Document:

Transfer and Servicing Agreement

 Exhibit 10.3 
  
 EXECUTION 
  
 HOMEBANC MORTGAGE TRUST 2005-3, as Issuer 
  
 HMB ACCEPTANCE CORP., as Depositor 
  
 WELLS FARGO BANK, N.A., 
 as Securities
Administrator and Master Servicer 
  
 HOMEBANC CORP., as
Seller and Servicer 
  
 and 
  
 U.S. BANK NATIONAL ASSOCIATION, as Indenture Trustee 
  

  
 TRANSFER AND SERVICING AGREEMENT 
  
 Dated as of May 1, 2005 
  

  
 HOMEBANC MORTGAGE TRUST 2005-3 
 MORTGAGE BACKED NOTES 

  
 TABLE OF CONTENTS 

 

			
	 	  	Page

	ARTICLE I	  	 
		
	DEFINITIONS	  	 
		
	 Section 1.01.   Definitions
	  	3
	 Section 1.02.   Calculations With Respect to the Mortgage Loans
	  	35
	 Section 1.03.   Calculations With Respect to Accrued Interest
	  	35
		
	ARTICLE II	  	 
		
	CONVEYANCE OF MORTGAGE LOANS	  	 
		
	 Section 2.01.   Creation and Declaration of Trust Estate; Conveyance of Mortgage Loans
	  	36
	 Section 2.02.   Acceptance of Trust Estate; Review of Documentation
	  	39
	 Section 2.03.   Grant Clause
	  	41
	 Section 2.04.   Option to Contribute Derivative Instrument
	  	43
		
	ARTICLE III	  	 
		
	REPRESENTATIONS AND WARRANTIES	  	 
		
	 Section 3.01.   Representations and Warranties of the Depositor and the Seller
	  	43
	 Section 3.02.   Discovery of Breach
	  	45
	 Section 3.03.   Repurchase, Purchase or Substitution of Mortgage Loans
	  	46
	 Section 3.04.   Representations and Warranties of the Depositor with respect to Security Interest
	  	47
		
	ARTICLE IV	  	 
		
	ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS BY THE SERVICER	  	 
		
	 Section 4.01.   Servicer to Perform Servicing Responsibilities
	  	48
	 Section 4.02.   Servicing of the Mortgage Loans
	  	49
	 Section 4.03.   Payments to the Master Servicer
	  	62
	 Section 4.04.   General Servicing Procedures
	  	65

  

 i 

			
	 Section 4.05.   Representations, Warranties and Agreements
	  	68
	 Section 4.06.   The Servicer
	  	71
	 Section 4.07.   Termination for Cause
	  	73
	 Section 4.08.   Successor to Servicer
	  	75
	 Section 4.09.   Subservicers and Subservicing Agreements
	  	76
	 Section 4.10.   Superior Liens
	  	78
		
	ARTICLE V	  	 
		
	ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER AND THE SECURITIES ADMINISTRATOR	  	 
		
	 Section 5.01.   Duties of the Master Servicer; Representations and Warranties
	  	78
	 Section 5.02.   Master Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance Policy
	  	80
	 Section 5.03.   Master Servicer’s Financial Statements and Related Information
	  	81
	 Section 5.04.   Power to Act; Procedures
	  	82
	 Section 5.05.   Enforcement of Servicer’s and Master Servicer’s Obligations
	  	83
	 Section 5.06.   Collection Account
	  	83
	 Section 5.07.   Application of Funds in the Collection Account
	  	85
	 Section 5.08.   Reports to Indenture Trustee and Noteholders
	  	87
	 Section 5.09.   Termination of Servicer; Successor Servicers
	  	90
	 Section 5.10.   Master Servicer Liable for Enforcement
	  	91
	 Section 5.11.   Assumption of Master Servicing by Indenture Trustee
	  	91
	 Section 5.12.   Release of Mortgage Files
	  	91
	 Section 5.13.   Documents, Records and Funds in Possession of Master Servicer to be Held for Indenture Trustee
	  	93
	 Section 5.14.   Opinion
	  	94
	 Section 5.15.   Indenture Trustee To Retain Possession of Certain Insurance Policies and Documents
	  	94
	 Section 5.16.   Compensation to the Master Servicer
	  	95
	 Section 5.17.   Annual Officer’s Certificate as to Compliance
	  	95
	 Section 5.18.   Annual Independent Accountants’ Servicing Report
	  	95
	 Section 5.19.   Merger or Consolidation
	  	96
	 Section 5.20.   Resignation of Master Servicer
	  	96
	 Section 5.21.   Assignment or Delegation of Duties by the Master Servicer
	  	97
	 Section 5.22.   Limitation on Liability of the Master Servicer and Others
	  	97
	 Section 5.23.   Indemnification; Third Party Claims
	  	98
	 Section 5.24.   Alternative Index
	  	98
	 Section 5.25.   Transfer of Servicing
	  	98
	 Section 5.26.   Compliance with Safeguarding Customer Information Requirements
	  	100

  

 ii 

			
	ARTICLE VI	  	 
		
	DEPOSITS AND PAYMENTS TO HOLDERS	  	 
		
	 Section 6.01.   The Note Payment Account
	  	100
	 Section 6.02.   Payments from the Note Payment Account
	  	101
	 Section 6.03.   Control of the Trust Account
	  	105
	 Section 6.04.   Monthly Advances by Master Servicer and Servicer
	  	108
	 Section 6.05.   Cap Agreements
	  	109
		
	ARTICLE VII	  	 
		
	THE SECURITIES ADMINISTRATOR	  	 
		
	 Section 7.01.   Duties of the Securities Administrator
	  	110
	 Section 7.02.   Records
	  	111
	 Section 7.03.   Compensation and Indemnity
	  	111
	 Section 7.04.   Additional Information to be Furnished to the Issuer
	  	111
	 Section 7.05.   Independence of the Securities Administrator
	  	111
	 Section 7.06.   No Joint Venture
	  	112
	 Section 7.07.   Other Activities of Securities Administrator
	  	112
	 Section 7.08.   Resignation and Removal of Securities Administrator
	  	112
	 Section 7.09.   Action upon Termination, Resignation or Removal of the Securities Administrator
	  	114
		
	ARTICLE VIII	  	 
		
	MASTER SERVICER EVENTS OF DEFAULT	  	 
		
	 Section 8.01.   Master Servicer Events of Default; Indenture Trustee To Act; Appointment of Successor
	  	114
	 Section 8.02.   Additional Remedies of Indenture Trustee Upon Event of Default
	  	118
	 Section 8.03.   Waiver of Defaults
	  	119
	 Section 8.04.   Notification to Holders
	  	119
	 Section 8.05.   Directions by Noteholders and Duties of Indenture Trustee During Master Servicer Event of Default
	  	119
	 Section 8.06.   Action Upon Certain Failures of the Master Servicer and Upon Master Servicer Event of Default
	  	120
	 Section 8.07.   Preparation of Reports
	  	120

  

 iii 

			
	ARTICLE IX	  	 
		
	TERMINATION	  	 
		
	 Section 9.01.   Termination
	  	121
	 Section 9.02.   Termination Prior to Maturity Date; Optional Redemption
	  	121
	 Section 9.03.   Certain Notices upon Final Payment
	  	122
		
	ARTICLE X	  	 
		
	MISCELLANEOUS PROVISIONS	  	 
		
	 Section 10.01.   Binding Nature of Agreement; Assignment
	  	122
	 Section 10.02.   Entire Agreement
	  	122
	 Section 10.03.   Amendment
	  	122
	 Section 10.04.   Acts of Noteholders
	  	124
	 Section 10.05.   Recordation of Agreement
	  	124
	 Section 10.06.   Governing Law
	  	124
	 Section 10.07.   Notices
	  	124
	 Section 10.08.   Severability of Provisions
	  	126
	 Section 10.09.   Indulgences; No Waivers
	  	127
	 Section 10.10.   Headings Not To Affect Interpretation
	  	127
	 Section 10.11.   Benefits of Agreement
	  	127
	 Section 10.12.   Special Notices to the Rating Agencies
	  	127
	 Section 10.13.   Counterparts
	  	128
	 Section 10.14.   Agreement of the Issuer
	  	128
	 Section 10.15.   Execution by the Issuer
	  	128

  

 iv 

 ATTACHMENTS 
  

			
	 Exhibit A-1
	  	Form of Initial Certification
	 Exhibit A-2
	  	Form of Interim Certification
	 Exhibit A-3
	  	Form of Final Certification
	 Exhibit A-4
	  	Form of Endorsement
	 Exhibit A-5
	  	Form of Request For Release
	 Exhibit B
	  	Form of Lost Note Affidavit
	 Exhibit C
	  	Custodial Agreement
	 Exhibit D
	  	Custodial Account Letter Agreement
	 Exhibit E
	  	Escrow Account Letter Agreement
	 Exhibit F
	  	Standard Layout For Monthly Defaulted Loan Report
		
	 Schedule A
	  	Mortgage Loan Schedule

  

 v 

  
 This TRANSFER AND SERVICING
AGREEMENT, dated as of May 1, 2005 (this “Agreement” or this “Transfer and Servicing Agreement”), is by and among HOMEBANC MORTGAGE TRUST 2005-3, a Delaware statutory trust, as issuer (the “Issuer”), HMB ACCEPTANCE
CORP., a Delaware corporation, as depositor (the “Depositor”), U.S. BANK NATIONAL ASSOCIATION, as indenture trustee (the “Indenture Trustee”), WELLS FARGO BANK, N.A., as securities administrator (in such capacity, the
“Securities Administrator”) and master servicer (in such capacity, the “Master Servicer”) and HOMEBANC CORP., a Georgia corporation, as seller (in such capacity, the “Seller”) and servicer (in such capacity, the
“Servicer”). 
  
 PRELIMINARY STATEMENT 
  
 WHEREAS, the Depositor has acquired all of the rights, title and interest of
the Seller in certain conventional, first and second lien, adjustable rate, residential mortgage loans identified in Schedule A hereto (the “Mortgage Loans”) from the Seller pursuant to the Mortgage Loan Purchase Agreement, and at the
Closing Date is the owner of the Mortgage Loans and the other property being conveyed by it to the Issuer hereunder for inclusion in the Trust Estate; 
  
 WHEREAS, the Depositor has duly authorized the execution and delivery of this Agreement to provide for the conveyance to the Issuer of the Mortgage Loans
and the other property constituting the Trust Estate; 
  
 WHEREAS,
on the Closing Date, the Depositor will acquire the Notes and the Ownership Certificate from the Issuer as consideration for its transfer to the Issuer of the Mortgage Loans and the other property constituting the Trust Estate; 
  
 WHEREAS, pursuant to the Indenture, the Issuer will pledge the Mortgage Loans
and the other property constituting the Trust Estate to the Indenture Trustee as security for the Notes; 
  
 WHEREAS, the Issuer desires that the Servicer service the Mortgage Loans upon such transfer to the Issuer pursuant to this Agreement, and the Servicer has
agreed to do so; 
  
 WHEREAS, the Master Servicer shall be
obligated under this Agreement, among other things, to supervise the servicing of the Mortgage Loans on behalf of the Issuer, and shall have the right, under certain circumstances, to terminate the rights and obligations of the Servicer under this
Agreement upon the occurrence and continuance of a Servicing Event of Default as provided herein; 
  
 WHEREAS, the parties hereto acknowledge and agree that, at the direction of the Depositor, the Seller will assign all of its rights with respect to the
Mortgage Loans to the Indenture Trustee; 
  
 WHEREAS, the Issuer
desires to have the Securities Administrator perform certain duties consistent with the terms of this Agreement; and 
  
 WHEREAS, the Securities Administrator has the capacity to provide the services required hereby and is willing to perform such services on the terms set
forth herein. 
  

 NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as
follows: 
  
 The following table sets forth (or describes) the
class designation, Note Interest Rate, initial Class Principal Amount and minimum denomination for each Class of Notes issued pursuant to the Indenture: 
  

									
	 Class Designation

	  	Note Interest
Rate

	 	Initial
Class Principal
Amount or Class
Notional Amount

	  	Minimum
Denominations

	 Class A-1
	  	(1)	 	$	831,908,000	  	$	25,000
	 Class A-2
	  	(2)	 	$	98,567,000	  	$	25,000
	 Class M-1
	  	(3)	 	$	16,264,000	  	$	25,000
	 Class M-2
	  	(4)	 	$	7,393,000	  	$	25,000
	 Class M-3
	  	(5)	 	$	5,421,000	  	$	25,000
	 Class M-4
	  	(6)	 	$	9,857,000	  	$	25,000
	 Class M-5
	  	(7)	 	$	10,350,000	  	$	25,000
	 Class B
	  	(8)	 	$	5,913,000	  	$	25,000

	(1)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class A-1 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.240%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class A-1 Notes will be equal
to LIBOR plus 0.480% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

	(2)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class A-2 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.310%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class A-2 Notes will be equal
to LIBOR plus 0.620% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

	(3)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-1 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.440%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-1 Notes will be equal
to LIBOR plus 0.660% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

	(4)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-2 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.460%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-2 Notes will be equal
to LIBOR plus 0.690% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

 2 

	(5)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-3 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.510%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-3 Notes will be equal
to LIBOR plus 0.765% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

	(6)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-4 Notes is the per annum rate equal to the least of (i) LIBOR plus 0.670%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-4 Notes will be equal
to LIBOR plus 1.005% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

	(7)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class M-5 Notes is the per annum rate equal to the least of (i) LIBOR plus 1.230%
per annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class M-5 Notes will be equal
to LIBOR plus 1.845% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  

	(8)	The Note Interest Rate with respect to any Payment Date (and the related Accrual Period) for the Class B Notes is the per annum rate equal to the least of (i) LIBOR plus 2.100% per
annum, (ii) the Maximum Note Interest Rate and (iii) the Available Funds Rate with respect to such Payment Date; provided, that the per annum rate calculated pursuant to clause (i) above with respect to the Class B Notes will be equal to
LIBOR plus 3.150% per annum beginning on the Step-up Date (and the related Accrual Period) and on each Payment Date (and the related Accrual Period) thereafter. 

  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Definitions. The following words and phrases, unless the context otherwise requires, shall have the following meanings: 

 
 A-1 Principal Deficiency Amount: With respect to any Payment Date,
the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of the A-2 Principal Deficiency Amount, the M-1 Principal Deficiency Amount, the M-2 Principal Deficiency Amount, the M-3 Principal Deficiency
Amount, the M-4 Principal Deficiency Amount, the M-5 Principal Deficiency Amount and the B Principal Deficiency Amount, in each case for that Payment Date, and (b) the Class Principal Amount of the Class A-1 Notes immediately prior to such Payment
Date. 
  
 A-2 Principal Deficiency Amount: With respect to
any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of the M-1 Principal Deficiency Amount, the M-2 Principal Deficiency Amount, the M-3 Principal Deficiency Amount, the M-4 Principal
Deficiency Amount, the M-5 Principal Deficiency 

  

 3 

 
Amount and the B Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class A-2 Notes immediately prior
to such Payment Date. 
  
 Accepted Servicing Practices:
With respect to any Mortgage Loan, those mortgage loan 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. 
  
 Accountant: A Person engaged in the practice of accounting who (except
when this Agreement provides that an Accountant must be Independent) may be employed by or affiliated with the Depositor or an Affiliate of the Depositor. 
  
 Accounts: Any or all of the Custodial Accounts, the Escrow Accounts, the Collection Account, the Note Payment Account, the Certificate Distribution
Account, the Cap Account and any other accounts created or maintained by the Master Servicer, the Securities Administrator or the Servicer pursuant to this Agreement. 
  
 Accrual Period: With respect to any Payment Date and any Class of Notes, the period beginning on immediately
preceding Payment Date (or on the Closing Date, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date. 
  

Accrued Note Interest: With respect to any Payment Date and any Class of Notes, the aggregate amount of interest accrued at the applicable Note
Interest Rate during the related Accrual Period on the Class Principal Amount of such Class immediately prior to such Payment Date, provided, however, that for any class of Notes and any Payment Date, Accrued Note Interest will be reduced by
the amount specified in clause (a) of the definition of Deferred Interest, if any for such Class and Payment Date. 
  
 Adjustment Date: With respect to any Mortgage Loan, the date on which an adjustment is made to the Monthly Payment to correspond to an adjustment
in the related Mortgage Note. 
  
 Administration Agreement:
The administration agreement dated as of May 1, 2005, among the Issuer, the Indenture Trustee, the Securities Administrator, the Owner Trustee and the Depositor. 
  
 Affiliate: With respect to any specified Person, any other Person controlling or controlled by or under common
control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  

 4 

 Agreement: This Transfer and Servicing Agreement and all amendments and supplements hereto.

  
 Ancillary Income: All income derived from the Mortgage
Loans, excluding Servicing Fees attributable to the Mortgage Loans and other amounts treated as payment proceeds of the Mortgage Loans, including but not limited to, late charges, fees received with respect to checks or bank drafts returned by the
related bank for non-sufficient funds, assumption fees, optional insurance administrative fees and all other incidental fees and charges. 
  
 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 Servicer and Fannie Mae, or as determined by use of an automated valuation model, provided, however, that the use of an automated valuation model
shall be permitted only upon the presentation by the Servicer to the Indenture Trustee of an approval letter acceptable to the Indenture Trustee from each of the Rating Agencies, which letters shall state that use of an automated valuation model
shall have no adverse effect in any material respect on the interests of any Noteholder. 
  
 Assignment of Mortgage: An assignment of Mortgage, notice of transfer or equivalent instrument, in recordable form, which is sufficient under the laws of the jurisdiction wherein the related Mortgaged Property
is located to reflect of record the sale of the Mortgage, which assignment, notice of transfer or equivalent instrument may be in the form of one or more blanket assignments covering Mortgages secured by Mortgaged Properties located in the same
county, if permitted by law. 
  
 Available Funds Rate: With
respect to any Payment Date and the Notes, the per annum rate equal to the product of (1) (a) 360 divided by (b) the actual number of days in the Accrual Period, and (2) (a) Interest Funds for such Payment Date, divided by (b) the
aggregate Class Principal Amount of the Notes as of the first day of the related Accrual Period. 
  
 Authorized Officer: Any Person who may execute an Officer’s Certificate on behalf of the Issuer. 
  
 B Principal Deficiency Amount: With respect to any Payment Date, the
lesser of (a) the Total Principal Deficiency Amount for that Payment Date, and (b) the Class Principal Amount of the Class B Notes immediately prior to such Payment Date. 
  
 Bankruptcy: As to any Person, the making of an assignment for the benefit of creditors, the filing of a voluntary
petition in bankruptcy, adjudication as a bankrupt or insolvent, the entry of an order for relief in a bankruptcy or insolvency proceeding, the seeking of reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar
relief, or seeking, consenting to or acquiescing in the appointment of a trustee, receiver or liquidator, dissolution, or termination, as the case may be, of such Person pursuant to the provisions of either the Bankruptcy Code, or any other similar
state laws. 
  

 5 

 Bankruptcy Code: The United States Bankruptcy Code of 1986, as amended. 
  
 Bankruptcy Loss: Any loss resulting from a bankruptcy court, in
connection with a personal bankruptcy of a borrower, (1) establishing the value of a Mortgaged Property at an amount less than the Outstanding Principal Balance of the Mortgage Loan secured by such Mortgaged Property or (2) reducing the amount of
the Monthly Payment on the related Mortgage Loan, in each case, as reported by the Servicer to the Master Servicer. 
  
 Basis Risk Shortfall: With respect to each Payment Date and any Class of Notes, an amount equal to the sum of (1) the excess, if any, of (a)
Accrued Note Interest calculated without regard to the Available Funds Rate over (b) the aggregate of interest accrued on such Class at an interest rate equal to the Available Funds Rate, (2) any amount described in clause (1) above for such Class
remaining unpaid from prior Payment Dates and (3) interest on the amount in clause (2) above at such Class’s applicable Note Interest Rate (without regard to the Available Funds Rate). 
  
 Basis Risk Shortfall Carryforward Amount: With respect to each Class
of Notes and any Payment Date, an amount equal to the aggregate amount of Basis Risk Shortfall for such Class of Notes on such Payment Date, plus any unpaid Basis Risk Shortfall for such Class of Notes from prior Payment Dates, plus interest thereon
at the Note Interest Rate for such Payment Date for such Class for the related Accrual Period, to the extent previously unpaid from Monthly Excess Cashflow or from proceeds of the Cap Agreements. 
  
 Book-Entry Notes: As defined in the Indenture. 
  
 Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in New York, New York or, if other than New York, the city in which the Corporate Trust Office of the Indenture Trustee is located, or the States of Delaware, Georgia, Maryland, Massachusetts, Minnesota or Texas are
authorized or obligated by law or executive order to be closed. 
  
 Cap Account: A separate account established and maintained by the Securities Administrator for the benefit of the Noteholders pursuant to Section 6.05. 
  
 Cap Agreement Payment Date: With respect to any Cap Agreement, one Business Day immediately prior to the related
Payment Date, beginning with the Payment Date in June 2005 and ending with the Payment Date in April 2010. 
  
 Cap Agreements: The interest rate cap agreements dated on or before the Closing Date between the Issuer and the Cap Counterparty. 
  
 Cap Counterparty: Bear Stearns Financial Products Inc. 
  
 Cap Receipt: With respect to any Cap Agreement Payment Date, any
amount received from the Cap Counterparty under any Cap Agreement. 
  

 6 

 Certificate: The Ownership Certificate. 
  
 Certificate Distribution Account: As defined in the Trust Agreement.

  
 Certificate of Trust: As defined in the Trust
Agreement. 
  
 Certificate Registrar: As defined in the
Trust Agreement, the initial Certificate Registrar shall be the Securities Administrator. 
  
 Certificateholder: Any registered holder of the Ownership Certificate. 
  
 Civil Relief Act: The Servicemembers Civil Relief Act, as such may be amended from time to time, and any similar state or local laws.

  
 Class: All Notes bearing the same class designation.

  
 Class A Principal Payment Amount: With respect to any
Payment Date on or after the Stepdown Date, as long as a Trigger Event has not occurred with respect to such Payment Date, an amount equal to the excess of (x) the aggregate Class Principal Amount of the Class A-1 and Class A-2 Notes immediately
prior to such Payment Date over (y) the lesser of (A) the product of (i) 87.40% and (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period and (B) the aggregate Scheduled Principal
Balance of the Mortgage Loans as of the last day of the related Collection Period minus the Overcollateralization Floor. 
  
 Class B Principal Payment Amount: With respect to any Payment Date on or after the Stepdown Date, as long as a Trigger Event has not occurred with
respect to such Payment Date, an amount equal to the lesser of (x) the remaining Principal Payment Amount for that Payment Date after payment of the Class A Principal Payment Amount, the Class M-1 Principal Payment Amount, the Class M-2 Principal
Payment Amount, the Class M-3 Principal Payment Amount, the Class M-4 Principal Payment Amount and the Class M-5 Principal Payment Amount and (y) the excess, if any, of (A) the sum of (1) the aggregate Class Principal Amount of the Class A-1 and
Class A-2 Notes (after taking into account the payment of the Class A Principal Payment Amount for such Payment Date), (2) the Class Principal Amount of the Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Payment
Amount for such Payment Date), (3) the Class Principal Amount of the Class M-2 Notes (after taking into account the payment of the Class M-2 Principal Payment Amount for such Payment Date), (4) the Class Principal Amount of the Class M-3 Notes
(after taking into account the payment of the Class M-3 Principal Payment Amount for such Payment Date), (5) the Class Principal Amount of the Class M-4 Notes (after taking into account the payment of the Class M-4 Principal Payment Amount for such
Payment Date), (6) the Class Principal Amount of the Class M-5 Notes (after taking into account the payment of the Class M-5 Principal Payment Amount for such Payment Date) and (7) the Class Principal Amount of the Class B Notes immediately prior to
such Payment Date, over (B) the lesser of (a) the product of (i) approximately 98.60% and (ii) the 

  

 7 

 
aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period, and (b) the aggregate Scheduled Principal
Balance of the Mortgage Loans as of the last day of the related Collection Period minus the Overcollateralization Floor. 
  
 Class M-1 Principal Payment Amount: With respect to any Payment Date on or after the Stepdown Date, as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the lesser of (x) the remaining Principal Payment Amount for that Payment Date after payment of the Class A Principal Payment Amount and (y) the excess, if any, of (A) the sum of (1) the
aggregate Class Principal Amount of the Class A-1 and Class A-2 Notes (after taking into account the payment of the Class A Principal Payment Amount for such Payment Date) and (2) the Class Principal Amount of the Class M-1 Notes immediately prior
to such Payment Date, over (B) the lesser of (a) the product of (i) approximately 90.70% and (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period, and (b) the aggregate Scheduled
Principal Balance of the Mortgage Loans as of the last day of the related Collection Period minus the Overcollateralization Floor. 
  
 Class M-2 Principal Payment Amount: With respect to any Payment Date on or after the Stepdown Date, as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the lesser of (x) the remaining Principal Payment Amount for that Payment Date after payment of the Class A Principal Payment Amount and the Class M-1 Principal Payment Amount and (y) the excess,
if any, of (A) the sum of (1) the aggregate Class Principal Amount of the Class A-1 and Class A-2 Notes (after taking into account the payment of the Class A Principal Payment Amount for such Payment Date), (2) the Class Principal Amount of the
Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Payment Amount for such Payment Date) and (3) the Class Principal Amount of the Class M-2 Notes immediately prior to such Payment Date, over (B) the lesser of (a) the
product of (i) approximately 92.20% and (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period, and (b) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last
day of the related Collection Period minus the Overcollateralization Floor. 
  
 Class M-3 Principal Payment Amount: With respect to any Payment Date on or after the Stepdown Date, as long as a Trigger Event has not occurred with respect to such Payment Date, an amount equal to the lesser
of (x) the remaining Principal Payment Amount for that Payment Date after payment of the Class A Principal Payment Amount, the Class M-1 Principal Payment Amount and the Class M-2 Principal Payment Amount and (y) the excess, if any, of (A) the sum
of (1) the aggregate Class Principal Amount of the Class A-1 and Class A-2 Notes (after taking into account the payment of the Class A Principal Payment Amount for such Payment Date), (2) the Class Principal Amount of the Class M-1 Notes (after
taking into account the payment of the Class M-1 Principal Payment Amount for such Payment Date), (3) the Class Principal Amount of the Class M-2 Notes (after taking into account the payment of the Class M-2 Principal Payment Amount for such Payment
Date) and (4) the Class Principal Amount of the Class M-3 Notes immediately prior to such Payment Date, over (B) the lesser of (a) the product of (i) approximately 93.30% and (ii) the aggregate Scheduled Principal Balance of the Mortgage 

  

 8 

 
Loans as of the last day of the related Collection Period, and (b) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the
related Collection Period minus the Overcollateralization Floor. 
  
 Class M-4 Principal Payment Amount: With respect to any Payment Date on or after the Stepdown Date, as long as a Trigger Event has not occurred with respect to such Payment Date, an amount equal to the lesser
of (x) the remaining Principal Payment Amount for that Payment Date after payment of the Class A Principal Payment Amount, the Class M-1 Principal Payment Amount, the Class M-2 Principal Payment Amount and the Class M-3 Principal Payment Amount and
(y) the excess, if any, of (A) the sum of (1) the aggregate Class Principal Amount of the Class A-1 and Class A-2 Notes (after taking into account the payment of the Class A Principal Payment Amount for such Payment Date), (2) the Class Principal
Amount of the Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Payment Amount for such Payment Date), (3) the Class Principal Amount of the Class M-2 Notes (after taking into account the payment of the Class M-2
Principal Payment Amount for such Payment Date), (4) the Class Principal Amount of the Class M-3 Notes (after taking into account the payment of the Class M-3 Principal Payment Amount for such Payment Date) and (5) the Class Principal Amount of the
Class M-4 Notes immediately prior to such Payment Date, over (B) the lesser of (a) the product of (i) approximately 95.30% and (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period,
and (b) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period minus the Overcollateralization Floor. 
  
 Class M-5 Principal Payment Amount: With respect to any Payment Date on or after the Stepdown Date, as long as a
Trigger Event has not occurred with respect to such Payment Date, an amount equal to the lesser of (x) the remaining Principal Payment Amount for that Payment Date after payment of the Class A Principal Payment Amount, the Class M-1 Principal
Payment Amount, the Class M-2 Principal Payment Amount, the Class M-3 Principal Payment Amount and the Class M-4 Principal Payment Amount and (y) the excess, if any, of (A) the sum of (1) the aggregate Class Principal Amount of the Class A-1 and
Class A-2 Notes (after taking into account the payment of the Class A Principal Payment Amount for such Payment Date), (2) the Class Principal Amount of the Class M-1 Notes (after taking into account the payment of the Class M-1 Principal Payment
Amount for such Payment Date), (3) the Class Principal Amount of the Class M-2 Notes (after taking into account the payment of the Class M-2 Principal Payment Amount for such Payment Date), (4) the Class Principal Amount of the Class M-3 Notes
(after taking into account the payment of the Class M-3 Principal Payment Amount for such Payment Date), (5) the Class Principal Amount of the Class M-4 Notes (after taking into account the payment of the Class M-4 Principal Payment Amount for such
Payment Date) and (6) the Class Principal Amount of the Class M-5 Notes immediately prior to such Payment Date, over (B) the lesser of (a) the product of (i) approximately 97.40% and (ii) the aggregate Scheduled Principal Balance of the Mortgage
Loans as of the last day of the related Collection Period, and (b) the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Collection Period minus the Overcollateralization Floor. 
  

 9 

 Class Principal Amount: With respect to any Class of Notes as of any Payment Date, its initial
Class Principal Amount as of the Closing Date, as reduced by all amounts previously paid on that Class in respect of principal prior to such Payment Date. 
  
 Clearing Agency: An organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act, as amended. As of the
Closing Date, the Clearing Agency shall be The Depository Trust Company. 
  
 Closing Date: May 27, 2005. 
  
 Code: The Internal Revenue Code of 1986, as amended. 
  
 Collateral: As defined in the Indenture. 
  
 Collection Account: A separate account maintained by the Master Servicer established in the name of the Indenture Trustee and for the benefit of the Noteholders pursuant to Section 5.06. 
  
 Collection Period: With respect to any Payment Date, the one-month
period commencing on the second day of the calendar month immediately preceding the month in which such Payment Date occurs and ending on the first day of the month in which such Payment Date occurs. 
  
 Combined Loan-to-Value Ratio: With respect to a Second Lien Mortgage
Loan, at any time, the ratio, expressed as a percentage, of the sum of (1) the principal balance of such Mortgage Loan and (2) the principal balance of the related first lien mortgage loan, each as of the applicable date of determination, to (a) in
the case of a purchase, the lesser of the sale price of the Mortgaged Property and its appraised value at the time of sale or (b) in the case of a refinancing or modification, the appraised value of the Mortgaged Property at the time of the
refinancing or modification. 
  
 Compensating Interest
Payment: With respect to any Payment Date, an amount equal to the lesser of (x) the aggregate Prepayment Interest Shortfall Amount with respect to such Payment Date and (y) the aggregate Servicing Fee payable to the Servicer in respect of such
Payment Date. 
  
 Condemnation Proceeds: All awards
of 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. 
  
 Conforming Balance
Mortgage Loan: A First Lien Mortgage Loan that has a Scheduled Principal Balance as of the Cut-off Date that is less than or equal to the Fannie Mae maximum original loan amount limitation for one-to four-family Mortgaged Properties for the
applicable jurisdiction in which the Mortgaged Property is located. 
  

 10 

 Control: The meaning specified in Section 8-106 of the New York UCC. 
  
 Corporate Trust Office: With respect to (i) the Securities
Administrator, the Certificate Registrar and the Note Registrar, the principal corporate trust office of the Securities Administrator which, for purposes of presentment of Securities for transfer and exchange and final payment, is located at Wells
Fargo Bank, N.A., Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, and for all other purposes is located at P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland 21045),
Attention: Client Manager (HomeBanc 2005-3); and (iii) the Indenture Trustee, the principal office of the Indenture Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of execution of
this Agreement is located at One Federal Street, 3rd Floor, Boston, Massachusetts 02110, Attention: Corporate Trust
Office Trust Services/HomeBanc 2005-3, or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the Trust, or the principal corporate trust office of any successor Indenture Trustee at the
address designated by such successor Indenture Trustee by notice to the Noteholders and the Trust. 
  
 Cumulative Loss Trigger Event: A Cumulative Loss Trigger Event shall have occurred with respect to any Payment Date beginning in June 2008 if the
fraction, expressed as a percentage, obtained by dividing (x) the aggregate amount of Realized Losses incurred on the Mortgage Loans from the Cut-off Date through the last day of the related Collection Period by (y) the Cut-off Date Balance, exceeds
the applicable percentage described below with respect to such Payment Date: 
  

				
	 Payment Date

	  	Loss Percentage

	 
	 June 2008 through May 2009
	  	0.50	%
	 June 2009 through May 2010
	  	1.00	%
	 June 2010 through May 2011
	  	1.15	%
	 June 2011 and thereafter
	  	1.25	%

  
 Custodial
Account: The separate custodial account (other than an Escrow Account) established and maintained by the Servicer pursuant to Section 4.02(d) of this Agreement. 
  
 Custodial Agreement: The custodial agreement dated as of May 1, 2005, relating to the custody of certain of the
Mortgage Loans, substantially in the form attached as Exhibit C hereto, among the Custodian, the Issuer, the Master Servicer, the Depositor and the Indenture Trustee. 
  
 Custodian: The custodian appointed pursuant to the Custodial Agreement, and any successor thereto. The initial
Custodian is JPMorgan Chase Bank, National Association. 
  
 Custodian Fee: The annual on-going fee payable by the Master Servicer on behalf of the Trust to the Custodian from income on funds held in the Collection Account as provided in 

  

 11 

 
Section 5.07 and pursuant to the terms of the separate fee letter agreement for HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes. 
  
 Cut-off Date: May 1, 2005. 
  
 Cut-off Date Balance: $985,673,427 
  
 Deferred Interest: With respect to any Class of Notes for any Payment
Date, an amount equal to the sum of (a) the aggregate amount of interest accrued at the applicable Note Interest Rate during the related Accrual Period on the Principal Deficiency Amount for that Class, (b) any amounts due pursuant to clause (a) for
such Class for prior Payment Dates that remain unpaid and (c) interest accrued during the Accrual Period related to such Payment Date on the amount described in clause (b) at the Note Interest Rate applicable to such Class. 
  
 Deficient Valuation: With respect to any Mortgage Loan, a valuation of
the Mortgaged Property by a court of competent jurisdiction in an amount less than the unpaid principal balance of the Mortgage Loan secured by such Mortgaged Property. 
  
 Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the Trust Estate pursuant to the terms hereof or as
to which one or more Qualifying Substitute Mortgage Loans are substituted therefor. 
  
 Delinquency Event: A Delinquency Event shall have occurred with respect to any Payment Date if the Rolling Three Month Delinquency Rate as of the last day of the immediately preceding calendar month equals or
exceeds 36.0% of the Senior Enhancement Percentage for such Payment Date. 
  
 Delinquency Rate: With respect to any calendar month, the fraction, expressed as a percentage, the numerator of which is the aggregate Scheduled Principal Balance of all Mortgage Loans 60 days Delinquent or
more (including all foreclosures, bankruptcies and REO Properties) as of the close of business on the last day of such month and as reported by the Servicer to the Master Servicer, and the denominator of which is the Pool Balance as of the close of
business on the last day of such month. 
  
 Delinquent: For reporting purposes, a Mortgage Loan is “delinquent” when any payment contractually due thereon has not been made by the close of business on the Due Date therefor. Such 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 first 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” and the second immediately succeeding month
and “90 days Delinquent” and the third immediately succeeding month. 
  
 Depositor: HMB Acceptance Corp., a Delaware corporation. 
  

 12 

 Depository Agreement: The agreement dated May 26, 2005, between the Issuer and The Depository
Trust Company, as the initial Clearing Agency, relating to the Book-Entry Notes. 
  
 Determination Date: With respect to each Payment Date, the 15th day of the related calendar month, or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 Due Date: With respect to each Mortgage Loan, the day of the month
each Monthly Payment is due. 
  
 Eligible Account: Either
(i) an account or accounts maintained with a federal or state chartered depository institution or trust company that complies with the definition of Eligible Institution or (ii) an account or accounts the deposits in which are insured by the FDIC to
the limits established by such corporation, provided that any such deposits not so insured shall be maintained in an account at a depository institution or trust company whose commercial paper or other short term debt obligations (or, in the
case of a depository institution or trust company which is the principal subsidiary of a holding company, the commercial paper or other short term debt or deposit obligations of such holding company or depository institution, as the case may be)
have been rated by each Rating Agency in its highest short-term rating category, or (iii) a segregated trust account or accounts (which shall be a “special deposit account”) maintained with the Securities Administrator or any other federal
or state chartered depository institution or trust company, acting in its fiduciary capacity, in a manner acceptable to the Rating Agencies. Eligible Accounts may bear interest. 
  
 Eligible Institution: Any of the following: 
  
 (i) An institution whose: 
  
 (A) commercial paper, short-term debt obligations, or other short-term deposits are rated at least “A-1+” and “P-1” or
long-term unsecured debt obligations are rated at least “AA-” or “Aa3” by S&P and Moody’s, respectively (or assigned comparable ratings by the other Rating Agencies), if the amounts on deposit are to be held in the
account for no more than 365 days; or 
  
 (B)
commercial paper, short-term debt obligations, demand deposits, or other short-term deposits are rated at least “A-2” and “P-1” by S&P and Moody’s, respectively (or assigned comparable ratings by the other Rating
Agencies), if the amounts on deposit are to be held in the account for no more than 30 days and are not intended to be used as credit enhancement. Upon the loss of the required rating set forth in this clause (ii), the accounts shall be transferred
immediately to accounts which have the required rating. Furthermore, commingling by the Servicer is acceptable at the A-2 and P-1 rating level if the Servicer is a bank, thrift or depository and provided the Servicer has the capability to
immediately segregate funds and commence remittance to an Eligible Deposit Account upon a downgrade; or 
  

 13 

 (ii) the corporate trust department of a federal depositor institution or state-chartered depositor
institution subject to regulations regarding fiduciary funds on deposit similar to Title 12 of the U.S. Code of Federal Regulation Section 9.10(b), which, in either case, has corporate trust powers and is acting in its fiduciary capacity.

  
 Eligible Investments: Any one or more of the following
obligations or securities: 
  
 (i) direct obligations of, and
obligations fully guaranteed as to timely payment of principal and interest 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 (“Direct Obligations”); 
  
 (ii) federal funds, or demand and time deposits in, certificates of deposits of, or bankers’ acceptances issued by, any depository institution or trust company (including U.S. subsidiaries of foreign depositories and the Indenture
Trustee or the Securities Administrator or any agent of the Indenture Trustee or the Securities Administrator, acting in its respective commercial capacity) incorporated or organized under the laws of the United States of America or any state
thereof and subject to supervision and examination by federal or state banking authorities, so long as at the time of investment or the contractual commitment providing for such investment the commercial paper or other short-term debt obligations of
such depository institution or trust company (or, in the case of a depository institution or trust company which is the principal subsidiary of a holding company, the commercial paper or other short-term debt or deposit obligations of such holding
company or deposit institution, as the case may be) have been rated by each Rating Agency in its highest short-term rating category or one of its two highest long-term rating categories; 
  
 (iii) repurchase agreements collateralized by Direct Obligations or securities guaranteed by Ginnie Mae, Fannie Mae or
Freddie Mac with any registered broker/dealer subject to Securities Investors’ Protection Corporation jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer or bank has an uninsured, unsecured and unguaranteed obligation
rated by each Rating Agency in its highest short-term rating category; 
  
 (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 which have a credit rating from each Rating Agency, at the time of investment
or the contractual commitment providing for such investment, at least equal to one of the two highest long-term credit rating categories of each Rating Agency; provided, however, that securities issued by any particular corporation will not
be Eligible Investments to the extent that investment therein will cause the then outstanding principal amount of securities issued by such corporation and held as part of the Trust Estate to exceed 20% of the sum of the Pool Balance and the
aggregate principal amount of all Eligible Investments in the Collection Account; provided, further, that such securities will not be Eligible Investments if they are published as being under review with negative implications from any Rating
Agency; 
  

 14 

 (v) commercial paper (including both non-interest-bearing discount obligations and interest-bearing
obligations payable on demand or on a specified date not more than 180 days after the date of issuance thereof) rated by each Rating Agency in its highest short-term rating category; 
  
 (vi) a Qualified GIC; 
  
 (vii) certificates or receipts representing direct ownership interests in future interest or principal payments on obligations of the United States of
America or its agencies or instrumentalities (which obligations are backed by the full faith and credit of the United States of America) held by a custodian in safekeeping on behalf of the holders of such receipts; and 
  
 (viii) any other demand, money market, common trust fund or time deposit or
obligation, or interest-bearing or other security or investment (including those managed or advised by the Indenture Trustee, the Master Servicer, the Securities Administrator, or any Affiliate thereof), (A) rated in the highest rating category by
each Rating Agency or (B) that would not adversely affect the then current rating assigned by each Rating Agency of any of the Notes. Such investments in this subsection (viii) may include money market mutual funds or common Trust Estates, including
any fund for which Wells Fargo Bank, N.A. (the “Bank”) in its capacity other than as the Master Servicer, the Securities Administrator or an affiliate thereof serves as an investment advisor, administrator, shareholder servicing agent,
and/or custodian or subcustodian, notwithstanding that (x) the Bank, the Indenture Trustee, the Master Servicer or any affiliate thereof charges and collects fees and expenses from such funds for services rendered, (y) the Bank, the Indenture
Trustee, the Securities Administrator, the Master Servicer or any affiliate thereof charges and collects fees and expenses for services rendered pursuant to this Agreement, and (z) services performed for such funds and pursuant to this Agreement may
converge at any time. The Bank or an affiliate thereof is specifically authorized to charge and collect from the Issuer such fees as are collected from all investors in such funds for services rendered to such funds (but not to exceed investment
earnings thereon); 
  
 provided, however, that no such instrument shall be
an Eligible Investment if such instrument evidences either (i) a right to receive only interest payments with respect to the obligations underlying such instrument, or (ii) both principal and interest payments derived from obligations underlying
such instrument and the principal and 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, provided that any such investment will be
a “permitted investment” within the meaning of Section 860G(a)(5) of the Code. 
  
