section 5.01.

          

          Section
            5.02 Statements
            to the Purchaser.

          

          The
            Company shall furnish to Purchaser an individual loan accounting report,
            as of
            the last Business Day of each month, in the Company's assigned loan number
            order
            to document Mortgage Loan payment activity on an individual Mortgage
            Loan basis.
            With respect to each month, the corresponding individual loan accounting
            report
            shall be received by the Purchaser no later than the tenth calendar day
            of the
            following month on a disk or tape or other computer-readable format in
            such
            format as may be mutually agreed upon by both Purchaser and Company,
            and no
            later than the fifth Business Day of the following month in hard copy,
            and shall
            contain the following:

          

          (i)
            With
            respect to each Monthly Payment, the amount of such remittance allocable
            to
            principal (including a separate breakdown of any Principal Prepayment,
            including
            the date of such prepayment, and any prepayment penalties or premiums,
            along
            with a detailed report of interest on principal prepayment amounts remitted
            in
            accordance with Section 4.04);

          

          (ii)
            with
            respect to each Monthly Payment, the amount of such remittance allocable
            to
            interest;

          

          (iii)
            the
            amount of servicing compensation received by the Company during the prior
            distribution period;

          

          (iv)
            the
            aggregate Stated Principal Balance of the Mortgage Loans;

          

          (v)
            the
            aggregate of any expenses reimbursed to the Company during the prior
            distribution period pursuant to Section 4.05; 

          

          (vi)
            The
            number and aggregate outstanding principal balances of Mortgage Loans
            (a)
            delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more;
            (b) as to
            which foreclosure has commenced; and (c) as to which REO Property has
            been
            acquired; and

          

          The
            Company shall also provide a trial balance, sorted in Purchaser's assigned
            loan
            number order, in the form of Exhibit E hereto, with each such
            Report.

          

          The
            Company shall prepare and file any and all information statements or
            other
            filings required to be delivered to any governmental taxing authority
            or to
            Purchaser pursuant to any applicable law with respect to the Mortgage
            Loans and
            the transactions contemplated hereby. In addition, the Company shall
            provide
            Purchaser with such information concerning the Mortgage Loans as is necessary
            for Purchaser to prepare its federal income tax return as Purchaser may
            reasonably request from time to time.

          

          In
            addition, not more than sixty (60) days after the end of each calendar
            year, the
            Company shall furnish to each Person who was a Purchaser at any time
            during such
            calendar year an annual statement in accordance with the requirements
            of
            applicable federal income tax law as to the aggregate of remittances
            for the
            applicable portion of such year.

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          Section
            5.03 Monthly
            Advances by the Company.

          

          Not
            later
            than the close of business on the Business Day preceding each Remittance
            Date,
            the Company shall deposit in the Custodial Account an amount equal to
            all
            payments not previously advanced by the Company, whether or not deferred
            pursuant to Section 4.01, of principal (due after the Cut-off Date) and
            interest
            not allocable to the period prior to the Cut-off Date, adjusted to the
            Mortgage
            Loan Remittance Rate, which were due on a Mortgage Loan and delinquent
            at the
            close of business on the related Determination Date; provided, however,
            that the
            Company may use the Amount Held for Future Distribution (as defined below)
            then
            on deposit in the Custodial Account to make such Monthly Advances. The
            Company
            shall deposit any portion of the Amount Held for Future Distribution
            used to pay
            Monthly Advances into the Custodial Account on any future Remittance
            Date to the
            extent that the funds that are available in the Custodial Account for
            remittance
            to the Purchaser on such Remittance Date are less than the amount of
            payments
            required to be made to the Purchaser on such Remittance Date. 

          

          The
            "Amount Held for Future Distribution" as to any Remittance Date shall
            be the
            total of the amounts held in the Custodial Account at the close of business
            on
            the preceding Determination Date which were received after the Cut-off
            Date on
            account of (i) Liquidation Proceeds, Insurance Proceeds, and Principal
            Prepayments received or made in the month of such Remittance Date, and
            (ii)
            payments which represent early receipt of scheduled payments of principal
            and
            interest due on a date or dates subsequent to the related Due Date.

          

          The
            Company's obligation to make such Monthly Advances as to any Mortgage
            Loan will
            continue through the last Monthly Payment due prior to the payment in
            full of
            the Mortgage Loan, or through the Remittance Date prior to the date on
            which the
            Mortgaged Property liquidates (including Insurance Proceeds, proceeds
            from the
            sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
            Loan
            unless the Company deems such advance to be nonrecoverable. In such event,
            the
            Company shall deliver to the Purchaser an Officer's Certificate of the
            Company
            to the effect that an officer of the Company has reviewed the related
            Mortgage
            File and has made the reasonable determination that any additional advances
            are
            nonrecoverable. 

          

          Section
            5.04 Liquidation
            Reports.

          

          Upon
            the
            foreclosure sale of any Mortgaged Property or the acquisition thereof
            by the
            Purchaser pursuant to a deed-in-lieu of foreclosure, the Company shall
            submit to
            the Purchaser a liquidation report with respect to such Mortgaged Property
            in a
            form mutually acceptable to Company and Purchaser. The Company shall
            also
            provide reports on the status of REO Property containing such information
            as
            Purchaser may reasonably require.

           

           

           

          ARTICLE
            VI

          

          GENERAL
            SERVICING PROCEDURES

          

          Section
            6.01 Assumption
            Agreements.

          

          The
            Company will, to the extent it has actual knowledge of any conveyance
            or
            prospective conveyance by any Mortgagor of the Mortgaged Property (whether
            by
            absolute conveyance or by contract of sale, and whether or not the Mortgagor
            remains or is to remain liable under the Mortgage Note and/or the Mortgage),
            exercise its rights to accelerate the maturity of such Mortgage Loan
            under any
            "due-on-sale" clause to the extent permitted by law; provided, however,
            that the
            Company shall not exercise any such rights if prohibited by law or the
            terms of
            the Mortgage Note from doing so or if the exercise of such rights would
            impair
            or threaten to impair any recovery under the related Primary Mortgage
            Insurance
            Policy or Lender Primary Mortgage Insurance Policy, if any. If the Company
            reasonably believes it is unable under applicable law to enforce such
            "due-on-sale" clause, the Company will enter into an assumption agreement
            with
            the person to whom the Mortgaged Property has been conveyed or is proposed
            to be
            conveyed, pursuant to which such person becomes liable under the Mortgage
            Note
            and, to the extent permitted by applicable state law, the Mortgagor remains
            liable thereon. Where an assumption is allowed pursuant to this Section
            6.01,
            the Company, with the prior consent of the Purchaser and the primary
            mortgage
            insurer, if any, is authorized to enter into a substitution of liability
            agreement with the person to whom the Mortgaged Property has been conveyed
            or is
            proposed to be conveyed pursuant to which the original mortgagor is released
            from liability and such Person is substituted as mortgagor and becomes
            liable
            under the related Mortgage Note. Any such substitution of liability agreement
            shall be in lieu of an assumption agreement. 

          

          In
            connection with any such assumption or substitution of liability, the
            Company
            shall follow the underwriting practices and procedures of the Company.
            With
            respect to an assumption or substitution of liability, the Mortgage Interest
            Rate borne by the related Mortgage Note, the amount of the Monthly Payment
            and
            the maturity date may not be changed (except pursuant to the terms of
            the
            Mortgage Note). If the credit of the proposed transferee does not meet
            such
            underwriting criteria, the Company diligently shall, to the extent permitted
            by
            the Mortgage or the Mortgage Note and by applicable law, accelerate the
            maturity
            of the Mortgage Loan. The Company shall notify the Purchaser that any
            such
            substitution of liability or assumption agreement has been completed
            by
            forwarding to the Purchaser the original of any such substitution of
            liability
            or assumption agreement, which document shall be added to the related
            Mortgage
            File and shall, for all purposes, be considered a part of such Mortgage
            File to
            the same extent as all other documents and instruments constituting a
            part
            thereof. All fees collected by the Company for entering into an assumption
            or
            substitution of liability agreement shall belong to the Company.

          

          Notwithstanding
            the foregoing paragraphs of this Section or any other provision of this
            Agreement, the Company shall not be deemed to be in default, breach or
            any other
            violation of its obligations hereunder by reason of any assumption of
            a Mortgage
            Loan by operation of law or any assumption which the Company may be restricted
            by law from preventing, for any reason whatsoever. For purposes of this
            Section
            6.01, the term "assumption" is deemed to also include a sale of the Mortgaged
            Property subject to the Mortgage that is not accompanied by an assumption
            or
            substitution of liability agreement.

          

          Section
            6.02 Satisfaction
            of Mortgages and Release of Mortgage
            Files.

          

          Upon
            the
            payment in full of any Mortgage Loan, or the receipt by the Company of
            a
            notification that payment in full will be escrowed in a manner customary
            for
            such purposes, the Company will immediately notify the Purchaser by a
            certification, which certification shall include a statement to the effect
            that
            all amounts received or to be received in connection with such payment
            which are
            required to be deposited in the Custodial Account pursuant to Section
            4.04 have
            been or will be so deposited, of a Servicing Officer and shall request
            delivery
            to it of the portion of the Mortgage File held by the Purchaser. The
            Purchaser
            shall no later than five (5) Business Days after receipt of such certification
            and request, release or cause to be released to the Company, the related
            Mortgage Loan Documents and, upon its receipt of such documents, the
            Company
            shall promptly prepare and deliver to the Purchaser the requisite satisfaction
            or release. No later than five (5) Business Days following its receipt
            of such
            satisfaction or release, the Purchaser shall deliver, or cause to be
            delivered,
            to the Company the release or satisfaction properly executed by the owner
            of
            record of the applicable mortgage or its duly appointed attorney in fact.
            No
            expense incurred in connection with any instrument of satisfaction or
            deed of
            reconveyance shall be chargeable to the Custodial Account.

          

          In
            the
            event the Company satisfies or releases a Mortgage without having obtained
            payment in full of the indebtedness secured by the Mortgage or should
            it
            otherwise prejudice any right the Purchaser may have under the mortgage
            instruments, the Company, upon written demand, shall remit within two
            (2)
            Business Days to the Purchaser the then outstanding principal balance
            of the
            related Mortgage Loan by deposit thereof in the Custodial Account. The
            Company
            shall maintain the Fidelity Bond and errors and omissions insurance insuring
            the
            Company against any loss it may sustain with respect to any Mortgage
            Loan not
            satisfied in accordance with the procedures set forth herein.

          

          From
            time
            to time and as appropriate for the servicing or foreclosure of the Mortgage
            Loan, including for the purpose of collection under any Primary Mortgage
            Insurance Policy or Lender Primary Mortgage Insurance Policy, the Purchaser
            shall, upon request of the Company and delivery to the Purchaser of a
            servicing
            receipt signed by a Servicing Officer, release the portion of the Mortgage
            File
            held by the Purchaser to the Company. Such servicing receipt shall obligate
            the
            Company to return the related Mortgage documents to the Purchaser when
            the need
            therefor by the Company no longer exists, unless the Mortgage Loan has
            been
            liquidated and the Liquidation Proceeds relating to the Mortgage Loan
            have been
            deposited in the Custodial Account or the Mortgage File or such document
            has
            been delivered to an attorney, or to a public trustee or other public
            official
            as required by law, for purposes of initiating or pursuing legal action
            or other
            proceedings for the foreclosure of the Mortgaged Property either judicially
            or
            non-judicially, and the Company has delivered to the Purchaser a certificate
            of
            a Servicing Officer certifying as to the name and address of the Person
            to which
            such Mortgage File or such document was delivered and the purpose or
            purposes of
            such delivery. Upon receipt of a certificate of a Servicing Officer stating
            that
            such Mortgage Loan was liquidated, the servicing receipt shall be released
            by
            the Purchaser to the Company.

          

          Section
            6.03 Servicing
            Compensation.

          

          As
            compensation for its services hereunder, the Company shall be entitled
            to
            withdraw from the Custodial Account (to the extent of interest payments
            collected on the Mortgage Loans) or to retain from interest payments
            collected
            on the Mortgage Loans, the amounts provided for as the Company's Servicing
            Fee,
            subject to payment of compensating interest on Principal Prepayments
            as capped
            by the Servicing Fee pursuant to Section 5.01 (iii). Additional servicing
            compensation in the form of assumption fees, as provided in Section 6.01,
            and
            late payment charges or otherwise shall be retained by the Company to
            the extent
            not required to be deposited in the Custodial Account. No Servicing Fee
            shall be
            payable in connection with partial Monthly Payments. The Company shall
            be
            required to pay all expenses incurred by it in connection with its servicing
            activities hereunder and shall not be entitled to reimbursement therefor
            except
            as specifically provided for.

          

          Section
            6.04 Annual
            Statement as to Compliance.

          

          The
            Company will deliver to the Purchaser and the Master Servicer not later
            February
            28 of each year beginning in February 2005, an Officers' Certificate
            stating, as
            to each signatory thereof, that (i) a review of the activities of the
            Company
            during the preceding calendar year and of performance under this Agreement
            has
            been made under such officers' supervision, and (ii) to the best of such
            officers' knowledge, based on such review, the Company has fulfilled
            all of its
            obligations under this Agreement throughout such year, or, if there has
            been a
            default in the fulfillment of any such obligation, specifying each such
            default
            known to such officers and the nature and status of cure provisions thereof.
            Copies of such statement shall be provided by the Company to the Purchaser
            upon
            request.

          

          Section
            6.05 Annual
            Independent Certified Public Accountants'
            Servicing Report.

          

          On
            or
            before February 28 of each year beginning February 28, 2005
            the
            Company at its expense shall cause a firm of independent public accountants
            which is a member of the American Institute of Certified Public Accountants
            to
            furnish a statement to the Purchaser to the effect that such firm has
            examined
            certain documents and records relating to the Company's servicing of
            mortgage
            loans of the same type as the Mortgage Loans pursuant to servicing agreements
            substantially similar to this Agreement, which agreements may include
            this
            Agreement, and that, on the basis of such an examination, conducted
            substantially in the uniform single audit program for mortgage bankers,
            such
            firm is of the opinion that the Company's servicing has been conducted
            in
            compliance with the agreements examined pursuant to this Section 6.05,
            except
            for (i) such exceptions as such firm shall believe to be immaterial,
            and (ii)
            such other exceptions as shall be set forth in such statement. Copies
            of such
            statement shall be provided by the Company to the Purchaser and the Master
            Servicer. In addition, on an annual basis, Company shall provided Purchaser
            with
            copies of its audited financial statements. 

          

          Section
            6.06 Purchaser's
            Right to Examine Company Records.

          

          The
            Purchaser shall have the right to examine and audit at its expense upon
            reasonable notice to the Company, during business hours or at such other
            times
            as might be reasonable under applicable circumstances, any and all of
            the books,
            records, documentation or other information of the Company, or held by
            another
            for the Company or on its behalf or otherwise, which relates to the performance
            or observance by the Company of the terms, covenants or conditions of
            this
            Agreement.

          

          The
            Company shall provide to the Purchaser and any supervisory agents or
            examiners
            representing a state or federal governmental agency having jurisdiction
            over the
            Purchaser, including but not limited to OTS, FDIC and other similar entities,
            access to any documentation regarding the Mortgage Loans in the possession
            of
            the Company which may be required by any applicable regulations. Such
            access
            shall be afforded without charge, upon reasonable request, during normal
            business hours and at the offices of the Company, and in accordance with
            the
            federal government, FDIC, OTS, or any other similar regulations.

          

          Section
            6.07 Annual
            Certification.

          

          (a) For
            so
            long as the Mortgage Loans are being master serviced by the Master Servicer,
            by
            February 28th of each year (or if not a Business Day, the immediately
            preceding
            Business Day), or at any other time upon thirty (30) days written request,
            an
            officer of the Company shall execute and deliver an Officer’s Certificate to the
            Purchaser and the Master Servicer for the benefit of the Purchaser and
            the
            Master Servicer and their officers, directors and affiliates, certifying
            as to
            the following matters:

          

          	(i)  	
                  Based
                    on my knowledge, the information in the Annual Statement of Compliance,
                    the Annual Independent Public Accountant’s Servicing Report and all
                    servicing reports, officer’s certificates and other information relating
                    to the servicing of the Mortgage Loans submitted to the Master
                    Servicer
                    taken as a whole, does not contain any untrue statement of a
                    material fact
                    or omit to state a material fact necessary to make the statements
                    made, in
                    light of the circumstances under which such statements were made,
                    not
                    misleading as of the date of this
                    certification;

                

          

          	(ii)  	
                  The
                    servicing information required to be provided to the Master Servicer
                    by
                    the Company under this Agreement has been provided to the Master
                    Servicer;

                

          

          	(iii)  	
                  I
                    am responsible for reviewing the activities performed by the
                    Company under
                    the Agreement and based upon the review required by this Agreement,
                    and
                    except as disclosed in the Annual Statement of Compliance or
                    the Annual
                    Independent Public Accountant’s Servicing Report submitted to the Master
                    Servicer, the Company has, as of the date of this certification
                    fulfilled
                    its obligations under this Agreement; and

                

          

          
            	 	
                    (iv)

                  	
                    I
                      have disclosed to the Master Servicer all significant deficiencies
                      relating to the Company’s compliance with the minimum servicing standards
                      in accordance with a review conducted in compliance with the
                      Uniform
                      Single Attestation Program for Mortgage Bankers or similar
                      standard as set
                      forth in the Agreement.

                  

          

           

          (b) The
            Company shall indemnify and hold harmless the Purchaser and Master Servicer
            and
            their officers, directors, agents and affiliates from and against any
            losses,
            damages, penalties, fines, forfeitures, reasonable legal fees and related
            costs,
            judgments and other costs and expenses arising out of or based upon a
            breach by
            the Company or any of its officers, directors, agents or affiliates of
            its
            obligations under this Section 6.07 or the negligence, bad faith or willful
            misconduct of the Company in connection therewith. If the indemnification
            provided for herein is unavailable or insufficient to hold harmless the
            Purchaser or Master Servicer, then the Company agrees that it shall contribute
            to the amount paid or payable by the Purchaser or Master Servicer as
            a result of
            the losses, claims, damages or liabilities of the Purchaser or Master
            Servicer
            in such proportion as is appropriate to reflect the relative fault of
            the
            Purchaser or Master Servicer on the one hand and the Company on the other
            in
            connection with a breach of the Company’s obligations under this Section 6.07 or
            the Company’s negligence, bad faith or willful misconduct in connection
            therewith.

          

          

           

           

          ARTICLE
            VII

          

          REPORTS
            TO BE PREPARED BY SERVICER

          

          Section
            7.01 Company
            Shall Provide Information as Reasonably
            Required.