 Entitlement Holder: The meaning specified in Section 8-102(a)(7) of the New York UCC. 
  
 Entitlement Order: The meaning specified in Section 8-102(a)(8) of the New York UCC (i.e., generally, orders directing the transfer or
redemption of any Financial Asset). 
  

 15 

 ERISA: The Employee Retirement Income Security Act of 1974, as amended. 
  
 Errors and Omissions Insurance: Errors and Omissions Insurance to be
maintained by the Servicer in accordance with Section 4.02. 
  
 Escrow Account: The separate escrow account (other than a Custodial Account) established and maintained by the Servicer pursuant to Section 4.02(f) of this Agreement. 
  
 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. 
  
 Exchange Act: The Securities Exchange Act of
1934, as amended. 
  
 Extra Principal Payment Amount: With
respect to any Payment Date, the lesser of (1) the Monthly Excess Interest for such Payment Date and (2) the excess, if any, of (a) the Overcollateralization Target Amount over (b) the Overcollateralized Amount on such Payment Date (after giving
effect to payment to the Notes of Principal Funds on such Payment Date). 
  
 Fannie Mae: Fannie Mae, a federally chartered and privately owned corporation organized and existing under the Federal National Mortgage Association Charter Act, 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. 
  
 FHA Regulations: Regulations promulgated by HUD under the National Housing Act, codified in 24 Code of Federal Regulations, and other HUD issuances relating to FHA loans, including the related handbooks,
circulars, notices and mortgagee letters. 
  
 Financial
Asset: The meaning specified in Section 8-102(a) of the New York UCC. 
  
 First Lien Mortgage Loans: Mortgage Loans secured by mortgages or deeds of trust or similar security instruments creating a first lien on the related Mortgaged Property. 
  
 Fitch: Fitch, Inc., or any successor in interest. 

 
 Freddie Mac: The Federal Home Loan Mortgage Corporation, a
corporate instrumentality of the United States created and existing under Title III of the Emergency Home Finance Act of 1970, as amended, or any successor thereto. 
  

 16 

 Ginnie Mae: The Government National Mortgage Association, a wholly owned corporate instrumentality
of the United States within HUD. 
  
 Gross Margin: With
respect to a Mortgage Loan, a fixed percentage amount specified in the related mortgage note that is added to an index to determine the related Mortgage Rate. 
  
 Guidelines: As defined in Section 4.02(p). 
  
 Holder or Noteholder: The registered holder of any Note or Ownership Certificate as recorded on the books of
the Note Registrar or the Certificate Registrar except that, solely for the purposes of taking any action or giving any consent pursuant to this Agreement, any Note registered in the name of the Depositor, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or the Indenture Trustee or any Affiliate thereof (unless any such Person owns 100% of a Class) shall be deemed not to be outstanding in determining whether the requisite percentage necessary to effect any such
consent has been obtained, except that, in determining whether the Indenture Trustee and Securities Administrator shall be protected in relying upon any such consent, only Notes and an Ownership Certificate which a Responsible Officer thereof has
actual knowledge to be so held shall be disregarded. The Indenture Trustee and Securities Administrator may request and conclusively rely on certifications by the Depositor in determining whether any Note, or Ownership Certificate are registered to
an Affiliate of the Depositor. 
  
 HUD: The United States
Department of Housing and Urban Development, or any successor thereto and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA Regulations. 
  
 Indenture: The Indenture dated as of May 1, 2005, among the Issuer,
the Indenture Trustee and the Securities Administrator, as such may be amended or supplemented from time to time. 
  
 Indenture Events of Default: As defined in Section 5.01 of the Indenture. 
  
 Indenture Trustee: U.S. Bank National Association, not in its individual capacity but solely as Indenture Trustee, or
any successor in interest. 
  
 Indenture Trustee Fee: The
annual on-going fee payable by the Master Servicer on behalf of the Trust to the Indenture Trustee from income on funds held in the Collection Account as provided in Section 5.07 and pursuant to the terms of the separate fee letter agreement for
HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes. 
  
 Independent: When used with respect to any Accountants, a Person who is “independent” within the meaning of Rule 2-01(b) of the Securities and Exchange Commission’s Regulation S-X. When used with respect to any other
Person, a Person who (a) is in fact independent of another specified Person and any Affiliate of such other Person, (b) does not have any material direct financial interest in such other Person or any Affiliate of such other Person, 

  

 17 

 
and (c) is not connected with such other Person or any Affiliate of such other Person as an officer, employee, promoter, underwriter, trustee, partner,
director or Person performing similar functions. 
  
 Index:
Either the One-Month LIBOR Index or the Six-Month LIBOR Index. 
  
 Initial Purchase Date: The first Payment Date following the month in which the Pool Balance is initially reduced to less than 20% of the Cut-off Date Balance. 
  
 Insurance Policy: Any primary mortgage insurance policy, standard hazard insurance policy, flood insurance policy,
earthquake insurance policy or title insurance policy relating to the Mortgage Loans or the Mortgaged Properties, to be in effect as of the Closing Date or thereafter during the term of this Agreement. 
  
 Insurance Proceeds: Any amounts paid by an insurer under a primary
mortgage insurance policy, any standard hazard insurance policy, flood insurance policy, title insurance policy or any other insurance policy relating to the Mortgage Loans or related mortgaged properties other than amounts to cover expenses
incurred by the Servicer in connection with procuring such proceeds, applied to the restoration and repair of the related Mortgaged Property or to be paid to the borrower pursuant to the related Mortgage Note or state law. 
  
 Interest Funds: With respect to any Payment Date, the sum of (1) all
interest received or advanced by the Servicer or the Master Servicer for the related Collection Period and available in the Note Payment Account on that Payment Date, (2) all Compensating Interest Payments paid with respect to Mortgage Loans that
were prepaid during the related Prepayment Period and (3) the portion of any purchase price or other amount paid with respect to the Mortgage Loans allocable to interest; net of any fees or other amounts reimbursable to the Master Servicer, the
Servicer, the Securities Administrator, the Indenture Trustee, the Custodian and the Owner Trustee as provided in the Operative Agreements. 
  
 Issuer: HomeBanc Mortgage Trust 2005-3. 
  
 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 or LPMI Policy: Any Primary Mortgage Insurance Policy for which premiums are paid by the Servicer. 
  
 Level I LPMI: an LPMI Policy for First Lien Mortgage Loans with Loan-to-Value Ratios at origination ranging from 80.01% to 85.00%. 
  
 Level II LPMI: an LPMI Policy for First Lien Mortgage Loans with
Loan-to-Value Ratios at origination ranging from 85.01% to 90.00%. 
  

 18 

 Level III LPMI: an LPMI Policy for First Lien Mortgage Loans with Loan-to-Value Ratios at
origination ranging from 90.01% to 95.00%. 
  
 Level IV
LPMI: an LPMI Policy for First Lien Mortgage Loans with Loan-to-Value Ratios at origination ranging from 95.01% to 100.00%. 
  
 LIBOR: (a) With respect to the first Accrual Period, the per annum rate of 3.09063%. With respect to each subsequent Accrual Period, a per annum
rate determined on the LIBOR Determination Date in the following manner by the Securities Administrator on the basis of the “Interest Settlement Rate” set by the British Bankers’ Association (the “BBA”) for one-month United
States dollar deposits, as such rates appear on the Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date. 
  
 (b) If on such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not appear on the Telerate Page 3750 as of 11:00 a.m. (London
time), or if the Telerate Page 3750 is not available on such date, the Securities Administrator will determine such rate on the basis of the offered rates of the Reference Banks for one-month United States dollar deposits, as such rates appear on
the Reuters Screen LIBO Page, as of 11:00 a.m. (London time) on such LIBOR Determination Date. 
  
 (c) If LIBOR is determined under clause (b) above, on each LIBOR Determination Date, LIBOR for the related Accrual Period for the Notes will be established by the Securities Administrator as follows: 
  
 (1) If on such LIBOR Determination Date two or more
Reference Banks provide such offered quotations, LIBOR for the related Accrual Period for the Notes shall be the arithmetic mean of such offered quotations (rounded upwards if necessary to the nearest whole multiple of 0.03125%). 
  
 (2) If on such LIBOR Determination Date fewer than two
Reference Banks provide such offered quotations, LIBOR for the related Accrual Period shall be the higher of (x) LIBOR as determined on the previous LIBOR Determination Date and (y) the Reserve Interest Rate. 
  
 (d) The establishment of LIBOR by the Securities Administrator and the
Securities Administrator’s subsequent calculation of the Note Interest Rate applicable to the Notes for the relevant Accrual Period, in the absence of manifest error, will be final and binding. 
  
 LIBOR Business Day: Any day on which banks in London and New York are
open and conducting transactions in foreign currency and exchange. 
  
 LIBOR Determination Date: The second LIBOR Business Day immediately preceding the commencement of each Accrual Period. 
  

 19 

 Liquidated Mortgage Loan: Any defaulted Mortgage Loan as to which the Servicer has determined that
all amounts that it expects to recover from or on account of such Mortgage Loan have been recovered, and any Second Lien Mortgage Loan that is more than 180 days Delinquent, in each case, as reported by the Servicer to the Master Servicer.

  
 Liquidation Expenses: Expenses that are incurred by the
Master Servicer or the Servicer, as applicable, in connection with the liquidation of any defaulted Mortgage Loan and are not recoverable under the applicable primary mortgage insurance policy, if any, including, without limitation, foreclosure and
rehabilitation expenses, legal expenses and unreimbursed amounts, if any, expended pursuant to Sections 4.02(c), 4.02(j) or 4.02(o). 
  
 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, payment in full, discounted payoff or otherwise, or the sale of the related REO Property, if the Mortgaged Property is acquired in satisfaction of the Mortgage Loan. 
  
 Loan-to-Value Ratio: With respect to a First Lien Mortgage Loan, at
any time, the ratio, expressed as a percentage, of the principal balance of such Mortgage Loan as of the applicable date of determination, to (a) in the case of a purchase, the lesser of the sale price of the Mortgaged Property and its appraised
value at the time of sale or (b) in the case of a refinancing or modification, the appraised value of the Mortgaged Property at the time of the refinancing or modification. 
  
 M-1 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the
Total Principal Deficiency Amount over (2) the sum of the M-2 Principal Deficiency Amount, the M-3 Principal Deficiency Amount, the M-4 Principal Deficiency Amount, the M-5 Principal Deficiency Amount and the B Principal Deficiency Amount, in each
case for that Payment Date and (b) the Class Principal Amount of the Class M-1 Notes immediately prior to such Payment Date. 
  
 M-2 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency
Amount over (2) the sum of the M-3 Principal Deficiency Amount, the M-4 Principal Deficiency Amount, the M-5 Principal Deficiency Amount and the B Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of
the Class M-2 Notes immediately prior to such Payment Date. 
  
 M-3 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the sum of the M-4 Principal Deficiency Amount, the M-5 Principal
Deficiency Amount and the B Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class M-3 Notes immediately prior to such Payment Date. 
  

 20 

 M-4 Principal Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess,
if any, of (1) the Total Principal Deficiency Amount over (2) the sum of the M-5 Principal Deficiency Amount and the B Principal Deficiency Amount, in each case for that Payment Date and (b) the Class Principal Amount of the Class M-4 Notes
immediately prior to such Payment Date. 
  
 M-5 Principal
Deficiency Amount: With respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the Total Principal Deficiency Amount over (2) the B Principal Deficiency Amount for that Payment Date and (b) the Class Principal Amount of the
Class M-5 Notes immediately prior to such Payment Date. 
  
 Majority Noteholders: Until such time as the sum of the Class Principal Amounts of all Classes of Notes has been reduced to zero, the holder or holders of in excess of 50% of the aggregate Class Principal Amount of all Classes of
Notes; and thereafter, the holder of the Ownership Certificate. 
  
 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 Rate, as set forth in the Mortgage
Loan Schedule. 
  
 Master Servicer: Wells Fargo Bank, N.A.,
or any successor in interest, or if any successor master servicer shall be appointed as herein provided, then such successor master servicer. 
  
 Master Servicer Errors and Omission Insurance Policy: Any errors and omission insurance policy required to be obtained by the Master Servicer
satisfying the requirements of Section 5.02. 
  
 Master
Servicer Event of Default: Any one of the conditions or circumstances enumerated in Section 8.01(a). 
  
 Master Servicer Fidelity Bond: Any fidelity bond to be maintained by the Servicer in accordance with Section 5.02. 
  
 Master Servicer Remittance Date: With respect to each Payment Date,
the Business Day immediately preceding such Payment Date. 
  
 Material Defect: With respect to any Mortgage Loan, as defined in Section 2.02(c) hereof. 
  
 Maturity Date: The Payment Date in July 2035. 
  
 Maximum Mortgage Rate: The maximum level to which a Mortgage Rate can adjust in accordance with its terms, regardless of changes in the applicable
Index. 
  

 21 

 Maximum Note Interest Rate: 11.50% per annum. 
  
 MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto. 
  
 MERS
Mortgage Loan: Any Mortgage Loan as to which the related Mortgage, or an Assignment of Mortgage, has been or will be recorded in the name of MERS, as nominee for the holder from time to time of the Mortgage Note. 
  
 MIN: The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS® System. 

 
 Minimum Mortgage Rate: The minimum level to which a Mortgage Rate
can adjust in accordance with its terms, regardless of changes in the applicable Index. 
  
 Monthly Advance: An advance made by the Servicer pursuant to Section 4.03(c) or the Master Servicer pursuant to Section 6.04, as applicable, with respect to delinquent payments of principal and interest on the
Mortgage Loans, adjusted to the related Net Mortgage Rate. 
  
 Monthly Excess Cashflow: With respect to any Payment Date, (a) the sum of (1) the Overcollateralization Release Amount for such date, (2) Monthly Excess Interest for such date and (3) any Principal Payment Amount for such date
remaining after application pursuant to either clauses (i)(1) through (7) or clauses (ii)(1) through (7), as applicable, of Section 6.02(b) on such date minus (b) the Extra Principal Payment Amount for such date. 
  
 Monthly Excess Interest: With respect to any Payment Date, the amount
of Interest Funds remaining after application pursuant to clauses (i) through (vii) of Section 6.02(a) on such Date. 
  
 Monthly Payment: With respect to any Mortgage Loan and any month, the scheduled payment or payments of principal and interest due during such month
on such mortgage loan, which either is payable by a mortgagor in such month under the related mortgage note, or in the case of any Mortgaged Property acquired through foreclosure or deed-in-lieu of foreclosure, would otherwise have been payable
under the related Mortgage Note. 
  
 Moody’s:
Moody’s Investors Service, Inc., or any successor in interest. 
  
 Mortgage: A mortgage, deed of trust or other instrument encumbering a fee simple interest in real property securing a Mortgage Note. 
  
 Mortgage File: The mortgage documents listed in Section 2.01(b) pertaining to a particular Mortgage Loan required to be delivered to the Indenture
Trustee (or the Custodian) pursuant to this Agreement. 
  

 22 

 Mortgage Loan: The conventional, adjustable rate, first and second lien residential mortgage loans
sold by the Seller to the Depositor pursuant to the Mortgage Loan Purchase Agreement and subsequently transferred by the Depositor to the Issuer pursuant to this Agreement. 
  
 Mortgage Loan Purchase Agreement: The mortgage loan purchase agreement dated as of May 1, 2005, between the Seller
and the Depositor. 
  
 Mortgage Loan Schedule: The schedule
attached hereto as Schedule A, which shall identify each Mortgage Loan, as such schedule may be amended from time to time to reflect the addition of Mortgage Loans to, or the deletion of Mortgage Loans from, the Trust. The Depositor shall be
responsible for providing the Master Servicer and the Custodian on behalf of the Indenture Trustee with all amendments to the Mortgage Loan Schedule. 
  
 Mortgage Note: The original executed note or other evidence of the indebtedness of a Mortgagor secured under the Mortgage Loan. 
  
 Mortgage Pool: The pool of Mortgage Loans in the Trust Estate.

  
 Mortgaged Property: With respect to any Mortgage Loan,
the underlying real property securing such Mortgage Loan. 
  
 Mortgage Rate: With respect to any Mortgage Loan, its applicable interest rate determined as provided in the related mortgage note, as reduced by any Relief Act Reduction. 
  
 Mortgagor: The obligor on a Mortgage Note. 
  
 Net Liquidation Proceeds: All amounts, net of (1) unreimbursed expenses and (2) unreimbursed Monthly Advances and
Servicing Advances, received and retained in connection with the liquidation of defaulted Mortgage Loans, through Insurance Proceeds or Condemnation Proceeds, by foreclosure or otherwise, together with any net proceeds received on a monthly basis
with respect to any Mortgaged Properties acquired by foreclosure or deed in lieu of foreclosure. 
  
 Net Mortgage Rate: With respect to any Mortgage Loan at any time, the Mortgage Rate thereof reduced by the Servicing Fee Rate for such Mortgage
Loan and any Lender Paid Mortgage Insurance Rate. 
  
 New York
UCC: The Uniform Commercial Code as in effect in the State of New York. 
  
 Non-Conforming Balance Mortgage Loan: Any First Lien Mortgage Loan other than a Conforming Balance Mortgage Loan. 
  
 Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage Loan. 
  

 23 

 Nonrecoverable Advance: Any advance previously made by the Servicer pursuant to Section 4.03(c) or
by the Master Servicer pursuant to Section 6.04 or any Servicing Advance which, in the good faith judgment of the Servicer or the Master Servicer, as applicable, may not be ultimately recoverable by the Servicer or the Master Servicer from
Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds or otherwise. The determination by the Servicer or the Master Servicer, as applicable, that it has made a Nonrecoverable Advance, shall be evidenced by an Officer’s Certificate of
the Servicer or the Master Servicer, as applicable, delivered to the Indenture Trustee and the Master Servicer (in the case of the Servicer) and detailing the reasons for such determination 
  
 Note: Any of the Class A-1, Class A-2, Class M-1, Class M-2, Class
M-3, Class M-4, Class M-5 and Class B Notes. 
  
 Note Interest
Rate: With respect to each Payment Date and each Class of Notes, an adjustable rate equal to the least of (1) One-Month LIBOR plus the related Note Margin, (2) the Maximum Note Interest Rate and (3) the Available Funds Rate with respect to such
Payment Date. 
  
 Note Margin: With respect to the Class
A-1 Notes, on any Payment Date prior to the Step-up Date, 0.240% per annum, and on any Payment Date on and after the Step-up Date, 0.480% per annum. With respect to the Class A-2 Notes, on any Payment Date prior to the Step-up Date, 0.310% per
annum, and on any Payment Date on and after the Step-up Date, 0.620% per annum. With respect to the Class M-1 Notes, on any Payment Date prior to the Step-up Date, 0.440% per annum, and on any Payment Date on and after the Step-up Date, 0.660% per
annum. With respect to the Class M-2 Notes, on any Payment Date prior to the Step-up Date, 0.460% per annum, and on any Payment Date on and after the Step-up Date, 0.690% per annum. With respect to the Class M-3 Notes, on any Payment Date prior to
the Step-up Date, 0.510% per annum, and on any Payment Date on and after the Step-up Date, 0.765% per annum. With respect to the Class M-4 Notes, on any Payment Date prior to the Step-up Date, 0.670% per annum, and on any Payment Date on and after
the Step-up Date, 1.005% per annum. With respect to the Class M-5 Notes, on any Payment Date prior to the Step-up Date, 1.230% per annum, and on any Payment Date on and after the Step-up Date, 1.845% per annum. With respect to the Class B Notes, on
any Payment Date prior to the Step-up Date, 2.100% per annum, and on any Payment Date on and after the Step-up Date, 3.150% per annum. 
  
 Note Payment Account: The note payment account maintained by or on behalf of the Securities Administrator for the benefit of the Noteholders
pursuant to Section 6.01. 
  
 Note Register and
Note Registrar: As defined in the Indenture. 
  
 Offering Document: The Prospectus. 
  

 24 

 Officer’s Certificate: A certificate signed by the Chairman of the Board, any Vice Chairman,
the President, any Executive Vice President, any Senior Vice President, any Vice President or any Assistant Vice President of a Person. 
  
 One-Month LIBOR or One-Month LIBOR Index: The Interest Settlement Rate for U.S. dollar deposits of one-month maturity set by the BBA as of 11:00
a.m. (London time) on the LIBOR Determination Date. 
  
 Operative Agreements: The Trust Agreement, the Certificate of Trust of the Issuer, this Agreement, the Mortgage Loan Purchase Agreement, the Indenture, the Custodial Agreement, the Depository Agreement, any Cap Agreement, the
Administration Agreement and each other document contemplated by any of the foregoing to which the Depositor, the Seller, the Master Servicer, the Servicer, the Owner Trustee, the Securities Administrator, the Indenture Trustee, the Custodian or the
Issuer is a party. 
  
 Opinion of Counsel: A written
opinion of counsel, reasonably acceptable in form and substance to the Seller, the Securities Administrator, the Indenture Trustee and/or the Master Servicer, as applicable, and who may be in-house or outside counsel to the Seller, the Servicer, the
Depositor, the Master Servicer, the Securities Administrator or the Indenture Trustee but which must be Independent outside counsel with respect to any such opinion of counsel concerning federal income tax or ERISA matters. 
  
 Overcollateralized Amount: With respect to any Payment Date, the
amount, if any, by which (1) the aggregate Scheduled Principal Balance of the Mortgage Loans exceeds (2) the aggregate Class Principal Amount of the Notes as of such Payment Date (assuming that 100% of Principal Funds is applied as a principal
payment on the Notes on such Payment Date). 
  
 Overcollateralization Deficiency: With respect to any Payment Date, the amount, if any, by which (1) the Overcollateralization Target Amount for such Payment Date exceeds (2) the Overcollateralized Amount for such Payment Date,
calculated for this purpose after giving effect to the reduction on such Payment Date of the Class Principal Amounts of the Notes resulting from the payment of Principal Funds on such Payment Date. 
  
 Overcollateralization Floor: $4,928,367. 
  
 Overcollateralization Release Amount: With respect to any Payment
Date, the lesser of (x) the Principal Funds for such Payment Date and (y) the excess, if any, of (1) the Overcollateralization Amount for such Payment Date (assuming that 100% of such Principal Funds is applied as a principal payment on such Payment
Date) over (2) the Overcollateralization Target Amount for such Payment Date (with the amount determined pursuant to clause (y) deemed to be $0 if the Overcollateralization Amount is less than or equal to the Overcollateralization Target Amount on
that Payment Date). 
  

 25 

 Overcollateralization Target Amount: With respect to any Payment Date (a) prior to the Stepdown
Date, 0.70% of the aggregate Scheduled 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) 0.70% of the aggregate Scheduled
Principal Balance of the Mortgage Loans as of the Cut-off Date and (2) 1.40% of the then current aggregate Scheduled Principal Balance of the Mortgage Loans as of that Payment Date and (ii) $4,928,367 and (c) on or after the Stepdown Date and if a
Trigger Event is in effect, the Overcollateralization Target Amount for the immediately preceding Payment Date. 
  
 Ownership Certificate: An equity certificate representing a 100% undivided beneficial ownership interest in the Trust, substantially in the form
attached as part of Exhibit A to the Trust Agreement. 
  
 Owner
Trustee: Wilmington Trust Company, a Delaware banking corporation, and any successor in interest, not in its individual capacity, but solely as owner trustee under the Trust Agreement. 
  
 Owner Trustee Fee: The annual on-going fee payable by the Master
Servicer on behalf of the Trust to the Owner Trustee from income on funds held in the Collection Account as provided in Section 5.07 and pursuant to the terms of a separate fee letter agreement. 
  
 Payahead: Any Monthly Payment intended by the related borrower to be
applied in a Collection Period subsequent to the Collection Period in which such payment was received. 
  
 Paying Agent: Initially, the Securities Administrator, in its capacity as paying agent under the Indenture and the Trust Agreement, or any
successor to the Securities Administrator in such capacity. 
  
 Payment Date: The 25th day of each month or, if such 25th day is not a Business Day, the next succeeding Business Day, commencing in June 2005. 
  

Percentage Interest: The Percentage Interest evidenced thereby shall equal (i) with respect to the Ownership Certificate, the Percentage
Interest specified on the face of such certificate; or (ii) with respect to any Note, the initial Note Principal Amount thereof divided by the initial Class Principal Amount of all Notes of the same Class. 
  
 Periodic Cap: With respect to each Mortgage Loan, the maximum
adjustment that can be made to the Mortgage Rate on each Adjustment Date in accordance with its terms, regardless of changes in the applicable Index. 
  
 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. 
  

 26 

 Pool Balance: As of any date of determination, the aggregate of the Scheduled Principal Balances
of the Mortgage Loans in the Mortgage Pool as of such date. 
  
 Prepayment Interest Shortfall: The amount by which one month’s interest at the Mortgage Rate (as reduced by the Servicing Fee Rate) on a Mortgage Loan as to which a voluntary prepayment has been made exceeds the amount of
interest actually received in connection with such prepayment. 
  
 Prepayment Period: With respect to any Payment Date, the immediately preceding calendar month. 
  
 Primary Mortgage Insurance Policy: Any primary mortgage guaranty insurance policy issued in connection with a Mortgage Loan which provides
compensation to a Mortgage Note holder in the event of default by the obligor under such Mortgage Note or the related Mortgage, or any replacement policy therefor through the related Accrual Period for such Class relating to a Payment Date.

  
 Prime Rate: The prime rate of the United States money
center commercial banks as published in The Wall Street Journal, Northeast Edition. 
  
 Principal Deficiency Amount: With respect to the Class A-1 Notes, the A-1 Principal Deficiency Amount; with respect to the Class A-2 Notes, the A-2 Principal Deficiency Amount; with respect to the Class M-1
Notes, the M-1 Principal Deficiency Amount; with respect to the Class M-2 Notes, the M-2 Principal Deficiency Amount; with respect to the Class M-3 Notes, the M-3 Principal Deficiency Amount; with respect to the Class M-4 Notes, the M-4 Principal
Deficiency Amount; with respect to the Class M-5 Notes, the M-5 Principal Deficiency Amount and with respect to the Class B Notes, the B Principal Deficiency Amount. 
  
 Principal Funds: With respect to any Payment Date, the sum of (1) the principal portion of all scheduled monthly
payments on the related Mortgage Loans due on the related Due Date, to the extent received or advanced; (2) the principal portion of all proceeds of the repurchase of a Mortgage Loan (or, in the case of a substitution, certain amounts representing a
principal adjustment) as required by the Mortgage Loan Purchase Agreement during the preceding calendar month; (3) the principal portion of all other unscheduled collections received during the preceding calendar month in respect of the related
mortgage loans, including full and partial prepayments, the proceeds of any purchase of Mortgage Loans by the Seller, the Servicer or the Residual Holder, Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds; net of any fees payable
to, and other amounts reimbursable to, the Master Servicer, the Servicer, the Securities Administrator, the Indenture Trustee, the Custodian and the Owner Trustee as provided in the Operative Agreements (to the extent not reimbursed from Interest
Funds). 
  
 Principal Payment Amount: With respect to any
Payment Date, (a) the sum of (1) the Principal Funds for such Payment Date and (2) the Extra Principal Payment Amount for such Payment Date minus (b) the Overcollateralization Release Amount for such date. 
  

 27 

 Principal Prepayment: Any payment or other recovery of principal on a Mortgage Loan which is
received in advance of its scheduled Due Date to the extent that it 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, including
Insurance Proceeds and Repurchase Proceeds, but excluding the principal portion of Net Liquidation Proceeds received at the time a mortgage loan becomes a Liquidated Mortgage Loan. 
  
 Proceeding: Any suit in equity, action at law or other judicial or administrative proceeding. 
  
 Prospectus: The prospectus supplement dated May 23, 2005, together
with the accompanying prospectus dated February 16, 2005, relating to the Class A-1, Class A-2, Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Notes. 
  

Purchase Price: With respect to the purchase of a Mortgage Loan or related REO Property pursuant to this Agreement, an amount equal to the sum
of (a) 100% of the unpaid principal balance of such Mortgage Loan, (b) accrued interest thereon at the applicable Mortgage Rate, from the date as to which interest was last paid to (but not including) the Due Date in the Collection Period
immediately preceding the related Payment Date, (c) the amount of any costs and damages incurred by the Trust in connection with any violation of any applicable federal, state or local predatory or abusive lending law in connection with the
origination of such Mortgage Loan and (d) the fair market value of all other property being purchased. The Servicer and the Master Servicer shall be reimbursed from the Purchase Price for any Mortgage Loan or related REO Property for any Monthly
Advances and Servicing Advances made or other amounts advanced with respect to such Mortgage Loan that are reimbursable to the Servicer or the Master Servicer under this Agreement, together with any accrued and unpaid compensation due to the
Servicer or the Master Servicer hereunder. 
  
 Qualified
GIC: A guaranteed investment contract or surety bond providing for the investment of funds in the Collection Account and insuring a minimum, fixed or floating rate of return on investments of such funds, which contract or surety bond shall:

  
 (i) be an obligation of an insurance company
or other corporation whose long-term debt is rated by each Rating Agency in one of its two highest rating categories or, if such insurance company has no long-term debt, whose claims paying ability is rated by each Rating Agency in one of its two
highest rating categories, and whose short-term debt is rated by each Rating Agency in its highest rating category; 
  
 (ii) provide that the Master Servicer on behalf of the Indenture Trustee may exercise all of the rights under such contract or surety bond
without the necessity of taking any action by any other Person; 
  

 28 

 (iii) provide that if at any time the then current credit standing of the obligor under
such guaranteed investment contract is such that continued investment pursuant to such contract of funds would result in a downgrading of any rating of the Notes, the Securities Administrator shall terminate such contract without penalty and be
entitled to the return of all funds previously invested thereunder, together with accrued interest thereon at the interest rate provided under such contract to the date of delivery of such funds to the Securities Administrator; 
  
 (iv) provide that the Indenture Trustee’s interest
therein shall be transferable to any successor trustee hereunder; and 
  
 (v) provide that the funds reinvested thereunder and accrued interest thereon be returnable to the Collection Account not later than the Business Day prior to any Payment Date. 
  
 Qualified Insurer: An insurance company duly qualified as such under
the laws of the states in which the related Mortgaged Properties are located, duly authorized and licensed in such states to transact the applicable insurance business and to write the insurance provided and whose claims paying ability is rated by
each Rating Agency in its highest rating category or whose selection as an insurer will not adversely affect the rating of the Notes. 
  
 Qualifying Substitute Mortgage Loan: A mortgage loan tendered to the Indenture Trustee or the Custodian pursuant to the Mortgage Loan Purchase
Agreement or this Agreement, as applicable, in each case, (i) which has an outstanding principal balance not greater nor materially less than the Mortgage Loan for which it is to be substituted; (ii) which has a Mortgage Rate and Net Mortgage Rate
not less than, and not materially greater than, such Mortgage Loan; (iii) which has a maturity date not materially earlier or later than such Mortgage Loan and not later than the latest maturity date of any Mortgage Loan; (iv) which is of the same
property type and occupancy type as such Mortgage Loan; (v) with respect to a First Lien Mortgage Loan, which has a Loan-to-Value Ratio not greater than the Loan-to-Value Ratio of such Mortgage Loan; (vi) with respect to a Second Lien Mortgage Loan,
which has a Combined Loan-to-Value Ratio not greater than the Combined Loan-to-Value Ratio of such Mortgage Loan (vii) which is current in payment of principal and interest as of the date of substitution; (viii) as to which the payment terms do not
vary in any material respect from the payment terms of the Mortgage Loan for which it is to be substituted and (ix) which has a Gross Margin and Maximum Mortgage Rate no less than those of such Mortgage Loan, has the same Index and interval between
Adjustment Dates as such Mortgage Loan, and a Minimum Lifetime Mortgage Rate no lower than that of such Mortgage Loan. 
  
 Rating Agency: Each of Moody’s and S&P. 
  
 Realized Loss: With respect to a Mortgage Loan is (1) a Bankruptcy Loss or (2) as to any Liquidated Mortgage Loan, the unpaid principal balance
thereof plus accrued and unpaid interest thereon at the related Mortgage Rate through the last day of the month of liquidation less 

  

 29 

 
the Net Liquidation Proceeds with respect to such Mortgage Loan and the related Mortgaged Property. 
  
 Reference Banks: Leading banks selected by the Securities
Administrator and engaged in transactions in Eurodollar deposits in the international Eurocurrency market (1) with an established place of business in London, (2) whose quotations appear on the Reuters Screen LIBO Page on the Determination Date in
question, (3) which have been designated as such by the Securities Administrator and (4) not controlling, controlled by, or under common control with, the Depositor, the Indenture Trustee, the Securities Administrator, the Master Servicer, the
Servicer, the Seller or any successor servicer. 
  
 REIT: A real estate investment trust within the meaning of sections 856 and 857 of the Code. 
  
 Relevant UCC: The Uniform Commercial Code as in effect in the applicable jurisdiction. 
  
 Relief Act Reduction: With respect to a Mortgage Loan, a reduction of
the applicable Mortgage Rate by application of the Servicemembers Civil Relief Act or similar state or local laws. 
  
 REO Property: A Mortgaged Property acquired by the Servicer through foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan. 
  
 Repurchase Proceeds: The purchase price
proceeds in connection with any repurchase of a Mortgage Loan by the Seller and any cash deposit in connection with the substitution of a Mortgage Loan. 
  
 Request for Release: A request for release in the form attached hereto as Exhibit A-5. 
  
 Residual Holder: The holder of the Ownership Certificate. 

 
 Responsible Officer: Any vice president, any assistant vice
president, any assistant secretary, any associate, any assistant treasurer, or any other officer of the Indenture Trustee or the Securities Administrator, as applicable, customarily performing functions similar to those performed by any of the
above-designated officers and, in each case, having direct responsibility for the administration of the Operative Agreements and also, with respect to a particular matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject. 
  
 Reuters Screen LIBO Page: The display designated as page “LIBO” on the Reuters Monitor Money Rates Service (or such other page as may replace the LIBO page on that service for the purpose of
displaying London interbank offered rates of major banks). 
  

 30 

 Rolling Three Month Delinquency Rate: With respect to any Payment Date, the average of the
Delinquency Rates for each of the three (or one and two, in the case of the first and second Payment Dates, respectively) immediately preceding calendar months. 
  
 S&P: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor
in interest. 
  
 Scheduled Principal Balance: With respect
to any Mortgage Loan and any Payment Date (1) the unpaid principal balance of such mortgage loan as of the close of business on the related Due Date (giving effect to the principal payment to be made on such Due Date and irrespective of any
delinquency in its payment), as specified in the amortization schedule at the time relating thereto (before any adjustment to such amortization schedule by reason of any bankruptcy or similar proceeding occurring after the Cut-off Date (other than a
Deficient Valuation) or any moratorium or similar waiver or grace period) less (2) any Principal Prepayments and the principal portion of any Net Liquidation Proceeds received during or prior to the immediately preceding Prepayment Period;
provided that the Scheduled Principal Balance of any Liquidated Mortgage Loan is zero. 
  
 Second Lien Mortgage Loans: Mortgage Loans secured by mortgages or deeds of trust or similar security instruments creating a second lien on the related Mortgaged Property. 
  
 Securities Administrator: Wells Fargo Bank, N.A., not in its
individual capacity but solely as Securities Administrator, or any successor in interest. 
  
 Securities Intermediary: The Person acting as Securities Intermediary under this Agreement (which is the Securities Administrator), its successor in interest, and any successor Securities Intermediary appointed
pursuant to Section 6.03. 
  
 Security Entitlement: The
meaning specified in Section 8-102(a)(17) of the New York UCC. 
  
 Seller: HomeBanc Corp. 
  
 Senior Enhancement
Percentage: With respect to any Payment Date, the fraction, expressed as a percentage, the numerator of which is the sum of the aggregate Class Principal Amount of the Subordinate Notes and the Overcollateralization Amount (which, for purposes
of this definition only, will not be less than zero) after giving effect to payments on such Payment Date, and the denominator of which is the Pool Balance for such Payment Date. 
  
 Senior Notes: The Class A-1 and Class A-2 Notes. 
  
 Servicer: HomeBanc Corp., or its successor in interest or assigns or any successor to the Servicer under this
Agreement as herein provided. 
  

 31 

 Servicer Errors and Omission Insurance Policy: Any errors and omission insurance policy required
to be obtained by the Servicer satisfying the requirements of Section 4.02(l). 
  
 Servicer Event of Default: Any one of the conditions or circumstances enumerated in Section 4.07 with respect to the Servicer. 
  
 Servicer Fidelity Bond: Any fidelity bond to be maintained by the Servicer in accordance with Section 4.02(l).

  
 Servicer 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. 
  
 Servicing Advances: All reasonable and customary “out-of-pocket” costs and expenses, including costs and expenses of foreclosures
(including reasonable attorneys’ fees and disbursements) incurred in the performance by the Servicer of its servicing obligations, including, but not limited to, the cost of (1) the preservation, restoration, inspection and protection of the
Mortgaged Properties, (2) any enforcement or judicial proceedings and (3) the management and liquidation of Mortgaged Properties acquired in satisfaction of the related mortgage. 
  
 Servicing Fee: The monthly fee calculated at the Servicing Fee Rate on the outstanding principal balance of each
Mortgage Loan, including any Liquidated Mortgage Loan. 
  
 Servicing Fee Rate: For each Second Lien Mortgage Loan, 0.50% per annum; for each Non-Conforming Balance Mortgage Loan without an LPMI Policy, 0.25% per annum; for each Non-Conforming Balance Mortgage Loan with Level I LPMI, 0.42%;
for each Non-Conforming Balance Mortgage Loan with Level II LPMI, 0.50%; for each Non-Conforming Balance Mortgage Loan with Level III LPMI, 0.60%; for each Non-Conforming Balance Mortgage Loan with Level IV LPMI, 0.65%; for each Conforming Balance
Mortgage Loan without an LPMI Policy but with a Mortgage Rate that adjusts every one month or six months from origination, 0.375% per annum; for each Conforming Balance Mortgage Loan with Level I LPMI and with a Mortgage Rate that adjusts every one
month or six months from origination, 0.545% per annum; for each Conforming Balance Mortgage Loan with Level II LPMI and with a Mortgage Rate that adjusts every one month or six months from origination, 0.625% per annum; for each Conforming Balance
Mortgage Loan with Level III LPMI and with a Mortgage Rate that adjusts every one month or six months from origination, 0.725% per annum; for each Conforming Balance Mortgage Loan with Level IV LPMI and with a Mortgage Rate that adjusts every one
month or six months from origination, 0.775% per annum; for each Conforming Balance Mortgage Loan without an LPMI Policy but with an initial fixed rate period of three, five or seven years, 0.25% per annum until the first Adjustment Date and
thereafter 0.375% per annum; for each Conforming Balance Mortgage Loan with Level I LPMI and with an initial fixed rate period of three, five or seven years, 0.42% per annum until the first Adjustment Date and thereafter 0.545% per annum; for each
Conforming Balance Mortgage Loan with Level II LPMI and with an initial fixed rate period of three, five or seven years, 0.50% per annum until the first 

  

 32 

 
Adjustment Date and thereafter 0.625% per annum; for each Conforming Balance Mortgage Loan with Level III LPMI and with an initial fixed rate period of
three, five or seven years, 0.60% per annum until the first Adjustment Date and thereafter 0.725% per annum; and for each Conforming Balance Mortgage Loan with Level IV LPMI and with an initial fixed rate period of three, five or seven years, 0.65%
per annum until the first Adjustment Date and thereafter 0.775% per annum. 
  
 Servicing File: With respect to each Mortgage Loan, the file retained by the Servicer, which may be in electronic media so long as original documents are not required for purposes of realization of Liquidation
Proceeds, Condemnation Proceeds or Insurance Proceeds, consisting of all documents in the Mortgage File which are not delivered to the Custodian, the originals of such mortgage loan documents which are held in trust for the Indenture Trustee by the
Servicer. 
  
 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 Master Servicer upon request, as such list may from time to time be
amended. 
  
 Six-Month LIBOR Index: The interbank offered
rates for six-month United States dollar deposits in the London market, calculated as provided in the related mortgage note. 
  
 Stepdown Date: The earlier to occur of (1) the first Payment Date on which the Class Principal Amount of the Class A-1 Notes has been reduced to
zero and (2) the later to occur of (a) the Payment Date occurring in June 2008 and (b) the first Payment Date on which the Senior Enhancement Percentage (calculated for this purpose after giving effect to payments or other recoveries in respect of
the Mortgage Loans during the related Collection Period but before giving effect to payments on the Notes on such Payment Date) is greater than or equal to approximately 12.60%. 
  
 Step-up Date: The first Payment Date after the Initial Purchase Date. 
  
 Subordinate Notes: The Class M-1, Class M-2, Class M-3, Class M-4,
Class M-5 and Class B Notes. 
  
 Subservicing Agreement:
The subservicing agreement dated as of May 1, 2005, between the Servicer and HomeBanc Mortgage Corporation. 
  
 Substitution Amount: The amount, if any, by which the Scheduled Principal Balance of a Deleted Mortgage Loan exceeds the Scheduled Principal
Balance of the related Qualifying Substitute Mortgage Loan, or aggregate Scheduled Principal Balance, if applicable, plus unpaid interest thereon, any related unpaid Monthly Advances or Servicing Advances or unpaid Servicing Fees and the
amount of any costs and damages incurred by the Trust Estate associated with a violation of any applicable federal, state or local predatory or abusive lending law in connection with the origination of such Deleted Mortgage Loan. 
  

 33 

 Superior Lien: With respect to any Mortgage Loan, any other mortgage relating to the corresponding
Mortgaged Property which creates a lien on the Mortgaged Property which is senior to the lien of the Mortgage Loan. 
  
 Telerate Page 3750: The display currently so designated as “Page 3750” on the Moneyline Telerate Service (or such other page selected by
the Master Servicer as may replace Page 3750 on that service for the purpose of displaying daily comparable rates on prices). 
  
 Termination Price: The sum, as calculated by the Servicer, of (a) 100% of the aggregate outstanding principal balance of the Mortgage Loans, plus
accrued interest thereon at the applicable Mortgage Rate, (b) the fair market value of the REO Property and all other property being purchased, (c) any unreimbursed Servicing Advances, (d) any costs and damages incurred by the Trust as a result of
violation of any applicable federal, state or local predatory or abusive lending law in connection with the origination of any Mortgage Loan and (e) all other amounts to be paid or reimbursed to the Master Servicer, the Securities Administrator, the
Indenture Trustee, the Owner Trustee and the Custodian under the Operative Agreements. 
  