          

          The
            Company shall furnish to the Purchaser during the term of this Agreement,
            such
            periodic, special or other reports, information or documentation, whether
            or not
            provided for herein, as shall be necessary, reasonable or appropriate
            in respect
            to the Purchaser, or otherwise in respect to the Mortgage Loans and the
            performance of the Company under this Agreement, including any reports,
            information or documentation reasonably required to comply with any regulations
            regarding any supervisory agents or examiners of the Purchaser all such
            reports
            or information to be as provided by and in accordance with such applicable
            instructions and directions as the Purchaser may reasonably request in
            relation
            to this Agreement or the performance of the Company under this Agreement.
            The
            Company agrees to execute and deliver all such instruments and take all
            such
            action as the Purchaser, from time to time, may reasonably request in
            order to
            effectuate the purpose and to carry out the terms of this
            Agreement.

          

          In
            connection with marketing the Mortgage Loans, the Purchaser may make
            available
            to a prospective purchaser audited financial statements of the Company
            for the
            most recently completed two (2) fiscal years for which such statements
            are
            available, as well as a Consolidated Statement of Condition at the end
            of the
            last two (2) fiscal years covered by any Consolidated Statement of Operations.
            If it has not already done so, the Company shall furnish promptly to
            the
            Purchaser or a prospective purchaser copies of the statements specified
            above.

          

          The
            Company shall make reasonably available to the Purchaser or any prospective
            Purchaser a knowledgeable financial or accounting officer for the purpose
            of
            answering questions and to permit any prospective purchaser to inspect
            the
            Company’s servicing facilities for the purpose of satisfying such prospective
            purchaser that the Company has the ability to service the Mortgage Loans
            as
            provided in this Agreement.

          

          ARTICLE
            VIII

          

          THE
            SERVICER

          

          Section
            8.01 Indemnification;
            Third Party Claims.

          

          The
            Company agrees to indemnify the Purchaser and hold it harmless against
            any and
            all claims, losses, damages, penalties, fines, forfeitures, legal fees
            and
            related costs, judgments, and any other costs, fees and expenses that
            the
            Purchaser may sustain in any way related to the failure of the Company
            to
            observe and perform its duties, obligations, covenants, and agreements
            to
            service the Mortgage Loans in compliance with the terms of this Agreement.
            The
            Company agrees to indemnify the Purchaser and hold it harmless against
            any and
            all claims, losses, damages, penalties, fines, forfeitures, legal fees
            and
            related costs, judgments, and any other costs, fees and expenses that
            the
            Purchaser may sustain in any way related to the breach of a representation
            or
            warranty set forth in Sections 3.01 or 3.02 of this Agreement. The Company
            shall
            immediately notify the Purchaser if a claim is made by a third party
            against
            Company with respect to this Agreement or the Mortgage Loans, assume
            (with the
            consent of the Purchaser) the defense of any such claim and pay all expenses
            in
            connection therewith, including counsel fees, whether or not such claim
            is
            settled prior to judgment, and promptly pay, discharge and satisfy any
            judgment
            or decree which may be entered against it or the Purchaser in respect
            of such
            claim. The Company shall follow any written instructions received from
            the
            Purchaser in connection with such claim. The Purchaser shall promptly
            reimburse
            the Company for all amounts advanced by it pursuant to the two preceding
            sentences except when the claim relates to the failure of the Company
            to service
            and administer the Mortgages in compliance with the terms of this Agreement,
            the
            breach of representation or warranty set forth in Sections 3.01 or 3.02,
            or the
            gross negligence, bad faith or willful misconduct of Company. The provisions
            of
            this Section 8.01 shall survive termination of this Agreement. Nothing
            herein
            shall be construed to impose any liability on the Company in the event
            it has,
            in good faith, complied with any instructions of Purchaser, which instructions
            are contrary to the terms and provisions of this agreement.

          

          Section
            8.02 Merger
            or Consolidation of the Company.

          

          The
            Company will keep in full effect its existence, rights and franchises
            as a
            corporation under the laws of the state of its incorporation except as
            permitted
            herein, 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,
            or
            any of the Mortgage Loans and to perform its duties under this
            Agreement.

          

          Any
            Person into which the Company may be merged or consolidated, or any corporation
            resulting from any merger, conversion or consolidation to which the Company
            shall be a party, or any Person succeeding to the business of the Company
            whether or not related to loan servicing, shall be the successor of the
            Company
            hereunder, without the execution or filing of any paper or any further
            act on
            the part of any of the parties hereto, anything herein to the contrary
            notwithstanding; provided, however, that the successor or surviving Person,
            or
            the parent company of such successor or surviving Person, shall be an
            institution (i) having a GAAP net worth not less than $25,000,000, (ii)
            which is
            a HUD-approved mortgagee whose primary business is in origination and
            servicing
            of first lien mortgage loans, and (iii) who is a Fannie Mae or FHLMC
            approved
            seller/servicer in good standing; provided, however, that if such successor
            or
            surviving Person does not have a GAAP net worth of at least $25,000,000,
            the
            parent company of such successor or surviving Person shall act as guarantor
            with
            respect to such successor’s obligations under this Agreement.

          

          Section
            8.03 Limitation
            on Liability of the Company and Others.

          

          Neither
            the Company nor any of the officers, employees or agents of the Company
            shall be
            under any liability to the Purchaser for any action taken or for refraining
            from
            the taking of any action in good faith pursuant to this Agreement, or
            for errors
            in judgment made in good faith; provided, however, that this provision
            shall not
            protect the Company or any such person against any breach of warranties
            or
            representations made herein, or failure to perform its obligations in
            compliance
            with any standard of care set forth in this Agreement, or any liability
            which
            would otherwise be imposed by reason of negligence, bad faith or willful
            misconduct, or any breach of the terms and conditions of this Agreement.
            The
            Company and any officer, employee or agent of the Company may rely in
            good faith
            on any document of any kind prima facie properly executed and submitted
            by the
            Purchaser respecting any matters arising hereunder. The Company shall
            not be
            under any obligation to appear in, prosecute or defend any legal action
            which is
            not incidental to its duties to service the Mortgage Loans in accordance
            with
            this Agreement and which in its reasonable opinion may involve it in
            any
            expenses or liability; provided, however, that the Company may, with
            the consent
            of the Purchaser, undertake any such action which it may deem necessary
            or
            desirable in respect to this Agreement and the rights and duties of the
            parties
            hereto. In such event, the reasonable legal expenses and costs of such
            action
            and any liability resulting therefrom shall be expenses, costs and liabilities
            for which the Purchaser will be liable, and the Company shall be entitled
            to be
            reimbursed therefor from the Purchaser upon written demand.

          

          Section
            8.04 Company
            Not to Assign or Resign.

          

          The
            Company shall not assign this Agreement or resign from the obligations
            and
            duties hereby imposed on it except by mutual consent of the Company and
            the
            Purchaser or upon the determination that its duties hereunder are no
            longer
            permissible under applicable law and such incapacity cannot be cured
            by the
            Company. Any such determination permitting the resignation of the Company
            shall
            be evidenced by an Opinion of Counsel to such effect delivered to the
            Purchaser
            which Opinion of Counsel shall be in form and substance acceptable to
            the
            Purchaser. No such resignation shall become effective until a successor
            shall
            have assumed the Company's responsibilities and obligations hereunder
            in the
            manner provided in Section 11.01.

          

          Section
            8.05 No
            Transfer of Servicing.

          

          With
            respect to the retention of the Company to service the Mortgage Loans
            hereunder,
            the Company acknowledges that the Purchaser has acted in reliance upon
            the
            Company's independent status, the adequacy of its servicing facilities,
            plan,
            personnel, records and procedures, its integrity, reputation and financial
            standing and the continuance thereof. Without in any way limiting the
            generality
            of this Section, the Company shall not either assign this Agreement or
            the
            servicing hereunder or delegate its rights or duties hereunder or any
            portion
            thereof, or sell or otherwise dispose of all or substantially all of
            its
            property or assets, other than in the normal course of business, without
            the
            prior written approval of the Purchaser, which consent shall not be unreasonably
            withheld; provided that the Company may assign the Agreement and the
            servicing
            hereunder without the consent of Purchaser to an affiliate of the Company
            to
            which all servicing of the Company is assigned so long as (i) such affiliate
            is
            a Fannie Mae and Freddie Mac approved servicer and (ii) if it is intended
            that
            such affiliate be spun off to the shareholders of the Company, such affiliate
            have a GAAP net worth of at least $25,000,000 and (iii) such affiliate
            shall
            deliver to the Purchaser a certification pursuant to which such affiliate
            shall
            agree to be bound by the terms and conditions of this Agreement and shall
            certify that such affiliate is a Fannie Mae and Freddie Mac approved
            servicer in
            good standing..

          

          Without
            in any way limiting the generality of this Section 8.05, in the event
            that the
            Company either shall assign this Agreement or the servicing responsibilities
            hereunder or delegate its duties hereunder or any portion thereof without
            (i)
            satisfying the requirements set forth herein or (ii) the prior written
            consent
            of the Purchaser, then the Purchaser shall have the right to terminate
            this
            Agreement, without any payment of any penalty or damages and without
            any
            liability whatsoever to the Company (other than with respect to accrued
            but
            unpaid Servicing Fees and Servicing Advances remaining unpaid) or any
            third
            party. 

          

           

          

          ARTICLE
            IX

          

          DEFAULT

          

          Section
            9.01 Events
            of Default.

          

          In
            case
            one or more of the following Events of Default by the Company shall occur
            and be
            continuing, that is to say:

          

          (i)
            any
            failure by the Company to remit to the Purchaser any payment required
            to be made
            under the terms of this Agreement which continues unremedied for a period
            of one
            (1) Business Day; or

          

          (ii)
            failure on the part of the Company duly to observe or perform in any
            material
            respect any other of the covenants or agreements on the part of the Company
            set
            forth in this Agreement which continues unremedied for a period of thirty
            (30)
            days after the date on which written notice of such failure shall have
            been
            given to the Company by the Purchaser, and the remedial period provided
            for
            herein has expired; or

          

          (iii)
            a
            decree or order of a court or agency or supervisory authority having
            jurisdiction for the appointment of a conservator or receiver or liquidator
            in
            any insolvency, bankruptcy, 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 Company and such decree
            or order
            shall have remained in force undischarged or unstayed for a period of
            sixty (60)
            days; or

          

          (iv)
            the
            Company shall consent to the appointment of a conservator or receiver
            or
            liquidator in any insolvency, bankruptcy, readjustment of debt, marshalling
            of
            assets and liabilities or similar proceedings of or relating to the Company
            or
            of or relating to all or substantially all of its property; or

          

          (v)
            the
            Company shall admit in writing its inability to pay its debts generally
            as they
            become due, file a petition to take advantage of any applicable insolvency
            or
            reorganization statute, make an assignment for the benefit of its creditors,
            or
            voluntarily suspend payment of its obligations; or

          

          (vi)
            Company ceases to be approved by either Fannie Mae or FHLMC as a mortgage
            loan
            seller or servicer for more than thirty (30) days; or

          

          (vii)
            the
            Company attempts to assign its right to servicing compensation hereunder
            or the
            Company attempts, without the consent of the Purchaser, to sell or otherwise
            dispose of all or substantially all of its property or assets or to assign
            this
            Agreement or the servicing responsibilities hereunder or to delegate
            its duties
            hereunder or any portion thereof; or

          

          (viii)
            the Company ceases to be (a) licensed to service first lien residential
            mortgage
            loans in any jurisdiction in which a Mortgaged Property is located and
            such
            licensing is required, and (b) qualified to transact business in any
            jurisdiction where it is currently so qualified, but only to the extent
            such
            non-qualification materially and adversely affects the Company's ability
            to
            perform its obligations hereunder; or

          

          (ix)
            the
            Company fails to meet the eligibility criteria set forth in the last
            sentence of
            Section 8.02; or

          

          (x) failure
            by the Company to duly perform, within the required time period, its
            obligations
            under Section 6.04, 6.05 or 6.07, which failure continues unremedied
            for a
            period of fifteen (15) days after the date on which written notice of
            such
            failure, requiring the same to be remedied, shall have been given to
            the Company
            by any party to this Agreement or by the Master Servicer.

          

          Then,
            and
            in each and every such case, so long as an Event of Default shall not
            have been
            remedied, the Purchaser, by notice in writing to the Company (except
            in the case
            of an Event of Default under clauses (iii), (iv) or (v) above, in which
            case,
            automatically and without notice) Company may, in addition to whatever
            rights
            the Purchaser may have under Sections 3.03 and 8.01 and at law or equity
            or to
            damages, including injunctive relief and specific performance, terminate
            all the
            rights and obligations of the Company under this Agreement and in and
            to the
            Mortgage Loans and the proceeds thereof without compensating the Company
            for the
            same. On or after the receipt by the Company of such written notice (or,
            in the
            case of an Event of Default under clauses (iii), (iv) or (v) above, in
            which
            case, automatically and without notice), all authority and power of the
            Company
            under this Agreement, whether with respect to the Mortgage Loans or otherwise,
            shall pass to and be vested in the successor appointed pursuant to Section
            11.01. Upon written request from the Purchaser, the Company shall prepare,
            execute and deliver, any and all documents and other instruments, place
            in such
            successor's possession all Mortgage Files, and 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 or assignment
            of
            the Mortgage Loans and related documents, or otherwise, at the Company's
            sole
            expense. The Company agrees to cooperate with the Purchaser and such
            successor
            in effecting the termination of the Company's responsibilities and rights
            hereunder, including, without limitation, the transfer to such successor
            for
            administration by it of all cash amounts which shall at the time be credited
            by
            the Company to the Custodial Account or Escrow Account or thereafter
            received
            with respect to the Mortgage Loans or any REO Property.

          

          Section
            9.02 Waiver
            of Defaults.

          

          The
            Purchaser may waive only by written notice any default by the Company
            in the
            performance of its obligations hereunder and its consequences. Upon any
            such
            waiver of a past default, such default 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 default or impair any right consequent thereon except to the extent
            expressly so waived in writing.

          

           

           

          ARTICLE
            X

          

          TERMINATION

          

          Section
            10.01 Termination.

           

          The
            respective obligations and responsibilities of the Company shall terminate
            upon:
            (i) the later of the final payment or other liquidation (or any advance
            with
            respect thereto) of the last Mortgage Loan and the disposition of all
            remaining
            REO Property and the remittance of all funds due hereunder; or (ii) by
            mutual
            consent of the Company and the Purchaser in writing; or (iii) termination
            with
            cause under the terms of this Agreement; or (iv) at the Purchaser’s option and
            upon written notice to the Company, if any Mortgage Loan becomes 90 days
            or
            greater delinquent in payment of a scheduled Monthly Payment, but solely
            with
            respect to such Mortgage Loan; or (v) at the Purchaser’s option and upon written
            notice to the Company, if the sum of all Mortgage Loans that are 90 days
            or
            greater delinquent in payment of a scheduled Monthly Payment, (including
            those
            Mortgage Loans subject to bankruptcy, currently in foreclosure and any
            REO
            Properties), exceeds 7% of the aggregate total principal amount of all
            Mortgage
            Loans serviced hereunder; provided, however, that the Purchaser shall
            not have
            the right to terminate the Company if such delinquencies, bankruptcies
            and REO
            properties are resulting from acts beyond the Company’s control, including, but
            not limited to, acts of God, strikes, lockouts, riots, acts of war or
            terrorism,
            epidemics, nationalization, expropriation, currency restrictions, communication
            line failures, power failures, earthquakes or other natural disasters.
            For
            termination in accordance with clause (iv) of this subsection, the Company
            shall
            be deemed to have been terminated with cause and the provisions of Section
            9.01
            shall apply with respect to such termination. For termination in accordance
            with
            clause (v) of this subsection, the Company shall remain as “Company” under this
            Agreement, however servicing shall transfer to the Purchaser or its designee
            as
            subservicer for the Company, in accordance with a subservicing agreement
            to be
            provided to the Company by the Purchaser, and the Purchaser shall be
            paid a
            subservicing fee of 10 basis points for such subservicing. Simultaneously
            with
            any such termination and the transfer of servicing hereunder, the Company
            shall
            be entitled to be reimbursed for any outstanding Servicing Advances and
            Monthly
            Advances. 

          

           

           

          ARTICLE
            XI

          

          MISCELLANEOUS
            PROVISIONS

          

          Section
            11.01 Successor
            to the Company.

          

          Prior
            to
            termination of Company's responsibilities and duties under this Agreement
            pursuant to Sections 4.13, 8.04, 9.01, 10.01 (ii) or (iii), the Purchaser
            shall
            (i) succeed to and assume all of the Company's responsibilities, rights,
            duties
            and obligations under this Agreement, or (ii) appoint a successor having
            the
            characteristics set forth in Section 8.02 hereof and which shall succeed
            to all
            rights and assume all of the responsibilities, duties and liabilities
            of the
            Company under this Agreement prior to the termination of Company's
            responsibilities, duties and liabilities under this Agreement. In connection
            with such appointment and assumption, the Purchaser may make such arrangements
            for the compensation of such successor out of payments on Mortgage Loans
            as the
            Purchaser and such successor shall agree. In the event that the Company's
            duties, responsibilities and liabilities under this Agreement should
            be
            terminated pursuant to the aforementioned Sections, the Company shall
            discharge
            such duties and responsibilities during the period from the date it acquires
            knowledge of such termination until the effective date thereof with the
            same
            degree of diligence and prudence which it is obligated to exercise under
            this
            Agreement, and shall take no action whatsoever that might impair or prejudice
            the rights or financial condition of its successor. The resignation or
            removal
            of Company pursuant to the aforementioned Sections shall not become effective
            until a successor shall be appointed pursuant to this Section and shall
            in no
            event relieve the Company of the representations and warranties made
            pursuant to
            Sections 3.01, 3.02 and 3.03 and the remedies available to the Purchaser
            thereunder and under Section 8.01, it being understood and agreed that
            the
            provisions of such Sections 3.01, 3.02, 3.03 and 8.01 shall be applicable
            to the
            Company notwithstanding any such resignation or termination of the Company,
            or
            the termination of this Agreement.

          

          Any
            successor appointed as provided herein shall execute, acknowledge and
            deliver to
            the Company and to the Purchaser an instrument accepting such appointment,
            whereupon such successor shall become fully vested with all the rights,
            powers,
            duties, responsibilities, obligations and liabilities of the Company,
            with like
            effect as if originally named as a party to this Agreement. Any termination
            or
            resignation of the Company or this Agreement pursuant to Section 4.13,
            8.04,
            9.01 or 10.01 shall not affect any claims that the Purchaser may have
            against
            the Company arising prior to any such termination or resignation.

          

          The
            Company shall promptly deliver to the successor the funds in the Custodial
            Account and the Escrow Account and the Mortgage Files and related documents
            and
            statements held by it hereunder and the Company shall account for all
            funds. The
            Company shall execute and deliver such instruments and do such other
            things all
            as may reasonably be required to more fully and definitely vest and confirm
            in
            the successor all such rights, powers, duties, responsibilities, obligations
            and
            liabilities of the Company. Within ten (10) Business Days of the execution
            and
            delivery of such instruments, the successor shall reimburse the Company
            for
            unrecovered Servicing Advances which the successor retains hereunder
            and which
            would otherwise have been recovered by the Company pursuant to this Agreement
            but for the appointment of the successor servicer.

          

          Upon
            a
            successor's acceptance of appointment as such, the Company shall notify
            by mail
            the Purchaser of such appointment.