 Title Insurance Policy: A title insurance policy maintained with respect to a Mortgage Loan. 
  
 Total Principal Deficiency Amount: With respect to any Payment Date, the excess, if any, of the aggregate Class Principal Amount of the Notes after
giving effect to payments on such Payment Date over the Pool Balance as of the last day of the related Collection Period. 
  
 Trigger Event: A Trigger Event shall have occurred with respect to any Payment Date if (a) a Delinquency Event has occurred for such Payment Date,
(b) a Cumulative Loss Trigger Event has occurred for such Payment Date or (c) a Principal Deficiency Amount exists for such Payment Date. 
  
 Trust: The Issuer. 
  
 Trust Accounts: The Collection Account and the Note Payment Account. 
  
 Trust Account Property: The Trust Accounts, all amounts and investments held from time to time in the Trust Accounts
(whether in the form of deposit accounts, physical property, book-entry securities, uncertificated securities, securities entitlements, investment property or otherwise) and all proceeds of the foregoing. 
  
 Trust Agreement: The trust agreement dated as of May 1, 2005, among
the Owner Trustee, the Depositor and the Securities Administrator. 
  
 Trust Estate: The assets of the Issuer and pledged by the Issuer to the Indenture Trustee under the Indenture, which assets consist of all accounts, accounts receivable, contract rights, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, certificates of deposit, goods, notes, drafts, letters of credit, advices of credit, investment property, 

  

 34 

 
uncertificated securities claims and rights to payment of any and every kind consisting of, arising from or relating to any of the following: (a) the
Mortgage Loans listed in the Mortgage Loan Schedule, and principal due and payable after the Cut-off Date, but not including interest and principal due and payable on any Mortgage Loans on or before the Cut-off Date, together with the Mortgage Files
relating to such Mortgage Loans; (b) any Insurance Proceeds, REO Property, Liquidation Proceeds and other recoveries (in each case, subject to clause (a) above), (c) the Trust Accounts, any Custodial Account, any Escrow Account, the Cap Account and
all amounts deposited therein pursuant to the applicable provisions of this Agreement, (d) any Insurance Policies, (e) the rights of the Depositor under the Mortgage Loan Purchase Agreement, (f) the rights of the Trust under each Cap Agreement and
(g) all income, revenues, issues, products, revisions, substitutions, replacements, profits, rents and all cash and non-cash proceeds of the foregoing. 
  
 UCC: The Uniform Commercial Code as enacted in the relevant jurisdiction. 
  
 Underwriters: Bear, Stearns & Co. Inc. and KeyBanc Capital Markets, A Division of McDonald Investments Inc.

  
 Voting Interests: The portion of the voting rights of
all the Notes that is allocated to any Note for purposes of the voting provisions of this Agreement. At all times during the term of this Agreement, 98% of all voting rights will be allocated among the holders of the Notes as provided below. The
portion of such voting rights allocated to such Notes will be based on the fraction, expressed as a percentage, the numerator of which is the aggregate Class Principal Amount then outstanding and the denominator of which is the aggregate outstanding
principal balance of the Notes. At all times during the term of the Indenture and this Agreement, the holders of Ownership Certificate be allocated 2% of the voting rights. The voting rights allocation to any Class of Notes or the Ownership
Certificate will be allocated among all holders of each such Class or Ownership Certificate in proportion to the outstanding Class Principal Amount of such Notes or Percentage Interest of the Ownership Certificate. 
  
 Section 1.02. Calculations With Respect to the Mortgage Loans.
Calculations required to be made pursuant to this Agreement with respect to any Mortgage Loan in the Trust Estate shall be made based upon current information as to the terms of the Mortgage Loans and reports of payments received from the Mortgagor
on such Mortgage Loans provided by the Servicer to the Master Servicer. 
  
 Section 1.03. Calculations With Respect to Accrued Interest. Accrued interest, if any, on any Note shall be calculated based upon a 360-day year and the actual number of days in each Accrual Period. 
  

 35 

 ARTICLE II 
  
 CONVEYANCE OF MORTGAGE LOANS 
  
 Section 2.01. Creation and Declaration of Trust Estate; Conveyance of Mortgage Loans. 
  
 (a) Mortgage Loans. As of the Closing Date, in consideration of the Issuer’s delivery of the Notes and the
Ownership Certificate to the Depositor or its designee, and concurrently with the execution and delivery of this Agreement, the Depositor does hereby transfer, assign, set over, deposit with and otherwise convey to the Issuer, without recourse,
subject to Section 3.01, in trust, all the right, title and interest of the Depositor in and to all accounts, accounts receivable, contract rights, general intangibles, chattel paper, instruments, documents, money, deposit accounts, certificates of
deposit, goods, notes, drafts, letters of credit, advices of credit, investment property, uncertificated securities claims and rights to payment of any and every kind consisting of, arising from or relating to any of the following: (a) the Mortgage
Loans listed in the Mortgage Loan Schedule, and principal due and payable after the Cut-off Date, but not including interest and principal due and payable on any Mortgage Loans on or before the Cut-off Date, together with the Mortgage Files relating
to such Mortgage Loans, (b) any Insurance Proceeds, REO Property, Liquidation Proceeds and other recoveries (in each case, subject to clause (a) above), (c) all Escrow Payments, (d) any Insurance Policies, (e) the rights of the Depositor under the
Mortgage Loan Purchase Agreement, (f) the Depositor’s security interest in any collateral pledged to secure the Mortgage Loans, including the Mortgaged Properties, and (g) all income, revenues, issues, products, revisions, substitutions,
replacements, profits, rents and all cash and non-cash proceeds of the foregoing to have and to hold, in trust; and the Indenture Trustee declares that, subject to the review provided for in Section 2.02, it has received and shall hold the Trust
Estate, as Indenture Trustee, in trust, for the benefit and use of the Noteholders and for the purposes and subject to the terms and conditions set forth in this Agreement, and, concurrently with such receipt, the Issuer has issued and delivered the
Notes and the Ownership Certificate to or upon the order of the Depositor, in exchange for the Mortgage Loans and the other property of the Trust Estate. 
  
 Concurrently with the execution and delivery of this Agreement, the Depositor does hereby assign to the Issuer all of its rights and interest under the
Mortgage Loan Purchase Agreement but without delegation of any of its obligations thereunder. The Issuer hereby accepts such assignment, and shall be entitled to exercise all the rights of the Depositor under the Mortgage Loan Purchase Agreement as
if, for such purpose, it were the Depositor. Upon the issuance of the Notes, ownership in the Trust Estate shall be vested in the Issuer, subject to the lien created by the Indenture in favor of the Indenture Trustee, for the benefit of the
Noteholders. The foregoing sale, transfer, assignment, set-over, deposit and conveyance does not and is not intended to result in creation or assumption by the Indenture Trustee of any obligation of the Depositor, the Seller, or any other Person in
connection with the Mortgage Loans or any other agreement or instrument relating thereto except as specifically set forth herein. 
  

 36 

 It is agreed and understood by the Seller, the Depositor and the Issuer (and the Depositor so represents
and recognizes) that it is not intended that any Mortgage Loan to be included in the Trust Estate be (i) a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003, (ii) a “High-Cost Home
Loan” as defined in the New Mexico Home Loan Protection Act effective January 1, 2004, (iii) a “High-Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home Loan Practices Act effective November 7, 2004 or (iv) a
“High Cost Home Loan” as defined in the Indiana Home Loan Practices Act effective January 1, 2005. 
  
 (b) In connection with such transfer and assignment, the Depositor does hereby deliver to, and deposit with, or cause to be delivered to and deposited
with, the Indenture Trustee, and/or the Custodian acting on the Indenture Trustee’s behalf, the following documents or instruments with respect to each Mortgage Loan (each a “Mortgage File”) so transferred and assigned: 
  
 (i) the original Mortgage Note, endorsed either (A) in blank
or (B) to the order of the Indenture Trustee in the form of the Form of Endorsement set forth in Exhibit A-4 hereto, or with respect to any lost Mortgage Note, an original Lost Note Affidavit, in the form set forth in Exhibit B hereto, stating that
the original Mortgage Note was lost, misplaced or destroyed, together with a copy of the related Mortgage Note; 
  
 (ii) except as provided below, the original Mortgage with evidence of recording thereon (if the related Mortgage Loan is a MERS Mortgage
Loan, the Mortgage shall note the MIN and contain language that such Mortgage Loan is a MERS Mortgage Loan). If in connection with any Mortgage Loan, the Servicer cannot deliver or cause to be delivered the original Mortgage with evidence of
recording thereon on or prior to the 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 Servicer shall deliver or cause to be delivered to the Custodian 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
Servicer 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 Custodian upon receipt thereof by the Servicer; 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; 

 
 (iii) with respect to each Non-MERS Mortgage Loan, an
original Assignment of Mortgage (which may be in the form of a blanket assignment if permitted in the jurisdiction where the Mortgaged Property is located) with evidence of recording thereon 

  

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unless an Opinion of Counsel described in clause (c) below is delivered to the Indenture Trustee and the Rating Agencies, in which case, the Assignment of
Mortgage shall be in form and substance acceptable for recording. The Mortgage shall be assigned either (A) in blank, without recourse, or (B) to “U.S. Bank National Association, as Indenture Trustee of the HomeBanc Mortgage Trust 2005-3”,
without recourse or (C) to the order of the Indenture Trustee; 
  
 (iv) an original copy of any intervening assignment of Mortgage showing a complete chain of assignments or, in the case of an intervening assignment that has not been received by the Servicer from the public recording
office, an Officer’s Certificate of the Servicer stating that such intervening assignment has been delivered to the appropriate public recording office for recordation and that the original recorded intervening assignment or a copy of such
intervening assignment certified by such public recording office to be a true and complete copy of the original recorded intervening assignment will be promptly delivered to the Custodian upon receipt thereof by the Servicer, or in the case of an
intervening assignment where a public recording office retains the original recorded intervening assignment, a copy of such intervening assignment with the recording information thereon certified by such public recording office to be a true and
complete copy of the original recorded intervening assignment; or in the case of an intervening assignment that has been lost, a written Opinion of Counsel for the Seller that such original intervening assignment is not required to enforce the
Indenture Trustee’s interest in the Mortgage Loans; 
  
 (v) the original or a certified copy of lender’s Title Insurance Policy (or, in lieu thereof, a commitment to issue such Title Insurance Policy, with an original or a certified copy of such Title Insurance Policy
to follow as soon after the Closing Date as reasonably practicable) or attorney’s opinion of title and abstract of title; 
  
 (vi) the original or copy of the policy or certificate of primary mortgage guaranty insurance, to the extent available, if any;

  
 (vii) the original or copies of each
assumption, modification, written assurance or substitution agreement, if any, or as to any such agreement which cannot be delivered prior to the Closing Date because of a delay caused by the public recording office where such assumption,
modification or substitution agreement has been delivered for recordation, a photocopy of such assumption, modification or substitution agreement, pending delivery of the original thereof, together with an Officer’s Certificate of the Depositor
certifying that the copy of such assumption, modification or substitution agreement delivered to the Custodian is a true copy and that the original of such agreement has been forwarded to the public recording office; and 
  
 (viii) the original of any security agreement or equivalent
instrument executed in connection with the Mortgage or as to any security agreement or equivalent instrument that cannot be delivered on or prior to the Closing Date because of a delay caused by the 

  

 38 

 
public recording office where such document has been delivered for recordation, a photocopy of such document, pending delivery of the original thereof,
together with an Officer’s Certificate of the Depositor certifying that the copy of such security agreement, chattel mortgage or their equivalent delivered to the Custodian is a true copy and that the original of such document has been
forwarded to the public recording office. 
  
 The Depositor and
the Seller acknowledge and agree that the form of endorsement attached hereto as Exhibit A-4 is intended to effect the transfer to the Indenture Trustee, for the benefit of the Noteholders, of the Mortgage Notes and the Mortgages. 
  
 (c) Assignments of Mortgage with respect to each Non-MERS Mortgage Loan shall
be recorded; provided, however, that such Assignments of Mortgage need not be recorded if, on or prior to the Closing Date, the Seller delivers an Opinion of Counsel (which must be Independent counsel) acceptable to the Rating Agencies, to
the effect that recording in such states is not required to protect the Indenture Trustee’s interest in the related Non-MERS Mortgage Loans. 
  
 (d) In instances where a Title Insurance Policy is required to be delivered to the Indenture Trustee or the Custodian on behalf of the Indenture Trustee
under clause (b)(vi) above and is not so delivered, the Seller will provide a copy of such Title Insurance Policy to the Indenture Trustee, or to the Custodian on behalf of the Indenture Trustee no later than ninety (90) days of the receipt by the
Seller of the recorded documents from the applicable public recording office. 
  
 (e) For Mortgage Loans (if any) that 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, herewith delivers to the Indenture
Trustee, or to the Custodian on behalf of the Indenture Trustee, an Officer’s Certificate which shall include a statement to the effect that all amounts received in connection with such prepayment that are required to be deposited in the
Collection Account pursuant to Section 5.06 have been so deposited. All original documents that are not delivered to the Indenture Trustee or the Custodian on behalf of the Indenture Trustee shall be held by the Servicer in trust for the benefit of
the Indenture Trustee and the Noteholders. 
  
 Section 2.02.
Acceptance of Trust Estate; Review of Documentation. 
  
 (a) Subject to the provisions of Section 2.01, the Issuer acknowledges receipt of the assets transferred by the Depositor of the assets included in the Trust Estate and has directed that the documents referred to in Section 2.01 and all
other assets included in the definition of “Trust Estate” be delivered to the Indenture Trustee (or the Custodian) on its behalf. 
  
 The Indenture Trustee, by execution and delivery hereof, acknowledges receipt by it or by the Custodian on its behalf of the Mortgage Files pertaining to
the Mortgage Loans listed on the Mortgage Loan Schedule, subject to review thereof by the Indenture Trustee, or by the Custodian on behalf of the Indenture Trustee, under this Section 2.02. The Indenture Trustee, or the Custodian on behalf of the
Indenture Trustee, will execute and deliver to the Depositor, the 

  

 39 

 
Master Servicer, the Servicer (and the Indenture Trustee if delivered by the Custodian) on the Closing Date an Initial Certification in the form annexed
hereto as Exhibit A-1. 
  
 (b) Within 90 days after the Closing
Date, the Indenture Trustee or the Custodian on behalf of the Indenture Trustee, will, for the benefit of Noteholders, review each Mortgage File to ascertain that all required documents set forth in Section 2.01 have been received and appear on
their face to contain the requisite signatures by or on behalf of the respective parties thereto, and shall deliver to the Depositor, the Seller and the Issuer (and the Indenture Trustee if delivered by the Custodian) an Interim Certification in the
form annexed hereto as Exhibit A-2 to the effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan prepaid in full or any specifically identified in such certification as not covered by such
certification), (i) all of the applicable documents specified in Section 2.01(b) are in its possession and (ii) such documents have been reviewed by it and appear to relate to such Mortgage Loan. The Indenture Trustee, or the Custodian on behalf of
the Indenture Trustee, shall determine whether such documents are executed and endorsed, but shall be under no duty or obligation to inspect, review or examine any such documents, instruments, certificates or other papers to determine that the same
are valid, binding, legally effective, properly endorsed, genuine, enforceable or appropriate for the represented purpose or that they have actually been recorded or are in recordable form or that they are other than what they purport to be on their
face. Neither the Indenture Trustee nor the Custodian shall have any responsibility for verifying the genuineness or the legal effectiveness of or authority for any signatures of or on behalf of any party or endorser or for the perfection or
priority of any document. 
  
 (c) If in the course of the review
described in paragraph (b) above the Indenture Trustee discovers any document or documents constituting a part of a Mortgage File that is missing, does not appear regular on its face (i.e., is mutilated, damaged, defaced, torn or otherwise
physically altered) or appears to be unrelated to the Mortgage Loans identified in the Mortgage Loan Schedule, as applicable (each, a “Material Defect”), the Indenture Trustee or the Custodian, discovering such Material Defect shall
identify the Mortgage Loan to which such Material Defect relates in the Interim Certification delivered to the Depositor and the Master Servicer. Within 90 days of its receipt of such notice, the Seller shall be required to cure such Material Defect
(and, in such event, the Seller shall provide the Indenture Trustee and the Custodian with an Officer’s Certificate confirming that such cure has been effected). If the Seller does not so cure such Material Defect, if a loss has been incurred
with respect to such Mortgage Loan that would, if such Mortgage Loan were not purchased from the Trust Estate, constitute a Realized Loss, and such loss is attributable to the failure of the Seller to cure such Material Defect, the Seller shall
repurchase the related Mortgage Loan from the Trust Estate at the Purchase Price. A loss shall be deemed to be attributable to the failure of the Seller to cure a Material Defect if, as determined by the Seller acting in good faith, absent such
Material Defect, such loss would not have been incurred. The Seller may, in lieu of repurchasing a Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan a Qualifying Substitute Mortgage Loan subject to the provisions of
Section 3.03. The failure of the Indenture Trustee or the Custodian to deliver the Interim Certification within 90 days after the Closing Date shall not affect or relieve the Seller of 

  

 40 

 
its obligation to repurchase any Mortgage Loan pursuant to this Section 2.02 or any other Section of this Agreement requiring the repurchase of Mortgage
Loans from the Trust Estate. 
  
 (d) Within 180 days following the
Closing Date, the Indenture Trustee, or the Custodian, shall deliver to the Depositor, the Master Servicer and the Servicer (and the Indenture Trustee if delivered by the Custodian) a Final Certification substantially in the form attached as Exhibit
A-3 evidencing the completeness of the Mortgage Files in its possession or control, with any exceptions noted thereto. 
  
 (e) Nothing in this Agreement shall be construed to constitute an assumption by the Trust Estate, the Indenture Trustee, the Custodian or the Noteholders
of any unsatisfied duty, claim or other liability on any Mortgage Loan or to any Mortgagor. 
  
 (f) Notwithstanding anything to the contrary contained herein, each of the parties hereto acknowledges that the Custodian shall perform the applicable review of the Mortgage Loans and respective certifications thereof
as provided in the Custodial Agreement. 
  
 (g) Upon execution of
this Agreement, the Depositor hereby delivers to the Indenture Trustee and the Indenture Trustee acknowledges a receipt of the Mortgage Loan Purchase Agreement. 
  

(h) For purposes of the determinations required to be made by the Indenture Trustee or the Custodian pursuant to paragraphs (a) through (d) of this
Section 2.02, the Indenture Trustee or the Custodian, as applicable, shall be entitled to conclusively rely upon the diskette, tape or other electronic media provided by or on behalf of the Seller with respect to the Mortgage Loans as to whether (i)
any guarantee was executed in connection with any Mortgage Loan, (ii) any assumption, modification or substitution agreement was executed in connection with any Mortgage Loan, (iii) primary mortgage guaranty insurance is required with respect to any
Mortgage Loan or (iv) any security agreement or equivalent instrument was executed in connection with any Mortgage Loan. 
  
 Section 2.03. Grant Clause. 
  
 (a) It is intended that the conveyance by the Depositor to the Issuer of the Mortgage Loans, as provided for in Section 2.01 be construed as a sale by the
Depositor to the Issuer of the Mortgage Loans and other assets in the Trust Estate for the benefit of the Noteholders. Further, it is not intended that any such conveyance be deemed to be a pledge of the Mortgage Loans by the Depositor to the Issuer
to secure a debt or other obligation of the Depositor. However, in the event that the Mortgage Loans are held to be property of the Depositor or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans
and other assets in the Trust Estate, then it is intended that (a) this Agreement shall also be deemed to be a security agreement within the meaning of Articles 8 and 9 of the New York UCC (or the Relevant UCC if not the New York UCC); (b) the
conveyances provided for in Section 2.01 shall be deemed to be (1) a grant by the Depositor to the Issuer of a security interest in all of the Depositor’s right 

  

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(including the power to convey title thereto), title and interest, whether now owned or hereafter acquired, in and to (A) the Mortgage Loans, including the
Mortgage Notes, the Mortgages, any related insurance policies and all other documents in the related Mortgage Files, (B) all amounts payable pursuant to the Mortgage Loans in accordance with the terms thereof and (C) any and all general intangibles
consisting of, arising from or relating to any of the foregoing, and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including without limitation all Liquidation
Proceeds, all Insurance Proceeds, all amounts from time to time held or invested in the Collection Account, whether in the form of cash, instruments, securities or other property and (2) an assignment by the Depositor to the Issuer of any security
interest in any and all of the Depositor’s right (including the power to convey title thereto), title and interest, whether now owned or hereafter acquired, in and to the property described in the foregoing clauses (1)(A) through (C); (c) the
possession by the Indenture Trustee or any other agent of the Issuer 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,” or possession by a purchaser or a person designated by such secured party, for purposes of perfecting the security interest pursuant to the New York UCC and any other Relevant UCC (including, without limitation, Section 9-313, 8-313 or
8-321 thereof); 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 Issuer for the purpose of perfecting such security interest under applicable law. 
  
 (b) The Depositor and, at the Depositor’s direction, the Issuer shall, to the extent consistent with this Agreement, take such reasonable actions as
may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans and the other property of the Trust Estate, 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 this Agreement. Without limiting the generality of the foregoing, the Depositor shall prepare and file any UCC financing statements that are necessary to perfect the
Indenture Trustee’s security interest in or lien on the Mortgage Loans, as evidenced by an Officer’s Certificate of the Depositor, and furnish a copy of each such filed financing statement to the Securities Administrator. The Indenture
Trustee shall prepare and file, at the expense of the Issuer, all filings necessary to maintain the effectiveness of any original filings necessary under the Relevant UCC to perfect the Indenture Trustee’s security interest in or lien on the
Mortgage Loans, including without limitation (x) continuation statements, and (y) to the extent that a Responsible Officer of the Indenture Trustee has received written notice of such change or transfer, such other statements as may be occasioned by
(1) any change of name of the Seller, the Depositor or the Issuer, (2) any change of location of the place of business or the chief executive office of the Seller or the Depositor or (3) any transfer of any interest of the Seller or the Depositor in
any Mortgage Loan. 
  
 Neither the Depositor nor the Issuer shall
organize under the law of any jurisdiction other than the State under which each is organized as of the Closing Date (whether changing its jurisdiction of organization or organizing under an additional jurisdiction) without giving thirty (30) days
prior written notice of such action to its immediate and mediate transferee, including 

  

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the Indenture Trustee. Before effecting such change, each of the Depositor or the Issuer proposing to change its jurisdiction of organization shall prepare
and file in the appropriate filing office any financing statements or other statements necessary to continue the perfection of the interests of its immediate and mediate transferees, including the Indenture Trustee, in the Mortgage Loans. In
connection with the transactions contemplated by this Agreement and the Indenture, each of the Depositor and the Issuer authorizes its immediate or mediate transferee to file in any filing office any initial financing statements, any amendments to
financing statements, any continuation statements, or any other statements or filings described in this Section 2.03(b). 
  
 (c) The Depositor shall not take any action inconsistent with the sale by the Depositor of all of its right, title and interest in and to the Trust Estate
and shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan and the other property of the Issuer is held by the Issuer. In addition, the Depositor shall respond to any
inquiries from third parties with respect to ownership of a Mortgage Loan or any other property of the Trust Estate by stating that it is not the owner of such Mortgage Loan and that ownership of such Mortgage Loan or other property of the Trust
Estate is held by the Issuer on behalf of the Noteholders. 
  
 Section 2.04. Option to Contribute Derivative Instrument. 
  
 At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or comparable instrument (a “Derivative Instrument”). The
Derivative Instrument may have a notional amount in excess of the sum of the beneficial interests in the Trust. Any such instrument shall constitute a fully prepaid agreement. The Securities Administrator shall have no tax reporting duties with
respect to any such Derivative Instrument. 
  
 ARTICLE III

  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 3.01. Representations and Warranties of the Depositor and the
Seller. 
  
 (a) The Depositor hereby represents and warrants
to the Issuer, the Indenture Trustee for the benefit of Noteholders, the Securities Administrator, the Master Servicer, the Seller and the Servicer as of the Closing Date or such other date as is specified, that: 
  
 (i) This Agreement constitutes a legal, valid and binding
obligation of the Depositor, enforceable against the Depositor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect
affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether considered in a proceeding at law or in equity); 
  

 43 

 (ii) Immediately prior to the transfer by the Depositor to the Trust Estate of each
Mortgage Loan, the Depositor had good and equitable title to each Mortgage Loan (insofar as such title was conveyed to it by the Seller) subject to no prior lien, claim, participation interest, mortgage, security interest, pledge, charge or other
encumbrance or other interest of any nature; 
  
 (iii) As of the Closing Date, the Depositor has transferred all right, title and interest in the Mortgage Loans to the Trust Estate; 
  
 (iv) The Depositor has not transferred the Mortgage Loans to the Trust Estate with any intent to hinder, delay or defraud any of its
creditors; and 
  
 (v) The Depositor has been
duly organized and is validly existing as a corporation in good standing under the laws of Delaware, with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) The Seller hereby represents and warrants to the Issuer, the Indenture
Trustee for the benefit of Noteholders, the Securities Administrator, the Master Servicer and the Depositor as of the Closing Date or such other date as is specified, that: 
  
 (i) the Seller is a Georgia corporation, duly organized validly existing and in good standing under the laws
of the State of Georgia, and has the corporate power to own its assets and to transact the business in which it is currently engaged. The Seller is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction
in which the character of the business transacted by it or any properties owned or leased by it requires such qualification and in which the failure so to qualify would have a material adverse effect on the business, properties, assets, or condition
(financial or other) of the Seller; 
  
 (ii) the
Seller has the corporate power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated under the Agreement, and has taken all necessary corporate action to authorize the execution, delivery and
performance of this Agreement. When executed and delivered, this Agreement will constitute the legal, valid and binding obligation of the Seller enforceable in accordance with its terms, except as enforcement of such terms may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies; 
  
 (iii) the Seller is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or
registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except for such consent, license, approval or authorization, or
registration or declaration, as shall have been obtained or filed, as the case may be, prior to the Closing Date; 
  

 44 

 (iv) the execution, delivery and performance of this Agreement by the Seller will not
violate any provision of any existing law or regulation or any order or decree of any court applicable to the Seller or any provision of the articles of incorporation or bylaws of the Seller, or constitute a material breach of any mortgage,
indenture, contract or other agreement to which the Seller is a party or by which the Seller may be bound; 
  
 (v) no litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the
knowledge of the Seller threatened, against the Seller or any of its properties or with respect to this Agreement which in the opinion of the Seller has a reasonable likelihood of resulting in a material adverse effect on the transactions
contemplated by this Agreement; and 
  
 (vi) the
Seller has been organized in conformity with the requirements for qualification as a REIT; the Seller will file with its federal income tax return for its taxable year ended December 31, 2004, an election to be treated as a REIT for federal income
tax purposes; and the Seller currently qualifies as, and it proposes to operate in a manner that will enable it to continue to qualify as, a REIT. 
  
 (c) The Seller hereby makes for the benefit of the Issuer, the Indenture Trustee for the benefit of Noteholders, the Securities Administrator, the Master
Servicer and the Depositor as of the Closing Date or such other date as is specified, with respect to the Mortgage Loans, the representations and warranties set forth in Exhibit A of the Mortgage Loan Purchase Agreement. 
  
 (d) To the extent that any fact, condition or event with respect to a
Mortgage Loan constitutes a breach of a representation or warranty of the Seller under subsection (c) above or the Mortgage Loan Purchase Agreement, the only right or remedy of the Indenture Trustee or any Noteholder hereunder shall be their rights
to enforce the obligations of the Seller under any applicable representation or warranty made by it. The Indenture Trustee on behalf of the Issuer acknowledges that the Depositor shall have no obligation or liability with respect to any breach of
any representation or warranty with respect to the Mortgage Loans (except as set forth in Section 3.01(a)(ii)) under any circumstances. 
  
 Section 3.02. Discovery of Breach. It is understood and agreed that the representations and warranties (i) of the Depositor set forth in Section
3.01(a), (ii) of the Seller set forth in Section 3.01(b) and (c) and (iii) of the Servicer pursuant to Section 4.05 of this Agreement, shall each survive delivery of the Mortgage Files and the Assignment of Mortgage of each Mortgage Loan to the
Indenture Trustee and shall continue throughout the term of this Agreement. With respect to the representations and warranties which are made to the best of the Seller’s knowledge, if it is discovered by the Depositor, the Seller, the
Securities Administrator, the Indenture Trustee, the Master Servicer, the Underwriters or the Servicer that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the
Mortgage Loans or the interests of the Noteholders or the Indenture Trustee therein, notwithstanding such Seller’s lack of knowledge with respect to the substance of such representation or warranty, remedies for breach will apply to such
inaccuracy. Any breach 

  

 45 

 
of the representation and warranty set forth in clauses (cc), (ee) and (ff) of Exhibit A of the Mortgage Loan Purchase Agreement shall be deemed to
materially and adversely affect the interest of the Trust in that Mortgage Loan, notwithstanding the Seller’s lack of knowledge with respect to the substance of such representation and warranty. Upon discovery by any of the Depositor, the
Master Servicer, the Securities Administrator or the Indenture Trustee of a breach of any of such representations and warranties made by the Seller that adversely and materially affects the value of the related Mortgage Loan, the party discovering
such breach shall give prompt written notice to the other parties. Within 90 days of the discovery by the Seller of a breach of any representation or warranty given to the Indenture Trustee by the Seller or the Seller’s receipt of written
notice of such a breach, the Seller shall either (a) cure such breach in all material respects, (b) repurchase such Mortgage Loan or any property acquired in respect thereof from the Indenture Trustee at the Purchase Price or (c) substitute a
Qualifying Substitute Mortgage Loan for the affected Mortgage Loan. 
  
 Section 3.03. Repurchase, Purchase or Substitution of Mortgage Loans. 
  
 (a) With respect to any Mortgage Loan repurchased by the Seller pursuant to Section 3.02(b) of this Agreement, the principal portion of the funds in respect of such repurchase of a Mortgage Loan will be considered a
Principal Prepayment and the Purchase Price shall be deposited in the Collection Account. Upon receipt by the Securities Administrator of the full amount of the Purchase Price for a Deleted Mortgage Loan and notification thereof has been made to the
Indenture Trustee, or upon receipt of notification from the Custodian that it had received the Mortgage File for a Qualifying Substitute Mortgage Loan substituted for a Deleted Mortgage Loan (and any applicable Substitution Amount), the Indenture
Trustee shall release or cause to be released and reassign to the Depositor or the Seller, as applicable, the related Mortgage File for the Deleted Mortgage Loan and shall execute and deliver such instruments of transfer or assignment, in each case
without recourse, representation or warranty, as shall be necessary to vest in such party or its designee or assignee title to any Deleted Mortgage Loan released pursuant hereto, free and clear of all security interests, liens and other encumbrances
created by this Agreement and the Indenture, which instruments shall be prepared by the Servicer and the Indenture Trustee shall have no further responsibility with respect to the Mortgage File relating to such Deleted Mortgage Loan. 
  
 (b) With respect to each Qualifying Substitute Mortgage Loan to be delivered
to the Indenture Trustee (or the Custodian) in exchange for a Deleted Mortgage Loan: (i) the Depositor or the Seller, as applicable, must deliver to the Indenture Trustee (or a Custodian) the Mortgage File for the Qualifying Substitute Mortgage Loan
containing the documents set forth in Section 2.01(b) along with a written certification certifying as to the delivery of such Mortgage File and containing the granting language set forth in Section 2.01(a); and (ii) the Seller and the Depositor
will be deemed to have made, with respect to such Qualifying Substitute Mortgage Loan, each of the representations and warranties made by it with respect to the related Deleted Mortgage Loan. As soon as practicable after the delivery of any
Qualifying Substitute Mortgage Loan hereunder, the Indenture Trustee, at the expense of the Depositor and at the direction and with the cooperation of the Servicer shall (i) with respect to a Qualifying Substitute Mortgage Loan that is 

  

 46 

 
a Non-MERS Mortgage Loan, cause the Assignment of Mortgage to be recorded by the Servicer if required pursuant to Section 2.01(c), or (ii) with respect to a
Qualifying Substitute Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such actions as are necessary to cause the Indenture Trustee (on behalf of the Issuer) to be clearly identified as the owner of each such Mortgage Loan on the
records of MERS if required pursuant to Section 2.01(c). 
  
 Section 3.04. Representations and Warranties of the Depositor with respect to Security Interest. (a) With respect to the Mortgage Notes, the Depositor represents and warrants that: 
  
 (i) This Agreement creates a valid and continuing security
interest (as defined in the applicable UCC in the Mortgage Notes in favor of the Issuer, which security interest is prior to all other liens, and is enforceable as such against creditors of and purchasers from the Issuer; 
  
 (ii) The Mortgage Notes constitute “instruments”
within the meaning of the applicable UCC; 
  
 (iii) The Depositor owns and has good title to the Mortgage Notes free and clear of any lien, claim or encumbrance of any Person; 
  
 (iv) The Depositor has received all consents and approvals required by the terms of the Mortgage Notes to the pledge of the Mortgage Notes
hereunder to the Issuer; 
  
 (v) All original
executed copies of each Mortgage Note have been or will be delivered to the Custodian, as set forth in this Transfer and Servicing Agreement; 
  
 (vi) The Depositor has received a written acknowledgement from the Custodian that it is holding the Mortgage Notes solely on behalf and
for the benefit of the Issuer; 
  
 (vii)
Other than the security interest granted to the Issuer pursuant to this Agreement, the Depositor has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage Notes. The Depositor has not authorized the
filing of and is not aware of any financing statements against the Depositor that include a description of the collateral covering the Mortgage Notes other than a financing statement relating to the security interest granted to the Issuer hereunder
or that has been terminated. The Depositor is not aware of any judgment or tax lien filings against the Depositor; and 
  
 (viii) None of the Mortgage Notes has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Issuer. 
  
 (b) The representations and
warranties set forth in this Section 3.04 shall survive the Closing Date and shall not be waived. 
  

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 ARTICLE IV 
  
 ADMINISTRATION AND SERVICING OF THE 
 MORTGAGE
LOANS BY THE SERVICER 
  
 Section 4.01. Servicer to Perform
Servicing Responsibilities. 
  
 (a) Contract for Servicing;
Possession of Servicing Files. The Issuer does hereby contract with the Servicer for the servicing of the Mortgage Loans for the benefit of the Issuer and the Indenture Trustee. The Servicer shall maintain a Servicing File with respect to each
Mortgage Loan in order to service such Mortgage Loans pursuant to this Agreement and each Servicing File delivered to the Servicer shall be held in trust by the Servicer for the benefit of the Issuer and the Indenture Trustee. The Servicer’s
possession of any portion of the Mortgage Loan documents shall be at the will of the Indenture Trustee for the sole purpose of facilitating servicing of the related Mortgage Loan pursuant to this Agreement, and such retention and possession by the
Servicer shall be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage, and the contents of the Servicing File shall be vested in the Indenture Trustee and the ownership of all records and documents with respect to the related
Mortgage Loan prepared by or which come into the possession of the Servicer shall immediately vest in the Indenture Trustee and shall be retained and maintained, in trust, by the Servicer at the will of the Indenture Trustee in such custodial
capacity only. The Servicing File retained by the Servicer pursuant to this Agreement shall be identified in accordance with the Servicer’s file tracking system to reflect the ownership of the related Mortgage Loan by the Indenture Trustee. The
Servicer shall release from its custody the contents of any Servicing File retained by it only in accordance with this Agreement. 
  
 (b) Books and Records. All rights arising out of the Mortgage Loans shall be vested in the Indenture Trustee, subject to the Servicer’s rights
to service and administer the Mortgage Loans hereunder in accordance with the terms of this Agreement. All funds received on or in connection with a Mortgage Loan, other than the Servicing Fee and other compensation and reimbursement to which the
Servicer and the Master Servicer are entitled as set forth herein, including but not limited to Section 4.04(c), shall be received and held by them in trust for the benefit of the Indenture Trustee pursuant to the terms of this Agreement.

  
 The Servicer shall forward to the Custodian original documents
evidencing an assumption, modification, consolidation or extension of any Mortgage Loan entered into in accordance with Section 4.02(a) within one week of their execution; provided, however, that the Servicer shall provide the
Custodian with a Servicer 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 by the
appropriate public recording office to be a true and complete copy of the original within 180 days of its submission for recordation. 
  

 48 

 Section 4.02. Servicing of the Mortgage Loans. 
  
 (a) Servicer to Service. The Servicer, acting directly or through one
or more subservicers as provided in Section 4.09, shall service and administer the Mortgage Loans from and after the Closing Date and, except where prior consent of the Master Servicer is required under this Agreement, 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 Servicer 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 Servicer 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 any of the servicing provisions of the Fannie Mae Guides, the provisions of this Agreement shall control and be binding upon the
Servicer and the other parties hereto. 
  
 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 Issuer, Indenture Trustee and the Noteholders, provided, however, that unless the Servicer has obtained the prior written consent of the Master
Servicer, the Servicer shall not permit any modification with respect to any Mortgage Loan that would change the Mortgage 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 Master Servicer and which permits the deferral of
interest or principal payments on any Mortgage Loan, the Servicer shall, on the Business Day immediately preceding the Servicer 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 4.03(c), the difference between (a) such month’s principal and one month’s interest at the Net Mortgage 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 4.03. Without limiting the generality of the foregoing, the Servicer shall continue, and is
hereby authorized and empowered, to prepare, execute and deliver on behalf of itself, the Issuer and the Indenture Trustee, all instruments of 

  

 49 

 
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 Servicer 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 the Master Servicer and, if required, by the Primary Mortgage Insurance Policy insurer and Lender Primary Mortgage Insurance Policy insurer. 
  
 In servicing and administering the Mortgage Loans, the Servicer shall employ
Accepted Servicing Practices, giving due consideration to the reliance by the Issuer, Indenture Trustee and Noteholders on the Servicer. Notwithstanding the appointment of any subservicer pursuant to Section 4.09, the Servicer shall remain liable
for the performance of all of the servicing obligations and responsibilities under this Agreement. 
  
 (b) Servicer Discretion. In managing the liquidation of defaulted Mortgage Loans, the Servicer will have sole discretion, subject to the terms of
this Agreement, to sell defaulted Mortgage Loans; provided, however, that the Servicer shall not take any action that is inconsistent with or prejudices the interests of the Noteholders in any Mortgage Loan or the rights and interests of the
Depositor, the Indenture Trustee and the Noteholders under this Agreement. 
  
 (c) Collection and Liquidation of Mortgage Loans. Continuously from the date hereof until the date each Mortgage Loan ceases to be subject to this Agreement, the Servicer 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 Servicer 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. 
  
 The Servicer shall use
its best efforts, consistent with the procedures that the Servicer 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 the Issuer, the Indenture Trustee and the Noteholders, 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 4.02(a). 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 Servicer 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 Trust, taking into account, among other things, the timing of foreclosure proceedings. The 

  

 50 

 
Servicer, on behalf of the Issuer, the Indenture Trustee and the Noteholders, may also, in its discretion, as an alternative to foreclosure, sell defaulted
Mortgage Loans at fair market value to third parties, if the Servicer reasonably believes that such sale would maximize proceeds to the Trust (on a present value basis) with respect to each such Mortgage Loan. The foregoing is subject to the
provisions that, in any case in which a 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 Trust after reimbursement to itself for such expenses, and (ii) that such expenses will be recoverable by the Servicer through Insurance Proceeds, Condemnation
Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in Section 4.02(e). Servicer shall obtain prior approval of Purchaser or the Master Servicer as to repair or restoration expenses in excess of ten thousand dollars
($10,000). The Servicer shall notify the Master Servicer 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 Servicer 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 4.02(e). 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 Master Servicer or the Indenture Trustee 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 Master Servicer’s or
Indenture Trustee’s expense, as applicable. Upon completion of the inspection, the Servicer shall promptly provide the Master Servicer and the Indenture Trustee with a written report of the environmental inspection. After reviewing the
environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. 
  
 Notwithstanding the generality of the preceding paragraph, the Servicer shall take such actions generally in accordance with the Servicer’s
established default timeline and in accordance with Accepted Servicing Practices with respect to each Mortgage Loan and Mortgagor for which there is a delinquency until such time as the related Mortgagor is current with all payments due under the
Mortgage Loan. 
  
 (d) Establishment of and Deposits to
Custodial Account. 
  
 (i) The Servicer shall
segregate and hold all funds collected and received pursuant to the Mortgage Loans separate and apart from any of its own funds and general assets and shall initially establish and maintain one or more Custodial Accounts, in the form of time deposit
or demand accounts, each of which accounts shall be titled “HomeBanc Corp. in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes” and referred to herein as a
“Custodial Account;” provided that so long as HomeBanc Mortgage Corporation is the subservicer under the Subservicing Agreement, each Custodial Account shall be titled 

  

 51 

 
“HomeBanc Mortgage Corporation in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-3 Mortgage Backed
Notes.” Each Custodial Account shall be an Eligible Account. Any 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 Eligible Investments subject to the
provisions of Section 4.02(i) hereof. Funds deposited in the Custodial Account may be drawn on by the Servicer in accordance with Section 4.02(e) hereof. The creation of any Custodial Account shall be evidenced by a letter agreement in the form of
Exhibit D hereto. A copy of such certification or letter agreement shall be furnished to the Indenture Trustee, the Master Servicer and, upon request, to any subsequent owner of the Mortgage Loans. The Servicer shall deposit or cause to be deposited
into the Custodial Account, 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: 
  
 (1) all payments on account of principal, including Principal Prepayments and related penalties, on the Mortgage Loans; 
  
 (2) all payments on account of interest on the Mortgage
Loans adjusted to the Net Mortgage Rate; 
  
 (3)
all Net Liquidation Proceeds; 
  
 (4) any amounts
required to be deposited by the Servicer in connection with any REO Property pursuant to Section 4.02(o) and in connection therewith, the Servicer shall provide the Master Servicer with written detail itemizing all of such amounts; 
  
 (5) all Insurance Proceeds including amounts required to be
deposited pursuant to Section 4.02(j), 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; 
  
 (6) 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; 
  
 (7) any Monthly Advances; 
  
 (8) with respect to each full or partial Principal Prepayment, any Prepayment Interest Shortfalls, to the
extent of the Servicer’s aggregate Servicing Fee received with respect to the related Prepayment Period; 
  

 52 

 (9) any amounts required to be deposited by the Servicer pursuant to Section 4.02(j) in
connection with the deductible clause in any blanket hazard insurance policy, such deposit shall be made from the Servicer’s own funds, without reimbursement therefor; and 
  
 (10) any amounts required to be deposited in the Custodial Account pursuant this Agreement. 
  