          

          Section
            11.02 Amendment.

          

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

          

          Section
            11.03 Recordation
            of Agreement.

          

          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 of the properties subject to the
            Mortgages are situated, and in any other appropriate public recording
            office or
            elsewhere, such recordation to be effected by the Company at the Company's
            expense on direction of the Purchaser accompanied by an opinion of counsel
            to
            the effect that such recordation materially and beneficially affects
            the
            interest of the Purchaser or is necessary for the administration or servicing
            of
            the Mortgage Loans.

          

          Section
            11.04 Governing
            Law.

          

          This
            Agreement and the related Term Sheet shall be governed by and construed
            in
            accordance with the laws of the State of New York except to the extent
            preempted
            by Federal law. The obligations, rights and remedies of the parties hereunder
            shall be determined in accordance with such laws.

          

          Section
            11.05 Notices.

          

          Any
            demands, notices or other communications permitted or required hereunder
            shall
            be in writing and shall be deemed conclusively to have been given if
            personally
            delivered at or mailed by registered mail, postage prepaid, and return
            receipt
            requested or certified mail, return receipt requested, or transmitted
            by telex,
            telegraph or telecopier and confirmed by a similar mailed writing, as
            follows:

          

          (i) if
            to the
            Company:

           

          HomeBanc
            Mortgage Corporation

          2002
            Summit Boulevard, Suite 100

          Atlanta,
            GA 30319 Attention: 

          Debra
            F.
            Watkins, EVP Capital Markets & Treasury

          Telecopier
            No.: (404) 705-2301

          

          With
            a
            copy to:

          

          HomeBanc
            Mortgage Corporation

          2002
            Summit Boulevard, Suite 100

          Atlanta,
            GA 30319

          Attention:
            General Counsel

          Telecopier
            No.: (404) 303-4069

          

          (ii)
            if
            to the Purchaser:

           

          EMC
            Mortgage Corporation 

          Mac
            Arthur Ridge II, 

          909
            Hidden Ridge Drive, Suite 200

          Irving,
            Texas 75038

          Attention:
            Ms. Raylene Ruyle

          Telecopier
            No.: 

          

          With
            a
            copy to:

          

          Bear
            Stearns Mortgage Capital Corporation

          383
            Madison Avenue

          New
            York,
            New York 10179

          Attention:
            Michelle Sterling

          

          or
            such
            other address as may hereafter be furnished to the other party by like
            notice.
            Any such demand, notice or communication hereunder shall be deemed to
            have been
            received on the date delivered to or received at the premises of the
            addressee
            (as evidenced, in the case of registered or certified mail, by the date
            noted on
            the return receipt).

          

          Section
            11.06 Severability
            of Provisions.

          

          Any
            part,
            provision, representation or warranty of this Agreement and the related
            Term
            Sheet which is prohibited or which is held to be void or unenforceable
            shall be
            ineffective to the extent of such prohibition or unenforceability without
            invalidating the remaining provisions hereof. Any part, provision,
            representation or warranty of this Agreement which is prohibited or
            unenforceable or is held to be void or unenforceable in any jurisdiction
            shall
            be ineffective, as to such jurisdiction, to the extent of such prohibition
            or
            unenforceability without invalidating the remaining provisions hereof,
            and any
            such prohibition or unenforceability in any jurisdiction as to any Mortgage
            Loan
            shall not invalidate or render unenforceable such provision in any other
            jurisdiction. To the extent permitted by applicable law, the parties
            hereto
            waive any provision of law that prohibits or renders void or unenforceable
            any
            provision hereof. If the invalidity of any part, provision, representation
            or
            warranty of this Agreement shall deprive any party of the economic benefit
            intended to be conferred by this Agreement, the parties shall negotiate,
            in good
            faith, to develop a structure the economic effect of which is nearly
            as possible
            the same as the economic effect of this Agreement without regard to such
            invalidity.

          

          Section
            11.07 Exhibits.

          

          The
            exhibits to this Agreement are hereby incorporated and made a part hereof
            and
            are an integral part of this Agreement.

          

          Section
            11.08 General
            Interpretive Principles.

          

          For
            purposes of this Agreement, except as otherwise expressly provided or
            unless the
            context otherwise requires:

          

          (i)
              the
            terms
            defined in this Agreement have the meanings assigned to them in this
            Agreement
            and include the plural as well as the singular, and the use of any gender
            herein
            shall be deemed to include the other gender;

          

          (ii)
             accounting
            terms not otherwise defined herein have the meanings assigned to them
            in
            accordance with generally accepted accounting principles;

           

          (iii)
             references
            herein to "Articles", "Sections", Subsections", "Paragraphs", and other
            subdivisions without reference to a document are to designated Articles,
            Sections, Subsections, Paragraphs and other subdivisions of this
            Agreement;

          

          (iv)
             a
            reference to a Subsection without further reference to a Section is a
            reference
            to such Subsection as contained in the same Section in which the reference
            appears, and this rule shall also apply to Paragraphs and other
            subdivisions;

          

          (v)
             the
            words
            "herein", "hereof ", "hereunder" and other words of similar import refer
            to this
            Agreement as a whole and not to any particular provision; 

          

          (vi)
             the
            term
            "include" or "including" shall mean without limitation by reason of enumeration;
            and

          

          (vii)
             headings
            of the Articles and Sections in this Agreement are for reference purposes
            only
            and shall not be deemed to have any substantive effect.

          

          Section
            11.09 Reproduction
            of Documents.

          

          This
            Agreement and all documents relating thereto, including, without limitation,
            (i)
            consents, waivers and modifications which may hereafter be executed,
            (ii)
            documents received by any party at the closing, and (iii) financial statements,
            certificates and other information previously or hereafter furnished,
            may be
            reproduced by any photographic, photostatic, microfilm, micro-card, miniature
            photographic or other similar process. The parties agree that any such
            reproduction shall be admissible in evidence as the original itself in
            any
            judicial or administrative proceeding, whether or not the original is
            in
            existence and whether or not such reproduction was made by a party in
            the
            regular course of business, and that any enlargement, facsimile or further
            reproduction of such reproduction shall likewise be admissible in
            evidence.

          

          Section
            11.10 Confidentiality
            of Information.

          

          Each
            party recognizes that, in connection with this Agreement, it may become
            privy to
            non-public information regarding the financial condition, operations
            and
            prospects of the other party. Each party agrees to keep all non-public
            information regarding the other party strictly confidential, and to use
            all such
            information solely in order to effectuate the purpose of the Agreement,
            provided
            that each party may provide confidential information to its employees,
            agents
            and affiliates who have a need to know such information in order to effectuate
            the transaction, provided further that such information is identified
            as
            confidential non-public information. In addition, confidential information
            may
            be provided to a regulatory authority with supervisory power over Purchaser,
            provided such information is identified as confidential non-public
            information.

          

          Section
            11.11 Recordation
            of Assignments of Mortgage.

          

          For
            each
            Mortgage Loan that is not a MERS Mortgage Loan, to the extent permitted
            by
            applicable law, each of the Assignments 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 and at the Company’s expense in the event
            recordation is either necessary under applicable law or requested by
            the
            Purchaser at its sole option. 

          

          Section
            11.12 Assignment.

          

          The
            Purchaser shall have the right, without the consent of the Company, to
            assign,
            in whole or in part, its interest under this Agreement with respect to
            some or
            all of the Mortgage Loans, and designate any person to exercise any rights
            of
            the Purchaser hereunder, by executing an Assignment and Assumption Agreement
            substantially in the form of Exhibit D hereto and the assignee or designee
            shall
            accede to the rights and obligations hereunder of the Purchaser with
            respect to
            such Mortgage Loans. In no event shall Purchaser sell a partial interest
            in any
            Mortgage Loan without the written consent of Company, which consent shall
            not be
            unreasonably denied. All references to the Purchaser in this Agreement
            shall be
            deemed to include its assignee or designee. The Company shall have the
            right,
            only with the consent of the Purchaser or otherwise in accordance with
            this
            Agreement, to assign, in whole or in part, its interest under this Agreement
            with respect to some or all of the Mortgage Loans.

          

          Section
            11.13 No
            Partnership.

          

          Nothing
            herein contained shall be deemed or construed to create a co-partnership
            or
            joint venture between the parties hereto and the services of the Company
            shall
            be rendered as an independent contractor and not as agent for
            Purchaser.

          

          Section
            11.14 Execution:
            Successors and Assigns.

          

          This
            Agreement may be executed in one or more counterparts and by the different
            parties hereto on separate counterparts, each of which, when so executed,
            shall
            be deemed to be an original; such counterparts, together, shall constitute
            one
            and the same agreement. Subject to this Agreement shall inure to the
            benefit of
            and be binding upon the Company and the Purchaser and their respective
            successors and assigns.

          

          Section
            11.15 Entire
            Agreement.

          

          The
            Company acknowledges that no representations, agreements or promises
            were made
            to the Company by the Purchaser or any of its employees other than those
            representations, agreements or promises specifically contained herein
            and in the
            Confirmation. The Confirmation and this Agreement and the related Term
            Sheet
            sets forth the entire understanding between the parties hereto; provided,
            however, only this Agreement and the related Term Sheet shall be binding
            upon
            all successors of both parties. In the event of any inconsistency between
            the
            Confirmation and this Agreement, this Agreement and the related Term
            Sheet shall
            control.

          

          Section
            11.16. No
            Solicitation.

          

          From
            and
            after the Closing Date, the Company agrees that it will not take any
            action or
            permit or cause any action to be taken by any of its agents or affiliates,
            to
            personally, by telephone or mail, solicit the borrower or obligor under
            any
            Mortgage Loan to refinance the Mortgage Loan, in whole or in part, without
            the
            prior written consent of the Purchaser. Notwithstanding the foregoing,
            it is
            understood and agreed that (i) promotions undertaken by the Company or
            any
            affiliate of the Company which are directed to the general public at
            large, or
            segments thereof, provided that no segment shall consist primarily of
            the
            Mortgage Loans, including, without limitation, mass mailing based on
            commercially acquired mailing lists, newspaper, radio and television
            advertisements and (ii) responses to unsolicited requests or inquiries
            made by a
            Mortgagor or an agent of a Mortgagor, shall not constitute solicitation
            under
            this Section 11.16. This Section 11.16 shall not be deemed to preclude
            the
            Company or any of its affiliates from soliciting any Mortgagor for any
            other
            financial products or services. The Company shall use its best efforts
            to
            prevent the sale of the name of any Mortgagor to any Person who is not
            an
            affiliate of the Company, other than as permitted by law.

          

          Section
            11.17. Closing.

          

          The
            closing for the purchase and sale of the Mortgage Loans shall take place
            on the
            related Closing Date. The closing shall be either: by telephone, confirmed
            by
            letter or wire as the parties shall agree, or conducted in person, at
            such place
            as the parties shall agree.

          

          The
            closing for the Mortgage Loans to be purchased on the related Closing
            Date shall
            be subject to each of the following conditions:

          

          (a) at
            least
            one (1) Business Day prior to the related Closing Date, the Company shall
            deliver to the Purchaser a magnetic diskette, or transmit by modem, a
            listing on
            a loan-level basis of the information contained in the related Mortgage
            Loan
            Schedule attached to the related Term Sheet;

          

          (b) all
            of
            the representations and warranties of the Company under this Agreement
            shall be
            materially true and correct as of the related Closing Date and no event
            shall
            have occurred which, with notice or the passage of time, would constitute
            a
            material default under this Agreement;

          

          (c) the
            Purchaser shall have received, or the Purchaser's attorneys shall have
            received
            in escrow, all documents required pursuant to this Agreement, the related
            Term
            Sheet, an opinion of counsel and an officer's certificate, all in such
            forms as
            are agreed upon and acceptable to the Purchaser, duly executed by all
            signatories other than the Purchaser as required pursuant to the terms
            hereof;

          

          (d) the
            Company shall have delivered and released to the Purchaser (or its designee)
            on
            or prior to the related Closing Date all documents required pursuant
            to the
            terms of this Agreement and the related Term Sheet; and

          

          (e) all
            other
            terms and conditions of this Agreement, the related Term Sheet and the
            Confirmation shall have been materially complied with.

          

          Subject
            to the foregoing conditions, the Purchaser shall pay to the Company on
            the
            related Closing Date the Purchase Price, plus accrued interest pursuant
            to
            Section 2.02 of this Agreement, by wire transfer of immediately available
            funds
            to the account designated by the Company.

          

          Section
            11.18. Cooperation
            of Company with a Reconstitution.

          

          The
            Company and the Purchaser agree that with respect to some or all of the
            Mortgage
            Loans, on or after the related Closing Date, on one or more dates (each
            a
            "Reconstitution Date") at the Purchaser's sole option, the Purchaser
            may effect
            a sale (each, a "Reconstitution") of some or all of the Mortgage Loans
            then
            subject to this Agreement, without recourse, to:

          

          (a) 
            one or
            more third party purchasers in one or more in whole loan transfers (each,
            a
            "Whole Loan Transfer"); or

          

          (b) one
            or
            more trusts or other entities to be formed as part of one or more pass-through
            transfers (each, a "Pass-Through Transfer").

          

          The
            Company agrees to execute in connection with any agreements among the
            Purchaser,
            the Company, and any servicer in connection with a Whole Loan Transfer,
            an
            Assignment, Assumption and Recognition Agreement substantially in the
            form of
            Exhibit D hereto, or, at Purchaser’s request, a seller's warranties and
            servicing agreement or a participation and servicing agreement or similar
            agreement in form and substance reasonably acceptable to the parties,
            and in
            connection with a Pass-Through Transfer, a pooling and servicing agreement
            in
            form and substance reasonably acceptable to the parties, (collectively
            the
            agreements referred to herein are designated, the "Reconstitution Agreements").
            It is understood that any such Reconstitution Agreements will not contain
            any
            greater obligations on the part of Company than are contained in this
            Agreement.

          

          With
            respect to each Whole Loan Transfer and each Pass-Through Transfer entered
            into
            by the Purchaser, the Company agrees (1) to cooperate fully with the
            Purchaser
            and any prospective purchaser with respect to all reasonable requests
            and due
            diligence procedures; (2) to execute, deliver and perform all Reconstitution
            Agreements required by the Purchaser; (3) to restate the representations
            and
            warranties set forth in this Agreement as of the settlement or closing
            date in
            connection with such Reconstitution (each, a "Reconstitution Date").
            In that
            connection, the Company shall provide to such servicer or issuer, as
            the case
            may be, and any other participants in such Reconstitution: (i) any and
            all
            information (including servicing portfolio information) and appropriate
            verification of information (including servicing portfolio information)
            which
            may be reasonably available to the Company, whether through letters of
            its
            auditors and counsel or otherwise, as the Purchaser or any such other
            participant shall request upon reasonable demand; and (ii) such additional
            representations, warranties, covenants, opinions of counsel, letters
            from
            auditors, and certificates of public officials or officers of the Company
            as are
            reasonably agreed upon by the Company and the Purchaser or any such other
            participant. In connection with each Pass-Through Transfer, the Company
            agrees
            to provide reasonable and customary indemnification to the Purchaser
            and its
            affilates for disclosure contained in any offering document relating
            to the
            Company or its affilates, the Mortgage Loans and the underwriting standards
            of
            the Mortgage Loans. The Purchaser shall be responsible for the costs
            relating to
            the delivery of such information. All reasonable and customary costs,
            fees and
            expenses incurred by Company pursuant to this provision shall be reimbursed
            to
            it and be deemed a condition precedent to its execution of any Reconstitution
            Agreement(s).

           

          All
            Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
            remain
            subject to, and serviced in accordance with the terms of, this Agreement
            and the
            related Term Sheet, and with respect thereto this Agreement and the related
            Term
            Sheet shall remain in full force and effect.

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

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

           

          EMC
            MORTGAGE CORPORATION

          Purchaser

          

          By:________________________

          Name:
            

          Title:
            

          

          HOMEBANC
            MORTGAGE CORPORATION

          Company

          

          By:
            _______________________

          Name:
             Debra
            F.
            Watkins

          Title:
             Executive
            Vice President

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          EXHIBIT
            A

           

          CONTENTS
            OF MORTGAGE FILE

          

          With
            respect to each Mortgage Loan, the Mortgage File shall include each of
            the
            following items, which shall be available for inspection by the Purchaser,
            and
            which shall be retained by the Company in the Servicing File or delivered
            to the
            Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Purchase,
            Warranties and Servicing Agreement.

          

          1.
            The
            original Mortgage Note endorsed "Pay to the order of
            ____________________________________________________, without recourse,"
            and
            signed via original signature in the name of the Company by an authorized
            officer, with all intervening endorsements showing a complete chain of
            title
            from the originator to the Company, together with any applicable riders.
            In no
            event may an endorsement be a facsimile endorsement. If the Mortgage
            Loan was
            acquired by the Company in a merger, the endorsement must be by "[Company],
            successor by merger to the [name of predecessor]". If the Mortgage Loan
            was
            acquired or originated by the Company while doing business under another
            name,
            the endorsement must be by "[Company] formerly known as [previous name]".
            Mortgage Notes may be in the form of a lost note affidavit subject to
            Purchaser
            acceptability. 

          

          2.
            Except
            as provided below and for each Mortgage Loan that is not a MERS Mortgage
            Loan,
            the original Mortgage with evidence of recording thereon. If in connection
            with
            any Mortgage Loan that is not a MERS Mortgage Loan, the Company cannot
            deliver
            or cause to be delivered the original Mortgage with evidence of recording
            thereon on or prior to the related Closing Date because of a delay caused
            by the
            public recording office where such Mortgage has been delivered for recordation
            or because such Mortgage has been lost or because such public recording
            office
            retains the original recorded Mortgage, the Company shall deliver or
            cause to be
            delivered to the Purchaser a photocopy of such Mortgage together with
            (i) in the
            case of a delay caused by the public recording office, an Officer’s Certificate
            of the title insurer insuring the Mortgage stating that such Mortgage
            has been
            delivered to the appropriate public recording office for recordation
            and that
            the original recorded Mortgage or a copy of such Mortgage certified by
            such
            public recording office to be a true and complete copy of the original
            recorded
            Mortgage will be promptly delivered to the Purchaser upon receipt thereof
            by the
            Company; or (ii) in the case of a Mortgage where a public recording office
            retains the original recorded Mortgage or in the case where a Mortgage
            is lost
            after recordation in a public recording office, a copy of such Mortgage
            with the
            recording information thereon certified by such public recording office
            to be a
            true and complete copy of the original recorded Mortgage. With respect
            to each
            MERS Mortgage Loan, the original Mortgage, noting the presence of the
            MIN of the
            Mortgage Loans and either language indicating that the Mortgage Loan
            is a MOM
            Loan or if the Mortgage Loan was not a MOM Loan at origination, the original
            Mortgage and the assignment thereof to MERS, with evidence of recording
            indicated thereon, or a copy of the Mortgage certified by the public
            recording
            office in which such Mortgage has been recorded;

          

          3.
            The
            original or certified copy, certified by the Company, of the Primary
            Mortgage
            Insurance Policy, if required.