 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 the Servicing Fee and Ancillary Income, need not be deposited by the Servicer in the Custodial Account. Any
interest paid on funds deposited in the Custodial Account by the depository institution and any income or appreciation on any investment of such funds 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 4.02(e). The amount of any losses incurred in respect of any such investments shall be deposited in the Custodial Account by the Servicer out of its own funds, without any right
of reimbursement therefor, immediately as realized. 
  
 (ii) The Servicer agrees that it shall not create, incur or subject any Mortgage Loans, or any funds that are deposited in any Custodial Account or Escrow Account, or any funds that otherwise are or may become due or payable to or for the
benefit of the Indenture Trustee, to any claim, lien, security interest, judgment, levy, writ of attachment or other encumbrance, nor assert by legal action or otherwise any claim or right of setoff against any Mortgage Loan or any funds collected
on, or in connection with, a Mortgage Loan. 
  
 (e) Permitted
Withdrawals from Custodial Account. 
  
 The Servicer may, from
time to time, withdraw from the Custodial Account for the following purposes: 
  
 (i) to make payments to the Master Servicer in the amounts and in the manner provided for in Section 4.03(a); 
  
 (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, it being understood that, in the case of such
reimbursement, the Servicer’s right thereto shall be prior to the rights of the Noteholders, except that, where the Servicer is required to repurchase a Mortgage Loan, pursuant to Section 3.03, the Servicer’s right to such reimbursement
shall be subsequent to the payment to the Trust of the Purchase Price 

  

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pursuant to such Section and all other amounts required to be paid to the Trust with respect to such Mortgage Loan; 
  
 (iii) to reimburse itself for unreimbursed Monthly Advances
and Servicing Advances and any unpaid Servicing Fees (or REO administration fees described in Section 4.02(o)), the Servicer’s right to reimburse itself pursuant to this subclause (3) 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 income or appreciation earned on funds in the Custodial Account (all such interest to be withdrawn monthly not later than each Servicer 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 Purchase Price is determined, 
  
 (vi) to transfer funds to another Eligible Account in accordance with Section 4.02(i) hereof; 
  
 (vii) to remove funds inadvertently placed in the Custodial
Account by the Servicer; 
  
 (viii) to clear and
terminate the Custodial Account upon the termination of this Agreement; and 
  
 (ix) to reimburse itself for any Nonrecoverable Advances and amounts reimbursable pursuant to Section 4.05(b) and Section 4.06(b). 
  
 (f) Establishment of and Deposits to Escrow Account. The Servicer shall segregate and hold all funds collected and
received pursuant to a Mortgage Loan constituting Escrow Payments separate and apart from any of its own funds and general assets and shall establish and maintain one or more Escrow Accounts, in the form of time deposit or demand accounts, titled
“HomeBanc Corp. in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-3,” provided that so long as HomeBanc Mortgage Corporation is the subservicer under the Subservicing Agreement,
each Escrow Account shall be titled “HomeBanc Mortgage Corporation in trust for U.S. Bank National Association, as Indenture Trustee, for the HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes.” The Escrow Accounts shall be an Eligible
Account. Nothing herein shall require the Servicer to compel a Mortgagor to establish an Escrow Account in violation of applicable law. Funds deposited in the Escrow Account may be 

  

 54 

 
drawn on by the Servicer in accordance with Section 4.02(g). The creation of any Escrow Account shall be evidenced by a letter agreement in the form of
Exhibit E hereto. A copy of such certification or letter agreement shall be furnished to the Master Servicer. 
  
 The Servicer shall deposit in the Escrow Account or Accounts 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, if required, for the purpose of effecting timely payment of any such items as required under the terms of this Agreement to be paid by the related Mortgagor to the Servicer; 
  
 (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 the Escrow Account only to effect such payments as are required under this Agreement, as set forth in Section
4.02(g). The Servicer shall be entitled to retain any interest earnings paid on funds deposited in the Escrow Account by the depository institution, other than interest on escrowed funds required by law to be paid to the Mortgagor. To the extent
required by law, the Servicer shall pay interest on escrowed funds to the Mortgagor notwithstanding that the Escrow Account may be non-interest bearing or the interest earnings paid thereon are insufficient for such purposes. 
  
 (g) Permitted Withdrawals from Escrow Account. Withdrawals from the
Escrow Account or Accounts may be made by the Servicer only: 
  
 (i) to effect timely payments of ground rents, taxes, assessments, water rates, Primary Mortgage Insurance Policy premiums, if applicable, condominium charges, fire and hazard insurance premiums or other items
constituting Escrow Payments for the related Mortgage; 
  
 (ii) to reimburse the Servicer for any Servicing Advance of an Escrow Payment made by the Servicer with respect to a related Mortgage Loan, but only from amounts received on the related Mortgage Loan which represent late collections of
Escrow Payments thereunder; 
  
 (iii) to refund
to any Mortgagor any funds found to be in excess of the amounts required to be escrowed under the terms of the related Mortgage Loan; 
  
 (iv) to the extent permitted by applicable law, for transfer to the Custodial Account and application to reduce the principal balance of
the Mortgage Loan in accordance with the terms of the related Mortgage and Mortgage Note; 
  

 55 

 (v) for application to restoration or repair of the Mortgaged Property in accordance with
Section 4.02(n); 
  
 (vi) to pay to the Servicer,
or any 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 Servicer 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 4.02(f). 
  
 (h) Payment of Taxes, Insurance and Other Charges; Maintenance of Primary Mortgage Insurance Policies; Collections Thereunder. 
  
 (i) 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 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 (which will
constitute a Servicing Advance). 
  
 (ii) The
Servicer 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 Servicer 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 

  

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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 or Lender 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 4.04(a), the Servicer 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 Servicer 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 Servicer agrees to prepare and present, on behalf of itself and the Issuer, 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 4.02(d), any amounts collected by the Servicer 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 4.02(e). 
  
 (i) Protection of Accounts. The Servicer may transfer the Custodial Account or the Escrow Account to a different Eligible Institution from time to time. Such transfer shall be made only upon obtaining the
consent of the Master Servicer, which consent shall not be withheld unreasonably, and the Servicer shall give notice to the Master Servicer and the Indenture Trustee of any change in the location of the Custodial Account. 
  
 (j) Maintenance of Hazard Insurance. The Servicer shall cause to be
maintained for each Mortgage Loan fire and hazard insurance with extended coverage as is acceptable to Fannie Mae or Freddie Mac 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 Freddie Mac, 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 

  

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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 Servicer 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 Servicer 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 Servicer shall immediately force place the required flood insurance on the Mortgagor’s behalf. The Servicer 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 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 Accepted Servicing Practices, shall be deposited in the Custodial Account, subject to withdrawal pursuant to Section 4.02(e). It is understood and agreed that no other
additional insurance need be required by the Servicer 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 Servicer 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 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 are Qualified Insurers. 
  
 (k) Maintenance of Mortgage Impairment Insurance. In the event that the Servicer shall obtain and maintain a blanket
policy issued by an insurer acceptable to Fannie Mae or Freddie Mac 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 4.02(j)
and otherwise complies with all other requirements of Section 4.02(j), it shall conclusively be deemed to have satisfied its obligations as set forth in Section 4.02(j), it being understood and agreed that such policy may contain a deductible
clause, in which case the Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property or REO Property a policy complying with Section 4.02(j), 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 Servicer agrees to prepare
and present, on behalf of the Master Servicer and the Indenture Trustee, claims under any such blanket policy in a timely fashion in accordance with the terms of such policy. Upon request of the Master Servicer or Indenture Trustee, the Servicer
shall cause to be delivered to the Master Servicer or the Indenture Trustee, as applicable, a certified true copy of such policy and shall use its best efforts to obtain a statement from the 

  

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insurer thereunder that such policy shall in no event be terminated or materially modified without thirty (30) days’ prior written notice to the Master
Servicer and the Indenture Trustee. 
  
 (l) Maintenance of
Fidelity Bond and 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 Loan to handle funds, money, documents and papers relating to the Mortgage Loan. The Servicer Fidelity Bond 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 and fraud of such persons. The Servicer Errors and Omissions Insurance Policy shall protect and insure the Servicer against losses arising out of errors and
omissions and negligent acts of such persons. Such Servicer Errors and Omissions Insurance Policy 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 4.02(l) requiring the Servicer Fidelity Bond or the Servicer Errors and Omissions
Insurance Policy shall diminish or relieve the Servicer 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 of the Master Servicer or the Indenture Trustee, the Servicer shall deliver to the Master Servicer and the Indenture Trustee a certificate from the surety and the insurer as to the existence of the
Servicer Fidelity Bond and the Servicer Errors and Omissions Insurance Policy and shall obtain a statement from the surety and the insurer that such Servicer Fidelity Bond or Servicer Errors and Omissions Insurance Policy shall in no event be
terminated or materially modified without thirty (30) days prior written notice to the Master Servicer. The Servicer shall notify the Master Servicer and the Indenture Trustee within five (5) business days of receipt of notice that such Servicer
Fidelity Bond or Servicer Errors and Omissions Insurance Policy will be, or has been, materially modified or terminated. The Issuer must be named as a loss payee on the Servicer Fidelity Bond and as an additional insured on the Servicer Errors and
Omissions Insurance Policy. Upon request by the Master Servicer, the Servicer shall provide the Master Servicer with an insurance certificate certifying coverage under this Section 4.02(l), and will provide an update to such certificate upon
request, or upon renewal or material modification of coverage. 
  
 (m) Inspections. The Servicer shall inspect the Mortgaged Property as often as deemed necessary by the Servicer to assure itself that the value of the Mortgaged Property is being preserved. In addition, the Servicer shall inspect the
Mortgaged Property and/or take such other actions as may be necessary or appropriate in accordance with Accepted Servicing Practices or as may be required by the primary mortgage guaranty insurer. The Servicer shall keep a written report of each
such inspection. 
  
 (n) Restoration of Mortgaged Property.
The Servicer need not obtain the approval of the Master Servicer prior to releasing any Insurance Proceeds or Condemnation Proceeds to the Mortgagor to be applied to the restoration or repair of the Mortgaged Property if such release is in 

  

 59 

 
accordance with Accepted Servicing Practices. At a minimum, the Servicer shall comply with the following conditions in connection with any such release of
Insurance Proceeds or Condemnation Proceeds: 
  
 (i) the Servicer shall receive satisfactory independent verification of completion of repairs and issuance of any required approvals with respect thereto; 
  
 (ii) the Servicer shall take all steps necessary to preserve the priority of the lien of the Mortgage,
including, but not limited to requiring waivers with respect to mechanics’ and materialmen’s liens; and 
  
 (iii) pending repairs or restoration, the Servicer shall place the Insurance Proceeds or Condemnation Proceeds in the Escrow Account.

  
 (o) 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 Indenture Trustee or its designee, or in the event the Indenture
Trustee 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 Servicer 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 Issuer shall acknowledge in writing that such title is being held as nominee for the benefit of the Issuer. 
  
 The Servicer shall notify the Master Servicer 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 from the date the Servicer 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
Servicer shall continue to provide certain administrative services to the Master Servicer relating to such REO Property as set forth in this Section 4.02(o). 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 Servicer
shall, either itself or through an agent selected by the Servicer, 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 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 required by the circumstances. The Servicer shall make or cause to be made a written report of each such inspection. Such reports shall be 

  

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retained in the Mortgage File and copies thereof shall be forwarded by the Servicer to the Master Servicer. 
  
 The Servicer 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 Servicer determines, and gives an appropriate notice to the Master Servicer 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 Servicer shall report monthly to the Master Servicer
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 Master Servicer. No REO Property shall be sold for less than ninety five percent (95%) of
its Appraised Value, without the prior consent of Indenture Trustee. 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 Servicer at such
price, and upon such terms and conditions, as the Servicer deems to be in the best interests of the Trust (subject to the above conditions) only with the prior written consent of the Master Servicer. The Servicer shall provide monthly reports to the
Master Servicer in reference to the status of the marketing of the REO Properties. 
  
 (p) Compliance with Safeguarding Customer Information Requirements. The Servicer has implemented and will maintain security measures designed to meet the objectives of the Interagency Guidelines Establishing
Standards for Safeguarding Customer Information published in final form on February 1, 2001, 66 Fed. Reg. 8616, and the rules promulgated thereunder, as amended from time to time (the “Guidelines”). 
  
 (q) Notification of Maturity Date. With respect to each Mortgage Loan,
the Servicer 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. 
  
 (r) Purchase of Defaulted Mortgage Loans. The Servicer, in its sole
discretion, shall have the right to elect (by written notice sent to the Indenture Trustee, the Master Servicer and the Securities Administrator) to purchase for its own account from the Trust Estate any Mortgage Loan that is (as of the first day of
a calendar quarter) 90 days or more Delinquent or is an REO Property at a price equal to the Purchase Price; provided, however, that (i) such Mortgage Loan is still 90 days or more delinquent or is an REO Property as of the date of such
purchase and (ii) this purchase option, if not theretofore exercised, shall terminate on the date prior to the last day of the related calendar quarter. This purchase option, if not exercised, shall not be thereafter reinstated unless the
delinquency is cured and the Mortgage Loan thereafter again becomes 90 days or more delinquent or becomes an REO Property, in which case the option shall again become exercisable as of the first day of the related calendar quarter. The principal
portion of the funds in respect of such purchase of a Mortgage Loan will be considered a Principal Prepayment and the Purchase Price shall be deposited in the Collection Account. Upon receipt by the Securities Administrator of the full amount of the
Purchase Price for such Mortgage Loan and notification thereof has been 

  

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made to the Indenture Trustee, the Indenture Trustee shall release or cause to be released and reassign to the Servicer the related Mortgage File for such
Mortgage Loan and shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as shall be necessary to vest in such party or its designee or assignee title to any such Mortgage
Loan released pursuant hereto, free and clear of all security interests, liens and other encumbrances created by this Agreement and the Indenture, which instruments shall be prepared by the Servicer and the Indenture Trustee shall have no further
responsibility with respect to the Mortgage File relating to such 90 days Delinquent Mortgage Loan purchased by the Servicer. 
  
 Section 4.03. Payments to the Master Servicer. 
  
 (a) Remittances. On each Servicer Remittance Date, the Servicer shall remit by wire transfer of immediately available funds to the Master Servicer
(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 4.02(e), plus (ii) all Monthly Advances, if any,
which the Servicer is obligated to remit pursuant to Section 4.03(c), plus, (iii) Compensating Interest Payments, 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 Servicer Remittance Date next succeeding the Collection Period for such amounts. It is understood that, by operation of Section 4.02(d), the remittance on the first Servicer Remittance Date
with respect to the Mortgage Loans is to include principal collected after the Cut- off Date through the preceding Determination Date plus interest, adjusted to the Net Mortgage 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 Master Servicer after the Servicer Remittance Date, the Servicer shall pay to the Master Servicer interest
on any such late payment at a per annum 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 Master Servicer, both inclusive. 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. On each Servicer Remittance Date, the Servicer shall provide a remittance report detailing all amounts being remitted pursuant to this Section 4.03(a).

  

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 All remittances required to be made to the Master Servicer shall be made to the following wire account or
to such other account as may be specified by the Master Servicer from time to time: 
  
 Wells Fargo Bank, NA 
 San Francisco, CA 
 ABA#: 121-000-248 
 Account Name: Corporate
Trust Clearing 
 Account Number: 3970771416 
 For further credit to: 17169000, HomeBanc 2005-3 
  
 (b) Statements to Master Servicer and Securities Administrator. The Servicer shall furnish to Master Servicer an individual loan accounting 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, the corresponding individual loan accounting report shall be received by the Master Servicer no
later than the fifth Business 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 Master Servicer and Servicer, 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 4.02(d)); 
  
 (ii) with respect to each Monthly Payment, the amount of such remittance allocable to interest; 
  
 (iii) the amount of servicing compensation received by the
Servicer during the prior distribution period; 
  
 (iv) the aggregate Scheduled Principal Balance of the Mortgage Loans; 
  
 (v) the aggregate of any expenses reimbursed to the Servicer during the prior distribution period pursuant to Section 4.02(e); and

  
 (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 and (4) 180 days or more and charged-off; (b) as to which foreclosure has commenced; and (c) as to which REO Property has been acquired.

  
 The Servicer shall provide a monthly remittance report to the
Master Servicer in a mutually agreeable format. The Servicer shall also provide a default report containing the information specified in Exhibit F attached hereto 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 the Master Servicer and the Securities Administrator pursuant to any applicable law with respect to the Mortgage Loans and 

  

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the transactions contemplated hereby. In addition, the Servicer shall provide the Master Servicer and the Securities Administrator with such information as
may be requested by it and required for the completion of any tax reporting responsibility of the Securities Administrator within such reasonable time frame as shall enable the Securities Administrator to timely file each Schedule Q (or other
applicable tax report or return) required to be filed by it. 
  
 (c) Monthly Advances by Servicer. Not later than the close of business on the Business Day preceding each Servicer 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 4.03(a), of principal (due after the Cut-off Date) and interest not allocable to the period prior to the Cut-off Date, adjusted to the Net Mortgage Rate, which were due on a
Mortgage Loan and delinquent at the close of business on the related Determination Date; provided, however, that the Servicer may use the Amount Held for Future Distribution (as defined below) then on deposit in the Custodial Account to make such
Monthly Advances. The Servicer shall deposit any portion of the Amount Held for Future Distribution used to pay Monthly Advances into the Custodial Account on any future Servicer Remittance Date to the extent that the funds that are available in the
Custodial Account for remittance to the Master Servicer on such Servicer Remittance Date are less than the amount of payments required to be made to the Master Servicer on such Servicer Remittance Date. 
  
 The “Amount Held for Future Distribution” as to any Servicer
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,
Condemnation Proceeds and Principal Prepayments received or made in the month of such Servicer Remittance Date, and (ii) payments which represent early receipt of Monthly Payments of principal and interest due on a date or dates subsequent to the
related Due Date. 
  
 The Servicer’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 Servicer 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 Servicer deems such advance to be a Nonrecoverable Advance. In such event, the Servicer shall deliver to the
Master Servicer an Officer’s Certificate of the Servicer to the effect that an officer of the Servicer has reviewed the related Mortgage File and has made the reasonable determination that any additional advances are nonrecoverable. 

 
 (d) Liquidation Reports. Upon the foreclosure sale of any Mortgaged
Property, the acquisition thereof by the Indenture Trustee pursuant to a deed in lieu of foreclosure or the charge off of a Mortgage Loan that is 180 days Delinquent, the Servicer shall submit to the Indenture Trustee and the Master Servicer a
monthly liquidation report with respect to such Mortgaged Property. The Servicer shall also provide reports on the status of REO Property containing such information as the Indenture Trustee may reasonably request. 
  

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 (e) Credit Reporting. For each Mortgage Loan, in accordance with its current servicing practices,
the Servicer will accurately and fully report its underlying borrower credit files to each of the following credit repositories or their successors: Equifax Credit Information Services, Inc., Trans Union, LLC and Experian Information Solution, Inc.,
on a monthly basis in a timely manner. 
  
 Section 4.04.
General Servicing Procedures. 
  
 (a) Transfers of
Mortgaged Property. The Servicer 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 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 or Lender 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 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 4.04(a), the Servicer, with the prior consent of the Master Servicer, the Indenture Trustee 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 Servicer shall follow the underwriting practices and procedures of the Servicer.
With respect to an assumption or substitution of liability, the Mortgage 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 Servicer 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 Servicer
shall notify the Master Servicer and the Indenture Trustee that any such substitution of liability or assumption agreement has been completed and shall forward to the Custodian 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 Servicer for entering into an assumption or substitution of liability agreement shall belong to the Servicer. 
  

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 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 4.04(a), 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. 
  
 (b) Satisfaction of Mortgages and
Release of Mortgage Files. Upon the payment in full of any Mortgage Loan, or the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall immediately notify the
Master Servicer by a certification of a Servicing Officer, 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 4.02(d) have been or will be so deposited, and the Servicer shall request delivery to it of the portion of the Mortgage File held by the Custodian in accordance with the provisions of Section 5.12. 
  
 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 Trust may have under the mortgage instruments, the Servicer, upon written demand, shall remit within two (2) Business Days to the
Trust the then outstanding principal balance of the related Mortgage Loan by deposit thereof in the Custodial Account. The Servicer shall maintain the Servicer Fidelity Bond and the Servicer Errors and Omissions Insurance Policy 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. 
  
 (c) Servicing Compensation. As compensation for its services hereunder, the Servicer 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 Servicing Fee, subject to Compensating Interest Payments. Additional servicing compensation in the form of
assumption fees, as provided in Section 4.04(a), and late payment charges or otherwise shall be retained by the Servicer 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 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 in this
Agreement. 
  
 (d) Annual Audit Report. On or before
February 28th of each year beginning February 28, 2006, 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 Seller, the Master Servicer, the Indenture Trustee and the Depositor in a form acceptable for filing with the
Securities and Exchange Commission as an exhibit to a Form 10-K 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 

  

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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 Servicer’s servicing has been conducted in compliance with the agreements examined pursuant to this Section 4.04(d), 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. In addition, on an annual basis, Servicer shall provided the Seller, the Master Servicer, the Indenture Trustee and the Depositor with copies of
its audited financial statements. 
  
 (e) Annual Compliance
Certifications. 
  
 (i) On or before February
28th of each year beginning February 28, 2006, the Servicer shall deliver to the Seller, the Master Servicer, the
Indenture Trustee and the Depositor a servicer’s certificate stating, as to each signer thereof, that (i) a review of the activities of the Servicer during such preceding fiscal 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 its obligations under this Agreement for 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, including the steps being taken by the Servicer to remedy such default. 
  
 (ii) For so long as a certificate under the Sarbanes-Oxley Act of 2002, as amended is required to be
delivered on behalf of the Trust, a Servicing Officer shall execute and deliver on or prior to February 28th of each
applicable year, commencing in 2006, or at any other time upon thirty (30) days written request, an Officer’s Certificate to the Depositor for the benefit of the Depositor and its officers, directors and affiliates, certifying as to the
following matters: 
  
 (1) 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; 
  
 (2) The servicing information required to be provided to the Master Servicer by the Servicer under this Agreement has been provided to the Master Servicer; 
  
 (3) I am responsible for reviewing the activities performed by the Servicer under the Agreement and based
upon the review required by this Agreement, and except as disclosed in the Annual Statement of Compliance or the 

  

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Annual Independent Public Accountant’s Servicing Report submitted to the Master Servicer, the Servicer has, as of the date of this certification
fulfilled its obligations under this Agreement; and 
  
 (4) I have disclosed to the Master Servicer all significant deficiencies relating to the Servicer’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. 
  
 (iii) The Servicer shall indemnify and hold harmless the Issuer, the Depositor and the Master Servicer and their respective 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 Servicer or any of its
officers, directors, agents or affiliates of its obligations under this Section 4.04(e) for the negligence, bad faith or willful misconduct of the Servicer in connection therewith. If the indemnification provided for herein is unavailable or
insufficient to hold harmless any of the foregoing parties, then the Servicer agrees that it shall contribute to the amount paid or payable by the indemnified party or parties as a result of the losses, claims, damages or liabilities of the
indemnified party or parties in such proportion as is appropriate to reflect the relative fault of the indemnified party or parties on the one hand and the Servicer on the other in connection with a breach of the Servicer’s obligations under
this Section 4.04(e) or the Servicer’s negligence, bad faith or willful misconduct in connection therewith. 
  
 Section 4.05. Representations, Warranties and Agreements. 
  

(a) Representations, Warranties and Agreements of the Servicer. The Servicer, as a condition to the consummation of the transactions
contemplated hereby, hereby makes the following representations and warranties to the Master Servicer, the Depositor, the Seller, the Indenture Trustee and the Securities Administrator, as of the Closing Date: 
  
 (i) Due Organization and Authority. The Servicer is a
corporation duly organized, validly existing and in good standing under the laws of the State of Georgia and has all licenses necessary to carry out its business as now being conducted; the Servicer has the full power and authority and legal right
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 and
any agreements contemplated hereby, has duly executed and delivered this Agreement and any agreements contemplated hereby, and this Agreement and any agreements contemplated hereby, constitutes a legal, valid and binding obligation of the Servicer,
enforceable against it in accordance with its terms, and all requisite corporate action has been taken by the Servicer to make this Agreement and 

  

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all agreements contemplated hereby valid and binding upon the Servicer in accordance with their terms; 
  
 (ii) Ordinary Course of Business. The consummation of
the transactions contemplated by this Agreement are in the ordinary course of business of the Servicer; 
  
 (iii) No Conflicts. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
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 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 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 their properties are subject; 
  

(iv) Ability to Perform. The Servicer does not believe, nor does it have any reason or cause to believe, that it cannot perform
each and every covenant contained in this Agreement; 
  
 (v) No Litigation Pending. There is no litigation, suit, proceeding or investigation pending or, to the best of the Servicer’s knowledge, threatened, or any order or decree outstanding, with respect to the Servicer 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, or which is reasonably likely to have a
material adverse effect on the financial condition of the Servicer; 
  
 (vi) No Consent Required. 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 if required, such approval has been obtained prior to the Closing Date; 
  
 (vii) Servicing Practices. The servicing practices used by the Servicer 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 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 Servicer, on behalf of the Trust, is entitled to collect, 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. 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 

  

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has been established. No escrow deposits or other charges or payments due under the Mortgage Note have been capitalized under any Mortgage or the related
Mortgage Note; 
  
 (viii) Ability to
Service. The Servicer is equipped with such facilities, procedures and personnel necessary for the sound servicing of such mortgage loans. The Servicer 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 Freddie Mac and no event has occurred which would make Servicer unable to comply with
eligibility requirements or which would require notification to either Fannie Mae or Freddie Mac; 
  
 (ix) Servicing Fee. The Servicer 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 Servicer, for accounting and tax purposes, as compensation for the servicing and administration of the Mortgage Loans pursuant to this Agreement; and 
  
 (x) No Commissions to Third Parties. The Servicer has
not dealt with any broker or agent or anyone else who might be entitled to a fee or commission in connection with this transaction other than the Seller. 
  
 (b) Remedies for Breach of Representations and Warranties of the Servicer. It is understood and agreed that the representations and warranties set
forth in Sections 4.05(a) shall survive the engagement of the Servicer to perform the servicing responsibilities as of the Closing Date hereunder and the delivery of the Servicing Files to the Servicer and shall inure to the benefit of the Master
Servicer and the Indenture Trustee. Upon discovery by either the Servicer, the Master Servicer or the Indenture Trustee of a breach of any of the foregoing representations and warranties which materially and adversely affects the ability of the
Servicer to perform its duties and obligations under this Agreement or otherwise materially and adversely affects the value of the Mortgage Loans, the Mortgaged Property or the priority of the security interest on such Mortgaged Property or the
interests of the Master Servicer or the Indenture Trustee, the party discovering such breach shall give prompt written notice to the other parties. 
  
 Within sixty (60) days of the earlier of either discovery by or notice to the Servicer of any breach of a representation or warranty set forth in Section
4.05(a) which materially and adversely affects the ability of the Servicer to perform its duties and obligations under this Agreement or otherwise materially and adversely affects the value of the Mortgage Loans, the Mortgaged Property or the
priority of the security interest on such Mortgaged Property, the Servicer shall use its best efforts promptly to cure such breach in all material respects and, if such breach cannot be cured, the Servicer shall, at the Master Servicer’s
option, assign its rights and obligations under this Agreement (or respecting the affected Mortgage Loans) to a successor servicer. 
  

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 In addition, the Servicer shall indemnify all other parties to this Agreement and hold each of them
harmless against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and other costs and expenses resulting from any claim, demand, defense or assertion based on or grounded upon, or
resulting from, a breach of the Servicer’s representations and warranties contained in Section 4.05(a). 
  
 Any cause of action against the Servicer relating to or arising out of the breach of any representations and warranties made in Section 4.05(a) shall
accrue upon (i) discovery of such breach by the Servicer or notice thereof by the Master Servicer or the Indenture Trustee to the Servicer, (ii) failure by the Servicer to cure such breach within the applicable cure period, and (iii) demand upon the
Servicer by the Master Servicer or the Indenture Trustee for compliance with this Agreement. 
  
 (c) Additional Indemnification by the Servicer. The Servicer shall indemnify the Master Servicer, the Issuer, the Indenture Trustee, and the Securities Administrator and hold each of them harmless against any
and all claims, losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs, fees and expenses (collectively, the “Liabilities”) that the indemnified party may
sustain in any way related to the failure of the Servicer to perform its duties and service the Mortgage Loans in accordance with the terms of this Agreement. The Servicer shall immediately notify the Master Servicer, the Indenture Trustee and the
Securities Administrator if a claim is made by a third party with respect to this Agreement or the Mortgage Loans that may result in such Liabilities, and the Servicer shall assume (with the prior written consent of the indemnified party) the
defense of any such claim and pay all expenses in connection therewith, including counsel fees, promptly pay, discharge and satisfy any judgment or decree which may be entered against it or any indemnified party in respect of such claim and follow
any written instructions received from such indemnified party in connection with such claim. The Servicer shall be reimbursed promptly from the Custodial Account for all amounts advanced by it pursuant to the preceding sentence except when the claim
is in any way related to the Servicer’s indemnification pursuant to this Section 4.05(c), the failure of the Servicer to service and administer the Mortgage Loans in accordance with the terms of this Agreement, the breach of a representation or
warranty set forth in Section 4.05(a) or the gross negligence, bad faith or willful misconduct of the Servicer. 
  
 Section 4.06. The Servicer. 
  
 (a) Merger or Consolidation of the Servicer. The Servicer shall 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 shall 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 

  

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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, or the parent company of such successor or
surviving Person, shall be an institution (i) having a generally accepted accounting principals (“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
residential mortgage loans, and (iii) who is a Fannie Mae or Freddie Mac 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. 
  
 (b) Limitation on Liability of the Servicer and Others. Neither the Servicer nor any of the directors, officers, employees or agents of the
Servicer shall be under any liability to the Master Servicer, the Depositor, the Issuer, the Indenture Trustee or the Securities Administrator 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; 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 its obligations in strict
compliance with any standard of care set forth in this Agreement, or any liability which would otherwise be imposed by reason of any breach of the terms and conditions of this Agreement (except to the extent otherwise covered by Section 4.05(c)).
The Servicer and any director, 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 any Person 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 expense or liability;
provided, however, that the Servicer may undertake any such action which it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto. In such event, the Servicer shall be entitled to
reimbursement from the Custodial Account for the reasonable legal expenses and costs of such action. 
  
 The Servicer and any director, officer, employee or agent of the Servicer shall be indemnified and held harmless by the Trust against any and all
Liabilities incurred in connection with any legal action relating to this Agreement or the Notes, except to the extent such Liabilities resulted from or arose out of the negligence, bad faith or willful misfeasance in the performance of the
Servicer’s (or any director, officer, employee or agent of the Servicer) duties hereunder or by reason of its reckless disregard of its obligations and duties hereunder. 
  
 (c) Limitation on Resignation and Assignment by the Servicer. The Servicer shall not assign this Agreement or resign
from the obligations and duties hereby imposed on it except by mutual consent of the Servicer and the Master Servicer 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 Seller, the Master Servicer and the 

  

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Indenture Trustee, which Opinion of Counsel shall be in form and substance acceptable to each of them. 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 4.08. 
  
 With respect to the retention of the Servicer to service the Mortgage Loans hereunder, the Servicer acknowledges that the Seller, Master Servicer and
Indenture Trustee have 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, other than in the normal course of business, without the prior written approval of the Seller, the Master Servicer and the Indenture Trustee, which consent shall not be unreasonably withheld;
provided that the Servicer may assign the Agreement and the servicing hereunder without the consent of the Seller, the Master Servicer and the Indenture Trustee 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 has a GAAP net worth of at least $25,000,000 and
(iii) such affiliate shall deliver to the Seller, the Master Servicer and the Indenture Trustee 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 4.06(c), in the event that the Servicer 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 then such parties shall have the right to terminate this Agreement, without any payment of any penalty or damages and without any
liability whatsoever to the Servicer (other than with respect to accrued but unpaid Servicing Fees and Servicing Advances remaining unpaid) or any third party. Nothing in this Section shall restrict the right of the Servicer to cause the Mortgage
Loans to be subserviced as provided in this Agreement. 
  
 (d)
Successor Servicers. The provisions of Sections 4.06(a), (b) and (c) shall apply to any successor to the Servicer hereunder. 
  
 Section 4.07. Termination for Cause. 
  
 Any of the following occurrences shall constitute an event of default (each, a “Servicer Event of Default”) on the part of the Servicer:

  
 (i) any failure by the Servicer to remit to
the Master Servicer any payment required to be made under the terms of this Agreement which continues unremedied for a period of one (1) Business Day; or 
  

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 (ii) failure by 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 (other than Sections 4.04(d) and 4.04(e)) which continues unremedied for a period of thirty (30) days 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 Master Servicer and the remedial period provided for herein has expired; or 
  
 (iii) the Servicer 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 Servicer’s ability to perform its obligations hereunder; or 
  
 (iv) 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, readjustment of debt, including bankruptcy, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Servicer and such
decree or order shall have remained in force undischarged or unstayed for a period of sixty (60) days; or 
  
 (v) the Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to the Servicer or of or relating to all or substantially all of its property; or 
  

(vi) the Servicer shall admit in writing its inability to pay its debts 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, voluntarily suspend payment of its obligations; or 
  
 (vii) the Servicer ceases to be approved by either Fannie Mae or Freddie Mac as a mortgage loan seller or servicer for more than thirty
(30) days; or 
  
 (viii) the Servicer attempts to
assign its right to servicing compensation hereunder or the Servicer attempts, without the consent of the Master Servicer, 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 
  
 (ix) the Servicer fails to meet the eligibility criteria set forth in the last sentence of Section 4.06(a); or 
  
 (x) failure by the Servicer to duly perform, within the
required time period, its obligations under Sections 4.04(d) or 4.04(e) 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 Servicer by the Master Servicer. 
  

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 Then, and in each and every such case, so long as an Event of Default shall not have been remedied, the
Master Servicer, by notice in writing to the Servicer, in addition to whatever rights the Master Servicer may have under Sections 3.03 and 4.05(c) and at law or equity or to damages, including injunctive relief and specific performance, may, and
shall, if so directed by the Majority Noteholders, 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
4.08. Upon written request from the Master Servicer, the Servicer 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 Servicer’s sole expense. The
Servicer agrees to cooperate with the Master Servicer 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. 
  
 By a written notice, the Master Servicer may waive any default by the
Servicer in the performance of its obligations hereunder and its consequences. Upon any 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. 
  
 Section 4.08. Successor to Servicer. Prior to termination of the Servicer’s responsibilities and duties under
this Agreement pursuant to Sections 4.06(c), 4.07 and 5.10, the Master Servicer 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 4.06(a) hereof acceptable to the Rating Agencies, as evidenced by a letter from each Rating Agency to the effect that such an appointment will not result in a qualification, withdrawal or downgrade of the then
current rating of any of the Notes, 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 Master Servicer may make such arrangements for the compensation of such successor out of payments on Mortgage Loans as the Master Servicer 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 

  

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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 Section 4.05(a) and the remedies available to the Master Servicer and the Indenture Trustee under
Sections 4.05(b) and 4.05(c), it being understood and agreed that the provisions of such Sections 4.05(a), 4.05(b) and 4.05(c) 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 Master Servicer 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 4.06(c), 4.07 or 5.10 shall not affect any claims
that the Master Servicer 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 Mortgage 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. Within ten (10) Business Days of the execution and delivery of such instruments, the successor shall 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 by mail the Indenture Trustee, the Master Servicer, the Securities Administrator, the Seller and the Depositor of such appointment. 
  
 Section 4.09. Subservicers and Subservicing Agreements. 
  
 (a) The Mortgage Loans may be subserviced by a subservicer on behalf of the Servicer 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 related subservicing Agreement, and in either case shall be a Freddie Mac 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 Freddie Mac, or
which would require notification to Fannie Mae or Freddie Mac. 

  

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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 Servicer 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 Servicer of the 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 the subservicer as fully as if such acts and omissions were those of the Servicer. The Servicer shall
pay all fees and expenses of the subservicer from its own funds, and the subservicer’s fee shall not exceed the Servicing Fee. Servicer shall notify the master Servicer promptly in writing upon the appointment of any subservicer. 
  
 (b) 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 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 Servicer, at the Servicer’s option, from electing to service the Mortgage Loans itself. In the event that the
Servicer’s responsibilities and duties under this Agreement are terminated and if requested to do so by the Master Servicer, the Servicer shall at its own cost and expense terminate the rights and responsibilities of the 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 the subservicer from the Servicer’s own funds without reimbursement from
the Trust Estate. 
  
 (c) Any subservicing agreement and any other
transactions or services relating to the Mortgage Loans involving a subservicer shall be deemed to be between the subservicer and the Servicer alone and the Master Servicer and the Indenture Trustee shall not be deemed parties thereto and shall have
no claims, rights, obligations, duties or liabilities with respect to any subservicer, except that the Indenture Trustee shall have such claims or rights that arise as a result of any funds held by a subservicer in trust for or on behalf of the
Issuer. Notwithstanding the execution of any subservicing agreement, the Servicer shall not be relieved of any liability hereunder and shall remain obligated and liable for the servicing and administration of the Mortgage Loans. 
  
 (d) 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 Servicer alone, and none of the Master Servicer, the Indenture Trustee, the Depositor or the Issuer shall have no obligations, duties or
liabilities with respect to the subservicer including no obligation, duty or liability of such parties to pay the 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 the subservicer has received such payment. 
  

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 Section 4.10. Superior Liens. 
  
 (a) The Servicer shall file (or cause to be filed) a request for notice of any action by a superior lienholder under a
Superior Lien for the protection of the Indenture Trustee’s interest, where permitted by local law and whenever applicable state law does not require that a junior lienholder be named as a party defendant in foreclosure proceedings in order to
foreclosure such junior lienholder’s equity of redemption. 
  
 (b) If the Servicer is notified that any superior lienholder has accelerated or intends to accelerate the obligations secured by the Superior Lien, or has declared or intends to declare a default under the mortgage or the promissory note
secured thereby, or has filed or intends to file an election to have the Mortgaged Property sold or foreclosed, the Servicer shall take, on behalf of the Trust, whatever actions are necessary to protect the interests of the Trust in accordance with
Accepted Servicing Practices. The Servicer shall not make such a Servicing Advance except to the extent that it determines in its reasonable good faith judgment that such advance would be recoverable from Liquidation Proceeds on the related Mortgage
Loan. The Servicer shall thereafter take such action as is necessary to recover the amount so advanced. 
  
 (c) The Servicer may, in accordance with Accepted Servicing Practices, consent to the refinancing of any Superior Lien on a Mortgaged Property.

  
 ARTICLE V 
  
 ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS 
 BY THE MASTER SERVICER AND THE SECURITIES ADMINISTRATOR 
  
 Section 5.01. Duties of the Master Servicer; Representations and Warranties.  
  
 (a) For and on behalf of the Issuer, the Indenture Trustee and the Noteholders, the Master Servicer shall master service the
Mortgage Loans from and after the Closing Date in accordance with the provisions of this Article V. The Master Servicer hereby represents and warrants to the Depositor, the Issuer, the Indenture Trustee, the Securities Administrator and the
Servicer, as of the Closing Date, that: 
  
 (i)
it is validly existing and in good standing as a federally chartered national banking association and as Master Servicer has full power and authority to transact any and all business contemplated by this Agreement and to execute, deliver and comply
with its obligations under the terms of this Agreement, the execution, delivery and performance of which have been duly authorized by all necessary corporate action on the part of the Master Servicer. The Master Servicer is duly qualified to do
business as a foreign corporation and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have
a material adverse effect 

  

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on the business, properties, assets, or condition (financial or other) of the Master Servicer or the validity or enforceability of this Agreement;

  
 (ii) the execution and delivery of this
Agreement by the Master Servicer and its performance and compliance with the terms of this Agreement will not (A) violate the Master Servicer’s charter or bylaws, (B) violate any law or regulation or any administrative decree or order to which
it is subject or (C) constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material contract, agreement or other instrument to which the Master Servicer is
a party or by which it is bound or to which any of its assets are subject, which violation, default or breach would materially and adversely affect the Master Servicer’s ability to perform its obligations under this Agreement; 
  
 (iii) this Agreement constitutes, assuming due
authorization, execution and delivery hereof by the other respective parties hereto, a legal, valid and binding obligation of the Master Servicer, enforceable against it in accordance with the terms hereof, except as such enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or
at law); 
  
 (iv) the Master Servicer is not in
default with respect to any order or decree of any court or any order or regulation of any federal, state, municipal or governmental agency to the extent that any such default would materially and adversely affect its performance hereunder;

  
 (v) the Master Servicer is not a party to or
bound by any agreement or instrument or subject to any charter provision, bylaw or any other corporate restriction or any judgment, order, writ, injunction, decree, law or regulation that may materially and adversely affect its ability as Master
Servicer to perform its obligations under this Agreement or that requires the consent of any third person to the execution of this Agreement or the performance by the Master Servicer of its obligations under this Agreement; 
  
 (vi) no litigation is pending or, to the best of the Master
Servicer’s knowledge, threatened against the Master Servicer which would prohibit its entering into this Agreement or performing its obligations under this Agreement; 
  
 (vii) the Master Servicer, or an affiliate thereof the primary business of which is the servicing of
residential mortgage loans, is a Fannie Mae- or Freddie Mac-approved seller/servicer of residential mortgage loans for Fannie Mae, Freddie Mac and HUD; 
  
 (viii) no consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery
and performance by the Master 

  

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Servicer of or compliance by the Master Servicer with this Agreement or the consummation of the transactions contemplated by this Agreement, except for such
consents, approvals, authorizations and orders (if any) as have been obtained; 
  
 (ix) the consummation of the transactions contemplated by this Agreement are in the ordinary course of business of the Master Servicer;

  
 (x) the Master Servicer has obtained a Master
Servicer Errors and Omissions Insurance Policy and a Master Servicer Fidelity Bond in accordance with Section 5.02 each of which is in full force and effect, and each of which provides at least such coverage as is required hereunder; and 

 
 (xi) the information about the Master Servicer under the
heading “The Master Servicer” in the Offering Documents relating to the Master Servicer does not include an untrue statement of a material fact and does not omit to state a material fact, with respect to the statements made, necessary in
order to make the statements in light of the circumstances under which they were made not misleading. 
  