          

          4. In
            the
            case of each Mortgage Loan that is not a MERS Mortgage Loan, the original
            Assignment of Mortgage, from the Company to “Mortgage Electronic Registration
            Systems, Inc., its successors and assigns, as nominee for EMC Mortgage
            Corporation, its successors and assigns, P.O. Box 2026, Flint, Michigan
            48501-2026,” or otherwise in accordance with Purchaser's instructions, which
            assignment of mortgage shall, but for any blanks requested by Purchaser,
            be in
            form and substance acceptable for recording. If the Mortgage Loan was
            acquired
            or originated by the Company while doing business under another name,
            the
            Assignment must be by "[Company] formerly known as [previous name]".
            If the
            Mortgage Loan was acquired by the Company in a merger, the endorsement
            must be
            by "[Company], successor by merger to the [name of predecessor]". None
            of the
            Assignments are blanket assignments of mortgage;

          

          5. The
            original policy of title insurance, including riders and endorsements
            thereto,
            or if the policy has not yet been issued, a written commitment or interim
            binder
            or preliminary report of title issued by the title insurance or escrow
            company.

          

          6. In
            the
            case of each Mortgage Loan that is not a MERS Mortgage Loan, originals
            of all
            recorded intervening Assignments, or copies thereof, certified by the
            public
            recording office in which such Assignments have been recorded showing
            a complete
            chain of title from the originator to the Company, with evidence of recording
            thereon, or a copy thereof certified by the public recording office in
            which
            such Assignment has been recorded or, if the original Assignment has
            not been
            returned from the applicable public recording office, a true certified
            copy,
            certified by the Company.

          

          7. Originals,
            or copies thereof certified by the public recording office in which such
            documents have been recorded, of each assumption, extension, modification,
            written assurance or substitution agreements, if applicable, or if the
            original
            of such document has not been returned from the applicable public recording
            office, a true certified copy, certified by the Company. 

          

          8. If
            the
            Mortgage Note or Mortgage or any other material document or instrument
            relating
            to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
            the
            original or copy of power of attorney or other instrument that authorized
            and
            empowered such person to sign bearing evidence that such instrument has
            been
            recorded, if so required in the appropriate jurisdiction where the Mortgaged
            Property is located, or a copy thereof certified by the public recording
            office
            in which such instrument has been recorded or, if the original instrument
            has
            not been returned from the applicable public recording office, a true
            certified
            copy, certified by the Company.

          

          9. reserved.

          

          10. Mortgage
            Loan closing statement (Form HUD-1) and any other truth-in-lending or
            real
            estate settlement procedure forms required by law.

          

          11.
            Residential loan application.

          

          12. Uniform
            underwriter and transmittal summary (Fannie Mae Form 1008) or reasonable
            equivalent.

          

          13. Credit
            report on the mortgagor.

          

          14. Business
            credit report, if applicable.

          

          15. Residential
            appraisal report and attachments thereto.

          

          16. The
            original of any guarantee executed in connection with the Mortgage
            Note.

          

          17. Verification
            of employment and income except for Mortgage Loans originated under a
            limited
            documentation program, all in accordance with Company's underwriting
            guidelines.

          

          18. Verification
            of acceptable evidence of source and amount of down payment, in accordance
            with
            Company's underwriting guidelines.

          

          19. Photograph
            of the Mortgaged Property (may be part of appraisal).

          

          20. Survey
            of
            the Mortgaged Property, if any.

          

          21. Sales
            contract, if applicable.

          

          22. If
            available, termite report, structural engineer’s report, water portability and
            septic certification.

          

          23. Any
            original security agreement, chattel mortgage or equivalent executed
            in
            connection with the Mortgage.

          

          24. Name
            affidavit, if applicable.

          

          Notwithstanding
            anything to the contrary herein, Company may provide one certificate
            for all of
            the Mortgage Loans indicating that the documents were delivered for
            recording.

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            B

          

          CUSTODIAL
            ACCOUNT LETTER AGREEMENT

          

          ______________,
            2004

          

          To: [_______________________]
            

          (the
            "Depository")

          

          As
            "Company" under the Purchase, Warranties and Servicing Agreement, dated
            as of
            January 1, 2004 Adjustable Rate Mortgage Loans (the "Agreement"), we
            hereby
            authorize and request you to establish an account, as a Custodial Account
            pursuant to Section 4.04 of the Agreement, to be designated as
            "[______________________________________], in trust for the [Purchaser],
            Owner
            of Adjustable Rate Mortgage Loans". All deposits in the account shall
            be subject
            to withdrawal therefrom by order signed by the Company. This letter is
            submitted
            to you in duplicate. Please execute and return one original to us.

          

          [__________________________]

          By:____________________________

          Name:__________________________

          Title:___________________________

           

           

          

          The
            undersigned, as "Depository", hereby certifies that the above described
            account
            has been established under Account Number [__________], at the office
            of the
            depository indicated above, and agrees to honor withdrawals on such account
            as
            provided above. The full amount deposited at any time in the account
            will be
            insured up to applicable limits by the Federal Deposit Insurance Corporation
            through the Bank Insurance Fund or the Savings Association Insurance
            Fund or
            will be invested in Permitted Investments as defined in the
            Agreement.

          
            

            [__________________________]

            By:____________________________

            Name:__________________________

            Title:___________________________

             

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            C

          

          ESCROW
            ACCOUNT LETTER AGREEMENT

          _____________,
            2004

          

          To: [_______________________]

          (the
            "Depository")

          

          As
            “Company” under the Purchase Warranties and Servicing Agreement, dated as of
            January 1, 2004 Adjustable Rate Mortgage Loans (the "Agreement"), we
            hereby
            authorize and request you to establish an account, as an Escrow Account
            pursuant
            to Section 4.06 of the Agreement, to be designated as
            "[__________________________], in trust for the [Purchaser], Owner of
            Adjustable
            Rate Mortgage Loans, and various Mortgagors." All deposits in the account
            shall
            be subject to withdrawal therefrom by order signed by the Company. This
            letter
            is submitted to you in duplicate. Please execute and return one original
            to
            us.

          
            

            [__________________________]

            By:____________________________

            Name:__________________________

            Title:___________________________

          

          

          The
            undersigned, as "Depository", hereby certifies that the above described
            account
            has been established under Account Number __________, at the office of
            the
            depository indicated above, and agrees to honor withdrawals on such account
            as
            provided above. The full amount deposited at any time in the account
            will be
            insured up to applicable limits by the Federal Deposit Insurance Corporation
            through the Bank Insurance Fund or the Savings Association Insurance
            Fund or
            will be invested in Permitted Investments as defined in the
            Agreement.

          
            

            [__________________________]

            By:____________________________

            Name:__________________________

            Title:___________________________

             

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          EXHIBIT
            D

          

          FORM
            OF
            PURCHASE, ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

          

          This
            is a
            Purchase, Assignment, Assumption and Recognition Agreement (this “PAAR
            Agreement”) made as of __________, 200__, among EMC Mortgage Corporation (the
“Assignor”), ___________________ (the “Assignee”), and HomeBanc Mortgage
            Corporation (the “Company”).

          

          In
            consideration of the mutual promises contained herein the parties hereto
            agree
            that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
            1 annexed hereto (the "Assigned Loan Schedule") now serviced by Company
            for
            Assignor and its successors and assigns pursuant to the Purchase, Warranties
            and
            Servicing Agreement, dated as of _________, 200__, between Assignor and
            Company
            (the “Purchase Agreement”) shall be subject to the terms of this PAAR Agreement.
            Capitalized terms used herein but not defined shall have the meanings
            ascribed
            to them in the Purchase Agreement.

          

          Purchase,
            Assignment and Assumption

          

          1. Assignor
            hereby grants, transfers and assigns to Assignee all of the right, title
            and
            interest of Assignor in the Assigned Loans and, as they relate to the
            Assigned
            Loans, all of its right, title and interest in, to and under the Purchase
            Agreement.

          

          2. Simultaneously
            with the execution hereof, (i) Assignee shall pay to Assignor the “Funding
            Amount” as set forth in that certain letter agreement, dated as of _________
            ____, between Assignee and Assignor (the “Confirmation”) and (ii) Assignor, at
            its expense, shall have caused to be delivered to Assignee or its designee
            the
            Mortgage File for each Assigned Loan in Assignor's or its custodian's
            possession, as set forth in the Purchase Agreement, along with, for each
            Assigned Loan, an endorsement of the Mortgage Note from the applicable
            Company,
            in blank, and an assignment of mortgage in recordable form from the applicable
            Company, in blank. Assignee shall pay the Funding Amount by wire transfer
            of
            immediately available funds to the account specified by Assignor. Assignee
            shall
            be entitled to all scheduled payments due on the Assigned Loans after
            ___________, 200__ and all unscheduled payments or other proceeds or
            other
            recoveries on the Assigned Loans received on and after _____________,
            200__.

          

          Representations,
            Warranties and Covenants

          

          3. Assignor
            warrants and represents to Assignee and Company as of the date
            hereof:

          

          (a) Attached
            hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
            which agreement is in full force and effect as of the date hereof and
            the
            provisions of which have not been waived, amended or modified in any
            respect,
            nor has any notice of termination been given thereunder;

          

          (b) Assignor
            is the lawful owner of the Assigned Loans with full right to transfer
            the
            Assigned Loans and any and all of its interests, rights and obligations
            under
            the Purchase Agreement as they relate to the Assigned Loans, free and
            clear from
            any and all claims and encumbrances; and upon the transfer of the Assigned
            Loans
            to Assignee as contemplated herein, Assignee shall have good title to
            each and
            every Assigned Loan, as well as any and all of Assignee’s interests, rights and
            obligations under the Purchase Agreement as they relate to the Assigned
            Loans,
            free and clear of any and all liens, claims and encumbrances;

          

          (c) There
            are
            no offsets, counterclaims or other defenses available to Company with
            respect to
            the Assigned Loans or the Purchase Agreement;

           

          (d) Assignor
            has no knowledge of, and has not received notice of, any waivers under,
            or any
            modification of, any Assigned Loan;

          

          (e) Assignor
            is duly organized, validly existing and in good standing under the laws
            of the
            jurisdiction of its incorporation, and has all requisite power and authority
            to
            acquire, own and sell the Assigned Loans;

          

          (f) Assignor
            has full corporate power and authority to execute, deliver and perform
            its
            obligations under this PAAR Agreement, and to consummate the transactions
            set
            forth herein. The consummation of the transactions contemplated by this
            PAAR
            Agreement is in the ordinary course of Assignor’s business and will not conflict
            with, or result in a breach of, any of the terms, conditions or provisions
            of
            Assignor’s charter or by-laws or any legal restriction, or any material
            agreement or instrument to which Assignor is now a party or by which
            it is
            bound, or result in the violation of any law, rule, regulation, order,
            judgment
            or decree to which Assignor or its property is subject. The execution,
            delivery
            and performance by Assignor of this PAAR Agreement and the consummation
            by it of
            the transactions contemplated hereby, have been duly authorized by all
            necessary
            corporate action on part of Assignor. This PAAR Agreement has been duly
            executed
            and delivered by Assignor and, upon the due authorization, execution
            and
            delivery by Assignee and Company, will constitute the valid and legally
            binding
            obligation of Assignor enforceable against Assignor in accordance with
            its terms
            except as enforceability may be limited by bankruptcy, reorganization,
            insolvency, moratorium or other similar laws now or hereafter in effect
            relating
            to creditors’ rights generally, and by general principles of equity regardless
            of whether enforceability is considered in a proceeding in equity or
            at law;

           

          (g)  No
            consent, approval, order or authorization of, or declaration, filing
            or
            registration with, any governmental entity is required to be obtained
            or made by
            Assignor in connection with the execution, delivery or performance by
            Assignor
            of this PAAR Agreement, or the consummation by it of the transactions
            contemplated hereby; and

          

          (h)  Neither
            Assignor nor anyone acting on its behalf has offered, transferred, pledged,
            sold
            or otherwise disposed of the Assigned Loans or any interest in the Assigned
            Loans, or solicited any offer to buy or accept a transfer, pledge or
            other
            disposition of the Assigned Loans, or any interest in the Assigned Loans
            or
            otherwise approached or negotiated with respect to the Assigned Loans,
            or any
            interest in the Assigned Loans 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 which would constitute a distribution of the Assigned
            Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
            would render the disposition of the Assigned Loans a violation of Section
            5 of
            the 1933 Act or require registration pursuant thereto.

           

          4. Assignee
            warrants and represents to, and covenants with, Assignor and Company
            as of the
            date hereof:

          

          (a) Assignee
            is duly organized, validly existing and in good standing under the laws
            of the
            jurisdiction of its organization and has all requisite power and authority
            to
            acquire, own and purchase the Assigned Loans;

          

          (b) Assignee
            has full corporate power and authority to execute, deliver and perform
            its
            obligations under this PAAR Agreement, and to consummate the transactions
            set
            forth herein. The consummation of the transactions contemplated by this
            PAAR
            Agreement is in the ordinary course of Assignee’s business and will not conflict
            with, or result in a breach of, any of the terms, conditions or provisions
            of
            Assignee’s charter or by-laws or any legal restriction, or any material
            agreement or instrument to which Assignee is now a party or by which
            it is
            bound, or result in the violation of any law, rule, regulation, order,
            judgment
            or decree to which Assignee or its property is subject. The execution,
            delivery
            and performance by Assignee of this PAAR Agreement and the consummation
            by it of
            the transactions contemplated hereby, have been duly authorized by all
            necessary
            corporate action on part of Assignee. This PAAR Agreement has been duly
            executed
            and delivered by Assignee and, upon the due authorization, execution
            and
            delivery by Assignor and Company, will constitute the valid and legally
            binding
            obligation of Assignee enforceable against Assignee in accordance with
            its terms
            except as enforceability may be limited by bankruptcy, reorganization,
            insolvency, moratorium or other similar laws now or hereafter in effect
            relating
            to creditors’ rights generally, and by general principles of equity regardless
            of whether enforceability is considered in a proceeding in equity or
            at law;

          

          (c) No
            consent, approval, order or authorization of, or declaration, filing
            or
            registration with, any governmental entity is required to be obtained
            or made by
            Assignee in connection with the execution, delivery or performance by
            Assignee
            of this PAAR Agreement, or the consummation by it of the transactions
            contemplated hereby; and 

          

          (d) Assignee
            agrees to be bound as “Purchaser” by all of the terms, covenants and conditions
            of the Purchase Agreement with respect to the Assigned Loans, and from
            and after
            the date hereof, Assignee assumes for the benefit of each of Assignor
            and
            Company all of Assignor's obligations as “Purchaser” thereunder but solely with
            respect to such Assigned Loans.

           

          5. Company
            warrants and represents to, and covenant with, Assignor and Assignee
            as of the
            date hereof:

          

          (a) Attached
            hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
            which agreement is in full force and effect as of the date hereof and
            the
            provisions of which have not been waived, amended or modified in any
            respect,
            nor has any notice of termination been given thereunder; 

          

          (b)
             Company
            is duly organized, validly existing and in good standing under the laws
            of the
            jurisdiction of its incorporation, and has all requisite power and authority
            to
            service the Assigned Loans and otherwise to perform its obligations under
            the
            Purchase Agreement;

          

          	(c)  	
                  Company
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this PAAR Agreement, and to consummate the
                    transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this PAAR Agreement is in the ordinary course of Company’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Company’s charter or by-laws or any legal
                    restriction, or any material agreement or instrument to which
                    Company is
                    now a party or by which it is bound, or result in the violation
                    of any
                    law, rule, regulation, order, judgment or decree to which Company
                    or its
                    property is subject. The execution, delivery and performance
                    by Company of
                    this PAAR Agreement and the consummation by it of the transactions
                    contemplated hereby, have been duly authorized by all necessary
                    corporate
                    action on part of Company. This PAAR Agreement has been duly
                    executed and
                    delivered by Company, and, upon the due authorization, execution
                    and
                    delivery by Assignor and Assignee, will constitute the valid
                    and legally
                    binding obligation of Company, enforceable against Company in
                    accordance
                    with its terms except as enforceability may be limited by bankruptcy,
                    reorganization, insolvency, moratorium or other similar laws
                    now or
                    hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at
                    law;

                

          

          	(d)  	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignee in connection with the execution, delivery or
                    performance
                    by Company of this PAAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby; and

                

          

          	(e)  	
                  Except
                    as otherwise disclosed, no event has occurred
                    from the Closing Date to the date hereof which would render the
                    representations and warranties as to the related Assigned Loans
                    made by
                    the Company in Sections 3.01 and 3.02 of the Purchase Agreement
                    to be
                    untrue in any material respect.

                

          

          Recognition
            of Assignee

          

          6. From
            and
            after the date hereof, Company shall recognize Assignee as owner of the
            Assigned
            Loans and will service the Assigned Loans in accordance with the Purchase
            Agreement. It is the intention of Assignor, Company and Assignee that
            this PAAR
            Agreement shall be binding upon and for the benefit of the respective
            successors
            and assigns of the parties hereto. Neither Company nor Assignor shall
            amend or
            agree to amend, modify, waiver, or otherwise alter any of the terms or
            provisions of the Purchase Agreement which amendment, modification, waiver
            or
            other alteration would in any way affect the Assigned Loans without the
            prior
            written consent of Assignee.

          

           

          Miscellaneous

          

          7. All
            demands, notices and communications related to the Assigned Loans, the
            Purchase
            Agreement and this PAAR Agreement shall be in writing and shall be deemed
            to
            have been duly given if personally delivered at or mailed by registered
            mail,
            postage prepaid, as follows:

          

          (a) In
            the
            case of Company,

          

          HomeBanc
            Mortgage Corporation

          2002
            Summit Boulevard, Suite 100

          Atlanta,
            GA 30319

          Attention:
            Debra F. Watkins, EVP Capital Markets & Treasury

          Telecopier
            No.: (404) 705-2301

           

          With
            a
            copy to 

          HomeBanc
            Mortgage Corporation

          2002
            Summit Boulevard, Suite 100

          Atlanta,
            GA 30319

          Attention:
            General Counsel

          Telecopier
            No.: (404) 303-4069

          

          	(b)  	
                  In
                    the case of Assignor,

                

          

          ____________________

          ____________________

          ____________________

          ____________________

          ____________________ 

          

          (c) In
            the
            case of Assignee,

          

          EMC
            Mortgage Corporation 

          Mac
            Arthur Ridge II 

          909
            Hidden Ridge Drive, Suite 200

          Irving,
            Texas 75038

          Attention:
            Ms. Raylene Ruyle

          Telecopier
            No.: 

          

          with
            a
            copy to:

          

          Bear
            Stearns Mortgage Capital Corporation 

          383
            Madison Avenue

          New
            York,
            New York 10179

          Attention:
            Michelle Sterling

          

          8. Each
            party will pay any commissions it has incurred and the fees of its attorneys
            in
            connection with the negotiations for, documenting of and closing of the
            transactions contemplated by this PAAR Agreement. 