 (b) It is understood and agreed that the representations and warranties set forth in this Section 5.01 shall survive the execution and delivery of this
Agreement. The Master Servicer shall indemnify the Seller, the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee, the Securities Administrator and the Servicer and hold them harmless against any loss, damages, penalties, fines,
forfeitures, legal fees and related costs, judgments, and other costs and expenses resulting from any claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of the Master Servicer’s representations and
warranties contained in this Section 5.01. It is understood and agreed that the enforcement of the obligation of the Master Servicer set forth in this Section to indemnify the foregoing parties as provided in this Section constitutes the sole remedy
(other than as set forth in Section 8.01) of such parties respecting a breach of the foregoing representations and warranties. Such indemnification shall survive any termination of the Master Servicer as Master Servicer hereunder, and any
termination of this Agreement. 
  
 Any cause of action against the
Master Servicer relating to or arising out of the breach of any representations and warranties made in this Section shall accrue upon discovery of such breach by the Seller, the Depositor, the Issuer, the Indenture Trustee, the Securities
Administrator or the Servicer or notice thereof by any one of such parties to the other parties. Notwithstanding anything in this Agreement to the contrary, the Master Servicer shall not be liable for special, indirect or consequential losses or
damages of any kind whatsoever (including, but not limited to, lost profits). 
  
 Section 5.02. Master Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance Policy. 
  
 (a) The Master Servicer, at its expense, shall maintain in effect a Master Servicer Fidelity Bond and a Master Servicer Errors and Omissions Insurance
Policy, affording coverage with 

  

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respect to all directors, officers, employees and other Persons acting on such Master Servicer’s behalf, and covering errors and omissions in the
performance of the Master Servicer’s obligations hereunder. The Master Servicer Errors and Omissions Insurance Policy and the Master Servicer Fidelity Bond shall be in such form and amount that would be consistent with coverage customarily
maintained by master servicers of mortgage loans similar to the Mortgage Loans and shall by its terms not be cancelable without thirty days’ prior written notice to the Indenture Trustee. The Master Servicer shall provide the Depositor and the
Indenture Trustee, upon request, with a copy of such policy and fidelity bond. The Master Servicer shall (i) require the Servicer to maintain a Servicer Errors and Omissions Insurance Policy and a Servicer Fidelity Bond in accordance with the
provisions of Section 4.02(l) of this Agreement, (ii) cause the Servicer to provide to the Master Servicer certificates evidencing that such policy and bond is in effect and to furnish to the Master Servicer any notice of cancellation, non-renewal
or modification of the policy or bond received by it, as and to the extent provided in Section 4.02(l) of the Agreement, and (iii) furnish copies of such policies and of the certificates and notices referred to in clause (ii) to the Indenture
Trustee upon request. 
  
 (b) The Master Servicer shall promptly
report to the Indenture Trustee and the Securities Administrator any material changes that may occur in the Master Servicer Fidelity Bond or the Master Servicer Errors and Omissions Insurance Policy and shall furnish either such party, on request,
certificates evidencing that such bond and insurance policy are in full force and effect. The Master Servicer shall promptly report to the Indenture Trustee and the Securities Administrator all cases of embezzlement or fraud, if such events involve
funds relating to the Mortgage Loans. The total losses, regardless of whether claims are filed with the applicable insurer or surety, shall be disclosed in such reports together with the amount of such losses covered by insurance. If a bond or
insurance claim report is filed with any of such bonding companies or insurers, the Master Servicer shall promptly furnish a copy of such report to the Indenture Trustee and the Securities Administrator. Any amounts relating to the Mortgage Loans
collected by the Master Servicer under any such bond or policy shall be promptly remitted by the Master Servicer to the Securities Administrator for deposit into the Collection Account. Any amounts relating to the Mortgage Loans collected by the
Servicer under any such bond or policy shall be remitted to the Master Servicer. 
  
 Section 5.03. Master Servicer’s Financial Statements and Related Information. For each year this Agreement is in effect, the Master Servicer shall deliver to the Securities Administrator, the Indenture
Trustee, each Rating Agency and the Depositor a copy of its annual unaudited financial statements on or prior to May 31 of each year, beginning May 31, 2005. Such financial statements shall include a balance sheet, income statement, statement of
retained earnings, statement of additional paid-in capital, statement of changes in financial position and all related notes and schedules and shall be in comparative form, certified by a nationally recognized firm of Independent Accountants to the
effect that such statements were examined and prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 
  

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 Section 5.04. Power to Act; Procedures. 
  
 (a) The Master Servicer shall master service the Mortgage Loans,
provided that the Master Servicer shall not take, or knowingly permit the Servicer to take, any action that is inconsistent with or prejudices the interests of the Issuer, the Indenture Trustee or the Noteholders in any Mortgage Loan or the
rights and interests of the Depositor, the Issuer, the Indenture Trustee and the Noteholders under this Agreement and the Indenture. The Master Servicer shall represent and protect the interests of the Issuer, the Indenture Trustee and the
Noteholders in the same manner as it protects its own interests in mortgage loans in its own portfolio in any claim, proceeding or litigation regarding a Mortgage Loan. Without limiting the generality of the foregoing, the Master Servicer in its own
name, and the Servicer, to the extent such authority is delegated to such Servicer under this Agreement, is hereby authorized and empowered by the Indenture Trustee when the Master Servicer or such Servicer, as the case may be, believes it
appropriate in its best judgment and in accordance with Accepted Servicing Practices, to execute and deliver, on behalf of itself and the Noteholders, the Securities Administrator, the Indenture Trustee or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans and with respect to the Mortgaged Properties. The Indenture Trustee shall furnish the Master Servicer,
upon request, with any powers of attorney (on the standard form used by the Indenture Trustee) empowering the Master Servicer or the Servicer to execute and deliver instruments of satisfaction or cancellation, or of partial or full release or
discharge, and to foreclose upon or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in any court action relating to the Mortgage Loans or the Mortgaged Property, in accordance with this Agreement, and the Indenture Trustee
shall execute and deliver such other documents as the Master Servicer may request, necessary or appropriate to enable the Master Servicer to master service the Mortgage Loans and carry out its duties hereunder, and to allow the Servicer to service
the Mortgage Loans in each case in accordance with Accepted Servicing Practices (and the Indenture Trustee or the Securities Administrator shall have no liability for misuse of any such powers of attorney by the Master Servicer or the Servicer). If
the Master Servicer or the Indenture 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 Indenture Trustee or that the Indenture Trustee would be
adversely affected under the “doing business” or tax laws of such state if such action is taken in its name, then upon request of the Indenture Trustee, the Master Servicer shall join with the Indenture Trustee in the appointment of a
co-trustee pursuant to Section 6.10 of the Indenture. In no event shall the Master Servicer, without the Indenture Trustee’s written consent: (i) initiate any action, suit or proceeding solely under the Indenture Trustee’s name without
indicating the Master Servicer’s representative capacity or (ii) take any action with the intent to cause, and which actually does cause, the Indenture Trustee to be registered to do business in any state. The Master Servicer shall indemnify
the Indenture Trustee for any and all costs, liabilities and expenses incurred by the Indenture Trustee in connection with the negligent or willful misuse of such powers of attorney by the Master Servicer. 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 Indenture Trustee, be deemed to be the agent of the Indenture Trustee. 
  
 (b) In master servicing and administering the Mortgage Loans, the Master
Servicer shall employ procedures and exercise the same care that it customarily employs and exercises in master 

  

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servicing and administering loans for its own account, giving due consideration to Accepted Servicing Practices where such practices do not conflict with
this Agreement. 
  
 Section 5.05. Enforcement of
Servicer’s and Master Servicer’s Obligations. 
  
 (a) The Master Servicer shall not be required to (i) take any action with respect to the servicing of any Mortgage Loan that the Servicer is not required to take under this Agreement and (ii) cause the Servicer to take any action or refrain
from taking any action if this Agreement does not require the Servicer to take such action or refrain from taking such action. 
  
 (b) The Master Servicer, for the benefit of the Issuer, the Indenture Trustee and the Noteholders, shall enforce the obligations of the Servicer
hereunder, and shall, in the event that the Servicer fails to perform its obligations in accordance herewith, terminate the rights and obligations of the Servicer hereunder and either act as servicer of the related Mortgage Loans or cause other
parties hereto to either assume the obligations of the Servicer under this Agreement (or agree to execute and deliver a successor servicing or subservicing agreement with a successor servicer). Such enforcement, including, without limitation, the
legal prosecution of claims, termination of servicing or subservicing rights 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, and shall be reimbursed therefor initially (i) from a general recovery resulting from such
enforcement only to the extent, if any, that such recovery exceeds all amounts due in respect of the related Mortgage Loans, (ii) from a specific recovery of costs, expenses or attorneys’ fees against the party against whom such enforcement is
directed, and then, (iii) to the extent that such amounts are insufficient to reimburse the Master Servicer for the costs of such enforcement, from the Collection Account. 
  
 Section 5.06. Collection Account. 
  
 (a) On the Closing Date, the Master Servicer shall open and shall thereafter maintain a segregated account held in trust in
the name of the Indenture Trustee (the “Collection Account”), entitled “Collection Account, U.S. Bank National Association, as Indenture Trustee, in trust for Holders of the HomeBanc Mortgage Trust 2005-3, Mortgage Backed Notes.”
The Collection Account shall relate solely to the Notes issued by the Issuer, and funds deposited in the Collection Account shall not be commingled with any other monies. 
  
 (b) The Collection Account shall be an Eligible Account. If an existing Collection Account ceases to be an Eligible Account,
the Securities Administrator shall establish a new Collection Account that is an Eligible Account within ten (10) days and transfer all funds and investment property on deposit in such existing Collection Account into such new Collection Account.

  
 (c) The Master Servicer shall give to the Securities
Administrator and the Indenture Trustee prior written notice of the name and address of the depository institution at which the 

  

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Collection Account is maintained and the account number of such Collection Account. The Master Servicer shall take such actions as are necessary to cause the
depository institution holding the Collection Account to hold such account in the name of the Indenture Trustee. On each Payment Date, the entire amount on deposit in the Collection Account relating to the Mortgage Loans (subject to permitted
withdrawals set forth in Section 5.07), other than amounts not included in Interest Funds or Principal Funds to be paid to Noteholders for such Payment Date, shall be applied to make the requested payment of principal and/or interest on each Class
of Notes. 
  
 (d) The Master Servicer shall deposit or cause to be
deposited in the Collection Account on the earlier of the applicable Payment Date and one Business Day following receipt thereof, the following amounts received or payments made by the Master Servicer (other than in respect of principal of and
interest on the Mortgage Loans due on or before the Cut-off Date): 
  
 (i) all remittances from the Custodial Account to the Master Servicer pursuant to Section 4.03; 
  
 (ii) all Monthly Advances made by the Servicer or the Master Servicer pursuant to Section 6.04 hereof and any payment in respect of
Prepayment Interest Shortfalls paid by the Master Servicer pursuant to Section 5.16 hereof; and 
  
 (iii) the Purchase Price of any Mortgage Loan repurchased by the Depositor or the Seller during the related Prepayment Period or any other
Person and any Substitution Amount related to any Qualifying Substitute Mortgage Loan. 
  
 (e) Funds in the Collection Account may be invested by the Master Servicer in Eligible Investments selected by and at the written direction of the Master Servicer, which shall mature not later than one Business Day
prior to the next Payment Date (or on the Payment Date with respect to any Eligible Investment of the Master Servicer or any other fund managed or advised by it or any Affiliate) and any such Eligible Investment shall not be sold or disposed of
prior to its maturity. All such Eligible Investments shall be made in the name of the Master Servicer in trust for the benefit of the Indenture Trustee and the Noteholders. All income and gain net of the Indenture Trustee Fee, the Owner Trustee Fee,
the Custodian Fee and any losses realized from any such investment of funds on deposit in the Collection Account shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time, subject to Section
5.07 and shall not be part of the Trust Estate. The amount of any losses incurred in respect of any such investments shall be deposited in such Collection Account by the Master Servicer out of its own funds, without any right of reimbursement
therefor, immediately as realized. The foregoing requirements for deposit in the Collection Account are exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments of interest on funds in the Collection
Account and payments in the nature of late payment charges, assumption fees and other incidental fees and charges relating to the Mortgage Loans need not be deposited by the Master Servicer in the Collection Account and may be retained by the Master
Servicer or the Servicer, as applicable, as additional servicing compensation. If the Master 

  

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Servicer deposits in the Collection Account any amount not required to be deposited therein, it may at any time withdraw such amount from such Collection
Account. 
  
 Section 5.07. Application of Funds in the
Collection Account. The Master Servicer shall withdraw funds from the Collection Account for payments to the Note Payment Account pursuant to Section 6.01. In addition, the Master Servicer may prior to making the payment pursuant to Section 6.01
from time to time make withdrawals from the Collection Account for the following purposes: 
  
 (i) to pay to the Indenture Trustee and the Owner Trustee, the Indenture Trustee Fee and the Owner Trustee Fee, respectively, and to pay
to the Custodian its fees, in each case on the Payment Date each year in the month in which such Indenture Trustee Fee and Owner Trustee Fee, and the fees of the Custodian, as applicable, are due and payable pursuant to the terms of the respective
fee letter agreements with the Indenture Trustee, the Owner Trustee and the Custodian; 
  
 (ii) to reimburse the Master Servicer or the Servicer, as applicable, for any previously unreimbursed Monthly Advances or Servicing
Advances made by any such party, such right to reimbursement pursuant to this subclause (ii) being limited to amounts received on or in respect of a particular Mortgage Loan (including, for this purpose, Liquidation Proceeds, Condemnation Proceeds
and amounts representing Insurance Proceeds with respect to the property subject to the related Mortgage) which represent late recoveries (net of the applicable Servicing Fee) of payments of principal or interest respecting which any such Monthly
Advance was made, it being understood, in the case of any such reimbursement, that the Master Servicer’s or Servicer’s right thereto shall be prior to the rights of the Noteholders; 
  
 (iii) to reimburse the Master Servicer or the Servicer
following a final liquidation of a Mortgage Loan for any previously unreimbursed Monthly Advances made by any such party (A) that such party determines in good faith will not be recoverable from amounts representing late recoveries of payments of
principal or interest respecting the particular Mortgage Loan as to which such Monthly Advance was made or from Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds with respect to such Mortgage Loan and/or (B) to the extent that such
unreimbursed Monthly Advances exceed the related Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds, it being understood, in the case of each such reimbursement, that the Master Servicer’s or Servicer’s right thereto shall
be prior to the rights of the Noteholders; 
  
 (iv) to reimburse the Master Servicer or the Servicer from Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds for Liquidation Expenses and for amounts expended by it pursuant to Section 4.02(n) in good faith in connection
with the restoration of damaged property and, to the extent that Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds after such reimbursement exceed the unpaid principal balance of the related Mortgage Loan, together with accrued and
unpaid 

  

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interest thereon at the applicable Mortgage Rate less the Servicing Fee Rate for such Mortgage Loan to the Due Date next succeeding the date of its receipt
of such Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds, to pay to the Master Servicer or the Servicer out of such excess the amount of any unpaid assumption fees, late payment charges or other Mortgagor charges on the related
Mortgage Loan and to retain any excess remaining thereafter as additional servicing compensation, it being understood, in the case of any such reimbursement or payment, that such Master Servicer’s or Servicer’s right thereto shall be prior
to the rights of the Noteholders; 
  
 (v) to pay
to the Depositor or the Seller or any other Person, as applicable, with respect to each Mortgage Loan or REO Property acquired in respect thereof that has been purchased pursuant to this Agreement, all amounts received thereon and not paid on the
date on which the related repurchase was effected, and to pay to the applicable party any Monthly Advances and Servicing Advances to the extent specified in the definition of Purchase Price; 
  
 (vi) to the extent not paid by the Servicer, to pay any
insurance premium with respect to a Mortgage Loan; 
  
 (vii) to pay to the Master Servicer income earned on the investment of funds on deposit in the Collection Account; 
  
 (viii) to make payment to itself, the Master Servicer, the Securities Administrator, the Servicer, the Indenture Trustee, the Custodian,
the Owner Trustee and others pursuant to any provision of any Operative Agreement; 
  
 (ix) to withdraw funds deposited in error in the Collection Account; 
  
 (x) to clear and terminate the Collection Account pursuant to Article IX; and 
  
 (xi) to reimburse a successor master servicer (solely in its
capacity as successor master servicer), for any fee or advance occasioned by a termination of the Master Servicer and the assumption of such duties by the Indenture Trustee as successor master servicer or a successor master servicer appointed by the
Indenture Trustee pursuant to Section 8.01, in each case to the extent not reimbursed by the terminated Master Servicer, it being understood, in the case of any such reimbursement or payment, that the right of the Master Servicer or the Indenture
Trustee thereto shall be prior to the rights of the Noteholders. 
  
 In connection with withdrawals pursuant to subclauses (ii) through (iv) above, the Master Servicer’s or the Servicer’s or such other Person’s entitlement thereto is limited to collections or other recoveries on the related
Mortgage Loan. The Master Servicer shall therefore keep and maintain a separate accounting for each Mortgage Loan for the purpose of justifying any withdrawal from the Collection Account it maintains pursuant to such subclauses. 
  

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 Section 5.08. Reports to Indenture Trustee and Noteholders. 
  
 (a) On each Payment Date, the Securities Administrator shall make available
to the Indenture Trustee and each Noteholder a report setting forth the following information (on the basis of Mortgage Loan level information obtained from the Servicer): 
  
 (i) the aggregate amount of the payment to be made on such Payment Date to the Holders of each Class of
Notes, to the extent applicable, allocable to principal on the Mortgage Loans, including Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds, stating separately the amount attributable to scheduled principal payments and unscheduled
payments in the nature of principal; 
  
 (ii) the
aggregate amount of the payment to be made on such Payment Date to the Holders of each Class of Notes allocable to interest and the calculation thereof; 
  
 (iii) the amount, if any, of any payment to the Holder of the Ownership Certificate; 
  
 (iv) (A) the aggregate amount of any Monthly Advances
required to be made by or on behalf of the Servicer (or the Master Servicer) with respect to such Payment Date, (B) the aggregate amount of such Monthly Advances actually made, and (C) the amount, if any, by which (A) above exceeds (B) above;

  
 (v) the aggregate amount of Servicing
Advances required to be made by or on behalf of the Servicer (or the Master Servicer) with respect to such Payment Date; 
  
 (vi) the aggregate amount of unreimbursed Monthly Advances outstanding and Servicing Advances outstanding with respect to such Payment
Date; 
  
 (vii) the aggregate amount of
Nonrecoverable Advances with respect to such Payment Date; 
  
 (viii) the total number of Mortgage Loans, the aggregate Scheduled Principal Balance of all the Mortgage Loans as of the close of business on the last day of the related Collection Period, after giving effect to
payments allocated to principal reported under clause (i) above; 
  
 (ix) the Class Principal Amount of each Class of Notes, to the extent applicable, as of such Payment Date after giving effect to payments allocated to principal reported under clause (i) above; 
  
 (x) the amount of any Realized Losses incurred with respect
to the Mortgage Loans (x) in the applicable Prepayment Period and (y) in the aggregate since the Cut-off Date; 
  

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 (xi) the amount of the Servicing Fee paid during the Collection Period to which such
payment relates; 
  
 (xii) the number and
aggregate Scheduled Principal Balance of Mortgage Loans, as reported to the Securities Administrator by the Servicer, (a) remaining outstanding, (b) Delinquent 30 to 59 days on a contractual basis, (c) Delinquent 60 to 89 days on a contractual
basis, (d) Delinquent 90 or more days on a contractual basis, (e) 180 days or more Delinquent and charged off; (f) as to which foreclosure proceedings have been commenced as of the close of business on the last Business Day of the calendar month
immediately preceding the month in which such Payment Date occurs, (g) in bankruptcy and (h) that are REO Properties; 
  
 (xiii) the aggregate Scheduled Principal Balance of any Mortgage Loans with respect to which the related Mortgaged Property became an REO
Property as of the close of business on the last Business Day of the calendar month immediately preceding the month in which such Payment Date occurs; 
  
 (xiv) with respect to substitution of Mortgage Loans in the preceding calendar month, the Scheduled Principal Balance of each Deleted
Mortgage Loan and of each Qualifying Substitute Mortgage Loan; 
  
 (xv) the aggregate outstanding Prepayment Interest Shortfalls, Basis Risk Shortfalls and Basis Risk Shortfall Carryforward Amounts, if any, for each Class of Notes, after giving effect to the payments made on such
Payment Date; 
  
 (xvi) the Note Interest Rate
applicable to such Payment Date with respect to each Class of Notes; 
  
 (xvii) the Interest Funds, the Principal Funds and the Extra Principal Payment Amount applicable to such Payment Date; 
  
 (xviii) if applicable, the amount of any shortfall (i.e., the difference between the aggregate amounts of principal and interest which
Noteholders would have received if there were sufficient available amounts in the Collection Account and the amounts actually paid); 
  
 (xix) the amount of any Principal Deficiency Amount and Deferred Interest with respect to each Class of Notes, after giving effect to
payments on such Payment Date; 
  
 (xx) any
Overcollateralization Deficiency after giving effect to the payments made on such Payment Date; and 
  
 (xxi) LIBOR with respect to such Payment Date. 
  

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 In the case of information furnished pursuant to subclauses (i), (ii) and (ix) above, the amounts shall
(except in the case of the report delivered to the holder of the Ownership Certificate) be expressed as a dollar amount per $1,000 of original principal amount of Notes. 
  
 The Securities Administrator will make such report and additional loan level information (and, at its option, any additional
files containing the same information in an alternative format) available each month to the Rating Agencies and Noteholders via the Securities Administrator’s website. The Securities Administrator’s website can be accessed at
www.ctslink.com. Assistance in using the website can be obtained by calling the Securities Administrator’s customer service desk at (301) 815-6600. Such parties that are unable to use the website are entitled to have a paper copy mailed
to them via first class mail by notifying the Securities Administrator at Wells Fargo Bank, N.A., P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries at 9062 Old Annapolis Road, Columbia, Maryland 21045), 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. 
  
 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 12:00 p.m. (noon) Eastern Standard Time four Business Days prior to the Payment Date. In preparing or furnishing the foregoing information, the Securities Administrator and the Master
Servicer 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 Master Servicer by the Servicer, and neither the Securities
Administrator nor the Master Servicer shall be obligated to verify, recompute, reconcile or recalculate any such information or data. The Securities Administrator, the Indenture Trustee, the Custodian and the Master Servicer shall be entitled to
conclusively rely on the Mortgage Loan data provided to the Master Servicer and shall have no liability for any errors in such Mortgage Loan data. 
  
 (b) Upon the reasonable advance written request of any Noteholder that is a savings and loan, bank or insurance company, which request, if received by the
Indenture Trustee shall be forwarded promptly to the Securities Administrator, the Securities Administrator shall provide, or cause to be provided (or, to the extent that such information or documentation is not required to be provided by the
Servicer, shall use reasonable efforts to obtain such information and documentation from the Servicer, and provide), to such Noteholder such reports and access to information and documentation regarding the Mortgage Loans as such Noteholder may
reasonably deem necessary to comply with applicable regulations of the Office of Thrift Supervision or its successor or other regulatory authorities with respect to an investment in the Notes; provided, however, that the Securities
Administrator shall be entitled to be reimbursed by such Noteholder for actual expenses incurred in providing such reports and access. 
  

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 (c) Within ninety (90) days, or such shorter period as may be required by statute or regulation, after
the end of each calendar year, the Securities Administrator shall have prepared and shall make available to each Person who at any time during the calendar year was a Noteholder of record, and make available to Security Owners (identified as such by
the Clearing Agency) in accordance with applicable regulations, a report summarizing the items provided to the Noteholders pursuant to Section 5.08(a) on an annual basis as may be required to enable such Holders to prepare their federal income tax
returns. Such information shall include the amount of original issue discount accrued on each Class of Notes and information regarding the expenses of the Issuer. The Securities Administrator shall be deemed to have satisfied such requirement if it
forwards such information in any other format permitted by the Code. The Master Servicer shall provide the Securities Administrator with such information as is necessary for the Securities Administrator to prepare such reports. 
  
 (d) The Securities Administrator shall furnish any other information that is
required by the Code and regulations thereunder to be made available to Noteholders. The Master Servicer shall provide the Securities Administrator with such information as is necessary for the Securities Administrator to prepare such reports (and
the Securities Administrator may rely solely upon such information). 
  
 Section 5.09. Termination of Servicer; Successor Servicers. 
  
 (a) The Master Servicer shall be entitled to terminate the rights and obligations of the Servicer upon the occurrence of a Servicer Event of Default as set forth in Section 4.07; provided, however, that in the
event of termination of the Servicer, the Master Servicer shall provide for the servicing of the Mortgage Loans by a successor servicer as provided in Section 4.08. 
  
 The parties acknowledge that notwithstanding the preceding sentence, there may be a transition period, not to exceed 90
days, in order to effect the transfer of servicing to a successor servicer. The Master Servicer shall be entitled to be reimbursed by the Servicer (or by the Trust Estate, if the Servicer is unable to fulfill its obligations hereunder) for all costs
associated with the transfer of servicing, including without limitation, any costs or 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 to correct any errors or insufficiencies in the servicing data or otherwise to enable the Master Servicer to service the Mortgage Loans properly and effectively. 
  
 (b) If the Master Servicer acts as a successor Servicer, it shall not assume liability for the representations and
warranties of the Servicer that it replaces. The Master Servicer shall use reasonable efforts to have the successor Servicer assume liability for the representations and warranties made by the terminated Servicer and in the event of any such
assumption by the successor servicer, the Master Servicer may, in the exercise of its business judgment, release the terminated Servicer from liability for such representations and warranties. 
  

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 (c) If the Master Servicer acts as a successor Servicer, it will have no obligation to make a Monthly
Advance if it determines in its reasonable judgment that such Monthly Advance would constitute a Nonrecoverable Advance. 
  
 Section 5.10. Master Servicer Liable for Enforcement. The Master Servicer shall use commercially reasonable efforts to ensure that the Mortgage
Loans are serviced in accordance with the provisions of this Agreement and shall use commercially reasonable efforts to enforce the provisions of Article IV for the benefit of the Noteholders. The Master Servicer shall be entitled to enter into any
agreement with any Servicer for indemnification of the Master Servicer and nothing contained in this Agreement shall be deemed to limit or modify such indemnification. Except as expressly set forth herein, the Master Servicer shall have no liability
for the acts or omissions of the Servicer in the performance by such Servicer of its obligations under Article IV. 
  
 Section 5.11. Assumption of Master Servicing by Indenture Trustee. 
  
 (a) In the event the Master Servicer shall for any reason no longer be the Master Servicer (including by reason of any
Master Servicer Event of Default under Section 8.01 of this Agreement), the Indenture Trustee shall thereupon assume all of the rights and obligations of such Master Servicer hereunder. The Indenture Trustee, its designee or any successor master
servicer appointed by the Indenture Trustee shall be deemed to have assumed all of the Master Servicer’s interest herein, except that the Master Servicer shall not thereby be relieved of any liability or obligations of the Master Servicer
accruing prior to its replacement as Master Servicer, and shall be liable to the Indenture Trustee, and hereby agrees to indemnify and hold harmless the Indenture Trustee from and against all costs, damages, expenses and liabilities (including
reasonable attorneys’ fees) incurred by the Indenture Trustee as a result of such liability or obligations of the Master Servicer and in connection with the Indenture Trustee’s assumption (but not its performance, except to the extent that
costs or liability of the Indenture Trustee are created or increased as a result of negligent or wrongful acts or omissions of the Master Servicer prior to its replacement as Master Servicer) of the Master Servicer’s obligations, duties or
responsibilities thereunder. 
  
 (b) The Master Servicer that has
been terminated shall, upon request of the Indenture Trustee but at the expense of such Master Servicer, deliver to the assuming party all documents and records relating to the Mortgage Loans and an accounting of amounts collected and held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of master servicing to the assuming party. 
  
 Section 5.12. Release of Mortgage Files. 
  
 (a) Upon (i) becoming aware of the payment in full of any Mortgage Loan or (ii) the receipt by the Servicer of a notification that payment in full has
been or will be escrowed in a manner customary for such purposes, the Servicer, promptly notify the Indenture Trustee (or the Custodian) by a certification (which certification shall include a statement to the effect that all 

  

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amounts received in connection with such payment that are required to be deposited in the Collection Account maintained by the Master Servicer pursuant to
Section 5.06 have been or will be so deposited) of a Servicing Officer and shall deliver a Request for Release in the form of Exhibit A-5 hereto to the Indenture Trustee or the Custodian with respect to such Mortgage Loan. Upon receipt of such
certification and Request for Release, the Indenture Trustee or the Custodian (with the consent, and at the direction of the Indenture Trustee), shall promptly release the related Mortgage File to the Servicer and the Indenture Trustee shall have no
further responsibility with regard to such Mortgage File. Upon any such payment in full, the Servicer is authorized, to give, as agent for the Indenture Trustee, as the mortgagee under the Mortgage that secured the Mortgage Loan, an instrument of
satisfaction (or assignment of mortgage without recourse) regarding the Mortgaged Property subject to the Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons entitled thereto
against receipt therefor of such payment, it being understood and agreed that no expenses incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account. 
  
 (b) From time to time and as appropriate for the servicing or foreclosure of
any Mortgage Loan, including, for this purpose, collection under any Primary Insurance Policy, the Indenture Trustee shall execute such documents as shall be prepared and furnished to the Indenture Trustee by the Servicer (in form reasonably
acceptable to the Indenture Trustee) and as are necessary to the prosecution of any such proceedings. The Indenture Trustee or the Custodian, shall, upon request of the Master Servicer or of the Servicer, as applicable, and delivery to the Indenture
Trustee or the Custodian, of a Request for Release signed by a Servicing Officer, release the related Mortgage File held in its possession or control to the Master Servicer (or the Servicer, as applicable). Such trust receipt shall obligate the
Master Servicer or the Servicer, as applicable, to return the Mortgage File to the Indenture Trustee or the Custodian, as applicable, when the need therefor by the Master Servicer or the 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 Collection 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 Servicer 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. 
  
 (c) At any time that the Servicer is required to deliver to the Custodian a
Request for Release, the Servicer shall deliver two copies of the Request for Release if delivered in hard copy or the Servicer 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, if required, be followed by an assignment of
mortgage, without recourse, representation or warranty from the Indenture Trustee to the Seller and the related Mortgage Note shall be endorsed either in blank or without recourse by the 

  

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Indenture Trustee 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, if required, be accompanied by a certificate of satisfaction or other similar instrument to be executed by or on behalf of the Indenture Trustee and returned to the Servicer. 
  
 Section 5.13. Documents, Records and Funds in Possession of Master
Servicer to be Held for Indenture Trustee. 
  
 (a) The Master
Servicer shall transmit, or cause the Servicer to transmit, to the Indenture Trustee such documents and instruments coming into the possession of the Master Servicer or the Servicer from time to time as are required by the terms hereof to be
delivered to the Indenture Trustee or the Custodian. Any funds received by the Master Servicer or by the Servicer in respect of any Mortgage Loan or which otherwise are collected by the Master Servicer or the Servicer as Liquidation Proceeds,
Condemnation Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be held for the benefit of the Indenture Trustee and the Noteholders subject to the Master Servicer’s right to retain or withdraw amounts provided in this
Agreement and to the right of the Servicer to retain its Servicing Fee and other amounts as provided herein. The Master Servicer shall, and shall cause the Servicer to, provide access to information and documentation regarding the Mortgage Loans to
the Indenture Trustee, their respective agents and accountants at any time upon reasonable request and during normal business hours, and to Noteholders 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 or the Servicer, in respect of any Mortgage Loans,
whether from the collection of principal and interest payments or from Liquidation Proceeds, Condemnation Proceeds or Insurance Proceeds, shall be held by the Master Servicer or by the Servicer for and on behalf of the Indenture Trustee as the
Indenture Trustee’s agent and bailee for purposes of perfecting the Indenture Trustee’s security interest therein as provided by relevant Uniform Commercial Code or laws; provided, however, that the Master Servicer 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 or the Servicer under this Agreement and shall be authorized to remit such funds to the Securities
Administrator in accordance with this Agreement. 
  
 (c) The
Servicer and the Master Servicer each hereby acknowledges that concurrently with the execution of this Agreement, the Indenture Trustee shall own or, to the extent that a court of competent jurisdiction shall deem the conveyance of the Mortgage
Loans from the Seller to the Depositor not to constitute a sale, the Indenture Trustee shall have a security interest in the Mortgage Loans and in all Mortgage Files representing such Mortgage Loans and in all funds and 

  

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investment property now or hereafter held by, or under the control of, the Servicer or the Master Servicer that are collected by the Servicer or the Master
Servicer in connection with the Mortgage Loans, whether as scheduled installments of principal and interest or as full or partial prepayments of principal or interest or as Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds or
otherwise, and in all proceeds of the foregoing and proceeds of proceeds (but excluding any fee or other amounts to which the Servicer or the Master Servicer is entitled to hereunder); and the Servicer and the Master Servicer each agrees that so
long as the Mortgage Loans are assigned to and held by the Indenture Trustee or the Custodian, all documents or instruments constituting part of the Mortgage Files, and such funds relating to the Mortgage Loans which come into the possession or
custody of, or which are subject to the control of, the Master Servicer or the Servicer shall be held by the Master Servicer or the Servicer for and on behalf of the Indenture Trustee as the Indenture Trustee’s agent and bailee for purposes of
perfecting the Indenture Trustee’s security interest therein as provided by the applicable Uniform Commercial Code or other applicable laws. 
  
 (d) The Master Servicer agrees that it shall not, and shall not authorize the Servicer to, create, incur or subject any Mortgage Loans, or any funds that
are deposited in any Custodial Account, Escrow Account or the Collection Account, or any funds that otherwise are or may become due or payable to or for the benefit of the Indenture Trustee, to any claim, lien, security interest, judgment, levy,
writ of attachment or other encumbrance, nor assert by legal action or otherwise any claim or right of setoff against any Mortgage Loan or any funds collected on, or in connection with, a Mortgage Loan. 
  
 Section 5.14. Opinion. On or before the Closing Date, the Master
Servicer shall cause to be delivered to the Depositor, the Seller, the Indenture Trustee, the Issuer, the Securities Administrator and the Servicer one or more Opinions of Counsel, dated the Closing Date, in form and substance reasonably
satisfactory to the Depositor, as to the due authorization, execution and delivery of this Agreement by the Master Servicer and the enforceability thereof. 
  
 Section 5.15. Indenture Trustee To Retain Possession of Certain Insurance Policies and Documents. The Indenture Trustee (or the Custodian on behalf
of the Indenture Trustee) shall retain possession and custody of the originals of the primary mortgage insurance policies or 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 payable in respect of the Notes have been paid in full and the Master Servicer otherwise has fulfilled its obligations under this Agreement, the Indenture Trustee (or the Custodian) shall
also retain possession and custody of each Mortgage File in accordance with and subject to the terms and conditions of this Agreement. The Master Servicer shall promptly deliver or cause the Servicer to deliver to the Indenture Trustee (or the
Custodian), upon the execution or receipt thereof the originals of the primary mortgage insurance policies and any certificates of renewal thereof, and such other documents or instruments that constitute portions of the Mortgage File that come into
the possession of the Master Servicer or the Servicer from time to time. 
  

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 Section 5.16. Compensation to the Master Servicer. Pursuant to Sections 5.06(e) and 6.01(d)(ii),
all income and gain realized from any investment of funds in the Collection Account and the Note Payment Account shall be for the benefit of the Master Servicer as compensation net of the sum of the Indenture Trustee Fee, Owner Trustee Fee
and the Custodian Fee payable by the Master Servicer to the Indenture Trustee, the Owner Trustee and the Custodian, respectively, on behalf of the Trust, as provided in Section 5.07. Notwithstanding the foregoing, the Master Servicer shall deposit
in the Collection Account, on or before the related Payment Date, an amount equal to the lesser of (i) its master servicing compensation with respect to such Payment Date and (ii) the amount of any Compensating Interest Payment required to be paid
by the Servicer with respect to such Payment Date pursuant to this Agreement, but which is not paid by the Servicer on its behalf. 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 5.17. Annual Officer’s Certificate as to Compliance. 
  
 (a) The Master Servicer shall deliver to the Indenture Trustee on or before March 1st of each calendar year, commencing on March 1, 2006, an Officer’s Certificate, certifying that with respect to the period ending on the immediately
preceding December 31: (i) such Servicing Officer has reviewed the activities of such Master Servicer during the preceding calendar year or portion thereof and its performance under this Agreement, (ii) to the best of such Servicing Officer’s
knowledge, based on such review, such Master Servicer has performed and fulfilled its duties, responsibilities and obligations under this Agreement in all material respects throughout such year, or, if there has been a default in the fulfillment of
any such duties, responsibilities or obligations, specifying each such default known to such Servicing Officer and the nature and status thereof, (iii) nothing has come to the attention of such Servicing Officer to lead such Servicing Officer to
believe that the Servicer has failed to perform any of its duties, responsibilities and obligations set forth in Article IV hereunder in all material respects throughout such year, or, if there has been a material default in the performance or
fulfillment of any such duties, responsibilities or obligations, specifying each such default known to such Servicing Officer and the nature and status thereof, and (iv) the Master Servicer has received from the Servicer an annual certificate of
compliance and a copy of such Servicer’s annual audit report, or, if any such certificate or report has not been received by the Master Servicer, the Master Servicer is using its best reasonable efforts to obtain such certificate or report.

  
 (b) Copies of such statements shall be provided to any
Noteholder upon request, by the Master Servicer or by the Indenture Trustee at the Master Servicer’s expense if the Master Servicer failed to provide such copies (unless (i) the Master Servicer shall have failed to provide the Indenture Trustee
with such statement or (ii) the Indenture Trustee has no actual knowledge of the Master Servicer’s failure to provide such statement). 
  
 Section 5.18. Annual Independent Accountants’ Servicing Report. If the Master Servicer (or any of its Affiliates) has, during the course of
any fiscal year, directly serviced, as a successor Servicer, any of the Mortgage Loans, then the Master Servicer at its expense shall 

  

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cause a nationally recognized firm of independent certified public accountants to furnish a statement to the Issuer, the Indenture Trustee, the Rating
Agencies and the Depositor on or before March 1 of each calendar year to the effect that, with respect to the most recently ended calendar year, such firm has examined certain records and documents relating to the Master Servicer’s performance
of its servicing obligations under this Agreement and pooling and servicing and trust agreements in material respects similar to this Agreement and to each other and that, on the basis of such examination conducted substantially in compliance with
the audit program for mortgages serviced for Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such firm is of the opinion that the Master Servicer’s activities have been conducted in compliance with this Agreement, or
that such examination has disclosed no material items of noncompliance except for (i) such exceptions as such firm believes to be immaterial, (ii) such other exceptions as are set forth in such statement and (iii) such exceptions that the Uniform
Single Attestation Program for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it to report. Copies of such statements shall be provided to any Noteholder upon request by the Master Servicer, or by the Indenture
Trustee at the expense of the Master Servicer if the Master Servicer shall fail to provide such copies. If such report discloses exceptions that are material, the Master Servicer shall advise the Indenture Trustee whether such exceptions have been
or are susceptible of cure, and will take prompt action to do so. 
  
 Section 5.19. Merger or Consolidation. Any Person into which the Master Servicer may be merged or consolidated, or any Person resulting from any merger, conversion, other change in form or consolidation to which the Master Servicer
shall be a party, or any Person succeeding to the business of the Master Servicer, shall be the successor to the Master 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 resulting Person to the Master Servicer shall be a Person that shall be qualified and approved (or that have an Affiliate that is qualified and
approved) seller/servicer of residential mortgage loans for Fannie Mae, Freddie Mac and HUD and shall have a net worth of not less than $25,000,000. 
  
 Section 5.20. Resignation of Master Servicer. Except as otherwise provided in Sections 5.19 and this Section 5.20 hereof, the Master Servicer shall
not resign from the obligations and duties hereby imposed on it unless it determines that the Master Servicer’s duties hereunder are no longer permissible under applicable law or are in material conflict by reason of applicable law with any
other activities carried on by it and cannot be cured. Any such determination permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel that shall be Independent to such effect delivered to the Indenture Trustee
and the Issuer. No such resignation shall become effective until the Indenture Trustee shall have assumed, or a successor master servicer shall have been appointed by the Indenture Trustee and until such successor shall have assumed, the Master
Servicer’s responsibilities and obligations under this Agreement. Notice of such resignation shall be given promptly by the Master Servicer and the Depositor to the Indenture Trustee. 
  

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 Section 5.21. Assignment or Delegation of Duties by the Master Servicer. Except as expressly
provided herein, the Master Servicer shall not assign or transfer any of its rights, benefits or privileges hereunder to any other Person, or delegate to or subcontract with, or authorize or appoint any other Person to perform any of the duties,
covenants or obligations to be performed by the Master Servicer hereunder, unless the Indenture Trustee and the Depositor shall have consented to such action; provided, however, that the Master Servicer shall have the right without the prior
written consent of the Indenture Trustee or the Depositor to delegate or assign to or subcontract with or authorize or appoint an Affiliate of the Master Servicer to perform and carry out any duties, covenants or obligations to be performed and
carried out by the Master Servicer hereunder. In no case, however, shall any such delegation, subcontracting or assignment to an Affiliate of the Master Servicer relieve the Master Servicer of any liability hereunder. Notice of such permitted
assignment shall be given promptly by the Master Servicer to the Depositor and the Indenture Trustee. If, pursuant to any provision hereof, the duties of the Master Servicer are transferred to a successor master servicer, the entire amount of
compensation payable to the Master Servicer pursuant hereto, including amounts payable to or permitted to be retained or withdrawn by the Master Servicer pursuant to Section 5.16 hereof, shall thereafter be payable to such successor master servicer.

  
 Section 5.22. Limitation on Liability of the Master
Servicer and Others. 
  
 (a) The Master Servicer undertakes to
perform such duties and only such duties as are specifically set forth in this Agreement. 
  