          

          9. This
            PAAR
            Agreement shall be construed in accordance with the laws of the State
            of New
            York, without regard to conflicts of law principles, and the obligations,
            rights
            and remedies of the parties hereunder shall be determined in accordance
            with
            such laws.

          

          10. No
            term
            or provision of this PAAR Agreement may be waived or modified unless
            such waiver
            or modification is in writing and signed by the party against whom such
            waiver
            or modification is sought to be enforced.

          

          11. This
            PAAR
            Agreement shall inure to the benefit of the successors and assigns of
            the
            parties hereto. Any entity into which Assignor, Assignee or Company may
            be
            merged or consolidated shall, without the requirement for any further
            writing,
            be deemed Assignor, Assignee or Company, respectively, hereunder.

          

          12. This
            PAAR
            Agreement shall survive the conveyance of the Assigned Loans, the assignment
            of
            the Purchase Agreement to the extent of the Assigned Loans by Assignor
            to
            Assignee and the termination of the Purchase Agreement.

          

          13. This
            PAAR
            Agreement may be executed simultaneously in any number of counterparts.
            Each
            counterpart shall be deemed to be an original and all such counterparts
            shall
            constitute one and the same instrument.

          

          14. In
            the
            event that any provision of this PAAR Agreement conflicts with any provision
            of
            the Purchase Agreement with respect to the Assigned Loans, the terms
            of this
            PAAR Agreement shall control. In the event that any provision of this
            PAAR
            Agreement conflicts with any provision of the Confirmation with respect
            to the
            Assigned Loans, the terms of this PAAR Agreement shall control. Notwithstanding
            anything to the contrary herein contained, the parties hereto understand
            and
            agree that no provision of the PAAR Agreement imposes upon the Company
            any duty
            or obligation greater than that referenced or otherwise recited in the
            Purchase
            Agreement.

          

          

          [Modification
            of Purchase Agreement

          

          	15.  	
                  The
                    Company and Assignor hereby amend the Purchase Agreement as
                    follows:

                

          

          (a) The
            following definitions are added to Section 1.01 of the Purchase
            Agreement:

          

          Securities
            Administrator: ________________________

          

          Supplemental
            PMI Insurer: ________________________

          

          Supplemental
            PMI Policy: The
            primary guarantee insurance policy of the Supplemental PMI Insurer attached
            hereto as Exhibit J, or any successor Supplemental PMI Policy given to
            the
            Servicer by the Assignee.

          

          Trustee:
             ________________________

          

          (b) The
            following definition is amended and restated:

          

          Insurance
            Proceeds: Proceeds
            of any Primary Mortgage Insurance Policy, the Supplemental PMI Policy,
            any title
            policy, any hazard insurance policy or any other insurance policy covering
            a
            Mortgage Loan or other related Mortgaged Property, including any amounts
            required to be deposited in the Custodial Account pursuant to Section
            4.04, to
            the extent such proceeds are not to be applied to the restoration of
            the related
            Mortgaged Property or released to the Mortgagor in accordance with Accepted
            Servicing Practices.

          

          (c) The
            following are added as the fourth, fifth and sixth paragraphs of Section
            4.08:

          

          “In
            connection with its activities as servicer, the Company agrees to prepare
            and
            present, on behalf of itself and the Purchaser, claims to the Supplemental
            PMI
            Insurer with respect to the Supplemental PMI Policy and, in this regard,
            to take
            such action as shall be necessary to permit recovery under any Supplemental
            PMI
            Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.04,
            any
            amounts collected by the Company under any Supplemental PMI Policy shall
            be
            deposited in the Custodial Account, subject to withdrawal pursuant to
            Section
            4.05.

          

          In
            accordance with the Supplemental PMI Policy, the Company shall provide
            to the
            Supplemental PMI Insurer any required information regarding the Mortgage
            Loans.

          

          The
            Company shall provide to the [Securities Administrator] on a monthly
            basis via
            computer tape, or other mutually acceptable format, the unpaid principal
            balance, insurer certificate number, lender loan number, and premium
            due the
            Supplemental PMI Insurer for each Mortgage Loan covered by the Supplemental
            PMI
            Policy. In addition, the Company agrees to forward to the Purchaser and
            the
            [Securities Administrator] any statements or other reports given by the
            Supplemental PMI Insurer to the Servicer in connection with a claim under
            the
            Supplemental PMI Policy.”

          

          (d) Clause
            (vi) of Section 6.1 is amended to read as follows:

          

          “Company
            ceases to be approved by either Fannie Mae or FHLMC as a mortgage loan
            seller or
            servicer for more than thirty (30) days, or the Company fails to meet
            the
            servicer eligibility requirements of the Supplemental PMI Insurer;
            or”]

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, the parties hereto have executed this PAAR Agreement
            as of the
            day and year first above written.

          

          EMC
            MORTGAGE CORPORATION

          Assignor

          

          By: ______________________________

          Name: ____________________________

          Title:
            _____________________________

          

          

          _________________________________

          Assignee

          

          By: ______________________________

          Name: ____________________________

          Title:
            _____________________________

          

          

          HOMEBANC
            MORTGAGE CORPORATION

          Company

          

          By:____________________________________

          Name:
            Debra F. Watkins

          Title:
            Executive Vice President

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            1

          

          ASSIGNED
            LOAN SCHEDULE

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            2

          

          PURCHASE,
            WARRANTIES AND SERVICING AGREEMENT

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            E

          

          FORM
            OF
            TRIAL BALANCE

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            G

          

          REQUEST
            FOR RELEASE OF DOCUMENTS AND RECEIPT

          

          RE: Mortgage
            Loan #__________________________________

          BORROWER:________________________________________

          PROPERTY:
            ________________________________________

          

          

          Pursuant
            to a Purchase, Warranties and Servicing Agreement (the "Agreement") between
            the
            Company and the Purchaser, the undersigned hereby certifies that he or
            she is an
            officer of the Company requesting release of the documents for the reason
            specified below. The undersigned further certifies that:

          

          (Check
            one of the items below)

          

          _____ On
            _________________, the above captioned mortgage loan was paid in full
            or that
            the Company has been notified that payment in full has been or will be
            escrowed.
            The Company hereby certifies that all amounts with respect to this loan
            which
            are required under the Agreement have been or will be deposited in the
            Custodial
            Account as required.

          

          _____ The
            above
            captioned loan is being repurchased pursuant to the terms of the Agreement.
            The
            Company hereby certifies that the repurchase price has been credited
            to the
            Custodial Account as required under the Agreement.

          

          _____ The
            above
            captioned loan is being placed in foreclosure and the original documents
            are
            required to proceed with the foreclosure action. The Company hereby certifies
            that the documents will be returned to the Purchaser in the event of
            reinstatement.

          

          _____ Other
            (explain)

          

          _______________________________________________________

          _______________________________________________________

          

          All
            capitalized terms used herein and not defined shall have the meanings
            assigned
            to them in the Agreement.

          

          Based
            on
            this certification and the indemnities provided for in the Agreement,
            please
            release to the Company all original mortgage documents in your possession
            relating to this loan.

          

          Dated:_________________

          

          By:________________________________

          Signature

          ___________________________________

          Title

          

          Send
            documents to:    _____________________________________________

          _____________________________________________

          _____________________________________________

          

          Acknowledgement:

          

          Purchaser
            hereby acknowledges that all original documents previously released on
            the above
            captioned mortgage loan have been returned and received by the
            Purchaser.

          

          

          Dated:________________

          

          By:________________________________

          Signature

          __________________________________

          Title

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          

          EXHIBIT
            H

          

          COMPANY’S
            UNDERWRITING GUIDELINES

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
 

          EXHIBIT
            I

          

          TERM
            SHEET

          

          This
            TERM
            SHEET (the "Term Sheet") dated _____________, between HomeBanc Mortgage
            Corporation, a Delaware corporation, located at 2002 Summit Boulevard,
            Suite
            100, Atlanta, GA 30319 (the “Company”) and EMC Mortgage Corporation, a Delaware
            corporation, located at ______________ (the "Purchaser") is made pursuant
            to the
            terms and conditions of that certain Purchase, Warranties and Servicing
            Agreement (the "Agreement") dated as of January 1, 2004, between the
            Company and
            the Purchaser, the provisions of which are incorporated herein as if
            set forth
            in full herein, as such terms and conditions may be modified or supplemented
            hereby. All initially capitalized terms used herein unless otherwise
            defined
            shall have the meanings ascribed thereto in the Agreement. 

          

          The
            Purchaser hereby purchases from the Company and the Company hereby sells
            to the
            Purchaser, all of the Company’s right, title and interest in and to the Mortgage
            Loans described on the Mortgage Loan Schedule annexed hereto as Schedule
            I,
            pursuant to and in accordance with the terms and conditions set forth
            in the
            Agreement, as same may be supplemented or modified hereby. Hereinafter,
            the
            Company shall service the Mortgage Loans for the benefit of the Purchaser
            and
            all subsequent transferees of the Mortgage Loans pursuant to and in accordance
            with the terms and conditions set forth in the Agreement. 

          

          1. Definitions

          

          For
            purposes of the Mortgage Loans to be sold pursuant to this Term Sheet,
            the
            following terms shall have the following meanings:

          

          Aggregate
            Principal Balance

          (as
            of
            the Cut-Off Date):    

          

          Closing
            Date:    

          

          Custodian:    

          

          Cut-off
            Date:    

          

          Initial
            Weighted Average

          Mortgage
            Loan Remittance Rate:  

          

          Mortgage
            Loan:    

          

          Purchase
            Price Percentage:   

          

          Servicing
            Fee Rate:   

          Additional
            Closing Conditions: 

          

          In
            addition to the conditions specified in the Agreement, the obligation
            of each of
            the Company and the Purchaser is subject to the fulfillment, on or prior
            to the
            applicable Closing Date, of the following additional conditions: [None].
            

          

          Additional
            Loan Documents: 

          

          In
            addition to the contents of the Mortgage File specified in the Agreement,
            the
            following documents shall be delivered with respect to the Mortgage Loans:
            [None]

          

          [Additional]
            [Modification] of Representations and Warranties:

           

          [In
            addition to the representations and warranties set forth in the Agreement,
            as of
            the date hereof, the Company makes the following additional representations
            and
            warranties with respect to the Mortgage Loans: [None]. [Notwithstanding
            anything
            to the contrary set forth in the Agreement, with respect to each Mortgage
            Loan
            to be sold on the Closing Date, the representation and warranty set forth
            in
            Section ______ of the Agreement shall be modified to read as
            follows:]

          

          Except
            as
            modified herein, Section ______ of the Agreement shall remain in full
            force and
            effect as of the date hereof.

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, the parties hereto have caused their names to be signed
            hereto
            by their respective duly authorized officers as of the date first above
            written.

           

          

          HOMEBANC
            MORTGAGE CORPORATION

          

          

          
            	 	 	 	 	
                    By: _______________________________

                  

          

          
            	 	 	 	 	
                    Name:_____________________________

                  

          

          
            	 	 	 	 	
                    Title:______________________________

                  

          

          

          

          

          
            	 	 	 	 	
                    EMC
                      MORTGAGE CORPORATION

                  

          

          

          

          
            	 	 	 	 	
                    By: _______________________________

                  

          

          
            	 	 	 	 	
                    Name:_____________________________

                  

          

          
            	 	 	 	 	
                    Title:______________________________

                  

          

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          SCHEDULE
            I

          

          MORTGAGE
            LOAN SCHEDULE

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          R-4

        

        FORM
          OF
          HOMEBANC ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

         

        

           

          ASSIGNMENT,
            ASSUMPTION AND RECOGNITION AGREEMENT

           

          This
            is
            an Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) made
            as of January 16, 2007, among EMC Mortgage Corporation, having an address
            at
            2780 Lake Vista Drive, Lewisville, Texas 75067 (the “Assignor”), Citibank N.A.,
            not individually but solely as Trustee for the holders of SACO I Trust,
            Mortgage-Backed Certificates, Series 2007-1, having an address at 388
            Greenwich
            Street, 14th
            Floor,
            New York, New York 10013 (the “Assignee”) and HomeBanc Mortgage Corporation (the
“Company”).

           

          In
            consideration of the mutual promises contained herein the parties hereto
            agree
            that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
            1 annexed hereto (the "Assigned Loan Schedule") purchased by the Assignor
            from
            the Company and now serviced by Company for Assignor and its successors
            and
            assigns pursuant to (a) the Purchase, Warranties and Servicing Agreement,
            dated
            as of January 1, 2004, as amended by the Amended and Restated Amendment
            No. 1 to
            the Purchase, Warranties and Servicing Agreement, dated as of January
            27, 2006,
            between Assignor and Company (as amended, the “Agreement”) and (b) the Term
            Sheets (the “Term Sheets”) dated June 30, 2006, September 29, 2006 and May 30,
            2006 between Assignor and Company shall be subject to the terms of this
            AAR
            Agreement. Capitalized terms used herein but not defined shall have the
            meanings
            ascribed to them in the Agreement.

           

          Assignment
            and Assumption

          

          Except
            as
            expressly provided for herein, the Assignor hereby grants, transfers
            and assigns
            to the Assignee all of its right, title and interest as in, to and under
            (a) the
            Assigned Loans and (b) the Agreement with respect to the Assigned Loans;
            provided, however, that the Assignor is not assigning to the Assignee
            any of its
            right, title or interest, in, to and under the Agreement with respect
            to any
            mortgage loan other than the Assigned Loans listed on Exhibit A. Notwithstanding
            anything to the contrary contained herein, the Assignor specifically
            reserves
            and does not assign to the Assignee any right, title and interest in,
            to or
            under the representations and warranties contained in Section 3.01 and
            Section
            3.02 of the Agreement and the Assignor is retaining the right to enforce
            the
            representations and warranties set forth in those sections against the
            Company.
            Except as is otherwise expressly provided herein, the Assignor makes
            no
            representations, warranties or covenants to the Assignee and the Assignee
            acknowledges that the Assignor has no obligations to the Assignee under
            the
            terms of the Agreement or otherwise relating to the transaction contemplated
            herein (including, but not limited to, any obligation to indemnify the
            Assignee).

           

          Representations,
            Warranties and Covenants

          

          1.  Assignor
            warrants and represents to Assignee and Company as of the date
            hereof:

           

          (a)  Attached
            hereto as Attachment 2 are true and accurate copies of the Agreement
            which
            Agreement are in full force and effect as of the date hereof and the
            provisions
            of which have not been waived, amended or modified in any respect, nor
            has any
            notice of termination been given thereunder;

           

          (b)  Assignor
            is the lawful owner of the Assigned Loans with full right to transfer
            the
            Assigned Loans and any and all of its interests, rights and obligations
            under
            the Agreement as they relate to the Assigned Loans, free and clear from
            any and
            all claims and encumbrances; and upon the transfer of the Assigned Loans
            to
            Assignee as contemplated herein and in the Mortgage Loan Agreement dated
            as of
            January 16, 2007 between the Assignor and Bear Stearns Asset Backed Securities
            LLC ("BSABS I"), Assignee shall have good title to each and every Assigned
            Loan,
            as well as any and all of Assignee’s interests, rights and obligations under the
            Agreement as they relate to the Assigned Loans, free and clear of any
            and all
            liens, claims and encumbrances;

           

          (c)  There
            are
            no offsets, counterclaims or other defenses available to Company with
            respect to
            the Assigned Loans or the Agreement;

           

          (d)  Assignor
            has no knowledge of, and has not received notice of, any waivers under,
            or any
            modification of, any Assigned Loan;

           

          (e)  Assignor
            is duly organized, validly existing and in good standing under the laws
            of the
            jurisdiction of its incorporation, and has all requisite power and authority
            to
            acquire, own and sell the Assigned Loans;

           

          (f)  Assignor
            has full corporate power and authority to execute, deliver and perform
            its
            obligations under this AAR Agreement, and to consummate the transactions
            set
            forth herein. The consummation of the transactions contemplated by this
            AAR
            Agreement is in the ordinary course of Assignor’s business and will not conflict
            with, or result in a breach of, any of the terms, conditions or provisions
            of
            Assignor’s charter or by-laws or any legal restriction, or any material
            agreement or instrument to which Assignor is now a party or by which
            it is
            bound, or result in the violation of any law, rule, regulation, order,
            judgment
            or decree to which Assignor or its property is subject. The execution,
            delivery
            and performance by Assignor of this AAR Agreement and the consummation
            by it of
            the transactions contemplated hereby, have been duly authorized by all
            necessary
            corporate action on the part of Assignor. This AAR Agreement has been
            duly
            executed and delivered by Assignor and, upon the due authorization, execution
            and delivery by Assignee and Company, will constitute the valid and legally
            binding obligation of Assignor enforceable against Assignor in accordance
            with
            its terms except as enforceability may be limited by bankruptcy, reorganization,
            insolvency, moratorium or other similar laws now or hereafter in effect
            relating
            to creditors’ rights generally, and by general principles of equity regardless
            of whether enforceability is considered in a proceeding in equity or
            at law;

           

          (g)  No
            consent, approval, order or authorization of, or declaration, filing
            or
            registration with, any governmental entity is required to be obtained
            or made by
            Assignor in connection with the execution, delivery or performance by
            Assignor
            of this AAR Agreement, or the consummation by it of the transactions
            contemplated hereby; 

           

          (h)  Neither
            Assignor nor anyone acting on its behalf has offered, transferred, pledged,
            sold
            or otherwise disposed of the Assigned Loans or any interest in the Assigned
            Loans, or solicited any offer to buy or accept a transfer, pledge or
            other
            disposition of the Assigned Loans, or any interest in the Assigned Loans
            or
            otherwise approached or negotiated with respect to the Assigned Loans,
            or any
            interest in the Assigned Loans 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 which would constitute a distribution of the Assigned
            Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
            would render the disposition of the Assigned Loans a violation of Section
            5 of
            the 1933 Act or require registration pursuant thereto;

           

          (i)  The
            Assignor has received from Company, and has delivered to the Assignee,
            all
            documents required to be delivered to Assignor by the Company prior to
            the date
            hereof pursuant to the Agreement with respect to the Assigned Loans and
            has not
            received, and has not requested from the Company, any additional documents;
            and

           

          (j)  There
            is
            no action, suit, proceeding, investigation or litigation pending or,
            to
            Assignor's knowledge, threatened, which either in any instance or in
            the
            aggregate, if determined adversely to Assignor, would adversely affect
            Assignor's execution or delivery of, or the enforceability of, this AAR
            Agreement, or the Assignor's ability to perform its obligations under
            this AAR
            Agreement.