 (b) No provision of this Agreement shall be construed to relieve the Master Servicer from liability for its own negligent action, its own negligent failure to act or its own willful misconduct; provided,
however, that the duties and obligations of the Master Servicer shall be determined solely by the express provisions of this Agreement, the Master Servicer shall not be liable except for the performance of such duties and obligations as are
specifically set forth in this Agreement; no implied covenants or obligations shall be read into this Agreement against the Master Servicer and, in absence of bad faith on the part of the Master Servicer, the Master Servicer 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 Master Servicer and conforming to the requirements of this Agreement. 
  
 (c) Neither the Master Servicer nor any of the directors, officers, employees
or agents of the Master Servicer shall be under any liability to the Indenture Trustee or the Noteholders 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;
provided, however, that this provision shall not protect the Master Servicer or any such person against any liability that would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in its performance of its duties
or by reason of reckless disregard for its obligations and duties under this Agreement. The Master Servicer and any director, officer, employee or agent of the Master Servicer shall be entitled to indemnification by the Trust Estate and will be held
harmless against any loss, liability or expense incurred in connection with any legal action relating to this Agreement, the Notes or any other Operative 

  

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Agreement other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of his or its
duties hereunder or by reason of reckless disregard of his or its obligations and duties hereunder. The Master Servicer and any director, officer, employee or agent of the Master Servicer may rely in good faith on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters arising hereunder. The Master Servicer shall be under no obligation to appear in, prosecute or defend any legal action that is not incidental to its duties to master service
the Mortgage Loans in accordance with this Agreement and that in its opinion may involve it in any expenses or liability; provided, however, that the Master Servicer may in its sole discretion undertake any such action that it may deem
necessary or desirable in respect to this Agreement and the rights and duties of the parties hereto and the interests of the Noteholders hereunder. In such event, the legal expenses and costs of such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Issuer and the Master Servicer shall be entitled to be reimbursed therefor out of the Collection Account it maintains as provided by Section 5.07. 
  
 Section 5.23. Indemnification; Third Party Claims. The Master Servicer
agrees to indemnify the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the Servicer and hold them harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any other
costs, liability, fees and expenses that the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee or the Servicer may sustain as a result of the failure of the Master Servicer to perform its duties and master service the Mortgage Loans in
compliance with the terms of this Agreement. The Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the Servicer shall immediately notify the Master Servicer if a claim is made by a third party with respect to this Agreement, the
Mortgage Loans entitling the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee or the Servicer to indemnification under this Section 5.23, whereupon the Master Servicer shall assume 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 them in respect of such claim. The failure to provide such immediate notice shall not affect the Master
Servicer’s obligation pursuant to this Section 5.23 to indemnify the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the Servicer, except to the extent that the Master Servicer is materially prejudiced by such failure to
notify. 
  
 Section 5.24. Alternative Index. In the event
that the Index for any Mortgage Loan, as specified in the related Mortgage Note, becomes unavailable for any reason, the Servicer shall select an alternative index in accordance with the terms of such Mortgage Note or, if such Mortgage Note does not
make provision for the selection of an alternative index in such event, the Servicer shall, subject to applicable law, select an alternative index based on information comparable to that used in connection with the original Index and, in either
case, such alternative index shall thereafter be the Index for such Mortgage Loan. 
  
 Section 5.25. Transfer of Servicing. The Servicer agrees that it shall provide written notice to the Master Servicer and the Indenture Trustee thirty days prior to any proposed transfer or assignment by the
Seller of the servicing of the Mortgage Loans. In addition, the ability of the 

  

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Servicer to transfer or assign the servicing hereunder to a successor servicer shall be subject to the following conditions: 
  
 (i) Receipt of written consent of the Master Servicer to
such transfer, which consent shall not be unreasonably withheld; 
  
 (ii) Such successor servicer must satisfy the servicer eligibility standards set forth in Section 4.06(a); 
  
 (iii) Such successor servicer must execute and deliver to the Master Servicer and the Indenture Trustee an agreement, in form and
substance reasonably satisfactory to the Master Servicer and the Indenture Trustee, that contains an assumption by such successor servicer of the due and punctual performance and observance of each covenant and condition to be performed and observed
by the Servicer; 
  
 (iv) At the time of the
transfer, there must be delivered to the Indenture Trustee a letter from each Rating Agency to the effect that such transfer of servicing will not result in a qualification, withdrawal or downgrade of the then-current rating of any of the Notes; and

  
 (v) The Seller shall, at its cost and
expense, take such steps, or cause the terminated Servicer to take such steps, as may be necessary or appropriate to effectuate and evidence the transfer of the servicing of the Mortgage Loans to such successor servicer, including, but not limited
to, the following: (A) to the extent required by the terms of the Mortgage Loans and by applicable federal and state laws and regulations, the Seller shall cause the prior Servicer to timely mail to each obligor under a Mortgage Loan any required
notices or disclosures describing the transfer of servicing of the Mortgage Loans to the successor servicer; (B) prior to the effective date of such transfer of servicing, the Seller shall cause the prior Servicer to transmit to any related insurer
notification of such transfer of servicing; (C) on or prior to the effective date of such transfer of servicing, the Seller shall cause the prior Servicer to deliver to the successor servicer all Mortgage Loan Documents and any related records or
materials; (D) on or prior to the effective date of such transfer of servicing, the Seller shall cause the prior Servicer to transfer to the successor servicer, or, if such transfer occurs after a Servicer Remittance Date but before the next
succeeding Payment Date, to the Securities Administrator, all funds held by the prior Servicer in respect of the Mortgage Loans; (E) on or prior to the effective date of such transfer of servicing, the Seller shall cause the prior Servicer to, after
the effective date of the transfer of servicing to the successor servicer, continue to forward to such successor servicer, within one Business Day of receipt, the amount of any payments or other recoveries received by the prior Servicer, and to
notify the successor servicer of the source and proper application of each such payment or recovery; and (F) the Seller shall cause the prior Servicer to, after the effective date of transfer of servicing to the successor servicer, continue to
cooperate with 

  

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the successor servicer to facilitate such transfer in such manner and to such extent as the successor servicer may reasonably request. 
  
 Section 5.26. Compliance with Safeguarding Customer Information
Requirements. The Master Servicer has implemented and will maintain security measures designed to meet the objectives of the Guidelines. 
  
 ARTICLE VI 
  
 DEPOSITS AND PAYMENTS TO HOLDERS 
  
 Section 6.01. The Note Payment Account. 
  
 (a) The Paying Agent shall establish and maintain on behalf of the Noteholders, the Note Payment Account entitled “Note Payment Account, U.S. Bank National Association, as Indenture Trustee, in trust for Holders
of the HomeBanc Mortgage Trust 2005-3, Mortgage Backed Notes.” 
  
 (b) The Note Payment Account shall be an Eligible Account. If the Note Payment Account ceases to be an Eligible Account, the Paying Agent shall establish a new Note Payment Account that is an Eligible Account within 10 days and transfer all
funds and investment property on deposit in such existing Note Payment Account into such new Note Payment Account. 
  
 (c) On each Master Servicer Remittance Date, the Master Servicer shall remit to the Paying Agent the entire amount on deposit in the Collection Account
(subject to permitted withdrawals set forth in Section 5.07). 
  
 (d) Upon receipt, the Paying Agent shall deposit the amount received from the Master Servicer pursuant to subsection (c) of this Section 6.01 into the Note Payment Account. 
  
 (e) Funds in the Note Payment Account may be invested by the Paying Agent in Eligible Investments selected by and at the
written direction of the Master Servicer, which shall mature not later than the related Payment Date and any such Eligible Investment shall not be sold or disposed of prior to its maturity. All such Eligible Investments shall be made in the name of
the Indenture Trustee in trust for the benefit of the Noteholders. All income and gain net of the Indenture Trustee Fee, the Owner Trustee Fee, the Custodian Fee and any losses realized from any such investment of funds on deposit in the Note
Payment Account shall be for the benefit of the Master Servicer and shall be subject to withdrawal by the Paying Agent for payment to the Master Servicer from time to time in accordance with subsection (f) below and shall not be part of the Trust
Estate. The amount of any losses incurred in respect of any such investments shall be deposited in the Note Payment Account by the Master Servicer out of its own funds, without any right of reimbursement therefor, immediately as realized.

  
 (f) The Paying Agent shall withdraw funds from the Note
Payment Account for payments to Noteholders and the Certificate Distribution Account in the manner specified in this Agreement. In addition, the Paying Agent may prior to making the payment pursuant to Section 6.02 

  

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from time to time make withdrawals from the Note Payment Account for the following purposes: 
  
 (i) to the extent not reimbursed by the Master Servicer, to make payment to itself pursuant to any provision
of the Operative Agreements; 
  
 (ii) to pay to
the Master Servicer income earned on the investment of funds on deposit in the Note Payment Account; 
  
 (iii) to pay to the Indenture Trustee, the Owner Trustee and the Custodian, amounts required to be reimbursed to them in accordance with
the provisions of the Operative Agreements; 
  
 (iv) to withdraw funds deposited in error in the Note Payment Account; and 
  
 (v) to clear and terminate the Note Payment Account pursuant to Article IX. 
  
 Section 6.02. Payments from the Note Payment Account. 
  
 (a) On each Payment Date, the Paying Agent shall pay the Interest Funds for such date, from funds in the Note Payment
Account, in the following order of priority in accordance with the report of the Securities Administrator: 
  
 (i) concurrently, in proportion to the amount of Accrued Note Interest for each such Class, to the Senior Notes, Accrued Note Interest for
each such Class for such Payment Date; 
  
 (ii)
to the Class M-1 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (iii) to the Class M-2 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (iv) to the Class M-3 Notes, Accrued Note Interest for such
Class for such Payment Date; 
  
 (v) to the Class
M-4 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (vi) to the Class M-5 Notes, Accrued Note Interest for such Class for such Payment Date; 
  
 (vii) to the Class B Notes, Accrued Note Interest for such Class for such Payment Date; and 
  

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 (viii) for application as part of Monthly Excess Interest for such Payment Date, as
provided in subsection (d) of this Section, any Interest Funds remaining after application pursuant to clauses (i) through (vii) above. 
  
 (b) On each Payment Date, the Paying Agent shall pay the Principal Payment Amount for such Payment Date from funds in the Note Payment Account as follows:

  
 (i) On each Payment Date (a) prior to the
Stepdown Date or (b) with respect to which a Trigger Event is in effect, in the following order of priority: 
  
 (1) concurrently, in proportion to the Class Principal Amounts thereof, to the Senior Notes, in reduction of their Class Principal Amounts
until the Class Principal Amount of each such Class has been reduced to zero; 
  
 (2) to the Class M-1 Notes, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; 
  
 (3) to the Class M-2 Notes, in reduction of their Class Principal Amount, until the Class Principal Amount
of such Class has been reduced to zero; 
  
 (4)
to the Class M-3 Notes, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; 
  
 (5) to the Class M-4 Notes, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced
to zero; 
  
 (6) to the Class M-5 Notes, in
reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; 
  
 (7) to the Class B Notes, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to
zero; and 
  
 (8) for application as part of
Monthly Excess Cashflow for such Payment Date, as provided in subsection (c) of this Section, any Principal Payment Amount remaining after application pursuant to clauses (1) through (7) above. 
  
 (ii) On each Payment Date (a) on or after the Stepdown Date
and (b) with respect to which a Trigger Event is not in effect, in the following order of priority: 
  
 (1) concurrently, in proportion to the Class Principal Amounts thereof, to the Senior Notes, an amount equal to the Class A Principal
Payment Amount, in reduction of their Class Principal Amounts until the Class Principal Amount of each such Class has been reduced to zero; 
  

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 (2) to the Class M-1 Notes, an amount equal to the Class M-1 Principal Payment Amount, in
reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; 
  
 (3) to the Class M-2 Notes, an amount equal to the Class M-2 Principal Payment Amount, in reduction of their Class Principal Amount, until
the Class Principal Amount of such Class has been reduced to zero; 
  
 (4) to the Class M-3 Notes, an amount equal to the Class M-3 Principal Payment Amount, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; 

 
 (5) to the Class M-4 Notes, an amount equal to the Class
M-4 Principal Payment Amount, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; 
  
 (6) to the Class M-5 Notes, an amount equal to the Class M-5 Principal Payment Amount, in reduction of their Class Principal Amount, until
the Class Principal Amount of such Class has been reduced to zero; 
  
 (7) to the Class B Notes, an amount equal to the Class B Principal Payment Amount, in reduction of their Class Principal Amount, until the Class Principal Amount of such Class has been reduced to zero; and 

 
 (8) for application as part of Monthly Excess Cashflow
for such Payment Date, as provided in subsection (c) of this Section, any Principal Payment Amount remaining after application pursuant to clauses (1) through (7) above. 
  
 (c) On each Payment Date, the Paying Agent shall pay the Monthly Excess Cashflow for such date from funds in the Note
Payment Account in accordance with the report of the Securities Administrator, in the following order of priority: 
  
 (i) to fund the Extra Principal Payment Amount, to the extent of Monthly Excess Interest available on such Payment Date; 
  
 (ii) concurrently, in proportion to the amount of Deferred
Interest for each such class, to the Senior Notes, any Deferred Interest for each such Class and such Payment Date; 
  
 (iii) to the Class M-1 Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (iv) to the Class M-2 Notes, any Deferred Interest for such
Class and such Payment Date; 
  

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 (v) to the Class M-3 Notes, any Deferred Interest for such Class and such Payment Date;

  
 (vi) to the Class M-4 Notes, any Deferred
Interest for such Class and such Payment Date; 
  
 (vii) to the Class M-5 Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (viii) to the Class B Notes, any Deferred Interest for such Class and such Payment Date; 
  
 (ix) concurrently, in proportion to the amount of Basis Risk
Shortfall Carryforward Amount for each such Class, to the Senior Notes, any Basis Risk Shortfall Carryforward Amount for each such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (x) to the Class M-1 Notes, any applicable Basis Risk
Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (xi) to the Class M-2 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent
not covered by the Cap Agreements; 
  
 (xii) to
the Class M-3 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (xiii) to the Class M-4 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and
such Payment Date to the extent not covered by the Cap Agreements; 
  
 (xiv) to the Class M-5 Notes, any applicable Basis Risk Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; 
  
 (xv) to the Class B Notes, any applicable Basis Risk
Shortfall Carryforward Amount for such Class and such Payment Date to the extent not covered by the Cap Agreements; and 
  
 (xvi) to the Certificate Distribution Account, for payment to the Residual Holder (or as otherwise provided in the Trust Agreement), any
amount remaining on such Payment Date after application pursuant to clauses (i) through (xv) above. 
  

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 Section 6.03. Control of the Trust Account. 
  
 (a) The Depositor and the Issuer hereby appoint the Securities Administrator
as Securities Intermediary with respect to the Trust Accounts, and the Issuer has, pursuant to the Indenture, granted to the Indenture Trustee, for the benefit of the Noteholders, a security interest to secure all amounts due Noteholders hereunder
in and to the Trust Accounts and the Security Entitlements to all Financial Assets credited to the Trust Accounts, including without limitation all amounts, securities, investments, Financial Assets, investment property and other property from time
to time deposited in or credited to the Trust Accounts and all proceeds thereof. Amounts held from time to time in the Trust Accounts will continue to be held by the Securities Intermediary for the benefit of the Indenture Trustee, as collateral
agent, for the benefit of the Noteholders. Upon the termination of the Issuer or the discharge of the Indenture, the Indenture Trustee shall inform the Securities Intermediary of such termination. By acceptance of their Notes or interests therein,
the Noteholders shall be deemed to have appointed the Securities Administrator as Securities Intermediary. The Securities Administrator hereby accepts such appointment as Securities Intermediary. 
  
 (b) With respect to the Trust Account Property credited to the Trust
Accounts, the Securities Intermediary agrees that: 
  
 (i) with respect to any Trust Account Property that is held in deposit accounts, each such deposit account shall be subject to the exclusive custody and control of the Securities Intermediary, and the Securities Intermediary shall have sole
signature authority with respect thereto; 
  
 (ii) the sole assets permitted in each Trust Account shall be those as the Securities Intermediary agrees to treat as Financial Assets; and 
  
 (iii) any such Trust Account Property that is, or is treated as, a Financial Asset shall be physically delivered (accompanied by any
required endorsements) to, or credited to an account in the name of, the Securities Intermediary or other eligible institution maintaining each Trust Account in accordance with the Securities Intermediary’s customary procedures such that the
Securities Intermediary or such other institution establishes a Security Entitlement in favor of the Indenture Trustee with respect thereto over which the Securities Intermediary or such other institution has Control; 
  
 (c) The Securities Intermediary hereby confirms that (A) each Trust Account
is an account to which Financial Assets are or may be credited, and the Securities Intermediary shall, subject to the terms of this Agreement, treat the Indenture Trustee, as collateral agent, as entitled to exercise the rights that comprise any
Financial Asset credited to each Trust Account, (B) all Trust Account Property in respect of each Trust Account will be promptly credited by the Securities Intermediary to such account, and (C) all securities or other property underlying any
Financial Assets credited to each Trust Account shall be registered in the name of the Securities Intermediary, endorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the 

  

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name of the Securities Intermediary and in no case will any Financial Asset credited to any Trust Account be registered in the name of the Depositor or the
Issuer, payable to the order of the Depositor or the Issuer or specially endorsed to the Depositor or the Issuer, except to the extent the foregoing have been specially endorsed to the Securities Intermediary or in blank; 
  
 (d) The Securities Intermediary hereby agrees that each item of property
(whether investment property, Financial Asset, security, instrument or cash) credited to each Trust Account shall be treated as a Financial Asset; 
  
 (e) If at any time the Securities Intermediary shall receive an Entitlement Order from the Indenture Trustee (or the Securities Administrator on its
behalf) directing transfer or redemption of any Financial Asset relating to any Trust Account, the Securities Intermediary shall comply with such Entitlement Order without further consent by the Depositor, the Issuer or any other Person. If at any
time the Indenture Trustee or the Securities Administrator notifies the Securities Intermediary in writing that the Issuer has been terminated or the Indenture discharged in accordance herewith and with the Trust Agreement or the Indenture, as
applicable, and the security interest granted pursuant to the Indenture has been released, then thereafter if the Securities Intermediary shall receive any order from the Depositor or the Issuer directing transfer or redemption of any Financial
Asset relating to any Trust Account, the Securities Intermediary shall comply with such Entitlement Order without further consent by the Indenture Trustee or any other Person; 
  
 (f) In the event that the Securities Intermediary has or subsequently obtains by agreement, operation of law or otherwise a
security interest in a Trust Account or any Financial Asset credited thereto, the Securities Intermediary hereby agrees that such security interest shall be subordinate to the security interest of the Indenture Trustee. The Financial Assets credited
to each Trust Account will not be subject to deduction, set-off, banker’s lien, or any other right in favor of any Person other than the Indenture Trustee (except that the Securities Intermediary may set-off (i) all amounts due to it in respect
of its customary fees and expenses for the routine maintenance and operation of a Trust Account and (ii) the face amount of any checks which have been credited to a Trust Account but are subsequently returned unpaid because of uncollected or
insufficient funds); 
  
 (g) There are no other agreements entered
into between the Securities Intermediary in such capacity and the Depositor or the Issuer with respect to the Trust Accounts. In the event of any conflict between this Agreement (or any provision of this Agreement) and any other agreement now
existing or hereafter entered into, the terms of this Agreement shall prevail; 
  
 (h) The rights and powers granted under the Indenture and herein to the Indenture Trustee have been granted in order to perfect its security interest in each Trust Account and the Security Entitlements to the
Financial Assets credited thereto, and are powers coupled with an interest and will neither be affected by the bankruptcy of the Depositor or the Issuer nor by the lapse of time. The obligations of the Securities Intermediary hereunder shall
continue in effect until the security interest of the Indenture Trustee in the Trust Accounts, and in such Security Entitlements, has 

  

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been terminated pursuant to the terms of this Agreement and the Indenture Trustee or the Issuer, as applicable, has notified the Securities Intermediary of
such termination in writing; and 
  
 (i) Notwithstanding anything
else contained herein, the Depositor and the Issuer agree that each Trust Account will be established only with the Securities Intermediary or another institution meeting the requirements of this Section, which by acceptance of its appointment as
Securities Intermediary agrees substantially as follows: (1) it will comply with Entitlement Orders related to each Trust Account issued by the Indenture Trustee, as collateral agent, without further consent by the Depositor or the Issuer, without
further consent by the Depositor; (2) until termination of the Issuer or discharge of the Indenture, it will not enter into any other agreement related to such accounts pursuant to which it agrees to comply with Entitlement Orders of any Person
other than the Indenture Trustee, as collateral agent, or the Securities Administrator on its behalf; and (3) all assets delivered or credited to it in connection with such account and all investments thereof will be promptly credited to the
applicable account. 
  
 (j) Notwithstanding the foregoing, the
Issuer shall have the power, revocable by the Indenture Trustee or by the Owner Trustee with the consent of the Indenture Trustee, to instruct the Indenture Trustee, the Securities Administrator and the Master Servicer to make withdrawals and
payments from each Trust Account for the purpose of permitting the Master Servicer, the Securities Administrator or the Owner Trustee to carry out its respective duties hereunder or permitting the Indenture Trustee to carry out its duties under the
Indenture. 
  
 (k) Each of the Depositor and the Issuer agrees to
take or cause to be taken such further actions, to execute, deliver and file or cause to be executed, delivered and filed such further documents and instruments (including, without limitation, any financing statements under the Relevant UCC or this
Agreement) as may be necessary to perfect the interests created by this Section in favor of the Issuer and the Indenture Trustee and otherwise fully to effectuate the purposes, terms and conditions of this Section. The Depositor shall: 

 
 (i) promptly execute, deliver and file any financing
statements, amendments, continuation statements, assignments, certificates and other documents with respect to such interests and perform all such other acts as may be necessary in order to perfect or to maintain the perfection of the Issuer’s
and the Indenture Trustee’s security interest in the Trust Account Property; and 
  
 (ii) make the necessary filings of financing statements or amendments thereto within five days after the occurrence of any of the
following: (1) any change in its corporate name or any trade name or its jurisdiction of organization; (2) any change in the location of its chief executive office or principal place of business; and (3) any merger or consolidation or other change
in its identity or corporate structure and promptly notify the Issuer and the Indenture Trustee of any such filings. 
  
 (iii) Neither the Depositor nor the Issuer shall organize under the law of any jurisdiction other than the State under which each is
organized as of the Closing Date 

  

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(whether changing its jurisdiction of organization or organizing under an additional jurisdiction) without giving thirty (30) days prior written notice of
such action to its immediate and mediate transferee, including the Indenture Trustee. Before effecting such change, each of the Depositor or the Issuer proposing to change its jurisdiction of organization shall prepare and file in the appropriate
filing office any financing statements or other statements necessary to continue the perfection of the interests of its immediate and mediate transferees, including the Indenture Trustee, in the Trust Account Property. In connection with the
transactions contemplated by the Operative Agreements relating to the Trust Account Property, each of the Depositor and the Issuer authorizes its immediate or mediate transferee to file in any filing office any initial financing statements, any
amendments to financing statements, any continuation statements, or any other statements or filings described in this Section 6.03. 
  
 None of the Securities Intermediary or any director, officer, employee or agent of the Securities Intermediary shall be under any liability to the
Indenture Trustee or the Noteholders for any action taken, or not taken, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Securities Intermediary against any
liability to the Indenture Trustee or the Noteholders which would otherwise be imposed by reason of the Securities Intermediary’s willful misconduct, bad faith or negligence in the performance of its obligations or duties hereunder. The
Securities Intermediary and any director, officer, employee or agent of the Securities Intermediary may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted by any Person respecting any matters
arising hereunder. The Securities Intermediary shall be under no duty to inquire into or investigate the validity, accuracy or content of such document. The Issuer shall indemnify the Securities Intermediary for and hold it harmless against any
loss, liability or expense arising out of or in connection with this Agreement and carrying out its duties hereunder, including the costs and expenses of defending itself against any claim of liability, except in those cases where the Securities
Intermediary has been guilty of bad faith, negligence or willful misconduct. The foregoing indemnification shall survive any termination of this Agreement or the resignation or removal of the Securities Intermediary. 
  
 Section 6.04. Monthly Advances by Master Servicer and Servicer.

  
 (a) Subject to Section 4.03(c), Monthly Advances shall be made
in respect of each Servicer Remittance Date as provided herein. If, on any Determination Date, the Servicer determines that any Monthly Payments due during the related Collection Period have not been received, such Servicer shall advance such amount
to the extent provided in Section 4.03(c) hereof. If any Servicer fails to remit Monthly Advances required to be made under Section 4.03(c) hereof, the Master Servicer shall itself make, or shall cause the successor Servicer to make, such Monthly
Advance on the Servicer Remittance Date immediately following such Determination Date. If the Master Servicer determines that a Monthly Advance is required, it shall on the Business Day immediately prior to the related Payment Date deposit in the
Collection Account (from its own funds or funds advanced by the Servicer) immediately available funds in an amount equal to such Monthly Advance. The Master Servicer and the Servicer shall be entitled 

  

 108 

 
to be reimbursed from the Collection Account, and the Servicer shall be entitled to be reimbursed from the Custodial Account, for all Monthly Advances made
by it as provided in Section 4.02(e). Notwithstanding anything to the contrary herein, in the event the Master Servicer determines in its reasonable judgment that a Monthly Advance is a Nonrecoverable Advance, the Master Servicer shall be under no
obligation to make such Monthly Advance. 
  
 (b) In the event that
the Master Servicer or Servicer fails for any reason to make a Monthly Advance required to be made pursuant to this Section 6.04, the Indenture Trustee, as successor Master Servicer, shall, on or before the related Payment Date, deposit in the
Collection Account an amount equal to the excess of (a) Monthly Advances required to be made by the Master Servicer or the Servicer that would have been deposited in such Collection Account over (b) the amount of any Monthly Advance made by the
Master Servicer or the Servicer with respect to such Payment Date; provided, however, that the Indenture Trustee as successor Master Servicer shall be required to make such Monthly Advance only if it is not prohibited by law from doing
so and it has determined that such Monthly Advance would be recoverable from amounts to be received with respect to such Mortgage Loan, including late payments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, or otherwise. The
Indenture Trustee shall be entitled to be reimbursed from the Collection Account for Monthly Advances made by it pursuant to this Section 6.04 as if it were the Master Servicer and shall be entitled to receive all compensation and fees of the Master
Servicer in accordance with Section 8.01(b). 
  
 Section 6.05.
Cap Agreements. 
  
 (a) The Securities Administrator shall
establish and maintain an Eligible Account in its name, in trust for the benefit of the Noteholders, the Cap Account. 
  
 (b) The Securities Administrator shall deposit any Cap Receipts received on any Cap Agreement Payment Date into the Cap Account. Amounts on deposit in the
Cap Account shall remain uninvested. 
  
 (c) On each Payment Date,
the Securities Administrator shall distribute the amounts received by the Trust under each Cap Agreement to holders of the Notes in the following order of priority: 
  
 (i) concurrently, pro rata, in proportion to the amount of Basis Risk Shortfall applicable to each
such Class, to the Senior Notes, any applicable Basis Risk Shortfall for each such Class and such Payment Date 
  
 (ii) to the Class M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (iii) to the Class M-2 Notes, any applicable Basis Risk
Shortfall for such Class and such Payment Date; 
  

 109 

 (iv) to the Class M-3 Notes, any applicable Basis Risk Shortfall for such Class and such
Payment Date; 
  
 (v) to the Class M-4 Notes, any
applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (vi) to the Class M-5 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; 
  
 (vii) to the Class B Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; and 
  
 (viii) to the Certificate Distribution Account, for payment
to the Residual Holder (or as otherwise provided in the Trust Agreement), any amount remaining on such Payment Date after application pursuant to clauses (i) through (vii) above. 
  
 If such amounts are insufficient to cover the total amount of any Basis Risk Shortfall, the only other source of coverage
will be the Monthly Excess Cashflow, if any, that would otherwise be payable to the Ownership Certificate. 
  
 (d) On the date on which the Cap Agreements have terminated and any amounts therefrom have been paid in accordance with Section 6.05(c) above, any amounts
remaining in the Cap Account shall be paid by the Securities Administrator to the Ownership Certificate, and the Cap Account shall be terminated by the Securities Administrator. 
  
 ARTICLE VII 
  
 THE SECURITIES ADMINISTRATOR 
  
 Section 7.01. Duties of the Securities Administrator. (a) The Securities Administrator undertakes to perform such duties and only such duties as
are specifically set forth in this Agreement and shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement and no implied covenants or obligations shall be read into this Agreement
against the Securities Administrator. 
  
 (b) In the absence of
bad faith on its part, the Securities Administrator may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Securities Administrator and on their
face conforming to the requirements of this Agreement; however, the Securities Administrator shall examine the certificates and opinions to determine whether or not they conform on their face to the requirements of this Agreement. 
  
 (c) The Securities Administrator may not be relieved from liability for its
own negligent action, its own negligent failure to act, its own willful misconduct or its own bad faith, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section; 
  

 110 

 (ii) the Securities Administrator shall not be liable for any error of judgment made in
good faith by a Responsible Officer unless it is proved that the Securities Administrator was negligent in ascertaining the pertinent facts; and 
  
 (iii) the Securities Administrator shall not be liable with respect to any action it takes or omits to take in good faith in accordance
with this Agreement. 
  
 Section 7.02. Records. The
Securities Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books of account and records shall be accessible for inspection by the Issuer and the Depositor at any time during
normal business hours with prior written notification. 
  
 Section
7.03. Compensation and Indemnity. The Securities Administrator will perform the duties and provide the services under this Agreement for such compensation as shall be agreed upon between the Securities Administrator and the Master Servicer.
The Issuer shall indemnify the Securities Administrator and its employees, directors and agents from funds in the Accounts, against any and all claim, loss, liability or expense (including attorneys’ fees) incurred by it in connection with the
performance of its duties hereunder or under any Operative Agreement. The Securities Administrator shall notify the Issuer promptly of any claim for which it may seek indemnity. Failure by the Securities Administrator to so notify the Issuer shall
not relieve the Issuer of its obligations hereunder. The Issuer shall defend any such claim, and the Securities Administrator may have separate counsel fees and expenses of such counsel shall be payable on behalf of the Issuer from funds in the
Accounts. The Issuer shall not be required to reimburse any expense or indemnify against any loss, liability or expense incurred by the Securities Administrator through the Securities Administrator’s own willful misconduct, negligence or bad
faith. 
  
 The Issuer’s obligations to the Securities
Administrator pursuant to this Section shall survive the resignation or removal of the Securities Administrator. 
  
 Section 7.04. Additional Information to be Furnished to the Issuer. The Depositor shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request. 
  
 Section 7.05. Independence of the Securities Administrator. For all purposes of this Agreement, the Securities Administrator shall be an independent contractor and shall not be subject to the supervision of the
Issuer or the Owner Trustee with respect to the manner in which it accomplishes the performance of its obligations hereunder. Unless expressly authorized by the Issuer, the Securities Administrator shall have no authority to act for or represent the
Issuer or the Owner Trustee in any way and shall not otherwise be deemed an agent of the Issuer or the Owner Trustee. 
  

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 Section 7.06. No Joint Venture. Nothing contained in this Agreement (i) shall constitute the
Securities Administrator or the Depositor, respectively, and either of the Issuer or the Owner Trustee, as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed
to impose any liability as such on any of them or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others. 
  
 Section 7.07. Other Activities of Securities Administrator. Nothing
herein shall prevent the Securities Administrator or its Affiliates from engaging in other businesses or, in its sole discretion, from acting in a similar capacity as an Securities Administrator for any other person or entity even though such person
or entity may engage in business activities similar to those of the Issuer or the Owner Trustee. 
  
 Section 7.08. Resignation and Removal of Securities Administrator. 
  
 (a) Subject to Section 7.08(d) hereof, the Securities Administrator may resign its duties hereunder by providing the Issuer
with at least 60 days’ prior written notice. 
  
 (b) Subject
to Section 7.08(d) hereof, the Issuer may remove the Securities Administrator without cause by providing the Securities Administrator with at least 60 days’ prior written notice. 
  
 (c) Subject to Section 7.08(d) hereof, the Issuer may remove the Securities Administrator immediately upon written notice of
termination from the Issuer to the Securities Administrator if any of the following events shall occur: 
  
 (i) the Securities Administrator shall default in the performance of any of its duties under this Agreement and, after notice of such
default, shall not cure such default within ten days (or, if such default cannot be cured in such time, shall not give within ten days such assurance of cure as shall be reasonably satisfactory to the Issuer); or 
  
 (ii) a court having jurisdiction in the premises shall (x)
enter a decree or order for relief, which decree or order shall not have been vacated within 60 days, in respect of the Securities Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or (y) appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Securities Administrator or any substantial part of its property, or (z) order the winding-up or liquidation of the
Securities Administrator’s affairs; or 
  
 (iii) the Securities Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under
any such law, or shall consent to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Securities Administrator or any substantial part of 

  

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its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall make any general assignment for
the benefit of creditors or shall fail generally to pay its debts as they become due. 
  
 The Securities Administrator agrees that if any of the events specified in clauses (ii) or (iii) of this Section 7.08(c) shall occur, it shall give written notice thereof to the Issuer and the Indenture Trustee within
seven days after the occurrence of such event. 
  
 (d) No
resignation or removal of the Securities Administrator pursuant to this Section shall be effective until (i) a successor Securities Administrator shall have been appointed by the Issuer in accordance with this Agreement and (ii) such successor
Securities Administrator shall have agreed in writing to be bound by the terms of this Agreement in the same manner as the Securities Administrator is bound hereunder. If a successor Securities Administrator does not take office within 60 days after
the retiring Securities Administrator resigns or is removed, the resigning or removed Securities Administrator or the Issuer may petition any court of competent jurisdiction for the appointment of a successor Securities Administrator. 
  
 (e) In the event of the resignation or removal of the Securities
Administrator under the terms of this Agreement, the Issuer shall appoint a successor securities administrator having a combined capital of $50,000,000 as set forth in its most recent published annual report of condition and it or its parent shall
have a long term debt rating of Baa3 or better by Moody’s and BBB or better by S&P. The appointment of any successor Securities Administrator shall be effective only after receipt of a letter from each Rating Agency to the effect that such
proposed appointment will not cause a reduction or withdrawal of the then current ratings of the Notes. 
  
 (f) Subject to Sections 7.08(d) and 7.08(d) above, the Securities Administrator acknowledges that upon the appointment of a successor Master Servicer
pursuant to Section 8.01, the Securities Administrator shall immediately resign and such successor Master Servicer shall automatically become the Securities Administrator under this Agreement. Any such successor Master Servicer shall be required to
agree to assume the duties of the Securities Administrator under the terms and conditions of this Agreement and the other Operative Agreements in its acceptance of appointment as successor Master Servicer. Additionally, the Master Servicer
acknowledges that upon the appointment of a successor Securities Administrator pursuant to this Section 7.08, the Master Servicer shall immediately resign and such successor Securities Administrator shall automatically become the Master Servicer
under this Agreement. Any such successor Securities Administrator shall be required to agree to assume the duties of the Master Servicer under the terms and conditions of this Agreement and the other Operative Agreements in its acceptance of
appointment as successor Securities Administrator. 
  
 (g) The
Securities Administrator (i) may not be an Originator, Master Servicer, Servicer, the Depositor or an affiliate of the Depositor unless the Securities Administrator is in an institutional trust department of the Securities Administrator, (ii) must
be authorized to exercise corporate trust powers under the laws of its jurisdiction of organization, and (iii) must be rated at least “A/F1” by Fitch, if Fitch is a Rating Agency, or the equivalent rating by S&P or Moody’s.

  

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If no successor Securities Administrator shall have been appointed and shall have accepted appointment within 90 days after the Securities Administrator
ceases to be the Securities Administrator pursuant to this Section 7.08, then the Indenture Trustee shall perform the duties of the Securities Administrator pursuant to this Agreement. The Indenture Trustee shall be entitled to receive the same
amount of compensation as the Securities Administrator in the event that it is required to perform the duties of Securities Administrator. The Indenture Trustee shall notify the Rating Agencies of any change of Securities Administrator. 

 
 Section 7.09. Action upon Termination, Resignation or Removal of the
Securities Administrator. Promptly upon the effective date of termination of this Agreement or the resignation or removal of the Securities Administrator pursuant to Section 7.08 hereof, the Securities Administrator shall be entitled to be paid
all reimbursable expenses, including any reasonable out-of-pocket attorneys’ fees, accruing to it to the date of such termination, resignation or removal. The Securities Administrator shall forthwith upon such termination pursuant to Section
7.08 deliver to the successor Securities Administrator all property and documents of or relating to the Collateral then in the custody of the Securities Administrator, or if this Agreement has been terminated, to the Depositor. In the event of the
resignation or removal of the Securities Administrator pursuant to Section 7.08, the Securities Administrator shall cooperate with the Issuer and take all reasonable steps requested to assist the Issuer in making an orderly transfer of the duties of
the Securities Administrator. 
  
 ARTICLE VIII 
  
 MASTER SERVICER EVENTS OF DEFAULT 
  
 Section 8.01. Master Servicer Events of Default; Indenture Trustee To Act;
Appointment of Successor. 
  
 (a) The occurrence of any one or
more of the following events shall constitute a “Master Servicer Event of Default”: 
  
 (i) Any failure by the Master Servicer to cause to be deposited in the Collection Account any amount so required to be deposited pursuant
to this Agreement (other than a Monthly Advance), and such failure continues unremedied for a period of three Business Days after the date upon which written notice of such failure, requiring the same to be remedied, shall have been given to the
Master Servicer; or 
  
 (ii) Any failure on the
part of the Master Servicer duly 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 which continues unremedied for a period of 60 days after the date
on which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Indenture Trustee or the Securities Administrator or to the Master Servicer and the Indenture Trustee by the Majority
Noteholders; or 
  

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 (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, 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 days or any Rating Agency reduces or withdraws or threatens to reduce or withdraw the rating of the Notes because of the
financial condition or loan servicing capability of such Master Servicer; or 
  
 (iv) The Master Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities, voluntary liquidation or similar
proceedings of or relating to the Master Servicer or of or relating to all or substantially all of its property; 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 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 shall be dissolved, or shall dispose of all or substantially all of its assets, or
consolidate with or merge into another entity or shall permit another entity to consolidate or merge into it, such that the resulting entity does not meet the criteria for a successor servicer as specified in Section 5.19 hereof; or 
  
 (vii) If a representation or warranty set forth in Section
5.01 hereof shall prove to be incorrect as of the time made in any respect that materially and adversely affects the interests of the Noteholders, and the circumstance or condition in respect of which such representation or warranty was incorrect
shall not have been eliminated or cured within 30 days after the date on which written notice of such incorrect representation or warranty shall have been given to the Master Servicer by the Indenture Trustee or the Securities Administrator, or to
the Master Servicer and the Indenture Trustee by the Majority Noteholders; or 
  
 (viii) A sale or pledge of any of the rights of the Master Servicer hereunder or an assignment of this Agreement by the Master Servicer or a delegation of the rights or duties of the Master Servicer hereunder shall
have occurred in any manner not otherwise permitted hereunder and without the prior written consent of the Indenture Trustee and the Majority Noteholders; or 
  

(ix) The Master Servicer has notice or actual knowledge that the Servicer at any time is not either a Fannie Mae- or Freddie
Mac-approved Seller/Servicer, and the Master Servicer has not terminated the rights and obligations of such Servicer under this Agreement and replaced the Servicer with an Fannie Mae- or Freddie Mac-approved 

  

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servicer within 60 days of the date the Master Servicer receives such notice or acquires such actual knowledge; or 
  
 (x) Any failure of the Master Servicer to remit to the
Securities Administrator any Monthly Advance required to be made to the Securities Administrator for the benefit of Noteholders under the terms of this Agreement, which failure continues unremedied as of the close of business on the Business Day
prior to a Payment Date. 
  
 If a Master Servicer Event of Default
described in clauses (i) through (ix) of this Section 8.01 shall occur, then, in each and every case, subject to applicable law, so long as any such Master Servicer Event of Default shall not have been remedied within any period of time prescribed
by this Section 8.01, the Indenture Trustee, upon obtaining actual knowledge thereof, by notice in writing to the Master Servicer may, and shall, if so directed by the Majority Noteholders, terminate all of the rights and obligations of the Master
Servicer hereunder and in and to the Mortgage Loans and the proceeds thereof. If a Master Servicer Event of Default described in clause (x) of this Section 8.01 shall occur, then, in each and every case, subject to applicable law, so long as such
Master Servicer Event of Default shall not have been remedied within the time period prescribed by clause (x) of this Section 8.01, the Indenture Trustee, by notice in writing to the Master Servicer, shall promptly terminate all of the rights and
obligations of the Master Servicer hereunder and in and to the Mortgage Loans and the proceeds thereof. On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer, and only in its capacity
as Master Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the Indenture Trustee pursuant to and under the terms of this Agreement; and the Indenture Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the defaulting Master Servicer as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents or otherwise. The defaulting Master Servicer agrees to cooperate with the Indenture Trustee in
effecting the termination of the defaulting Master Servicer’s responsibilities and rights hereunder as Master Servicer including, without limitation, notifying the Servicer of the assignment of the master servicing function and providing the
Indenture Trustee or its designee all documents and records in electronic or other form reasonably requested by it to enable the Indenture Trustee or its designee to assume the defaulting Master Servicer’s functions hereunder and the transfer
to the Indenture Trustee for administration by it of all amounts which shall at the time be or should have been deposited by the defaulting Master Servicer in the Collection Account maintained by such defaulting Master Servicer and any other account
or fund maintained with respect to the Notes or thereafter received with respect to the Mortgage Loans. The Master Servicer being terminated shall bear all reasonable out-of-pocket costs of a master servicing transfer, including but not limited to
those of the Indenture Trustee, legal fees and expenses, accounting and financial consulting fees and expenses, and costs of amending the Agreement, if necessary. 
  

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 The Indenture Trustee shall be entitled to be reimbursed from the Master Servicer (or by the Trust
Estate, if the Master Servicer is unable to fulfill its obligations hereunder) for all costs associated with the transfer of servicing from the predecessor Master Servicer, including, without limitation, any costs or 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 Indenture Trustee to correct any errors or insufficiencies in the servicing data or otherwise to enable the
Indenture Trustee to master service the Mortgage Loans properly and effectively. If the terminated Master Servicer does not pay such reimbursement within thirty (30) days of its receipt of an invoice therefore, such reimbursement shall be an expense
of the Trust Estate and the Indenture Trustee shall be entitled to withdraw such reimbursement from amounts on deposit in the Collection Account pursuant to Section 5.07(viii); provided that the terminated Master Servicer shall reimburse the
Trust Estate for any such expense incurred by the Trust Estate; and provided, further, that the Indenture Trustee shall take such action, if any, as provided in the Indenture and as directed by the Noteholders pursuant thereto with
respect to pursuing any remedy against any party obligated to make such reimbursement. 
  