           

          2.  Assignee
            warrants and represents to, and covenants with, Assignor and Company
            as of the
            date hereof:

           

          (a)  Assignee
            is duly organized, validly existing and in good standing under the laws
            of the
            jurisdiction of its organization and has all requisite power and authority
            to
            hold the Assigned Loans as trustee on behalf of the holders of the SACO
            I Trust
            2007-1, Mortgage-Backed Certificates, Series 2007-1;

           

          (b)  Assignee
            has full corporate power and authority to execute, deliver and perform
            its
            obligations under this AAR Agreement, and to consummate the transactions
            set
            forth herein. The consummation of the transactions contemplated by this
            AAR
            Agreement is in the ordinary course of Assignee’s business and will not conflict
            with, or result in a breach of, any of the terms, conditions or provisions
            of
            Assignee’s charter or by-laws or any legal restriction, or any material
            agreement or instrument to which Assignee is now a party or by which
            it is
            bound, or result in the violation of any law, rule, regulation, order,
            judgment
            or decree to which Assignee or its property is subject. The execution,
            delivery
            and performance by Assignee of this AAR Agreement and the consummation
            by it of
            the transactions contemplated hereby, have been duly authorized by all
            necessary
            corporate action on part of Assignee. This AAR Agreement has been duly
            executed
            and delivered by Assignee and, upon the due authorization, execution
            and
            delivery by Assignor and Company, will constitute the valid and legally
            binding
            obligation of Assignee enforceable against Assignee in accordance with
            its terms
            except as enforceability may be limited by bankruptcy, reorganization,
            insolvency, moratorium or other similar laws now or hereafter in effect
            relating
            to creditors’ rights generally, and by general principles of equity regardless
            of whether enforceability is considered in a proceeding in equity or
            at law;

           

          (c)  No
            consent, approval, order or authorization of, or declaration, filing
            or
            registration with, any governmental entity is required to be obtained
            or made by
            Assignee in connection with the execution, delivery or performance by
            Assignee
            of this AAR Agreement, or the consummation by it of the transactions
            contemplated hereby; 

           

          (d)  There
            is
            no action, suit, proceeding, investigation or litigation pending or,
            to
            Assignee's knowledge, threatened, which either in any instance or in
            the
            aggregate, if determined adversely to Assignee, would adversely affect
            Assignee's execution or delivery of, or the enforceability of, this AAR
            Agreement, or the Assignee's ability to perform its obligations under
            this AAR
            Agreement; and

           

          (e)  Assignee
            assumes for the benefit of each of the Assignor and the Company all of
            the
            rights of the Purchaser under the Agreement with respect to the Assigned
            Loans.

           

          3.  Company
            warrants and represents to, and covenants with, Assignor and Assignee
            as of the
            date hereof:

           

          (a)  Attached
            hereto as Attachment 2 are true and accurate copies of the Agreement,
            which
            agreement is in full force and effect as of the date hereof and the provisions
            of which have not been waived, amended or modified in any respect, nor
            has any
            notice of termination been given thereunder; 

           

          (b)  Company
            is duly organized, validly existing and in good standing under the laws
            of the
            jurisdiction of its incorporation, and has all requisite power and authority
            to
            service the Assigned Loans and otherwise to perform its obligations under
            the
            Agreement;

           

          (c)  Company
            has full corporate power and authority to execute, deliver and perform
            its
            obligations under this AAR Agreement, and to consummate the transactions
            set
            forth herein. The consummation of the transactions contemplated by this
            AAR
            Agreement is in the ordinary course of Company’s business and will not conflict
            with, or result in a breach of, any of the terms, conditions or provisions
            of
            Company’s charter or by-laws or any legal restriction, or any material agreement
            or instrument to which Company is now a party or by which it is bound,
            or result
            in the violation of any law, rule, regulation, order, judgment or decree
            to
            which Company or its property is subject. The execution, delivery and
            performance by Company of this AAR Agreement and the consummation by
            it of the
            transactions contemplated hereby, have been duly authorized by all necessary
            corporate action on the part of Company. This AAR Agreement has been
            duly
            executed and delivered by Company, and, upon the due authorization, execution
            and delivery by Assignor and Assignee, will constitute the valid and
            legally
            binding obligation of Company, enforceable against Company in accordance
            with
            its terms except as enforceability may be limited by bankruptcy, reorganization,
            insolvency, moratorium or other similar laws now or hereafter in effect
            relating
            to creditors’ rights generally, and by general principles of equity regardless
            of whether enforceability is considered in a proceeding in equity or
            at
            law;

           

          (d)  No
            consent, approval, order or authorization of, or declaration, filing
            or
            registration with, any governmental entity is required to be obtained
            or made by
            Company in connection with the execution, delivery or performance by
            Company of
            this AAR Agreement, or the consummation by it of the transactions contemplated
            hereby; 

           

          (e)  The
            Company shall establish a Custodial Account and an Escrow Account under
            the
            Agreement in favor of the Assignee with respect to the Assigned Loans
            separate
            from the Custodial Account and Escrow Account previously established
            under the
            Agreement in favor of Assignor;

           

          (f)  No
            event
            has occurred from the Closing Date to the date hereof which would render
            the
            representations and warranties as to the related Assigned Loans made
            by the
            Company in Sections 3.01 and 3.02 of the Agreement to be untrue in any
            material
            respect; and

           

          (g)  Neither
            this AAR Agreement nor any certification, statement, report or other
            agreement,
            document or instrument furnished or to be furnished by the Company pursuant
            to
            this AAR Agreement contains or will contain any materially untrue statement
            of
            fact or omits or will omit to state a material fact necessary to make
            the
            statements contained therein not misleading.

           

          (h)  Pursuant
            to Section 11.18 of the Agreement, the Company hereby restates the
            representations and warranties set forth in Section 3 of the Agreement
            with
            respect to the Company and the Assigned Loans.

           

          4.  Company
            warrants and represents to, and covenants with the Assignor as of the
            date
            hereof:

           

          (a)  Company
            is not aware and has not received notice that any default, early amortization
            or
            other performance triggering event has occurred as to any other securitization
            due to any act or failure to act of the Company;

           

          (b)  No
            material noncompliance with the applicable servicing criteria with respect
            to
            other securitizations of residential mortgage loans involving the Company
            as
            servicer has been disclosed or reported by the Company;

           

          (c)  Company
            has not been terminated as servicer in a residential mortgage loan
            securitization, either due to a servicing default or to application of
            a
            servicing performance test or trigger;

           

          (d)  No
            material changes to the Company’s policies or procedures with respect to the
            servicing function it will perform under the Servicing Agreement and
            this AAR
            Agreement for mortgage loans of a type similar to the Mortgage Loans
            have
            occurred during the three-year period immediately preceding the date
            hereof;

           

          (e)  There
            are
            no aspects of the Company’s financial condition that could have a material
            adverse effect on the performance by the Company of its servicing obligations
            under the Servicing Agreement and this AAR Agreement;

           

          (f)  There
            are
            no material legal or governmental proceedings pending (or known to be
            contemplated) against the Company, any Subservicer or any third-party
            originator; and

           

          (g)  There
            are
            no affiliations, relationships or transactions relating to the Company
            or any
            Subservicer with respect to this Securitization Transaction and any party
            thereto of a type described in Item 1119 of Regulation AB.

           

          Notwithstanding
            anything to the contrary in the Agreement, the Company shall (or shall
            cause any
            Third-Party Originator to) (i) immediately notify the Assignor and BSABS
            I in
            writing of (A) legal proceedings pending against the Company, or proceedings
            known to be contemplated by governmental authorities against the Company
            which
            in the judgment of the Company would be, in each case, material to purchasers
            of
            securities backed by the Mortgage Loans, (B) any affiliations or relationships
            of the type described in Item 1119(b) of Regulation AB that develop following
            the date hereof between the Company and any of the above listed parties
            or other
            parties identified in writing by the Assignor or BSABS I with respect
            to the
            Securitization Transaction and (ii) provide to the Assignor and BSABS
            I a
            description of such proceedings, affiliations or relationships:

           

          Each
            notice/update regarding Regulation AB should be sent to the Assignor
            by e-mail
            to regABnotifications@bear.com. Additionally, all such notifications,
            other than
            those pursuant to (i)(A) above, should be sent to:

           

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            Texas 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-4889

          Email:
            sellerapproval@bear.com

           

          with
            copies to:

           

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New
            York,
            NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

           

          Notifications
            pursuant to (i)(A) above should be sent to:

           

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            General Counsel

          Facsimile:
            (469) 759-4714

          Email:
            sellerapproval@bear.com

           

          with
            a
            copy to:

           

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New
            York,
            NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

           

          5.  Assignor
            hereby agrees to indemnify and hold the Assignee (and its successors
            and
            assigns) harmless against any and all claims, losses, penalties, fines,
            forfeitures, legal fees and related costs, judgments, and any other costs,
            fees
            and expenses that Assignee (and its successors and assigns) may sustain
            in any
            way related to any breach of the representations or warranties of Assignor
            set
            forth in this AAR Agreement or the breach of any covenant or condition
            contained
            herein.

           

          Recognition
            of Assignee

          

          6.  From
            and
            after the date hereof, Company shall recognize Assignee as owner of the
            Assigned
            Loans, and acknowledges that the Assigned Loans are intended to be part
            of a
            REMIC or multiple REMICs, and will service the Assigned Loans in accordance
            with
            the Agreement (as modified by this AAR Agreement) but in no event in
            a manner
            that would (i) cause any such intended REMIC to fail to qualify as a
            REMIC or
            (ii) result in the imposition of a tax upon any such intended REMIC (including
            but not limited to the tax on prohibited transactions as defined in Section
            860F(a)(2) of the Code and the tax on contributions to a REMIC set forth
            in
            Section 860G(d) of the Code). It is the intention of Assignor, Company
            and
            Assignee that this AAR Agreement shall be binding upon and for the benefit
            of
            the respective successors and assigns of the parties hereto. Neither
            Company nor
            Assignor shall amend or agree to amend, modify, waive, or otherwise alter
            any of
            the terms or provisions of the Agreement which amendment, modification,
            waiver
            or other alteration would in any way affect the Assigned Loans without
            the prior
            written consent of Assignee.

           

          7.  Notwithstanding
            any term hereof to the contrary, it is expressly understood and agreed
            by the
            parties hereto that (a) the execution and delivery of this AAR Agreement
            by the
            Assignee is solely in its capacity as trustee (the “Trustee”) for SACO I Trust,
            Mortgage-Backed Certificates, Series 2007-1 pursuant to the Pooling and
            Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of
December
            1, 2006, among BSABS I, the Assignor, the Assignee, Wells Fargo Bank,
            National
            Association, as master servicer (the “Master Servicer”) and as securities
            administrator, and not individually, (b) each of the representations,
            undertakings and agreements herein made on behalf of SACO I Trust 2007-1
            (the
“Trust”) is made and intended not as personal representations, undertakings
            and
            agreements of the Trustee but is made and intended for the purpose of
            binding
            only the Trust and (c) under no circumstances shall the Trustee be personally
            liable for the payment of any indebtedness or expenses of the Assignee
            or the
            Trust or be liable for the breach or failure of any obligation, representation,
            warranty or covenant made or undertaken by the Assignee, the Assignor
            or the
            Trust under this AAR Agreement or made or undertaken by the Assignee,
            the
            Assignor or the Trust under the Agreement or the Pooling and Servicing
            Agreement. Any recourse against the Assignee in respect of any obligations
            it
            may have under or pursuant to the terms of this AAR Agreement shall be
            limited
            solely to the assets it may hold as trustee for SACO I Trust, Mortgage-Backed
            Certificates, Series 2007-1.

           

          8.  Company
            shall indemnify and hold harmless the Assignor, each affiliate of the
            Assignor,
            Bear Stearns Asset Backed Securities I LLC (“BSABS I”), the Assignee, Bear,
            Stearns & Co. Inc. (the “Underwriter”) and each affiliate of the
            Underwriter, each Person (including, but not limited to, the Master Servicer)
            responsible for the preparation, execution or filing of any report required
            to
            be filed with the Commission, or for execution of a certification pursuant
            to
            Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act, each Person
            who
            controls the Assignor, BSABS I, the Assignee or the Underwriter (within
            the
            meaning of Section 15 of the Securities Act and Section 20 of the Exchange
            Act);
            and the respective present and former directors, officers, employees,
            agents and
            affiliates of each of the foregoing (each, an “Indemnified Party”), and shall
            hold each of them harmless from and against any claims, losses, damages,
            penalties, fines, forfeitures, legal fees and expenses and related costs,
            judgments, and any other costs, fees and expenses that any of them may
            sustain
            arising out of or based upon: 

           

          (i) (A) any
            untrue statement of a material fact contained or alleged to be contained
            in any
            information, report, certification, data, accountants’ letter or other material
            provided under Section 11.18 of the Agreement by or on behalf of the
            Assignor,
            or provided under Section 11.18 of the Agreement by or on behalf of any
            Subservicer, Subcontractor or Third-Party Originator (collectively, the
“Company
            Information”), or (B) the omission or alleged omission to state in the Company
            Information a material fact required to be stated in the Company Information
            or
            necessary in order to make the statements therein, in the light of the
            circumstances under which they were made, not misleading; provided, by
            way of
            clarification, that clause (B) of this paragraph shall be construed solely
            by
            reference to the Company Information and not to any other information
            communicated in connection with a sale or purchase of securities, without
            regard
            to whether the Company Information or any portion thereof is presented
            together
            with or separately from such other information;

           

          (ii) any
            breach by the Company of its obligations under Section 11.18 of Agreement,
            including particularly any failure by the Company, any Subservicer, any
            Subcontractor or any Third-Party Originator to deliver any information,
            report,
            certification, accountants’ letter or other material when and as required under
            Section 11.18 of the Agreement, including any failure by the Company
            to identify
            any Subcontractor “participating in the servicing function” within the meaning
            of Item 1122 of Regulation AB; 

           

          (iii) any
            breach by the Company of a representation or warranty set forth in Section
            3.01
            of the Agreement or in a writing furnished pursuant to Section 3.01 of
            the
            Agreement and made as of a date prior to the date hereof, to the extent
            that
            such breach is not cured by the date hereof, or any breach by the Company
            of a
            representation or warranty in a writing furnished pursuant to Section
            3.01 of
            the Agreement to the extent made as of a date subsequent to the date
            hereof;
            or

           

          (iv) the
            negligence, bad faith or willful misconduct of the Company in connection
            with
            its performance under Section 11.18 of the Agreement.

           

          If
            the
            indemnification provided for herein is unavailable or insufficient to
            hold
            harmless an Indemnified Party, then the Company agrees that it shall
            contribute
            to the amount paid or payable by such Indemnified Party as a result of
            any
            claims, losses, damages or liabilities incurred by such Indemnified Party
            in
            such proportion as is appropriate to reflect the relative fault of such
            Indemnified Party on the one hand and the Company on the other.

           

          In
            the
            case of any failure of performance described in Section 11.18 of the
            Agreement,
            the Company shall promptly reimburse the Assignor, BSABS I and each Person
            responsible for the preparation, execution or filing of any report required
            to
            be filed with the Commission, or for execution of a certification pursuant
            to
            Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act, for all costs
            reasonably incurred by each such party in order to obtain the information,
            report, certification, accountants’ letter or other material not delivered as
            required by the Company, any Subservicer, any Subcontractor or any Third-Party
            Originator.

           

          9.  The
            Company shall prepare for and deliver to the Assignee and the Master
            Servicer
            (and the securities administrator, if any) a statement with respect to
            each
            mortgaged property acquired through foreclosure or deed-in-lieu of foreclosure
            in connection with a defaulted Assigned Loan (“REO Property”) that has been
            rented showing the aggregate rental income received and all expenses
            incurred in
            connection with the management and maintenance of such REO Property at
            such
            times as is necessary to enable the Assignee (or the securities administrator,
            if any) to comply with the reporting requirements of the REMIC provisions
            of the
            Code. The net monthly rental income, if any, from such REO Property shall
            be
            deposited in the related collection account no later than the close of
            business
            on each determination date. The Company shall perform, or caused to be
            performed, the tax reporting and withholding related to foreclosures,
            abandonments and cancellation of indebtedness income as specified by
            Sections
            1445, 6050J and 6050P of the Code by preparing and filing such tax and
            information returns, as may be required. In the event that the SACO I
            Trust
            acquires any REO Property as aforesaid or otherwise in connection with
            a default
            or default becoming reasonably foreseeable on an Assigned Loan, the Company
            shall cause such REO Property to be disposed prior to three years after
            its
            acquisition by the SACO I Trust or, at the expense of the SACO I Trust,
            request
            more than 60 days prior to the day on which such three-year period would
            otherwise expire, an extension of the three-year grace period unless
            the
            Assignee (or the securities administrator, if any) shall have been supplied
            with
            an opinion of counsel addressed to the Assignee (and the securities
            administrator, if any) rendered by nationally recognized tax counsel
            specializing in such matters (such opinion not to be an expense of the
            Trustee
            or the Securities Administrator) to the effect that the holding by the
            SACO I
            Trust of such REO Property subsequent to such three-year period will
            not result
            in the imposition of taxes on “prohibited transactions” of any REMIC as defined
            in Section 860F of the Code or cause any REMIC to fail to qualify as
            a REMIC, in
            which case the SACO I Trust may continue to hold such REO Property (subject
            to
            any conditions contained in such opinion of counsel). Notwithstanding
            any other
            provision of the Servicing Agreement, no REO Property acquired by the
            SACO I
            Trust shall be rented (or allowed to continue to be rented) or otherwise
            used
            for the production of income by or on behalf of the SACO I Trust in such
            a
            manner or pursuant to any terms that would (i) cause such REO Property
            to fail
            to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of
            the Code or (ii) subject any REMIC to the imposition of any federal,
            state or
            local income taxes on the income earned from such REO Property under
            Section
            860G(c) of the Code or otherwise, unless the Company has agreed to indemnify
            and
            hold harmless the SACO I Trust with respect to the imposition of any
            such
            taxes.

           

          Modification
            of the Agreement

          

          10.  The
            Company and Assignor hereby amend the Agreement as follows:

           

          (a)  The
            following definitions are added to Article I of the Agreement:

           

          Assignee:
            Citibank, N.A., as trustee for the holders of SACO I Trust 2007-1,
            Mortgage-Backed Certificates, Series 2007-1.

           

          BSABS
            I:
            Bear
            Stearns Asset Backed Securities LLC.

           

          Class
            X Certificateholder:
            Any
            holder of a certificate designated as a “Class X Certificate” on the face
            thereof. 

           

          Pooling
            and Servicing Agreement:
            That
            certain pooling and servicing agreement, dated as of December 1, 2006,
            among
            BSABS I, the Trustee, the Master Servicer, the Securities Administrator
            and EMC
            Mortgage Corporation.

           

          Prepayment
            Charge:
            Any
            prepayment premium, penalty or charge payable by a Mortgagor in connection
            with
            any Principal Prepayment on a Mortgage Loan pursuant to the terms of
            the related
            Mortgage Note.

           

          Prepayment
            Period:
            As to
            any Remittance Date and each Mortgage Loan, the calendar month prior
            to the
            month in which such Remittance Date occurs.

           

          Subsequent
            Recoveries:
            As of
            any Remittance Date, surplus amounts held by the Servicer to cover estimated
            expenses (including, but not limited to, recoveries in respect of the
            representations and warranties made by the Servicer pursuant to the Agreement,
            as amended, between the Servicer and the Owner) specifically related
            to a
            Mortgage Loan that was the subject of a liquidation or final disposition
            of any
            REO Property as of the end of the prior calendar month that resulted
            in a
            realized loss.

           

          Securities
            Administrator:
            Wells
            Fargo Bank, National Association.

           

          Trustee:
            Citibank, N.A., or its successor in interest, or any successor trustee
            appointed
            as provided in the Pooling and Servicing Agreement.

           

          (b)  The
            definition of Business Day is deleted in its entirety and replaced with
            the
            following:

           

          Business
            Day:
            Any day
            other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the
            States of
            New York, Georgia, Illinois, Maryland or Minnesota or (iii) a day on
            which banks
            in the States of New York, Georgia, Illinois, Maryland or Minnesota are
            authorized or obligated by law or executive order to be closed

           

          (c)  The
            Standard & Poor’s rating of “A2” in the definition of Eligible Account in
            Section 1.01 of the Agreement is hereby replaced with “AA”.

           

          (d)  The
            following is added as the new third paragraph of Section 4.01 of the
            Agreement:

           

          In
            addition, in connection with any modification of a Mortgage Loan that
            is entered
            into by a Mortgagor in lieu of refinancing and that is otherwise not
            permitted
            by Section 4.01, the Servicer shall treat such modification for remitting
            and
            reporting purposes as a Principal Prepayment in full to the Trust occurring
            concurrently with the origination of a new mortgage loan, which is not
            in the
            Trust, to the Mortgagor. For any such Mortgage Loan that has been so
            deemed the
            subject of a Principal Prepayment in full, upon written notice from the
            Servicer
            of the deposit into the Collection Account of funds in an amount equal
            to all
            amounts that would be owed to the Trust by the related Mortgagor if such
            deemed
            Principal Prepayment were an actual Principal Prepayment in full, the
            Trustee
            shall execute and deliver such instruments of transfer or assignment,
            in each
            case without recourse, as the Master Servicer or the Servicer shall furnish
            to
            it and as shall be necessary to vest in the designated successor owner
            of such
            Mortgage Loan specified in such instruments, such Mortgage Loan released
            pursuant hereto, and the Trustee and the Securities Administrator shall
            have no
            further responsibility with regard to such Mortgage Loan or the related
            Mortgage
            File. In connection with the foregoing, the Servicer shall promptly deliver
            to
            the Master Servicer and the Trustee an Officer’s Certificate to the effect that
            all requirements of this paragraph have been satisfied with respect to
            such
            Mortgage Loan. Furthermore, the Servicer hereby covenants and agrees
            to
            indemnify the Trust against any liability for any "prohibited transaction"
            taxes
            and any related interest, additions, and penalties imposed on the Trust
            as a
            result of any Mortgage Loan affected pursuant to this paragraph, any
            holding of
            such Mortgage Loan by the Trust or any purchase of such Mortgage Loan
            by the
            Servicer (but such obligation shall not prevent the Servicer or any other
            appropriate Person from contesting any such tax, in good faith and in
            the
            appropriate proceedings, and shall not prevent the Servicer from withholding
            payment of such tax, if permitted by law, pending the outcome of such
            proceedings). The Servicer shall have no right of reimbursement for any
            amount
            paid pursuant to the foregoing indemnification, except to the extent
            that the
            amount of any tax, interest, and penalties, together with interest thereon,
            is
            refunded to the Trust Fund or the Servicer.

           

          (e)  The
            following is added to the first sentence of the fourth paragraph of Section
            4.13
            of the Agreement:

           

          “;
            provided, however, that any REO property shall be disposed of by the
            Company
            before the close of the third taxable year following the taxable year
            in which
            the Mortgage Loan became an REO property, unless the Company is otherwise
            directed by the Assignee.”

           

          (f)  Section
            11.04 of the Agreement is deleted in its entirety and replaced with the
            following:

           

          Section
            11.04      Governing
            Law.

           

          This
            Agreement and the related Term Sheet shall be governed by and construed
            in
            accordance with the laws of the State of New York without giving effect
            to
            principles of conflicts of laws and except to the extent preempted by
            Federal
            law and the obligations, rights and remedies of the parties hereunder
            shall be
            determined in accordance with such laws.

           

          Miscellaneous

           

          11.  All
            demands, notices and communications related to the Assigned Loans, the
            Agreement
            and this AAR Agreement shall be in writing and shall be deemed to have
            been duly
            given if personally delivered at or mailed by registered mail, postage
            prepaid,
            as follows:

           

          
            	(a)  	
                    In
                      the case of Company:

                  

          

           

          HomeBanc
            Mortgage Corporation

          2002
            Summit Boulevard, Suite 100

          Atlanta,
            GA 30319

          Attention:
            Debra F. Watkins, EVP and Chief Capital Markets Officer

          Telecopier
            No.: (404) 705-2301

           

          With
            a
            copy to: 

           

          HomeBanc
            Mortgage Corporation

          2002
            Summit Boulevard, Suite 100

          Atlanta,
            GA 30319

          Attention:
            General Counsel

           

          
            	(b)  	
                    In
                      the case of Assignor:

                  

          

           

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            Texas 75067

          Attention:
            President or General Counsel

          Telecopier
            No.: (469) 759-4714

          Email:
            sellerapproval@bear.com

           

          
            	(c)  	
                    In
                      the case of Assignee:

                  

          

           

          Citibank,
            N.A.

          388
            Greenwich Street, 14th Floor

          New
            York,
            New York 10013

          Attention:
            Structured Finance Agency & Trust —SACO 2007-1

          Telecopier
            No.: (212) 816-5527

           

          
            	(d)  	
                    In
                      the case of Master Servicer and Securities Administrator:
                      

                  

          

           

          Wells
            Fargo Bank, N.A. 

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attention:
            Client Manager SACO 2007-1

          Telecopy
            No.: (410) 715-2380

           

          12.  The
            Company hereby acknowledges that Wells Fargo Bank, National Association
            has been
            appointed as the master servicer of the Assigned Loans pursuant to the
            Pooling
            and Servicing Agreement and therefor has the right to enforce all obligations
            of
            the Company, as they relate to the Assigned Loans, under the Agreement.
            Such
            right will include, without limitation, the right to terminate the Company
            under
            the Agreement upon the occurrence of an event of default thereunder,
            the right
            to receive all remittances required to be made by the Company under the
            Agreement, the right to receive all monthly reports and other data required
            to
            be delivered by the Company under the Agreement, the right to examine
            the books
            and records of the Company, indemnification rights, and the right to
            exercise
            certain rights of consent and approval relating to actions taken by the
            Company.
            The Company shall make all distributions under the Agreement, as they
            relate to
            the Assigned Loans, to the Master Servicer by wire transfer of immediately
            available funds to:

           

          Wells
            Fargo Bank, National Association

          ABA
            #
            121000248

          Account
            Name: SAS Clearing 

          Account
            No.: 3970771416

          For
            Further Credit to: SACO 2007-1, Account No.: 50979100

           

          and
            the
            Company shall deliver all reports required to be delivered under the
            Agreement,
            as they relate to the Assigned Loans, to the Assignee at the address
            set forth
            in Section 8(c) herein and to the Master Servicer at:

           

          Wells
            Fargo Bank, National Association

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045 

          Attention:
            Client Manager SACO 2007-1

          Telecopier
            No. (410) 715-2380

           

          13.  Each
            party will pay any commissions it has incurred and the fees of its attorneys
            in
            connection with the negotiations for, documenting of and closing of the
            transactions contemplated by this AAR Agreement.

           

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

           

          15.  No
            term
            or provision of this AAR Agreement may be waived or modified unless such
            waiver
            or modification is in writing and signed by the party against whom such
            waiver
            or modification is sought to be enforced.

           

          16.  This
            AAR
            Agreement shall inure to the benefit of the successors and assigns of
            the
            parties hereto. Any entity into which Assignor, Assignee or Company may
            be
            merged or consolidated shall, without the requirement for any further
            writing,
            be deemed Assignor, Assignee or Company, respectively, hereunder.

           

          17.  This
            AAR
            Agreement shall survive the conveyance of the Assigned Loans, the assignment
            of
            the Agreement to the extent of the Assigned Loans by Assignor to Assignee
            and
            the termination of the Agreement.

           

          18.  This
            AAR
            Agreement may be executed simultaneously in any number of counterparts.
            Each
            counterpart shall be deemed to be an original and all such counterparts
            shall
            constitute one and the same instrument.

           

          19.  In
            the
            event that any provision of this AAR Agreement conflicts with any provision
            of
            the Agreement with respect to the Assigned Loans, the terms of this AAR
            Agreement shall control. 

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, the parties hereto have executed this AAR Agreement
            as of the
            day and year first above written.

           

          EMC
            MORTGAGE CORPORATION,

          Assignor

           

          By:
            _______________________________

          Name: 

          Title: 

          

          CITIBANK,
            N.A.

          not
            individually but solely as trustee for the holders of SACO I Trust,
            Mortgage-Backed Certificates, Series 2007-1,

          Assignee

          

          
            By:
              _______________________________

          

          Name:  

          Title: 

           

          HOMEBANC
            MORTGAGE CORPORATION,

          Company

           

          
            By:
              _______________________________

          

          Name:

          Title:

           

          ACKNOWLEDGED:

          WELLS
            FARGO BANK, NATIONAL ASSOCIATION

          

          
            By:
              _______________________________
Name: 

          Title:

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

           

          ATTACHMENT
            1

           

          ASSIGNED
            LOAN SCHEDULE

           

          (Available
            upon request)

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            2

          

          AGREEMENT

          

          (Available
            Upon Request)

           

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          S

        

        REPORTING
          DATA FOR MONTHLY REPORT

        

        
          	
                  Standard
                    File Layout - Master Servicing

                
	
                  Column
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                	
                  Max
                    Size

                
	
                  SER_INVESTOR_NBR

                	
                  A
                    value assigned by the Servicer to define a group of loans.

                	 	
                  Text
                    up to 10 digits

                	
                  20

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the investor.

                	 	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR.

                	 	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  BORROWER_NAME

                	
                  The
                    borrower name as received in the file. It is not separated by
                    first and
                    last name.

                	 	
                  Maximum
                    length of 30 (Last, First)

                	
                  30

                
	
                  SCHED_PAY_AMT

                	
                  Scheduled
                    monthly principal and scheduled interest payment that a borrower
                    is
                    expected to pay, P&I constant.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NOTE_INT_RATE

                	
                  The
                    loan interest rate as reported by the Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  NET_INT_RATE

                	
                  The
                    loan gross interest rate less the service fee rate as reported
                    by the
                    Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_RATE

                	
                  The
                    servicer's fee rate for a loan as reported by the
                    Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_AMT

                	
                  The
                    servicer's fee amount for a loan as reported by the
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_PAY_AMT

                	
                  The
                    new loan payment amount as reported by the Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_LOAN_RATE

                	
                  The
                    new loan rate as reported by the Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ARM_INDEX_RATE

                	
                  The
                    index the Servicer is using to calculate a forecasted
                    rate.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ACTL_BEG_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the beginning of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_END_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the end of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date at the end of processing cycle that the borrower's next
                    payment is
                    due to the Servicer, as reported by Servicer.

                	 	
                  MM/DD/YYYY

                	
                  10

                
	
                  SERV_CURT_AMT_1

                	
                  The
                    first curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_1

                	
                  The
                    curtailment date associated with the first curtailment
                    amount.

                	 	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_1

                	
                  The
                    curtailment interest on the first curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_AMT_2

                	
                  The
                    second curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_2

                	
                  The
                    curtailment date associated with the second curtailment
                    amount.

                	 	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_2

                	
                  The
                    curtailment interest on the second curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_AMT_3

                	
                  The
                    third curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_3

                	
                  The
                    curtailment date associated with the third curtailment
                    amount.

                	 	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_AMT_3

                	
                  The
                    curtailment interest on the third curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PIF_AMT

                	
                  The
                    loan "paid in full" amount as reported by the Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PIF_DATE

                	
                  The
                    paid in full date as reported by the Servicer.

                	 	
                  MM/DD/YYYY

                	
                  10

                
	 	 	 	
                  Action
                    Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                    65=Repurchase,70=REO

                	
                  2

                
	
                  ACTION_CODE

                	
                  The
                    standard FNMA numeric code used to indicate the default/delinquent
                    status
                    of a particular loan.

                
	
                  INT_ADJ_AMT

                	
                  The
                    amount of the interest adjustment as reported by the
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SOLDIER_SAILOR_ADJ_AMT

                	
                  The
                    Soldier and Sailor Adjustment amount, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NON_ADV_LOAN_AMT

                	
                  The
                    Non Recoverable Loan Amount, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  LOAN_LOSS_AMT

                	
                  The
                    amount the Servicer is passing as a loss, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_BEG_PRIN_BAL

                	
                  The
                    scheduled outstanding principal amount due at the beginning of
                    the cycle
                    date to be passed through to investors.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_END_PRIN_BAL

                	
                  The
                    scheduled principal balance due to investors at the end of a
                    processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_PRIN_AMT

                	
                  The
                    scheduled principal amount as reported by the Servicer for the
                    current
                    cycle -- only applicable for Scheduled/Scheduled Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_NET_INT

                	
                  The
                    scheduled gross interest amount less the service fee amount for
                    the
                    current cycle as reported by the Servicer -- only applicable
                    for
                    Scheduled/Scheduled Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_PRIN_AMT

                	
                  The
                    actual principal amount collected by the Servicer for the current
                    reporting cycle -- only applicable for Actual/Actual
                    Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_NET_INT

                	
                  The
                    actual gross interest amount less the service fee amount for
                    the current
                    reporting cycle as reported by the Servicer -- only applicable
                    for
                    Actual/Actual Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PREPAY_PENALTY_
                    AMT

                	
                  The
                    penalty amount received when a borrower prepays on his loan as
                    reported by
                    the Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PREPAY_PENALTY_
                    WAIVED

                	
                  The
                    prepayment penalty amount for the loan waived by the
                    servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  MOD_DATE

                	
                  The
                    Effective Payment Date of the Modification for the loan.

                	 	
                  MM/DD/YYYY

                	
                  10

                
	
                  MOD_TYPE

                	
                  The
                    Modification Type.

                	 	
                  Varchar
                    - value can be alpha or numeric

                	
                  30

                
	
                  DELINQ_P&I_ADVANCE_AMT

                	
                  The
                    current outstanding principal and interest advances made by
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          T

        

        REPORTING
          DATA FOR DEFAULTED LOANS

        

        Standard
          File Layout - Delinquency Reporting

        

        
          	
                  Column/Header
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR

                	 	
                   

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the
                    originator.

                	 	
                   

                
	
                  CLIENT_NBR

                	
                  Servicer
                    client number

                	 	 
	
                  SERV_INVESTOR_NBR

                	
                  Contains
                    a unique number as assigned by an external servicer to identify
                    a group of
                    loans in their system.

                	 	
                   

                
	
                  BORROWER_FIRST_NAME

                	
                  First
                    name of the borrower.

                	 	 
	
                  BORROWER_LAST_NAME

                	
                  Last
                    name of the borrower.

                	 	 
	
                  PROP_ADDRESS

                	
                  Street
                    name and number of property

                	 	
                   

                
	
                  PROP_STATE

                	
                  The
                    state where the property located.

                	 	
                   

                
	
                  PROP_ZIP

                	
                  Zip
                    code where the property is located.

                	 	
                   

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date that the borrower's next payment is due to the servicer
                    at the end of
                    processing cycle, as reported by Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  LOAN_TYPE

                	
                  Loan
                    type (i.e. FHA, VA, Conv)

                	 	
                   

                
	
                  BANKRUPTCY_FILED_DATE

                	
                  The
                    date a particular bankruptcy claim was filed.

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_CHAPTER_CODE

                	
                  The
                    chapter under which the bankruptcy was filed.

                	 	
                   

                
	
                  BANKRUPTCY_CASE_NBR

                	
                  The
                    case number assigned by the court to the bankruptcy
                    filing.

                	 	
                   

                
	
                  POST_PETITION_DUE_DATE

                	
                  The
                    payment due date once the bankruptcy has been approved by the
                    courts

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_DCHRG_DISM_DATE

                	
                  The
                    date the loan Is removed from bankruptcy. Either by dismissal,
                    discharge
                    and/or a motion for relief was granted. 

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_APPR_DATE

                	
                  The
                    date the loss mitigation was approved by the
                    servicer

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_TYPE

                	
                  The
                    type of loss mitigation approved for a loan such
                    as;

                	 	 
	
                  LOSS_MIT_EST_COMP_DATE

                	
                  The
                    date the loss mitigation plan Is scheduled to
                    end/close

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_ACT_COMP_DATE

                	
                  The
                    date the loss mitigation Is actually completed

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_APPROVED_DATE

                	
                  The
                    date DA Admin sends a letter to the servicer with instructions
                    to begin
                    foreclosure proceedings.

                	 	
                  MM/DD/YYYY

                
	
                  ATTORNEY_REFERRAL_DATE

                	
                  Date
                    file was referred to attorney to pursue
                    foreclosure

                	 	
                  MM/DD/YYYY

                
	
                  FIRST_LEGAL_DATE

                	
                  Notice
                    of 1st legal filed by an attorney in a foreclosure
                    action

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_EXPECTED_DATE

                	
                  The
                    date by which a foreclosure sale is expected to
                    occur.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_DATE

                	
                  The
                    actual date of the foreclosure sale.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_AMT

                	
                  The
                    amount a property sold for at the foreclosure
                    sale.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  EVICTION_START_DATE

                	
                  The
                    date the servicer initiates eviction of the
                    borrower.

                	 	
                  MM/DD/YYYY

                
	
                  EVICTION_COMPLETED_DATE

                	
                  The
                    date the court revokes legal possession of the property from
                    the
                    borrower.

                	 	
                  MM/DD/YYYY

                
	
                  LIST_PRICE

                	
                  The
                    price at which an REO property is marketed.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  LIST_DATE

                	
                  The
                    date an REO property is listed at a particular
                    price.

                	 	
                  MM/DD/YYYY

                
	
                  OFFER_AMT

                	
                  The
                    dollar value of an offer for an REO property.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  OFFER_DATE_TIME

                	
                  The
                    date an offer is received by DA Admin or by the
                    Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  REO_CLOSING_DATE

                	
                  The
                    date the REO sale of the property is scheduled to
                    close.

                	 	
                  MM/DD/YYYY

                
	
                  REO_ACTUAL_CLOSING_DATE

                	
                  Actual
                    date Of REO sale

                	 	
                  MM/DD/YYYY

                
	
                  OCCUPANT_CODE

                	
                  Classification
                    of how the property is occupied.

                	 	
                   

                
	
                  PROP_CONDITION_CODE

                	
                  A
                    code that indicates the condition of the
                    property.

                	 	
                   

                
	
                  PROP_INSPECTION_DATE

                	
                  The
                    date a property inspection is performed.

                	 	
                  MM/DD/YYYY

                
	
                  APPRAISAL_DATE

                	
                  The
                    date the appraisal was done.

                	 	
                  MM/DD/YYYY

                
	
                  CURR_PROP_VAL

                	
                   The
                    current "as is" value of the property based on brokers price
                    opinion or
                    appraisal.

                	
                  2

                	
                   

                
	
                  REPAIRED_PROP_VAL

                	
                  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion or appraisal.