 Notwithstanding the termination of its activities as Master Servicer, each terminated Master Servicer shall continue to be entitled to reimbursement to the extent provided in Section 5.07 to the extent such
reimbursement relates to the period prior to such Master Servicer’s termination. 
  
 If any Master Servicer Event of Default shall occur, of which a Responsible Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee shall promptly notify each Rating Agency of the nature and
extent of such Master Servicer Event of Default. The Securities Administrator or the Master Servicer shall immediately give written notice by facsimile to the Indenture Trustee upon the Master Servicer’s failure to remit Monthly Advances on the
date specified herein. 
  
 (b) On and after the time the Master
Servicer receives a notice of termination from the Indenture Trustee pursuant to Section 8.01(a) or the Indenture Trustee receives the resignation of the Master Servicer evidenced by an Opinion of Counsel pursuant to Section 5.20, the Indenture
Trustee, unless another master servicer shall have been appointed, shall be the successor in all respects to the Master Servicer in its capacity as such under this Agreement and the transactions set forth or provided for herein and shall have all
the rights and powers and be subject to all the responsibilities, duties and liabilities relating thereto and arising thereafter placed on the Master Servicer hereunder, including the obligation to make Monthly Advances; provided,
however, that any failure to perform such duties or responsibilities caused by the Master Servicer’s failure to provide information required by this Agreement shall not be considered a default by the Indenture Trustee hereunder. In
addition, the Indenture Trustee shall have no responsibility for any act or omission of the Master Servicer prior to the issuance of any notice of termination and shall have no liability relating to the representations and warranties of the Master
Servicer set forth in Section 5.01. In the Indenture Trustee’s capacity as such successor, the Indenture Trustee shall have the same limitations on liability herein granted to the Master Servicer. As compensation 

  

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therefor, the Indenture Trustee shall be entitled to receive all compensation payable to the Master Servicer under this Agreement. 
  
 (c) Notwithstanding the above, the Indenture Trustee may, if it shall be
unwilling to continue to so act, or shall, if it is unable to so act, appoint, or petition a court of competent jurisdiction to appoint, any established housing and home finance institution servicer, master servicer, servicing or mortgage servicing
institution having a net worth of not less than $15,000,000 and meeting such other standards for a successor master servicer as are set forth in this Agreement, as the successor to such Master Servicer in the assumption of all of the
responsibilities, duties or liabilities of a master servicer, like the Master Servicer. Such successor Master Servicer may be an Affiliate of the Indenture Trustee; provided, however, that, unless such Affiliate meets the net worth
requirements and other standards set forth herein for a successor master servicer, the Indenture Trustee, in its individual capacity shall agree, at the time of such designation, to be and remain liable to the Issuer and the Indenture Trustee for
such Affiliate’s actions and omissions in performing its duties hereunder. In connection with such appointment and assumption, the Indenture Trustee may make such arrangements for the compensation of such successor out of payments on the
Mortgage Loans as it and such successor shall agree; provided, however, that no such compensation shall be in excess of that permitted to the Master Servicer hereunder. The Indenture Trustee and such successor shall take such actions,
consistent with this Agreement, as shall be necessary to effectuate any such succession and may make other arrangements with respect to the servicing to be conducted hereunder which are not inconsistent herewith. The Master Servicer shall cooperate
with the Indenture Trustee and any successor master servicer in effecting the termination of the Master Servicer’s responsibilities and rights hereunder including, without limitation, notifying the Servicer of the assignment of the master
servicing functions and providing the Indenture Trustee and successor master servicer, as applicable, all documents and records in electronic or other form reasonably requested by it to enable it to assume the Master Servicer’s functions
hereunder and the transfer to the Indenture Trustee or such successor master servicer, as applicable, all amounts or investment property which shall at the time be or should have been deposited by the Master Servicer in the Collection Account and
any other account or fund maintained with respect to the Notes or thereafter be received with respect to the Mortgage Loans. Neither the Indenture 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 payment hereunder or any portion thereof caused by (i) the failure of the Master Servicer to deliver, or any delay in delivering, cash, documents or records to it, (ii) the failure of the Master
Servicer to cooperate as required by this Agreement, (iii) the failure of the Master Servicer to deliver the Mortgage Loan data to the Indenture Trustee as required by this Agreement or (iv) restrictions imposed by any regulatory authority having
jurisdiction over the Master Servicer. 
  
 Section 8.02.
Additional Remedies of Indenture Trustee Upon Event of Default. During the continuance of any Master Servicer Event of Default, so long as such Master Servicer Event of Default shall not have been remedied, the Indenture Trustee, in addition
to the rights specified in Section 8.01, shall have the right, in its own name and as trustee of an express trust, to take all actions now or hereafter existing at law, in equity or by statute to enforce its rights and remedies 

  

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and to protect the interests, and enforce the rights and remedies, of the Noteholders (including the institution and prosecution of all judicial,
administrative and other proceedings and the filings of proofs of claim and debt in connection therewith). Except as otherwise expressly provided in this Agreement, no remedy provided for by this Agreement shall be exclusive of any other remedy, and
each and every remedy shall be cumulative and in addition to any other remedy, and no delay or omission to exercise any right or remedy shall impair any such right or remedy or shall be deemed to be a waiver of any Event of Default. 
  
 Section 8.03. Waiver of Defaults. The Majority Noteholders may, on
behalf of all Noteholders, waive any default or Master Servicer Event of Default by the Master Servicer in the performance of its obligations hereunder, except that a default in the making of any required deposit to the Collection Account that would
result in a failure of the Securities Administrator to make any required payment of principal of or interest on the Notes may only be waived with the consent of 100% of the affected Noteholders. 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. 
  
 Section 8.04.
Notification to Holders. Upon termination of the Master Servicer or appointment of a successor to the Master Servicer, in each case as provided herein, the Indenture Trustee shall promptly mail notice thereof by first class mail to the
Noteholders at their respective addresses appearing on the applicable Register. The Indenture Trustee shall also, within 45 days after the occurrence of any Master Servicer Event of Default known to the Indenture Trustee, give written notice thereof
to Noteholders, unless such Event of Default shall have been cured or waived prior to the issuance of such notice and within such 45-day period. 
  
 Section 8.05. Directions by Noteholders and Duties of Indenture Trustee During Master Servicer Event of Default. During the continuance of any
Master Servicer Event of Default, the Majority Noteholders may direct the time, method and place of conducting any proceeding for any remedy available to the Indenture Trustee, or exercising any trust or power conferred upon the Indenture Trustee,
under this Agreement; provided, however, that the Indenture Trustee shall be under no obligation to pursue any such remedy, or to exercise any of the trusts or powers vested in it by this Agreement (including, without limitation, (i) the
conducting or defending of any administrative action or litigation hereunder or in relation hereto and (ii) the terminating of the Master Servicer or any successor master servicer from its rights and duties as master servicer hereunder) at the
request, order or direction of any of the Noteholders, unless such Noteholders shall have offered to the Indenture Trustee security or indemnity reasonably satisfactory to it against the cost, expenses and liabilities which may be incurred therein
or thereby; and, provided further, that, the Indenture Trustee shall have the right to decline to follow any such direction if the Indenture Trustee, in accordance with an Opinion of Counsel, determines that the action or proceeding so
directed may not lawfully be taken or if the Indenture Trustee in good faith determines that the action or proceeding so directed would involve it in personal liability for 

  

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which it is not indemnified to its satisfaction or be unjustly prejudicial to the non-assenting Noteholders. 
  
 Section 8.06. Action Upon Certain Failures of the Master Servicer and Upon
Master Servicer Event of Default. In the event that a Responsible Officer of the Indenture Trustee or the Securities Administrator shall have actual knowledge of any action or inaction of the Master Servicer that would become a Master Servicer
Event of Default upon the Master Servicer’s failure to remedy the same after notice, the Indenture Trustee or Securities Administrator, as applicable, shall give notice thereof to the Master Servicer. 
  
 Section 8.07. Preparation of Reports. 
  
 (a) The Depositor shall prepare or cause to be prepared the initial current
report on Form 8-K. Thereafter, within 15 days after each Payment Date, the Securities Administrator shall, in accordance with industry standards customary for securities similar to the Notes as required by the Exchange Act and the rules and
regulations of the Securities and Exchange Commission (the “Commission”), file with the Commission via the Electronic Data Gathering and Retrieval System (EDGAR), a Form 8-K with a copy of the statement to the Noteholders for such Payment
Date as an exhibit thereto. Prior to January 30, 2006, the Securities Administrator shall, in accordance with industry standards applicable to the Notes, file a Form 15 Suspension Notification with respect to the Issuer, if applicable. Prior to
March 31, 2006 and prior to March 31 in each succeeding year so long as a Form 15 has not been filed for the prior calendar year, the Securities Administrator shall file (and the Master Servicer will execute) a Form 10-K, in substance conforming to
industry standards applicable to the Notes, with respect to the Issuer. The Form 10-K shall include the certification required pursuant to Rule 13a-14 under the Exchange Act (the “Form 10-K Certification,” which Form 10-K Certification
shall be signed by the Master Servicer). The Indenture Trustee and the Securities Administrator shall have no liability for any delay in filing the Form 10-K due to the failure of such party to timely sign the Form 10-K or Form 10-K Certification.
The Depositor hereby grants, and in the case of the Form 10-K Certification, an Authorized Officer of the Depositor will grant, to the Master Servicer and the Securities Administrator a limited power of attorney to execute and file each such
document on behalf of the Depositor. Such power of attorney shall continue until either the earlier of (i) receipt by the Master Servicer and the Securities Administrator from the Depositor of written termination of such power of attorney and (ii)
the termination of the Issuer. 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 and the
Mortgage Loans as the Depositor 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.

  
 (b) Each person (including their officers or directors) that
signs any Form 10-K Certification shall be entitled to indemnification from the Trust Estate for any liability or expense incurred by it in connection with such certification, other than any liability or expense attributable to such Person’s
own bad faith, negligence or willful misconduct. The provisions of this 

  

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subsection shall survive any termination of this Agreement and the resignation or removal of such Person. 
  
 (c) To the extent that, following the Closing Date, the contents of Forms
8-K, 10-K or other Forms required by the Exchange Act and the Rules and Regulations of the Commission and the time by which such Forms are required to be filed, differs from the provisions of this Agreement, the parties hereto hereby agree that each
shall reasonably cooperate to amend the provisions of this Agreement (in accordance with Section 10.03) in order to comply with such amended reporting requirements and such amendment of this Agreement. Any such amendment may result in the reduction
of the reports filed by the Servicer under the Exchange Act. Notwithstanding the foregoing, none of the Depositor, the Master Servicer, the Servicer or the Securities Administrator shall be obligated to enter into any amendment pursuant to this
Section that adversely affects its obligations and immunities under this Agreement. 
  
 ARTICLE IX 
  
 TERMINATION

  
 Section 9.01. Termination. The respective obligations
and responsibilities of the Master Servicer, the Securities Administrator, the Depositor, the Issuer, the Servicer and the Indenture Trustee created hereby (other than obligations expressly stated to survive the termination of the Trust) shall
terminate on the day after the day on which the Notes are paid in full (including payment pursuant to Section 9.02 below) (the “Termination Date”). 
  
 Section 9.02. Termination Prior to Maturity Date; Optional Redemption. 
  
 (a) On any Payment Date occurring on or after the Initial Purchase Date, the Residual Holder shall have the option to
purchase the Mortgage Loans, any REO Property and any other property remaining in the Trust for a price equal to the Termination Price. The Master Servicer and the Servicer will be reimbursed from the Termination Price for any outstanding Monthly
Advances, Servicing Advances and unpaid Servicing Fees and other amounts not previously reimbursed pursuant to the provisions of this Agreement, as applicable, and the Securities Administrator, the Owner Trustee, the Indenture Trustee and the
Custodian shall be reimbursed for any previously unreimbursed amounts for which they are entitled to be reimbursed pursuant to this Agreement, the Indenture, the Custodial Agreement or the Trust Agreement, as applicable. If such option is exercised,
the Trust will be terminated resulting in a mandatory redemption of the Notes. The Residual Holder shall deliver written notice of its intention to exercise such option to the Issuer, the Securities Administrator, the Indenture Trustee and the
Master Servicer not less than 30 days prior to the applicable Payment Date. If the Residual Holder fails to exercise such option on the Initial Purchase Date, the Note Interest Rate for each Class of Notes will be increased as set forth in the table
in the Preliminary Statement herein beginning on the Step-up Date and for each Payment Date thereafter. 
  

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 In connection with such purchase, the Residual Holder shall direct the Servicer to remit to the Master
Servicer all amounts then on deposit in the Custodial Account (other than amounts permitted to be withdrawn by it pursuant to Section 4.02(e)) for deposit to the Collection Account. 
  
 (b) Promptly following any such purchase pursuant to paragraph (a) of this Section and receipt of an Officer’s
Certificate of the Residual Holder that the purchase price has been deposited in the Collection Account, the Indenture Trustee or the Custodian shall release the Mortgage Files to the purchaser of such Mortgage Loans pursuant to this Section 9.02,
or otherwise upon its order. 
  
 Section 9.03. Certain Notices
upon Final Payment. The Master Servicer or the Securities Administrator, as applicable, shall give the Issuer, the Indenture Trustee, the Owner Trustee, each Rating Agency, each Noteholder and the Depositor at least thirty (30) days’ prior
written notice of the date on which the Trust is expected to terminate in accordance with Section 9.01, or the date on which the Notes will be redeemed in accordance with Section 9.02. Not later than the fifth Business Day in the Collection Period
in which the final payment in respect to the Notes is payable to the Noteholders, the Securities Administrator shall mail to the Noteholders a notice specifying the procedures with respect to such final payment. The Securities Administrator on
behalf of the Indenture Trustee shall give a copy of such notice to each Rating Agency at the time such notice is given to Noteholders. Following the final payment thereon, such Notes shall become void, no longer outstanding and no longer evidence
any right or interest in the Mortgage Loans, the Mortgage Files or any proceeds of the foregoing. 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 10.01. Binding
Nature of Agreement; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
  
 Section 10.02. Entire Agreement. This Agreement contains the entire agreement and understanding among the parties
hereto 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. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 
  
 Section 10.03. Amendment. 
  
 (a) This Agreement may be amended from time to time by the parties hereto, without notice to or the consent of any of the Holders of the Notes, (i) to
cure any ambiguity, (ii) to cause the provisions herein to conform to or be consistent with or in furtherance of the statements made 

  

 122 

 
with respect to the Notes, the Trust or this Agreement in any Offering Document, or to correct or supplement any provision herein which may be inconsistent
with any other provisions herein or in any other Operative Agreement, to make any other provisions with respect to matters or questions arising under this Agreement, (iii) to make any other provision with respect to matters or questions arising
under this Agreement (iv) to add, delete, or amend any provisions to the extent necessary or desirable relating to any Class of Notes issued pursuant to a supplemental indenture to the Indenture that is subordinate in rights of payment of interest
and principal to each Class of Notes issued pursuant to the Indenture on the Closing Date, or (v) to add, delete, or amend any provisions to the extent necessary or desirable to comply with any requirements imposed by the Code or ERISA and
applicable regulations. No such amendment effected pursuant to the preceding sentence shall, as evidenced by an Opinion of Counsel (which shall be an expense of the party requesting such amendment and shall not be an expense of the Trust or the
Indenture Trustee), (1) affect the status of the Notes as debt for federal income tax purposes and (2) nor shall such amendment effected pursuant to clauses (iii) or (iv) of such sentence adversely affect in any material respect the interests of any
Holder. Prior to entering into any amendment without the consent of Holders pursuant to this paragraph, the Indenture Trustee may require an Opinion of Counsel (at the expense of the party requesting such amendment) to the effect that such amendment
is permitted under this paragraph. Any such amendment shall be deemed not to adversely affect in any material respect any Holder, if the Indenture Trustee receives written confirmation from each Rating Agency that such amendment will not cause such
Rating Agency to reduce the then current rating assigned to the Notes. 
  
 (b) This Agreement may also be amended from time to time by the parties hereto, with the consent of the Noteholders representing 66-2/3% Voting Interests for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the rights of the Holders; provided, however, that no such amendment may (i) reduce in any manner the amount of, or delay the timing of, payments which are required to be
paid on any Class of Notes, without the consent of the Noteholders of such Class or (ii) reduce the aforesaid percentages of Class Principal Amount of Notes, the Holders of which are required to consent to any such amendment without the consent of
the Holders of 100% of the Class Principal Amount of the Notes. For purposes of this paragraph, references to “Holder” or “Holders” shall be deemed to include, in the case of Book-Entry Notes, the related Note Owners. 

 
 (c) Promptly after the execution of any such amendment, the Indenture
Trustee shall furnish written notification of the substance of such amendment to each Holder, the Depositor and to each Rating Agency. 
  
 (d) It shall not be necessary for the consent of Holders under this Section 10.03 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 Holders shall be subject to such reasonable regulations as the Indenture Trustee
may prescribe. 
  

 123 

 Section 10.04. Acts of Noteholders. Except as otherwise specifically provided herein, whenever
Noteholder action, consent or approval is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon, all Noteholders if the Majority Noteholders agree to take
such action or give such consent or approval. 
  
 Section 10.05.
Recordation of Agreement. To the extent permitted by applicable law, this Agreement, or a memorandum thereof if permitted under applicable law, 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 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 on
direction and at the expense of Holders of not less than 66-2/3% of the Note Principal Balance of the Notes and of the Holder of the Ownership Certificate requesting such recordation, but only when accompanied by an Opinion of Counsel to the effect
that such recordation materially and beneficially affects the interests of the Noteholders, or is necessary for the administration or servicing of the Mortgage Loans. 
  
 Section 10.06. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

  
 Section 10.07. Notices. All demands, notices and
communications hereunder shall be in writing and shall be deemed to have been duly given if mailed by overnight courier, addressed as follows or delivered by facsimile (or such other address as may hereafter be furnished to the other party by like
notice): 
  

	 	(i)	if to the Seller: 

  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite
100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
 Facsimile: (404) 705-2301 
  
 with a copy to: 
  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta,
Georgia 30319 
 Attention: General Counsel 
 Facsimile: (404) 303-4069 
  

 124 

	 	(ii)	if to the Servicer: 

  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite
100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
 Facsimile: (404) 705-2301 
  
 with a copy to: 
  
 HomeBanc Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta,
Georgia 30319 
 Attention: General Counsel 
 Facsimile: (404) 303-4069 
  

	 	(iii)	if to the Master Servicer: 

  
 Wells Fargo Bank, N.A. 
 P.O. Box 98

 Columbia, Maryland 21046 
 Attention: HomeBanc Mortgage Trust 2005-3 
 (or in the case of overnight deliveries, 
 9062 Old Annapolis Road 
 Columbia, Maryland
21045) 
 Telephone: (410) 884-2000 
 Facsimile: (410) 715-2380 
  

	 	(iv)	if to the Securities Administrator: 

  
 Wells Fargo Bank, N.A. 
 P.O. Box 98

 Columbia, Maryland 21046 
 Attention: HomeBanc Mortgage Trust 2005-3 
 (or in the case of overnight deliveries, 
 9062 Old Annapolis Road 
 Columbia, Maryland
21045) 
 Telephone: (410) 884-2000 
 Facsimile: (410) 715-2380 
  

 125 

	 	(v)	if to the Indenture Trustee: 

  
 U.S. Bank National Association  
 One
Federal Street, Third Floor 
 Boston, Massachusetts 02110 
 Attention: Corporate Trust Services/HomeBanc 2005-3 
  
 if to the Depositor: 
  
 HMB
Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
 Facsimile: (404) 705-2301 
  
 with a copy to: 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard,
Suite 100 
 Atlanta, Georgia 30319 
 Attention: General Counsel 
 Facsimile: (404) 303-4069 
  

	 	(vi)	if to the Issuer: 

  
 c/o Wilmington Trust Company 
 Rodney Square
North 
 1100 North Market Street 
 Wilmington, Delaware 19890 
 Attention: Corporate Trust Administration/ HomeBanc 2005-3 
  
 All demands, notices and communications to a party hereunder shall be in
writing and shall be deemed to have been duly given when delivered to such party at the relevant address, facsimile number or electronic mail address set forth above or at such other address, facsimile number or electronic mail address as such party
may designate from time to time by written notice in accordance with this Section 10.07. 
  
 Section 10.08. 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
Notes or the rights of the Holders thereof. 
  

 126 

 Section 10.09. Indulgences; No Waivers. Neither the failure nor any delay on the part of a party
to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any
other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  
 Section 10.10. Headings Not To Affect Interpretation. The headings contained in this Agreement are for convenience of reference only, and they
shall not be used in the interpretation hereof. 
  
 Section 10.11.
Benefits of Agreement. Nothing in this Agreement or in the Notes, express or implied, shall give to any Person, other than the parties to this Agreement and their successors hereunder and the Holders of the Notes, any benefit or any legal or
equitable right, power, remedy or claim under this Agreement. Notwithstanding the foregoing, (i) the Owner Trustee shall be an express third party beneficiary of this Agreement and (ii) the Residual Holder shall be an express third party beneficiary
with respect to Section 9.02. 
  
 Section 10.12. Special
Notices to the Rating Agencies. 
  
 (a) The Servicer shall
give prompt notice to each Rating Agency of the occurrence of any of the following events of which it has notice: 
  
 (vii) any amendment to this Agreement pursuant to Section 10.03; and 
  
 (viii) the making of a final payment hereunder. 
  
 (b) All notices to the Rating Agencies provided for by this Section shall be
in writing and sent by first class mail, telecopy or overnight courier, as follows: 
  
 if to Moody’s: 
  
 Moody’s Investors
Service, Inc. 
 99 Church Street 
 New York, New York 10004 
 Fax no.: (212) 553-4392 
  
 if to S&P: 
  
 Standard & Poor’s Ratings Services, a division 
 of The McGraw-Hill Companies, Inc. 
 55 Water Street 
 New York, New York 10041 
 Fax no.: (212)
438-2661 
  

 127 

 (c) The Securities Administrator shall make available to the Rating Agencies each report prepared
pursuant to Section 5.08. 
  
 Section 10.13. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same instrument. 
  
 Section 10.14. Agreement of the Issuer. The Issuer hereby acknowledges and agrees that, to the extent that the Issuer
is deemed to have any interest in any assets of the Depositor that constitute the assets of the trust for any other series of securities with respect to which the Depositor acts as depositor: 
  
 (a) the interest of the Issuer in such assets is subordinate to claims or
rights of the holders of such other series of securities to such assets; and 
  
 (b) this Agreement constitutes a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code. 
  
 Section 10.15. Execution by the Issuer. It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and
delivered by Wilmington Trust Company, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it as trustee, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose of binding only the Issuer, (c) nothing herein
contained shall be construed as creating any liability on Wilmington Trust Company, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties
hereto and by any person claiming by, through or under the parties hereto and (d) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Agreement or any other document. 
  

 128 

  
 IN WITNESS WHEREOF, the
parties hereto have caused their names to be signed hereto by their respective officers hereunto duly authorized as of the day and year first above written. 
  

			
	 HOMEBANC MORTGAGE TRUST 2005-3,
 as
Issuer

		
	By:	 	WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
		
	By:	 	 /s/ Janel R. Havrilla

	 Name:
	 	 Janel R. Havrilla

	 Title:
	 	 Financial Services Officer

	
	 HMB ACCEPTANCE CORP.,
 as
Depositor

		
	By:	 	 /s/ Debra F. Watkins

	 Name:
	 	 Debra F. Watkins

	 Title:
	 	 Executive Vice President

	
	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee
		
	By:	 	 /s/ Karen R. Beard

	 Name:
	 	 Karen R. Beard

	 Title:
	 	 Vice President

	
	 WELLS FARGO BANK, N.A.,
 as Securities
Administrator and Master Servicer

		
	By:	 	 /s/ Stacey Taylor

	 Name:
	 	 Stacey Taylor

	 Title:
	 	 Assistant Vice President

  

			
	 HOMEBANC CORP.,
 as Seller and
Servicer

		
	By:	 	 /s/ Debra F. Watkins

	 Name:
	 	 Debra F. Watkins

	 Title:
	 	 Executive Vice President

  

					
	STATE OF DELAWARE	  	)	  	 
	 	  	:	  	ss.:
	COUNTY OF NEW CASTLE	  	)	  	 

  
 On this 27th day of
May 2005, before me, a notary public in and for said State, personally appeared Janel R. Havrilla, known to me to be a Financial Services Officer of Wilmington Trust Company, one of the corporations that executed the within instrument, and also
known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	
	 /s/ Amanda E. Burger

	 Notary Public

  
 [NOTARIAL SEAL] 
  

					
	STATE OF GEORGIA	  	)	  	 
	 	  	:	  	ss.:
	COUNTY OF FULTON	  	)	  	 

  
 On the 27th day of May 2005, before me, personally appeared Debra F. Watkins, known to me to be an Executive Vice President of HMB
Acceptance Corp., one of the corporations that executed the within instrument and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

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

	
	
	 /s/ Judy Mantia

	 Notary Public

  
 [NOTARIAL SEAL] 
  

					
	COMMONWEALTH OF MASSACHUSETTS	  	)	  	 
	 	  	:	  	ss.:
	COUNTY OF SUFFOLK	  	)	  	 

  
 On the 27th of May
2005 before me, a Notary Public in and for said State, personally appeared Karen R. Beard known to me to be a Vice President of U.S. Bank National Association, one of the corporations that executed the within instrument and also known to me to be
the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	
	 /s/ Larry D. Snell

	 Notary Public

  
 [NOTARIAL SEAL] 
  

					
	STATE OF MARYLAND	  	)	  	 
	 	  	:	  	ss.:
	COUNTY OF BALTIMORE	  	)	  	 

  
 On the 27th of May
2005 before me, a Notary Public in and for said State, personally appeared Stacey Taylor known to me to be an Assistant Vice President of Wells Fargo Bank, N.A., a national banking association that executed the within instrument and also known to me
to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	
	 /s/ Darron C. Woods

	 Notary Public

  
 [NOTARIAL SEAL] 
  

					
	STATE OF GEORGIA	  	)	  	 
	 	  	:	  	ss.:
	COUNTY OF FULTON	  	)	  	 

  
 On the 27th of May
2005, before me, personally appeared Debra F. Watkins, known to me to be an Executive Vice President of HomeBanc Corp., one of the corporations that executed the within instrument and also known to me to be the person who executed it on behalf of
said corporation, and acknowledged to me that such corporation executed the within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	
	 /s/ Judy Mantia

	 Notary Public

  
 [NOTARIAL SEAL] 
  

  
 EXHIBIT A-1

  
 FORM OF INITIAL CERTIFICATION 
  
 ________________ 
 Date             
  
 U.S. Bank National Association  
 One Federal Street, Third Floor

 Boston, Massachusetts 02110 
 Attention: Corporate Trust
Services/HomeBanc 2005-3 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
  

	 	Re:	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of May 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-3, as Issuer, and HomeBanc Corp., as Seller and Servicer 

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.02(a) of the Transfer and Servicing Agreement, subject to review of the contents thereof, the
undersigned, as Custodian, hereby certifies that it has received the documents listed in Section 2.01(b) of the Transfer and Servicing Agreement for each Mortgage File pertaining to each Mortgage Loan listed on Schedule A to the Transfer and
Servicing Agreement, subject to any exceptions noted on Schedule I hereto. 
  
 Capitalized words and phrases used herein and not otherwise defined herein shall have the respective meanings assigned to them in the Transfer and Servicing Agreement. This certificate is subject in all respects to
the terms of Section 2.02 of the Transfer and Servicing Agreement and the Transfer and Servicing Agreement sections cross-referenced therein. 
  

			
	 [Custodian]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

  
 EXHIBIT A-2

  
 FORM OF INTERIM CERTIFICATION 
  
 ________________ 
 Date             
  
 U.S. Bank National Association  
 One Federal Street, Third Floor

 Boston, Massachusetts 02110 
 Attention: Corporate Trust
Services/HomeBanc 2005-3 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
  

	 	Re:	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of May 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-3, as Issuer, and HomeBanc Corp., as Seller and Servicer 

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.02(b) of the Transfer and Servicing Agreement, the undersigned, as Custodian, hereby certifies
that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on Schedule I hereto) it (or its custodian) has received the applicable documents listed in Section 2.01(b) of the Transfer and
Servicing Agreement. 
  
 The undersigned hereby certifies that as
to each Mortgage Loan identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I hereto, it has reviewed the documents identified above and has determined that each such document appears regular on its face and
appears to relate to the Mortgage Loan identified in such document. 
  
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the Transfer and Servicing Agreement. This certificate is qualified in all respects by the terms of said Transfer and Servicing Agreement
including, but not limited to, Section 2.02(b). 
  

			
	 [Custodian]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 A-2-1 

  
 EXHIBIT A-3

  
 FORM OF FINAL CERTIFICATION 
  
 ________________ 
 Date             
  
 U.S. Bank National Association  
 One Federal Street, Third Floor

 Boston, Massachusetts 02110 
 Attention: Corporate Trust
Services/HomeBanc 2005-3 
  
 HMB Acceptance Corp. 
 2002 Summit Boulevard, Suite 100 
 Atlanta, Georgia 30319 
 Attention: Debra F. Watkins, EVP Capital Markets 
  

	 	Re:	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of May 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-3, as Issuer, and HomeBanc Corp., as Seller and Servicer 

  
 Ladies and Gentlemen: 
  
 In accordance with Section 2.02(d) of the Transfer and Servicing Agreement, the undersigned, as Custodian on behalf of the
Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on Schedule I hereto) it (or its custodian) has received the applicable documents listed in
Section 2.01(b) of the Transfer and Servicing Agreement. 
  
 The
undersigned hereby certifies that as to each Mortgage Loan identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I hereto, it has reviewed the documents listed above and has determined that each such document
appears to be complete and, based on an examination of such documents, the information set forth in the Mortgage Loan Schedule is correct. 
  
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the Transfer and Servicing Agreement. This certificate is
qualified in all respects by the terms of said Transfer and Servicing Agreement. 
  

			
	 [Custodian]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 A-3-1 

  
 EXHIBIT A-4

  
 FORM OF ENDORSEMENT 
  
 Pay to the order of U.S. Bank National Association, as indenture trustee (the
“Indenture Trustee”) under the Transfer and Servicing Agreement dated as of May 1, 2005 by and among HMB Acceptance Corp., as Depositor, the Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer,
HomeBanc Mortgage Trust 2005-3, as Issuer, and HomeBanc Corp., as Seller and Servicer, relating to HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes without recourse. 
  

			
	 
	 [current signatory on note]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 A-4-1 

  
 EXHIBIT A-5

  
 REQUEST FOR RELEASE 
  
 U.S. Bank National Association  
 One Federal Street, Third Floor 
 Boston, Massachusetts 02110 
 Attention: Corporate Trust Services/HomeBanc 2005-3 
  
 JPMorgan Chase Bank, National Association 
 1111 Fannin Street, 12th Floor

 Houston, Texas 77002 
  

	 	Re:	Transfer and Servicing Agreement (the “Transfer and Servicing Agreement”) dated as of May 1, 2005 by and among HMB Acceptance Corp., as Depositor, U.S. Bank National
Association, as Indenture Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-3, as Issuer, and HomeBanc Corp., as Seller and Servicer 

  
 In connection with the administration of the Mortgage Loans held by the
Custodian for the benefit of the Indenture Trustee pursuant to the above-captioned Transfer 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 Collection Account 

  

	 	2.	Foreclosure 

  

	 	3.	Substitution 

  

	 	4.	Other Liquidation 

  

	 	5.	Nonliquidation              Reason: 

  

 A-5-1 

			
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

		
	 	 	 Issuer:________________________________

		
	 	 	 Address:_______________________________

  

  
 EXHIBIT B 

 
 FORM OF LOST NOTE AFFIDAVIT 
  
 I,
                                        
                                        
    , being duly sworn, do hereby state under oath that: 
  
 1. I am a duly elected
                                        
         of HomeBanc Corp. (the “Company”) and am duly authorized to make this affidavit. 
  
 2. This affidavit is being delivered in connection with the transfer of the Mortgage Loan described in Paragraph 3 hereof by the Company pursuant to the
Transfer and Servicing Agreement, dated as of May 1, 2005, among HomeBanc Mortgage Trust 2005-3, as Issuer, HMB Acceptance Corp., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and as Securities Administrator, HomeBanc Corp. as Seller and
Servicer, and U.S. Bank National Association, as Indenture Trustee, relating to the HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes (the “Agreement”). 
  
 3. The
                                 is the payee under the following described
Mortgage Note (“Mortgage Note”) which evidences the obligation of the borrower(s) to repay the Mortgage Loan: 
  
 Loan Number:_____________________________________ 
 Mortgage Note Date:_______________________________ 
 Borrower(s):______________________________________ 
 Original Payee (if not the Company):____________ 
 Original Amount:__________________________________ 
 Mortgage Rate:____________________________________ 
 Address of Mortgaged Property:_______________________ 
 _________________________________________________ 
  
 4.
The Company is the lawful owner of the Mortgage Note and has not cancelled, altered, assigned or hypothecated the Mortgage Note. 
  
 5. A thorough and diligent search for the executed original Mortgage Note was undertaken and was unsuccessful. 
  
 6. Attached hereto is a true and correct copy of the Mortgage Note.

  
 7. The Mortgage Note has not been endorsed by the Company in
any manner inconsistent with its transfer of the Mortgage Loan under the Mortgage Loan Purchase Agreement. 
  
 8. Without limiting the generality of the rights and remedies of the Indenture Trustee contained in the Agreement, the Company hereby confirms and agrees
that in the event the inability to produce the executed original Mortgage Note results in a breach of the representations, warranties and covenants appearing in Exhibit A to the Mortgage Loan Purchase Agreement and Section 3.01 of the Agreement, the
Company shall repurchase the Mortgage 

  

 B-1 

 
Loan at the Purchase Price and otherwise in accordance with Section 3.03 of the Agreement. In addition, the Company covenants and agrees to indemnify the
Indenture Trustee and the Trust from and hold them harmless against any and all losses, liabilities, damages, claims or expenses arising from the Company’s failure to have delivered the Mortgage Note to the Indenture Trustee, including without
limitation any such losses, liabilities, damages, claims or expenses arising from any action to enforce the indebtedness evidenced by the Mortgage Note or any claim by any third party who is the holder of such indebtedness by virtue of possession of
the Mortgage Note. 
  
 9. In the event that the Company locates
the executed original Mortgage Note, it shall promptly provide the Mortgage Note to the Indenture Trustee. 
  
 10. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Agreement. 
  
 Date:
                                        
             
  

	
	
	 
	 (signature)

	
	 
	 (print name)

	
	 
	 (print title)

  

 B-2 

  
 EXHIBIT C 

 
 CUSTODIAL AGREEMENT 
  

 C-1 

  
 EXHIBIT D 

 
 CUSTODIAL ACCOUNT LETTER AGREEMENT 
  
                                     ,
             
  

	To:	__________________ 

	  	__________________ 

	  	__________________ 

	  	(the “Depository”) 

  
 As Servicer under the Transfer and Servicing Agreement dated as of May 1, 2005, by and among HMB Acceptance Corporation, as Depositor, you, as Indenture
Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-3, as Issuer, HomeBanc Corporation, as Seller and Services (the “Transfer and Servicing Agreement”), we hereby authorize and
request you to establish an account, as a Custodial Account pursuant to Section 4.02(d) of the Transfer and Servicing Agreement, designated as “HomeBanc Corporation in trust for U.S. Bank National Association, as Indenture Trustee for the
HomeBanc Mortgage Trust 2005-3.” All deposits in the account shall be subject to withdrawal therefrom by order signed by the Servicer. This letter is submitted to you in duplicate. Please execute and return one original to us. 
  

			
	 HOMEBANC CORPORATION
Servicer

		
	By:	 	 
	 	 	 Name: _________________________________

	 	 	 Title: __________________________________

	 	 	 Date: __________________________________

  

 D-1 

 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. 
  

			
	 
	Depository
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	 	 	 Date:

  

 D-2 

  
 EXHIBIT E 

 
 ESCROW ACCOUNT LETTER AGREEMENT 
  
                                      
   ,              
  

	To:	__________________ 

	  	__________________ 

	  	__________________ 

	  	(the “Depository”) 

  
 As Servicer under the Transfer and Servicing Agreement dated as of May 1, 2005, by and among HMB Acceptance Corp., as Depositor, you, as Indenture
Trustee, Wells Fargo Bank, N.A., as Securities Administrator and Master Servicer, HomeBanc Mortgage Trust 2005-3, as Issuer and HomeBanc Corp. as Seller and Servicer (the “Transfer and Servicing Agreement”), we hereby authorize and request
you to establish an account, as an Escrow Account pursuant to Section 4.02(f) of the Transfer and Servicing Agreement, designated as “HomeBanc Corp. in trust for U.S. Bank National Association, as Indenture Trustee for the HomeBanc Mortgage
Trust 2005-3.” All deposits in the account shall be subject to withdrawal therefrom by order signed by the Servicer. This letter is submitted to you in duplicate. Please execute and return one original to us. 
  

			
	 HOMEBANC CORP.
Servicer

		
	By:	 	 
	 	 	 Name: _________________________________

  

 E-1 

 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. 
  

			
	 
	Depository
		
	By:	 	 

			
	 Name:
	 	 

  

 E-2 

  
 EXHIBIT F 

 
 PART I: 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

  

 F-1 

							
				
	 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 ($)

  

 F-2 

  
 PART II: 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 

  

 F-3 

  
 PART II: 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

  

 F-4 

  
 PART II: 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

  

 F-5 

  
 PART III: Calculation of
Realized Loss/Gain Form 332– Instruction Sheet 
  

	(a)	The numbers on the 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. All line entries must be supported by copies of appropriate statements, vouchers, receipts, bills, canceled checks, etc., to document the expense. Entries
not properly documented will not be reimbursed to the Servicer. 

  

	13.	The total of lines 1 through 12. 

  

	(b)	Credits:  

  

	14-21.	Complete as applicable. All line entries must be supported by copies of the appropriate claims forms, EOBs, HUD-1 and/or other proceeds verification, statements, payment checks,
etc. to document the credit. If the Mortgage Loan is subject to a Bankruptcy Deficiency, the difference between the Unpaid Principal Balance of the Note prior to the Bankruptcy Deficiency and the Unpaid Principal Balance as reduced by the Bankruptcy
Deficiency should be input on line 20. 

  

	22.	The total of lines 14 through 21. 

  
 Please note: For HUD/VA loans, use line (15) for Part A/Initial proceeds and line (16) for Part B/Supplemental proceeds. 
  

 F-6 

	(c)	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 ( ). 

  

 F-7 

  
 PART IIIA: Calculation of
Realized Loss/Gain Form 332 
  
 WELLS FARGO BANK, N.A.