                	
                  2

                	
                   

                
	
                  If
                    applicable:

                	
                   

                	 	
                   

                
	
                  DELINQ_STATUS_CODE

                	
                  FNMA
                    code describing status of loan

                	 	 
	
                  DELINQ_REASON_CODE

                	
                  The
                    circumstances which caused a borrower to stop paying on a loan.
                    Code
                    indicates the reason why the loan is in default for this
                    cycle.

                	 	 
	
                  MI_CLAIM_FILED_DATE

                	
                  Date
                    mortgage insurance claim was filed with mortgage insurance
                    company.

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT

                	
                  Amount
                    of mortgage insurance claim filed

                	 	
                  No
                    commas(,) or dollar signs ($)

                
	
                  MI_CLAIM_PAID_DATE

                	
                  Date
                    mortgage insurance company disbursed claim
                    payment

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT_PAID

                	
                  Amount
                    mortgage insurance company paid on claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_FILED_DATE

                	
                  Date
                    claim was filed with pool insurance company

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT

                	
                  Amount
                    of claim filed with pool insurance company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_PAID_DATE

                	
                  Date
                    claim was settled and the check was issued by the pool
                    insurer

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT_PAID

                	
                  Amount
                    paid on claim by pool insurance company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_FILED_DATE

                	
                   Date
                    FHA Part A Claim was filed with HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_AMT

                	
                   Amount
                    of FHA Part A claim filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_PAID_DATE

                	
                   Date
                    HUD disbursed Part A claim payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_PAID_AMT

                	
                   Amount
                    HUD paid on Part A claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_FILED_DATE

                	
                    Date
                    FHA Part B claim was filed with HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_AMT

                	
                    Amount
                    of FHA Part B claim filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_PAID_DATE

                	
                     Date
                    HUD disbursed Part B claim payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_PAID_AMT

                	
                   Amount
                    HUD paid on Part B claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  VA_CLAIM_FILED_DATE

                	
                   Date
                    VA claim was filed with the Veterans Admin

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_DATE

                	
                   Date
                    Veterans Admin. disbursed VA claim payment

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_AMT

                	
                   Amount
                    Veterans Admin. paid on VA claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs
                    ($)

                

        

         

         

        Exhibit
          2: Standard
          File Codes - Delinquency Reporting

         

        

         

        The
          Loss
          Mit Type
          field
          should show the approved Loss Mitigation Code as follows: 

        
          	
                  ·  ASUM-

                	
                  Approved
                    Assumption

                
	
                  ·  BAP-

                	
                  Borrower
                    Assistance Program

                
	
                  ·  CO-

                	
                  Charge
                    Off

                
	
                  ·  DIL-

                	
                  Deed-in-Lieu

                
	
                  ·  FFA-

                	
                  Formal
                    Forbearance Agreement

                
	
                  ·  MOD-

                	
                  Loan
                    Modification

                
	
                  ·  PRE-

                	
                  Pre-Sale

                
	
                  ·  SS-

                	
                  Short
                    Sale

                
	
                  ·  MISC-

                	
                  Anything
                    else approved by the PMI or Pool
                    Insurer

                

        

         

        

         

        NOTE:
          Wells Fargo Bank will accept alternative Loss Mitigation Types to those
          above,
          provided that they are consistent with industry standards. If Loss Mitigation
          Types other than those above are used, the Servicer must supply Wells Fargo
          Bank
          with a description of each of the Loss Mitigation Types prior to sending
          the
          file.

         

        

         

        The
          Occupant
          Code
          field should show the current status of the property code as
          follows:

        
          	
                  ·  Mortgagor

                
	
                  ·  Tenant

                
	
                  ·  Unknown
                    

                
	
                  ·  Vacant

                

        

         

        

         

        The
          Property
          Condition
          field should show the last reported condition of the property as follows:
          

        
          	
                  ·  Damaged

                
	
                  ·  Excellent

                
	
                  ·  Fair

                
	
                  ·  Gone

                
	
                  ·  Good

                
	
                  ·  Poor

                
	
                  ·  Special
                    Hazard

                
	
                  ·  Unknown

                

        

         

        

        Exhibit
          2: Standard
          File Codes - Delinquency Reporting, Continued

         

        

         

        The
          FNMA
          Delinquent Reason Code
          field should show the Reason for Delinquency as follows: 

         

        

        
          	
                  Delinquency
                    Code

                	
                  Delinquency
                    Description

                
	
                  001

                	
                  FNMA-Death
                    of principal mortgagor

                
	
                  002

                	
                  FNMA-Illness
                    of principal mortgagor

                
	
                  003

                	
                  FNMA-Illness
                    of mortgagor’s family member

                
	
                  004

                	
                  FNMA-Death
                    of mortgagor’s family member

                
	
                  005

                	
                  FNMA-Marital
                    difficulties

                
	
                  006

                	
                  FNMA-Curtailment
                    of income

                
	
                  007

                	
                  FNMA-Excessive
                    Obligation

                
	
                  008

                	
                  FNMA-Abandonment
                    of property

                
	
                  009

                	
                  FNMA-Distant
                    employee transfer

                
	
                  011

                	
                  FNMA-Property
                    problem

                
	
                  012

                	
                  FNMA-Inability
                    to sell property

                
	
                  013

                	
                  FNMA-Inability
                    to rent property

                
	
                  014

                	
                  FNMA-Military
                    Service

                
	
                  015

                	
                  FNMA-Other

                
	
                  016

                	
                  FNMA-Unemployment

                
	
                  017

                	
                  FNMA-Business
                    failure

                
	
                  019

                	
                  FNMA-Casualty
                    loss

                
	
                  022

                	
                  FNMA-Energy
                    environment costs

                
	
                  023

                	
                  FNMA-Servicing
                    problems

                
	
                  026

                	
                  FNMA-Payment
                    adjustment

                
	
                  027

                	
                  FNMA-Payment
                    dispute

                
	
                  029

                	
                  FNMA-Transfer
                    of ownership pending

                
	
                  030

                	
                  FNMA-Fraud

                
	
                  031

                	
                  FNMA-Unable
                    to contact borrower

                
	
                  INC

                	
                  FNMA-Incarceration

                

        

        

        

        Exhibit
          2: Standard
          File Codes - Delinquency Reporting, Continued

        

         

        The
          FNMA
          Delinquent Status Code
          field should show the Status of Default as follows: 

         

        

        
          	
                  Status
                    Code

                	
                  Status
                    Description

                
	
                  09

                	
                  Forbearance

                
	
                  17

                	
                  Pre-foreclosure
                    Sale Closing Plan Accepted

                
	
                  24

                	
                  Government
                    Seizure

                
	
                  26

                	
                  Refinance

                
	
                  27

                	
                  Assumption

                
	
                  28

                	
                  Modification

                
	
                  29

                	
                  Charge-Off

                
	
                  30

                	
                  Third
                    Party Sale

                
	
                  31

                	
                  Probate

                
	
                  32

                	
                  Military
                    Indulgence

                
	
                  43

                	
                  Foreclosure
                    Started

                
	
                  44

                	
                  Deed-in-Lieu
                    Started

                
	
                  49

                	
                  Assignment
                    Completed

                
	
                  61

                	
                  Second
                    Lien Considerations

                
	
                  62

                	
                  Veteran’s
                    Affairs-No Bid

                
	
                  63

                	
                  Veteran’s
                    Affairs-Refund

                
	
                  64

                	
                  Veteran’s
                    Affairs-Buydown

                
	
                  65

                	
                  Chapter
                    7 Bankruptcy

                
	
                  66

                	
                  Chapter
                    11 Bankruptcy

                
	
                  67

                	
                  Chapter
                    13 Bankruptcy

                

        

        

        

        

        EXHIBIT
          U

        

        REPORTING
          DATA FOR REALIZED LOSSES AND GAINS

        

        

        Calculation
          of Realized Loss/Gain Form 332- Instruction Sheet

        

        NOTE:
          Do not net or combine items. Show all expenses individually and all credits
          as
          separate line items. Claim packages are due within 90 days of liquidation.
          Late
          submissions may result in claims not being passed until the following month.
          The
          Servicer is responsible to remit all funds pending loss approval and /or
          resolution of any disputed items. 

        

         

        The
          numbers on the 332 form correspond with the numbers listed below.

         

        Liquidation
          and Acquisition Expenses:

         

        
          	
                  1.

                	
                  The
                    Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                    an Amortization Schedule from date of default through liquidation
                    breaking
                    out the net interest and servicing fees advanced is
                    required.

                

        

         

         

        

         

        
          	
                  2.

                	
                  The
                    Total Interest Due less the aggregate amount of servicing fee
                    that would
                    have been earned if all delinquent payments had been made as
                    agreed. For
                    documentation, an Amortization Schedule from date of default
                    through
                    liquidation breaking out the net interest and servicing fees
                    advanced is
                    required.

                

        

         

        
          	
                  3.
                    

                	
                  Accrued
                    Servicing Fees based upon the Scheduled Principal Balance of
                    the Mortgage
                    Loan as calculated on a monthly basis. For documentation, an
                    Amortization
                    Schedule from date of default through liquidation breaking out
                    the net
                    interest and servicing fees advanced is
                    required.

                

        

         

        4-12.      
           Complete
          as applicable. Required documentation:

         

        *
          For
          taxes and insurance advances - see page 2 of 332 form - breakdown required
          showing period

         

        of
          coverage, base tax, interest, penalty. Advances prior to default require
          evidence of servicer efforts to recover advances.

         

        *
          For
          escrow advances - complete payment history 

         

        (to
          calculate advances from last positive escrow balance forward)

         

        *
          Other
          expenses -  copies of corporate advance history showing all payments

         

        *
          REO
          repairs > $1500 require explanation

         

        *
          REO
          repairs >$3000 require evidence of at least 2 bids.

         

        *
          Short
          Sale or Charge Off require P&L supporting the decision and WFB’s approved
          Officer Certificate 

         

        *
          Unusual
          or extraordinary items may require further documentation. 

         

        13.         
           The
          total
          of lines 1 through 12.

         

        

         

        Credits:
          

         

        14-21.     
           Complete
          as applicable. Required documentation:

         

        *
          Copy of
          the HUD 1 from the REO sale. If a 3rd
          Party
          Sale, bid instructions and Escrow Agent / Attorney

         

        Letter
          of
          Proceeds Breakdown.

         

        *
          Copy of
          EOB for any MI or gov't guarantee 

         

        *
          All
          other credits need to be clearly defined on the 332
          form      
     

         

         

        
          	
                  22.

                	
                  The
                    total of lines 14 through 21.

                

        

         

         

        Please
          Note: For
          HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b)
          for Part
          B/Supplemental proceeds.

         

        Total
          Realized Loss (or Amount of Any Gain)

         

        23.         
           The
          total
          derived from subtracting line 22 from 13. If the amount represents a realized
          gain, show the amount in parenthesis (     ). 

         

         

        
 

           

          
            
              	
                       

                      Calculation
                        of Realized Loss/Gain Form
                        332

                    

            

             

            Prepared
              by: __________________   Date:
              _______________

            Phone:
              ______________________    Email
              Address:_____________________

            
              	 	 	 	 	 
	
                      Servicer
                        Loan No.

                       

                    	 	
                      Servicer
                        Name

                       

                    	 	
                      Servicer
                        Address 

                       

                       

                    

            

             

            WELLS
              FARGO BANK, N.A. Loan No._____________________________

             

            Borrower's
              Name: _________________________________________________________

            Property
              Address: _________________________________________________________

             

            Liquidation
              Type:     REO
              Sale  
              3rd
              Party Sale  Short
              Sale     Charge
              Off 

             

            Was
              this loan granted a Bankruptcy deficiency or cramdown  Yes      No

            If
“Yes”,
              provide deficiency or cramdown amount
              _______________________________

             

            
              Liquidation
                and Acquisition Expenses:

              
                
                  

                    
                      	
                              (1)

                            	
                              Actual
                                Unpaid Principal Balance of Mortgage Loan

                            	
                               

                            	$	 	
                              (1)

                            
	
                              (2)

                            	
                              Interest
                                accrued at Net Rate

                            	 	
                               

                            	 	
                              (2)

                            
	
                              (3)

                            	
                              Accrued
                                Servicing Fees

                            	 	
                               

                            	 	
                              (3)

                            
	
                              (4)

                            	
                              Attorney's
                                Fees

                            	 	
                               

                            	 	
                              (4)

                            
	
                              (5)

                            	
                              Taxes
                                (see page 2)

                            	 	
                               

                            	 	
                              (5)

                            
	
                              (6)

                            	
                              Property
                                Maintenance

                            	 	 	 	
                               

                            	 	
                              (6)

                            
	
                              (7)

                            	
                              MI/Hazard
                                Insurance Premiums (see page 2)

                            	
                               

                            	 	 	
                              (7)

                            
	
                              (8)

                            	
                              Utility
                                Expenses

                            	 	 	 	
                               

                            	 	
                              (8)

                            
	
                              (9)

                            	
                              Appraisal/BPO

                            	 	 	 	
                               

                            	 	
                              (9)

                            
	
                              (10)

                            	
                              Property
                                Inspections

                            	 	 	 	
                               

                            	 	
                              (10)

                            
	
                              (11)

                            	
                              FC
                                Costs/Other Legal Expenses

                            	 	 	 	
                              (11)

                            
	
                              (12)

                            	
                              Other
                                (itemize)

                            	 	 	 	
                               

                            	 	
                              (12)

                            
	 	 	
                              Cash
                                for Keys

                            	 	
                               

                            	 	 	
                              (12)

                            
	 	 	
                              HOA/Condo
                                Fees

                            	 	
                               

                            	 	 	
                              (12)

                            
	 	 	
                               

                            	 	
                               

                            	 	 	
                              (12)

                            
	 	 	 	 	 	 	 	 
	 	 	
                              Total
                                Expenses

                            	 	 	$	 	
                              
                                (13)

                              

                            
	
                              Credits:

                            	 	 	 	 	 	 	 
	
                              (14)

                            	
                              Escrow
                                Balance

                            	 	 	 	
                              $
                                

                            	 	
                              (14)

                            
	
                              (15)

                            	
                              HIP
                                Refund

                            	 	 	 	 	 	
                              
                                (15)

                              

                            
	
                              (16)

                            	
                              Rental
                                Receipts

                            	 	 	 	
                               

                            	 	
                              (16)

                            
	
                              (17)

                            	
                              Hazard
                                Loss Proceeds

                            	 	 	 	
                               

                            	 	
                              (17)

                            
	
                              (18)

                            	
                              Primary
                                Mortgage Insurance / Gov’t Insurance

                            	
                               

                            	 	 	(18a)

	
                              HUD
                                Part A

                            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                              HUD
                                Part B

                            	 	 	 	 	 	(18b)
	
                              (19)

                            	
                              Pool
                                Insurance Proceeds

                            	 	 	 	
                               

                            	 	
                              (19)

                            
	
                              (20)

                            	
                              Proceeds
                                from Sale of Acquired Property

                            	
                               

                            	 	 	
                              (20)

                            
	
                              (21)

                            	
                              Other
                                (itemize)

                            	 	 	 	
                               

                            	 	
                              (21)

                            
	 	
                               

                            	 	
                               

                            	
                               

                            	 	 	
                              (21)

                            
	 	 	 	 	 	 	 	 
	 	
                              Total
                                Credits

                            	 	 	 	
                              $

                            	 	
                              (22)

                            
	
                              Total
                                Realized Loss (or Amount of Gain)

                            	
                               

                            	
                               

                            	
                              $

                            	 	
                              (23)

                            

                    

                  

                

                 

              

            

          

        

        

        
          	
                  Type

                  (Tax
                    /Ins.)

                	
                  Date
                    Paid

                	
                  Period
                    of Coverage

                	
                  Total
                    Paid

                	
                  Base
                    Amount

                	
                  Penalties

                	
                  Interest

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          V

        

        FORM
          OF
          CERTIFICATION TO BE PROVIDED BY THE SECURITIES ADMINISTRATOR TO THE
          DEPOSITOR

        

        
          	 	
                  Re:

                	
                  SACO
                    I Trust 2007-1 (the “Trust”), Mortgage Pass-Through Certificates, Series
                    2007-1, issued pursuant to the Pooling and Servicing Agreement,
                    dated as
                    of December 1, 2006 among Bear Stearns Asset Backed Securities
                    I LLC, as
                    Depositor, EMC Mortgage Corporation, as seller and company, Wells
                    Fargo
                    Bank, National Association, as Securities Administrator and Master
                    Servicer, and Citibank, N.A., as
                    trustee.

                

        

        

        The
          Securities Administrator hereby certifies to the Depositor, and its officers,
          directors and affiliates, and with the knowledge and intent that they will
          rely
          upon this certification, that:

        

        (1) I
          have
          reviewed the annual report on Form 10-K for the fiscal year [____] (the
“Annual
          Report”), and all reports on Form 10-D required to be filed in respect of period
          covered by the Annual Report (collectively with the Annual Report, the
          “Reports”), of the Trust;

        

        (2) To
          my
          knowledge, (a) the Reports, taken as a whole, do not contain any untrue
          statement of a material fact or omit to state a material fact necessary
          to make
          the statements made, in light of the circumstances under which such statements
          were made, not misleading with respect to the period covered by the Annual
          Report, and (b) the Securities Administrator’s assessment of compliance and
          related attestation report referred to below, taken as a whole, do not
          contain
          any untrue statement of a material fact or omit to state a material fact
          necessary to make the statements made, in light of the circumstances under
          which
          such statements were made, not misleading with respect to the period covered
          by
          such assessment of compliance and attestation report;

        

        (3) To
          my
          knowledge, the distribution information required to be provided by the
          Securities Administrator under the Pooling and Servicing Agreement for
          inclusion
          in the Reports is included in the Reports;

        

        (4) I
          am
          responsible for reviewing the activities performed by the Securities
          Administrator under the Pooling and Servicing Agreement, and based on my
          knowledge and the compliance review conducted in preparing the compliance
          statement of the Securities Administrator required by the Pooling and Servicing
          Agreement, and except as disclosed in the Reports, the Securities Administrator
          has fulfilled its obligations under the Pooling and Servicing Agreement
          in all
          material respects; and

        

        (5) The
          report on assessment of compliance with servicing criteria applicable to
          the
          Securities Administrator for asset-backed securities of the Securities
          Administrator and each Subcontractor utilized by the Securities Administrator
          and related attestation report on assessment of compliance with servicing
          criteria applicable to it required to be included in the Annual Report
          in
          accordance with Item 1122 of Regulation AB and Exchange Act Rules 13a-18
          and
          15d-18 has been included as an exhibit to the Annual Report. Any material
          instances of non-compliance are described in such report and have been
          disclosed
          in the Annual Report.

        

        In
          giving
          the certifications above, the Securities Administrator has reasonably relied
          on
          information provided to it by the following unaffiliated parties: [names
          of
          servicer(s), master servicer, subservicer, depositor, trustee,
          custodian(s)]

        

        Date:________________________________      

        

        _____________________________________      

        [Signature]

        [Title]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]