 CALCULATION OF REALIZED LOSS/GAIN 
  
 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 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 _______________________ (5) 

  

	(6)	Property Maintenance __________________ (6) 

  

	(7)	MI/Hazard Insurance Premiums_____________________ (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 Proceeds ___________________ (18) 

  

	(19)	Pool Insurance Proceeds _____________________ (19) 

  

	(20)	Proceeds from Sale of Acquired Property _________________________ (20) 

  

 F-8 

	(21)	Other (itemize) _______________ (21) 

  
 ___________________________________    __________________ 
  
 ___________________________________    __________________ 
  
 Total Credits $ ______________ (22) 
  
 Total Realized Loss (or Amount of Gain) $_________________ (23) 
  

 F-9 

  
 SCHEDULE A 

 
 MORTGAGE LOAN SCHEDULE 
  

 Schedule A-1Indenture, dated as of May 1, 2005

 Exhibit 10.4 
  
 EXECUTION 
  
 INDENTURE 
  
 among 
  
 HOMEBANC MORTGAGE TRUST 2005-3, 
 Issuer, 
  
 U.S. BANK NATIONAL ASSOCIATION, 
 Indenture
Trustee 
  
 and 
  
 WELLS FARGO BANK, N.A., 
 Securities Administrator 
  
 Dated as of May 1, 2005 

  
 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page

	ARTICLE I
	
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 Section 1.01
	  	 Definitions
	  	2
	 Section 1.02
	  	 Rules of Construction
	  	7
	
	ARTICLE II
	
	THE NOTES
			
	 Section 2.01
	  	 Form
	  	8
	 Section 2.02
	  	 Execution, Authentication and Delivery
	  	9
	 Section 2.03
	  	 Limitations on Transfer of the Notes
	  	10
	 Section 2.04
	  	 Registration; Registration of Transfer and Exchange
	  	12
	 Section 2.05
	  	 Mutilated, Destroyed, Lost or Stolen Notes
	  	13
	 Section 2.06
	  	 Persons Deemed Owners
	  	14
	 Section 2.07
	  	 Payment of Principal and Interest
	  	14
	 Section 2.08
	  	 Cancellation
	  	15
	 Section 2.09
	  	 Release of Collateral
	  	16
	 Section 2.10
	  	 Book-Entry Notes
	  	16
	 Section 2.11
	  	 Notices to Clearing Agency
	  	17
	 Section 2.12
	  	 Definitive Notes
	  	17
	 Section 2.13
	  	 Tax Treatment
	  	17
	 Section 2.14
	  	 Restrictions on Transfer of Beneficial Ownership Interest in Class B Notes
	  	18
	
	ARTICLE III
	
	COVENANTS
			
	 Section 3.01
	  	 Payment of Principal and Interest
	  	18
	 Section 3.02
	  	 Maintenance of Office or Agency
	  	19
	 Section 3.03
	  	 Money for Payments to be Held in Trust
	  	19
	 Section 3.04
	  	 Existence
	  	20
	 Section 3.05
	  	 Protection of Collateral
	  	21
	 Section 3.06
	  	 Opinions as to Collateral
	  	21
	 Section 3.07
	  	 Performance of Obligations
	  	22
	 Section 3.08
	  	 Negative Covenants
	  	23
	 Section 3.09
	  	 Annual Statement as to Compliance
	  	24
	 Section 3.10
	  	 Treatment of Notes as Debt for Tax Purposes
	  	24
	 Section 3.11
	  	 No Other Business
	  	24
	 Section 3.12
	  	 No Borrowing
	  	24
	 Section 3.13
	  	 Guarantees, Loans, Advances and Other Liabilities
	  	24
	 Section 3.14
	  	 Capital Expenditures
	  	24
	 Section 3.15
	  	 Removal of Administrator
	  	24

  

 i 

					
	 Section 3.16
	  	 Restricted Payments
	  	24
	 Section 3.17
	  	 Notice of Events of Default
	  	25
	 Section 3.18
	  	 Further Instruments and Acts
	  	25
	 Section 3.19
	  	 Covenants of the Issuer
	  	25
	 Section 3.20
	  	 Representations and Warranties of the Issuer
	  	25
	
	ARTICLE IV
	
	SATISFACTION AND DISCHARGE
			
	 Section 4.01
	  	 Satisfaction and Discharge of Indenture
	  	26
	 Section 4.02
	  	 Application of Trust Money
	  	27
	 Section 4.03
	  	 Repayment of Moneys Held by Paying Agent
	  	27
	 Section 4.04
	  	 Trust Money Received by Indenture Trustee
	  	28
	
	ARTICLE V
	
	REMEDIES
			
	 Section 5.01
	  	 Events of Default
	  	28
	 Section 5.02
	  	 Acceleration of Maturity; Rescission and Annulment
	  	29
	 Section 5.03
	  	 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	  	30
	 Section 5.04
	  	 Remedies; Priorities
	  	32
	 Section 5.05
	  	 Optional Preservation of the Collateral
	  	33
	 Section 5.06
	  	 Limitation of Suits
	  	34
	 Section 5.07
	  	 Unconditional Rights of Noteholders To Receive Principal and Interest
	  	34
	 Section 5.08
	  	 Restoration of Rights and Remedies
	  	35
	 Section 5.09
	  	 Rights and Remedies Cumulative
	  	35
	 Section 5.10
	  	 Delay or Omission Not a Waiver
	  	35
	 Section 5.11
	  	 Control by Noteholders
	  	35
	 Section 5.12
	  	 Waiver of Past Defaults
	  	36
	 Section 5.13
	  	 Undertaking for Costs
	  	36
	 Section 5.14
	  	 Waiver of Stay or Extension Laws
	  	36
	 Section 5.15
	  	 Action on Notes
	  	37
	 Section 5.16
	  	 Performance and Enforcement of Certain Obligations
	  	37
	
	ARTICLE VI
	
	THE INDENTURE TRUSTEE
			
	 Section 6.01
	  	 Duties of Indenture Trustee
	  	37
	 Section 6.02
	  	 Rights of Indenture Trustee
	  	39
	 Section 6.03
	  	 Individual Rights of Indenture Trustee
	  	40
	 Section 6.04
	  	 Indenture Trustee’s Disclaimer
	  	41
	 Section 6.05
	  	 Notice of Defaults
	  	41
	 Section 6.06
	  	 Reports by Indenture Trustee to Holders
	  	41
	 Section 6.07
	  	 Compensation and Indemnity
	  	41
	 Section 6.08
	  	 Replacement of Indenture Trustee
	  	42

  

 ii 

					
	 Section 6.09
	  	 Successor Indenture Trustee by Merger
	  	42
	 Section 6.10
	  	 Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	  	43
	 Section 6.11
	  	 Eligibility; Disqualification
	  	44
	 Section 6.12
	  	 Representations and Warranties
	  	44
	 Section 6.13
	  	 Preferential Collection of Claims Against Issuer
	  	45
	
	ARTICLE VII
	
	NOTEHOLDERS’ LISTS AND REPORTS
			
	 Section 7.01
	  	 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	  	45
	 Section 7.02
	  	 Preservation of Information; Communications to Noteholders
	  	45
	 Section 7.03
	  	 Reports by Issuer
	  	46
	 Section 7.04
	  	 Reports by Indenture Trustee
	  	46
	
	ARTICLE VIII
	
	ACCOUNTS, DISBURSEMENTS AND RELEASES
			
	 Section 8.01
	  	 Collection of Money
	  	47
	 Section 8.02
	  	 Note Payment Account and Certificate Distribution Account
	  	47
	 Section 8.03
	  	 General Provisions Regarding Accounts
	  	47
	 Section 8.04
	  	 Release of Collateral
	  	47
	
	ARTICLE IX
	
	SUPPLEMENTAL INDENTURES
			
	 Section 9.01
	  	 Supplemental Indentures Without Consent of Noteholders
	  	48
	 Section 9.02
	  	 Supplemental Indentures with Consent of Noteholders
	  	49
	 Section 9.03
	  	 Execution of Supplemental Indentures
	  	50
	 Section 9.04
	  	 Effect of Supplemental Indenture
	  	50
	 Section 9.05
	  	 Conformity with Trust Indenture Act
	  	51
	 Section 9.06
	  	 Reference in Notes to Supplemental Indentures
	  	51
	 Section 9.07
	  	 Opinion of Counsel
	  	51
	
	ARTICLE X
	
	REDEMPTION OF NOTES
			
	 Section 10.01
	  	 Redemption
	  	51
	 Section 10.02
	  	 Form of Redemption Notice
	  	52
	 Section 10.03
	  	 Notes Payable on Redemption Date
	  	52

  

 iii 

					
	ARTICLE XI
	
	MISCELLANEOUS
			
	 Section 11.01
	  	 Compliance Certificates and Opinions, etc.
	  	52
	 Section 11.02
	  	 Form of Documents Delivered to Indenture Trustee
	  	53
	 Section 11.03
	  	 Acts of Noteholders
	  	54
	 Section 11.04
	  	 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies
	  	54
	 Section 11.05
	  	 Notices to Noteholders; Waiver
	  	55
	 Section 11.06
	  	 Conflict with Trust Indenture Act
	  	55
	 Section 11.07
	  	 Effect of Headings and Table of Contents
	  	55
	 Section 11.08
	  	 Successors and Assigns
	  	56
	 Section 11.09
	  	 Severability
	  	56
	 Section 11.10
	  	 Benefits of Indenture and Consents of Noteholders
	  	56
	 Section 11.11
	  	 Legal Holidays
	  	56
	 Section 11.12
	  	 Governing Law
	  	56
	 Section 11.13
	  	 Counterparts
	  	56
	 Section 11.14
	  	 Recording of Indenture
	  	56
	 Section 11.15
	  	 Trust Obligations
	  	56
	 Section 11.16
	  	 No Petition
	  	57
	 Section 11.17
	  	 Inspection
	  	57
	 Section 11.18
	  	 Agreements of Noteholders
	  	57

  
 EXHIBITS 
  

			
	 EXHIBIT A
	  	 Forms of Notes

	 EXHIBIT B-1
	  	 Form of Rule 144A Investment Letter

	 EXHIBIT B-2
	  	 Form of Non-Rule 144A Investment Letter

	 EXHIBIT C
	  	 Form of ERISA Transfer Affidavit

  

 iv 

  
 This INDENTURE, dated as of
May 1, 2005, is by and between HOMEBANC MORTGAGE TRUST 2005-3, a Delaware statutory trust (the “Issuer”), U.S. BANK NATIONAL ASSOCIATION, a national banking association, as indenture trustee and not in its individual capacity (the
“Indenture Trustee”) and WELLS FARGO BANK, N.A., a national banking association, as securities administrator and not in its individual capacity (the “Securities Administrator”). 
  
 Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer’s Mortgage Backed Notes (the “Notes”) in the Classes specified herein: 
  
 GRANTING CLAUSE 
  
 The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Holders of the Notes, all of the
Issuer’s right, title and interest, whether now owned or hereafter acquired, in and to: (i) the Trust Estate (as defined in the Transfer and Servicing Agreement); (ii) the Issuer’s rights and benefits but none of its obligations under the
Transfer and Servicing Agreement (including the Issuer’s right to cause the Depositor to repurchase Mortgage Loans from the Issuer under the circumstances described therein); (iii) the Issuer’s rights and benefits but none of its
obligations under the Administration Agreement; (v) the Issuer’s rights and benefits but none of its obligations under the Mortgage Loan Purchase Agreement; (vi) the Issuer’s rights and benefits but none of its obligations under the Cap
Agreements; (vii) the Trust Accounts, all amounts and property in the Trust Accounts from time to time, and the Security Entitlements to all Financial Assets credited to the Trust Accounts from time to time; (viii) all Holdback Amounts on deposit in
custodial accounts established by the Servicer for the benefit of the Issuer; (ix) all other property of the Trust from time to time; and (x) all present and future claims, demands, causes of action and choses in action in respect of any or all of
the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations and
receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, the “Collateral”). 
  
 The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in
respect of, the Notes, and to secure (i) the payment of all amounts due on the Notes in accordance with their terms, (ii) the payment of all other sums payable under the Indenture with respect to the Notes and (iii) compliance with the provisions of
this Indenture, all as provided in this Indenture. 
  
 The
Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes, acknowledges such Grant, accepts the trusts under this Indenture in accordance with the provisions of this Indenture and agrees to perform its duties required in this
Indenture to the best of its ability to the end that the interests of the Holders of the Notes may be adequately and effectively protected. 
  

 1 

 ARTICLE I 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section 1.01. Definitions. (a) Except as otherwise specified herein or as the context may otherwise require, the following terms have the
respective meanings set forth below for all purposes of this Indenture. 
  
 Act: The meaning specified in Section 11.03(a). 
  
 Authorized Officer: With respect to the Issuer, any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is identified on the list of Authorized Officers delivered by
the Owner Trustee to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter) and, so long as the Administration Agreement is in effect, any Vice President, Assistant Vice President, Trust
Officer or more senior officer of the Securities Administrator who is authorized to act for the Securities Administrator in matters relating to the Issuer and to be acted upon by the Securities Administrator pursuant to the Administration Agreement
and who is identified on the list of Authorized Officers delivered by the Securities Administrator to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter). 
  
 Book-Entry Notes: Beneficial interests in Notes designated as
“Book-Entry Notes” in this Indenture, ownership and transfers of which shall be evidenced or made through book entries by a Clearing Agency as described in Section 2.10; provided, that after the occurrence of a condition whereupon
Definitive Notes are to be issued to Note Owners, such Book-Entry Notes shall no longer be “Book-Entry Notes.” 
  
 Certificate of Trust: The certificate of trust of the Issuer substantially in the form of Exhibit B to the Trust Agreement. 
  
 Clearing Agency: An organization registered as a “clearing
agency” pursuant to Section 17A of the Exchange Act, as amended. As of the Closing Date, the Clearing Agency shall be The Depository Trust Company. 
  
 Clearing Agency Participant: A broker, dealer, bank, other financial institution or other Person for whom from time to time a Clearing Agency
effects book-entry transfers and pledges of securities deposited with the Clearing Agency. 
  
 Collateral: The meaning specified in the Granting Clause of this Indenture. 
  
 Commission: The Securities and Exchange Commission. 
  
 Default: Any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default. 
  
 Definitive Notes: The meaning specified in Section 2.10. 

 

 2 

 Depository Institution: Any depository institution or trust company, including the Indenture
Trustee and the Securities Administrator, that (a) is incorporated under the laws of the United States of America or any State thereof, (b) is subject to supervision and examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that are rated in the highest rating category by each Rating Agency, or is otherwise acceptable to each Rating Agency. 
  
 Disregarded Entity: The meaning specified in the Trust Agreement.

  
 Event of Default: The meaning specified in Section
5.01. 
  
 Exchange Act: The Securities Exchange Act of
1934, as amended. 
  
 Executive Officer: With respect to
any corporation or limited liability company, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, President, Manager, Executive Vice President, any Vice President, the Secretary or the Treasurer of such entity; and with
respect to any partnership, any general partner thereof. 
  
 Global Securities: The meaning specified in Section 2.01(a). 
  
 Grant: Mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create and grant a lien upon and a security interest in and a right of set-off against, deposit, set over
and confirm pursuant to this Indenture. A Grant of the Collateral or of any other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Collateral and all other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise and generally to do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect
thereto. 
  
 Holdback Amount: With respect to any Holdback
Mortgage Loan, any portion of the indebtedness evidenced by the related Mortgage Note that is not disbursed to the related Mortgagor, and is held in a custodial account established by the Servicer for the benefit of the Trust. 
  
 Holder or Noteholder: A Person in whose name a Note is
registered on the Note Register. 
  
 Independent: When used
with respect to any specified Person, that such Person (a) is in fact independent of the Issuer, any other obligor on the Notes, the Seller and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the Seller or any Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions. 
  

 3 

 Independent Certificate: A certificate or opinion to be delivered to the Indenture Trustee under
the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01, made by an Independent appraiser or other expert appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has read the definition of “Independent” in this Indenture and that the signer is Independent within the meaning thereof. 
  
 Issuer: HomeBanc Mortgage Trust 2005-3, a Delaware statutory trust, or
any successor and, for purposes of any provision contained herein and required by the TIA, each other obligor on the Notes. 
  
 Issuer Order or Issuer Request: A written order or request signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee. 
  
 Non-Priority Class
Note: As of any date of determination, any Outstanding Note other than the Priority Class Notes. 
  
 Note: Any of the Class A-1, A-2, Class M-1, Class M-2, Class M-3, Class M-4, M-5 or Class B Notes issued pursuant to this Indenture, substantially
in the forms attached hereto as Exhibit A. 
  
 Note Depository
Agreement: The agreement dated May 26, 2005, between the Issuer and The Depository Trust Company, as the initial Clearing Agency, relating to the Notes. 
  
 Note Owner or Owner: With respect to a Book-Entry Note, the Person that is the beneficial owner of such Book-Entry Note, as reflected on the
books of the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each case in accordance with the rules of such Clearing Agency),
and with respect to a Definitive Note, the Person that is the registered owner of such Note as reflected in the Note Register. 
  
 Note Register and Note Registrar: The respective meanings specified in Section 2.04. The initial Note Registrar shall be the Securities
Administrator. 
  
 Officer’s Certificate: A
certificate signed by any Authorized Officer of the Issuer, under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01, and delivered to the Indenture Trustee. Unless otherwise specified, any
reference in this Indenture to an Officer’s Certificate shall be to an Officer’s Certificate of any Authorized Officer of the Issuer. 
  
 Outstanding: As of the date of determination, all Notes theretofore authenticated and delivered under this Indenture except: 
  
 (i) Notes theretofore cancelled by the Note Registrar or
delivered to the Note Registrar for cancellation; 
  
 (ii) Notes the payment for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the 

  

 4 

 
Holders of such Notes (provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision for such notice has been made, satisfactory to the Indenture Trustee and the Securities Administrator); and 
  
 (iii) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture unless proof
satisfactory to the Indenture Trustee and the Securities Administrator is presented that any such Notes are held by a bona fide purchaser; 
  
 provided, that in determining whether the Holders of the requisite Outstanding Balance of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Operative Agreement, Notes owned by the Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee, the Indenture Trustee, the Master Servicer, the Servicer, the Securities
Administrator or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that the Indenture Trustee knows to be so owned shall be so disregarded (unless such action requires the consent, waiver, request or demand of 100% of the Outstanding Balance
represented by a particular Class and 100% of the Outstanding Balance represented by such Class is registered in the name of one or more of the foregoing entities). Notes so owned that have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee, the
Indenture Trustee, the Master Servicer, the Servicer, the Securities Administrator or any Affiliate of any of the foregoing Persons. 
  
 Outstanding Balance: The aggregate principal or notional amount of the Notes Outstanding as of the date of determination. 
  
 Paying Agent: Initially, the Securities Administrator or any other
Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 and is authorized by the Issuer to make payments to and from the Note Payment Account, including payments of principal of or interest on the Notes on
behalf of the Issuer. 
  
 Predecessor Note: With respect to
any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.05 in lieu of a mutilated,
lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
  
 Priority Class Note: Until the Class Principal Amounts of the Class A-1 and Class A-2 Notes are reduced to zero and all sums payable to the Holders
of the Class A-1 and Class A-2 Notes have been paid in full, the Class A-1 and Class A-2 Notes; when the Class Principal Amounts of the Class A-1 and Class A-2 Notes are reduced to zero and all sums payable to the Holders of the Class A-1 and Class
A-2 Notes have been paid in full, the Class M-1 Notes; when the Class Principal Amounts of the Class A-1, Class A-2 and Class M-1 Notes are reduced to 

  

 5 

 
zero and all sums payable to the Holders of such Classes have been paid in full, the Class M-2 Notes; when the Class Principal Amounts of the Class A-1,
Class A-2, Class M-1 and Class M-2 Notes are reduced to zero and all sums payable to the Holders of such Classes have been paid in full, the Class M-3 Notes; when the Class Principal Amounts of the Class A-1, Class A-2, Class M-1, Class M-2 and
Class M-3 Notes are reduced to zero and all sums payable to the Holders of such Classes have been paid in full, the Class M-4 Notes, when the Class Principal Amounts of the Class A-1, Class A-2, Class M-1, Class M-2, Class M-3 and Class M-4 Notes
are reduced to zero and all sums payable to the Holders of such Classes have been paid in full, the Class M-5 Notes, and when the Class Principal Amounts of the Class A-1, Class A-2, Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Notes are
reduced to zero and all sums payable to the Holders of such Classes have been paid in full, the Class B Notes. 
  
 Privately Offered Notes: The Class B Notes. 
  
 Proceeding: Any suit in equity, action at law or other judicial or administrative proceeding. 
  
 Prospective Owner: Each prospective purchaser and any subsequent
transferee of a Note. 
  
 Qualified REIT Subsidiary: The
meaning specified in the Trust Agreement. 
  
 Rating
Agency Condition: With respect to any action to which the Rating Agency Condition applies, that each Rating Agency shall have been given 10 days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and that each
Rating Agency shall have notified the Depositor, the Issuer and the Indenture Trustee in writing that such action will not result in a reduction or withdrawal of the then current rating of the rated Notes. 
  
 Redemption Date: In the case of a redemption of the Notes pursuant to
Section 10.01, the Payment Date specified by the Indenture Trustee or the Securities Administrator in the notice delivered pursuant to Section 10.02. 
  
 Redemption Price: In the case of a redemption of the Notes pursuant to Section 10.01 hereof, (i) an amount equal to the outstanding Class Principal
Amount of such Notes together with accrued interest thereon (at the applicable Note Interest Rates), to the extent unpaid and (ii) any unpaid fees and unreimbursed expenses owed to the Owner Trustee, the Indenture Trustee or the Securities
Administrator. 
  
 Responsible Officer: Any Vice President,
any Assistant Vice President, any Assistant Secretary, any Assistant Treasurer, any Corporate Trust officer or any other officer of the Indenture Trustee customarily performing functions similar to those performed by any of the above-designated
officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. With respect to the Securities Administrator, any
officer in the corporate trust department or similar group of the Securities Administrator with direct responsibility for the administration of this Agreement and also, with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his or her knowledge of and familiarity with the particular subject. 
  

 6 

 Retained Notes: $7,350,000 of the Class M-5 Notes. 
  
 State: Any one of the 50 States of the United States of America or the
District of Columbia. 
  
 Transfer and Servicing Agreement:
The Transfer and Servicing Agreement dated as of May 1, 2005, among the Issuer, HMB Acceptance Corp., as depositor, HomeBanc Corp., as seller and servicer, Wells Fargo Bank, N.A., as master servicer and securities administrator, and U.S. Bank
National Association, as indenture trustee, as such may be amended or supplemented from time to time. 
  
 Trust Indenture Act or TIA: The Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise specifically provided. 
  
 (b) Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Transfer and Servicing Agreement. 
  
 Section 1.02. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Noteholder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the Indenture Trustee. 
  
 “obligor” on the indenture securities means the Issuer and any
other obligor on the indenture securities. 
  
 (b) All other TIA
terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by rule of the Securities and Exchange Commission have the respective meanings assigned to them by such definitions. 
  
 Section 1.03. Rules of Construction. Unless the context otherwise
requires: 
  
 (i) a term has the meaning assigned
to it; 
  
 (ii) an accounting term not otherwise
defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 
  
 (iii) “or” is not exclusive; 
  

 7 

 (iv) “including” means including without limitation; 
  
 (v) words in the singular include the plural and words in
the plural include the singular; 
  
 (vi) any
agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns; 
  
 (vii) terms defined in the UCC and not otherwise defined
herein shall have the meaning assigned to them in the UCC; and 
  
 (viii) to “U.S. dollars”, “dollars”, or the sign “$” shall be construed as references to United States dollars which are freely transferable by residents and non-residents of the United
States of America and convertible by such persons into any other freely convertible currency unless such transferability or convertibility is restricted by any law or regulation of general application in which event references to “U.S.
dollars”, “dollars”, or the sign “$” shall be construed as references to such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts in
the United States of America, and “cents” shall be construed accordingly. 
  
 ARTICLE II 
  
 THE NOTES

  
 Section 2.01. Form. (a) The Notes shall be designated
as the “HomeBanc Mortgage Trust 2005-3 Mortgage Backed Notes.” The Notes, together with the Securities Administrator’s certificate of authentication, shall be in substantially the forms set forth in Exhibit A with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently
herewith, be determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note.

  
 The Definitive Notes and the global certificates (“Global
Securities”) representing the Book-Entry Notes shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers executing such
Notes, as evidenced by their execution of such Notes. 
  
 Each
Note shall be dated the date of its authentication. The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture. 
  

 8 

 (b) The Privately Offered Notes offered and sold in reliance on the exemption from registration under
Rule 144A shall be issued initially in the form of one or more permanent global certificates in definitive, fully registered form with the applicable legends set forth in Exhibit A added to the forms of such Privately Offered Notes, which Notes
shall be held by the Note Registrar, on behalf of the Indenture Trustee, as custodian for the Depository and registered in the name of a nominee of the Depository, duly executed by the Issuer and authenticated by the Note Registrar, on behalf of the
Indenture Trustee, as hereinafter provided. 
  
 Section 2.02.
Execution, Authentication and Delivery. The Notes shall be executed on behalf of the Issuer by any Authorized Officer of the Owner Trustee. The signature of any such Authorized Officer on the Notes may be manual or facsimile. 
  
 Notes bearing the manual or facsimile signature of individuals who were at
any time Authorized Officers of the Owner Trustee or the Note Registrar shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes. 
  
 The Securities
Administrator shall, upon Issuer Order, authenticate and deliver the Notes for original issue in the aggregate principal or notional amounts with respect to each Class as specified below: 
  

				
	 Class

	  	Class Principal Amount

	 A-1
	  	$	831,908,000
	 A-2
	  	$	98,567,000
	 M-1
	  	$	16,264,000
	 M-2
	  	$	7,393,000
	 M-3
	  	$	5,421,000
	 M-4
	  	$	9,857,000
	 M-5
	  	$	10,350,000
	 B
	  	$	5,913,000

  
 The aggregate
principal amounts of such Classes of Notes outstanding at any time may not exceed such respective amounts. 
  
 The Notes (other than the Class B Notes) will each be issued in minimum principal amount denominations of $25,000 and integral multiples of $1 in excess
thereof. The Class B Notes will each be issued in minimum principal amount denominations of $100,000 and integral multiples of $1 in excess thereof. 
  
 No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for herein executed by the Note Registrar by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that
such Note has been duly authenticated and delivered hereunder. 
  

 9 

 Section 2.03. Limitations on Transfer of the Notes. (a) No Privately Offered Note may be offered,
sold, delivered or transferred (including, without limitation, by pledge or hypothecation) except under Rule 144A under the Securities Act to qualified institutional buyers or “QIBs” purchasing for their own account. Each Privately Offered
Note shall bear a restrictive legend to the foregoing effect substantially in the form of the legends on the face of the form of Note at Exhibit A. 
  
 (b) Each Prospective Owner of a Privately Offered Note in the form of a Book-Entry Note shall be deemed to have represented and warranted, and each
Prospective Owner of a Privately Offered Note in the form of a Definitive Note shall represent and warrant in writing in substantially the form set forth in Exhibit B-1 or Exhibit B-2 hereto, as applicable, to the Indenture Trustee and the Note
Registrar and any of their respective successors that: 
  
 (i) Such Person is duly authorized to purchase such Notes and its purchase of investments having the characteristics of such Notes is authorized under, and not directly or indirectly in contravention of, any law, charter, trust instrument
or other operative document, investment guidelines or list of permissible or impermissible investments that is applicable to the investor; and 
  
 (ii) Such Person understands that each holder of such Note, by virtue of its acceptance thereof, assents to the terms, provisions and
conditions of this Indenture. 
  
 (c) Subject to subsection (f)
below, each Prospective Owner of a Privately Offered Note in the form of a Book-Entry Note shall be deemed to have represented and warranted, and each Prospective Owner of a Privately Offered Note in the form of a Definitive Note shall represent and
warrant in writing, in substantially the form set forth in Exhibit B-1 or Exhibit B-2 hereto, as applicable, to the Indenture Trustee and the Note Registrar and any of their respective successors that: 
  
 (i) Such Person is a QIB as defined in Rule 144A under the
Securities Act (“Rule 144A”) and is aware that the seller of such Note may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A and is acquiring such Note for its own account or for the
account of one or more QIBs for whom it is authorized to act; and 
  
 (ii) Such Person understands that such Notes have not been registered under the Securities Act, and that, if in the future it decides to offer, resell, pledge or otherwise transfer such Notes, such Notes may be
offered, resold, pledged or otherwise transferred only (A) pursuant to a registration statement which has been declared effective under the Securities Act or (B) for so long as such Notes are eligible for resale pursuant to Rule 144A under the
Securities Act, to a person whom the seller reasonably believes is a QIB that is purchasing such Notes for its own account or for the account of a QIB to whom notice is given that the transfer is being made in reliance on Rule 144A, in each case in
compliance with the requirements of this Indenture. 
  
 (d) No
transfer of a Note in the form of a Definitive Note shall be made unless the Note Registrar shall have received a representation from the transferee of such Note, acceptable to and 

  

 10 

 
in form and substance satisfactory to the Note Registrar and the Depositor (such requirement is satisfied only by the Note Registrar’s receipt of a
transfer affidavit from the transferee substantially in the form of Exhibit C hereto), to the effect that such transferee (i) is not acquiring such note for, or with the assets of, an employee benefit plan or other retirement arrangement that is
subject to Section 406 of ERISA or to Section 4975 of the Code or to any substantially similar law (“Similar Law”), or any entity deemed to hold the plan assets of the foregoing (collectively, “Benefit Plans”), or (ii) its
acquisition and holding of such Notes for, or with the assets of, a Benefit Plan will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code which is not covered under Prohibited Transaction Class
Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or some other applicable exemption, and will not result in a non-exempt violation of any Similar Law. 
  
 In the case of a Note that is a Book-Entry Note, for purposes of clauses (i) or (ii) of the preceding paragraph, such
representations shall be deemed to have been made to the Note Registrar by the transferee’s acceptance of such Note that is also a Book-Entry Note (or the acceptance by a Note Holder of the beneficial interest in such Note). 
  
 To the extent permitted under applicable law (including, but not limited to,
ERISA), none of the Indenture Trustee, the Securities Administrator, the Note Registrar or the Depositor shall have any liability to any Person for any registration of transfer of any Note that is in fact not permitted by this Section 2.03(d) or for
the Indenture Trustee (or any Paying Agent on its behalf) making any payments due on such Note to the Holder thereof or taking any other action with respect to such Holder under the provisions of this Agreement so long as the transfer was registered
by the Note Registrar in accordance with the foregoing requirements. In addition, none of the Indenture Trustee, the Securities Administrator, the Note Registrar or the Depositor shall be required to monitor, determine or inquire as to compliance
with the transfer restrictions with respect to any Note in the form of a Book-Entry Note, and none of the Indenture Trustee, Securities Administrator, the Note Registrar or the Depositor shall have any liability for transfers of Book-Entry Notes or
any interests therein made in violation of the restrictions on transfer described in the Prospectus and this Agreement. 
  
 In the event that a Note is transferred to a Person that does not meet the requirements of this Section 2.03, such transfer shall be of no force and
effect, shall be void ab initio, and shall not operate to transfer any rights to such Person, notwithstanding any instructions to the contrary to the Issuer, the Indenture Trustee or any intermediary; and neither the Indenture Trustee nor the
Securities Administrator shall make any payments on such Note for as long as such Person is the Holder of such Note. 
  
 The Note Registrar on behalf of the Depositor shall provide to any Holder of a Privately Offered Note (or Note Owner) and any prospective transferee
designated by any such Holder (or Note Owner), information regarding such Privately Offered Note and the Mortgage Loans and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4) for
transfer of any such Note without registration thereof under the Securities Act pursuant to the registration exemption provided by Rule 144A. Each Holder of a Privately Offered Note (or Note Owner) desiring to effect such a transfer shall, and does
hereby agree to, indemnify the Issuer, the Owner Trustee, the Indenture Trustee, the Note Registrar and the Depositor against any liability that may result if the transfer is not so exempt or is not made in 

  

 11 

 
accordance with federal and state securities laws and any other restrictions specified in this Section 2.03. Each holder of a Privately Offered Note in the
form of a Book-Entry Note shall be deemed to have consented to such transfer restrictions. 
  
 The Note Registrar shall cause each Note to contain a legend substantially similar to the applicable legend provided in Exhibit A hereto stating that transfer of such Notes is subject to certain restrictions as set
forth herein. 
  
 (e) Any purported transfer of a Note (or any
interest therein) not in accordance with this Section 2.03 shall be null and void and shall not be given effect for any purpose hereunder. 
  
 (f) None of the Indenture Trustee, the Securities Administrator or the Note Registrar will have the ability to monitor transfers of the Notes while they
are in book-entry form and neither will have any liability for transfers of Book-Entry Notes in violation of any of the transfer restrictions described in this Section 2.03. 
  
 Section 2.04. Registration; Registration of Transfer and Exchange. The Issuer shall cause the Note Registrar to keep
a register (the “Note Register”) in which, subject to such reasonable regulations as it may prescribe and the restrictions on transfers of the Notes set forth herein, the Issuer shall provide for the registration of Notes and the
registration of transfers of Notes. The Securities Administrator initially shall be the “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided, and the Indenture Trustee shall have the right to
inspect the Note Register at all reasonable times and to obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Note Registrar by a Responsible Officer thereof as to the names and
addresses of the Holders of the Notes and the principal amounts and number of such Notes. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make such an appointment, assume the duties
of Note Registrar. 
  
 If a Person other than the Securities
Administrator is appointed by the Issuer as Note Registrar, the Issuer will give the Indenture Trustee and the Securities Administrator prompt written notice of the appointment of such Note Registrar and of the location, and any change in the
location, of the Note Register, and the Indenture Trustee and the Securities Administrator shall have the right to inspect the Note Register at all reasonable times and to obtain copies thereof, and the Indenture Trustee and the Securities
Administrator shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses of the Holders of the Notes and the principal amounts and number of such Notes.

  
 Subject to Section 2.03, upon surrender for registration of
transfer of any Note at the office or agency of the Issuer to be maintained as provided in Section 3.02, the Issuer shall execute, and the Indenture Trustee or the Note Registrar on its behalf shall authenticate and the Noteholder shall be entitled
to obtain from the Indenture Trustee or the Note Registrar on its behalf, in the name of the designated transferee or transferees, one or more new Notes of the same Class in any authorized denominations, of a like aggregate principal amount or
Percentage Interest. 
  

 12 

 At the option of the Holder, Notes may be exchanged for other Notes of the same Class in any authorized
denominations, of a like aggregate principal amount or Percentage Interest, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, the Issuer shall execute, and the Indenture Trustee
or the Note Registrar on its behalf shall authenticate and the Noteholder shall be entitled to obtain from the Indenture Trustee or the Note Registrar on its behalf, the Notes which the Noteholder making the exchange is entitled to receive.

  
 All Notes issued upon any registration of transfer or exchange
of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
  
 Every Note presented or surrendered for registration of transfer or exchange
shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP. 
  
 No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuer or the Note Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.05 or 9.06 not involving any transfer.

  
 The preceding provisions of this Section notwithstanding, the
Issuer shall not be required to make and the Note Registrar need not register transfers or exchanges of Notes selected for redemption or of any Note for a period of 15 days preceding the due date for any payment with respect to such Note.

  
 Section 2.05. Mutilated, Destroyed, Lost or Stolen
Notes. If (i) any mutilated Note is surrendered to the Indenture Trustee or the Note Registrar on its behalf, or the Indenture Trustee or the Note Registrar on its behalf receives evidence to its satisfaction of the destruction, loss or theft of
any Note, and (ii) there is delivered to the Indenture Trustee or the Note Registrar on its behalf such security or indemnity as may be required by it to hold the Issuer, the Indenture Trustee and the Note Registrar harmless, then, in the absence of
actual notice to the Issuer, the Note Registrar, the Indenture Trustee or the Note Registrar that such Note has been acquired by a bona fide purchaser, and upon certification provided by the Holder of such Note that the requirements of Section 8-405
of the Relevant UCC are met, the Issuer shall execute, and upon its request the Indenture Trustee or the Note Registrar on its behalf shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof. If, 

  

 13 

 
after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to the preceding sentence, a bona fide
purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the Indenture Trustee or the Note Registrar on its behalf shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was delivered or any assignee of such Person, except a bona fide purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer, the Indenture Trustee or the Note Registrar in connection therewith. 
  
 Upon the issuance of any replacement Note under this Section, the Issuer, the
Indenture Trustee or the Note Registrar on its behalf or the Note Registrar may require the payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other
reasonable expenses (including the fees and expenses of the Indenture Trustee or the Note Registrar) connected therewith. 
  
 Every replacement Note issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with
any and all other Notes duly issued hereunder. 
  
 The provisions
of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 
  
 Section 2.06. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Securities Administrator, the Indenture Trustee and any agent of the Issuer, the Securities Administrator or the Indenture Trustee may treat the Person in whose name any Note is registered (as of
the day of determination) as the owner of such Note for the purpose of receiving payments of principal of and interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the
Securities Administrator, the Indenture Trustee or any agent of the Issuer, the Securities Administrator or the Indenture Trustee shall be affected by notice to the contrary. 
  
 Section 2.07. Payment of Principal and Interest. (a) Each Class of Notes shall accrue interest at the Note Interest
Rate as set forth in the Transfer and Servicing Agreement, and such interest shall be payable on each Payment Date, subject to Section 3.01. Interest shall be computed on each Class of Notes on the basis of a 360-day year and the actual number of
days elapsed in each Accrual Period. With respect to each outstanding Class of Notes, the Securities Administrator shall determine LIBOR for each applicable Accrual Period on the LIBOR Determination Date, in accordance with the provisions of the
Transfer and Servicing Agreement. All interest payments on each Class of Notes shall be made to the Noteholders of each such Class entitled thereto in the order of priority as set forth in Section 6.02 of the Transfer and Servicing Agreement. Any
installment of interest or principal payable on any Note shall be paid on the applicable Payment Date to the Person in whose name such Note (or one or more 

  

 14 

 
Predecessor Notes) is registered on the Record Date by check mailed first-class postage prepaid to such Person’s address as it appears on the Note
Register on such Record Date or, upon written request made to the Paying Agent with a copy to the Indenture Trustee, if the Indentured Trustee is not the Paying Agent, at least five Business Days prior to the related Record Date, by the Holder of a
Note having an initial Note Principal Amount of not less than $2,500,000 by wire transfer in immediately available funds to an account specified in the request and at the expense of such Noteholder, except that, unless Definitive Notes have been
issued pursuant to Section 2.12, with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made by wire transfer in immediately available
funds to the account designated by such nominee, except for the final installment of principal payable with respect to such Note on a Payment Date or on the applicable Maturity Date for such Class of Notes (and except for the Redemption Price for
any Note called for redemption pursuant to Section 10.01), which shall be payable as provided below. The funds represented by any such checks returned undelivered shall be held in accordance with Section 3.03. 
  
 (b) The principal of the Notes shall be payable in installments on each
Payment Date as provided herein and in such Notes, subject to Section 3.01. Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and payable, if not previously paid, on the date on which an Event of Default
shall have occurred and be continuing, if the Indenture Trustee, or Holders of the Notes representing not less than a majority of the Outstanding Balance of the Priority Class Notes, have declared the Notes to be immediately due and payable in the
manner provided in Section 5.02. All principal payments on each Class of Notes shall be made to the Noteholders of each such Class entitled thereto in the order of priority as set forth in Section 6.02 of the Transfer and Servicing Agreement. The
Indenture Trustee or the Paying Agent on its behalf, if the Indenture Trustee is not the Paying Agent, shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Payment Date on which the
Issuer expects that the final installment of principal of and interest on such Note will be paid. Such notice shall be mailed or transmitted by facsimile no later than five Business Days prior to such final Payment Date and shall specify that such
final installment will be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such installment. Notices in connection with redemptions of Notes shall
be mailed to Noteholders as provided in Section 10.02. 
  
 Section
2.08. Cancellation. All Notes surrendered for payment, registration of transfer, exchange or redemption shall be delivered to the Note Registrar and shall be promptly cancelled by the Note Registrar. The Issuer may at any time deliver to the
Note Registrar for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall
be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the Note Registrar in accordance with its standard
retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed or returned to it; provided, that such Issuer Order is timely and the Notes have not been previously disposed of by
the Note Registrar. 
  

 15 

 Section 2.09. Release of Collateral. (a) Except as otherwise provided in subsection (b) of this
Section and the terms of the Operative Agreements, the Indenture Trustee shall release property from the lien of this Indenture only upon receipt by it of an Issuer Request accompanied by (i) an Officer’s Certificate, (ii) an Opinion of
Counsel, (iii) certificates in accordance with TIA Sections 314(c) and (d)(1), and (iv)(A) Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or (B) an Opinion of Counsel in lieu of such Independent Certificates to the
effect that the TIA does not require any such Independent Certificates; provided that no such Independent Certificates or Opinion of Counsel in lieu of such Independent Certificates shall be necessary in respect of property released from the
lien of the Indenture in accordance with the provisions hereof if such property consists solely of cash. 
  
 (b) The Servicer (or if the Servicer does not do so, the Master Servicer), on behalf of the Issuer, shall be entitled to obtain a release from the lien of
this Indenture for any Mortgage Loan and the Mortgaged Property at any time (i) after a payment by the Seller or the Issuer of the Purchase Price of the Mortgage Loan, (ii) after a Qualified Substitute Mortgage Loan is substituted for such Mortgage
Loan and payment of the Substitution Amount, if any, (iii) after liquidation of the Mortgage Loan in accordance with the Transfer and Servicing Agreement and the deposit of all Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds in
the Collection Account, (iv) upon the termination of a Mortgage Loan (due to, among other causes, a prepayment in full of the Mortgage Loan and sale or other disposition of the related Mortgaged Property), or (v) as contemplated by Article IX of the
Transfer and Servicing Agreement. 
  
 (c) The Indenture Trustee
shall, if requested by the Servicer or the Master Servicer, temporarily release or cause the Custodian temporarily to release to such party the Mortgage File pursuant to the provisions of Section 5.12 of the Transfer and Servicing Agreement;
provided, however, that the Mortgage File shall have been stamped to signify the Issuer’s pledge to the Indenture Trustee under the Indenture. 
  
 Section 2.10. Book-Entry Notes. Each Class of Notes will be issued in the form of typewritten Notes or Global Securities representing Book-Entry
Notes, to be delivered to the Note Registrar, as custodian for, the initial Clearing Agency, by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered initially on the Note Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Owner of Book-Entry Notes thereof will receive a Definitive Note representing such Note Owner’s interest in such Book-Entry Note, except as provided in Section 2.12. Unless and until definitive, fully registered
Notes (the “Definitive Notes”) have been issued to such Owners of Book-Entry Notes pursuant to Section 2.12: 
  
 (i) the provisions of this Section shall be in full force and effect; 
  
 (ii) the Note Registrar, the Indenture Trustee and the Securities Administrator shall be entitled to deal
with the Clearing Agency for all purposes of this Indenture (including the payment of principal of and interest on the Book-Entry Notes and the giving of instructions or directions hereunder) as the sole holder of the Book-Entry Notes, and shall
have no obligation to the Owners of Book-Entry Notes; 
  

 16 

 (iii) to the extent that the provisions of this Section conflict with any other
provisions of this Indenture, the provisions of this Section shall control; 
  
 (iv) the rights of Owners of Book-Entry Notes shall be exercised only through the Clearing Agency and shall be limited to those established by law and agreements between such Owners of Book-Entry Notes and the
Clearing Agency and/or the Clearing Agency Participants pursuant to the Note Depository Agreement. Unless and until Definitive Notes are issued pursuant to Section 2.12, neither the Indenture Trustee nor the Note Registrar shall register any
transfer of a beneficial interest in a Book-Entry Note; and the initial Clearing Agency will make book-entry transfers among the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Book-Entry Notes to
such Clearing Agency Participants; and 
  
 (v)
whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Holders of Notes evidencing a specified percentage of the Outstanding Balance of the Notes (or the Priority Class Notes), the Clearing Agency
shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Owners of Book-Entry Notes and/or Clearing Agency Participants owning or representing, respectively, such required percentage of
the beneficial interest in the Book-Entry Notes and has delivered such instructions to the Indenture Trustee. 
  
 Section 2.11. Notices to Clearing Agency. Whenever a notice or other communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Owners of Book-Entry Notes pursuant to Section 2.12, the Indenture Trustee shall give all such notices and communications specified herein to be given to Owners of Book-Entry Notes to the
Clearing Agency, and shall have no obligation to such Note Owners. 
  
 Section 2.12. Definitive Notes. If (i) the Clearing Agency is no longer willing or able to properly discharge its responsibilities with respect to the Book-Entry Notes and the Issuer is unable to locate a qualified successor or (ii)
after the occurrence of an Event of Default hereunder, Note Owners of the Book-Entry Notes representing beneficial interests aggregating at least a majority of the Outstanding Balance of the Book-Entry Notes advise the Clearing Agency in writing
that the continuation of a book-entry system through the Clearing Agency is no longer in the best interests of such Note Owners, then the Clearing Agency shall notify all Owners of Book-Entry Notes, the Indenture Trustee and the Note Registrar of
the occurrence of any such event and of the availability of Definitive Notes to Owners of Book-Entry Notes requesting the same. Upon surrender to the Note Registrar of the typewritten Notes representing the Book-Entry Notes by the Clearing Agency,
accompanied by registration instructions, the Issuer shall execute and the Note Registrar shall authenticate the Definitive Notes in accordance with the instructions of the Clearing Agency. None of the Issuer, the Note Registrar, the Securities
Administrator or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture
Trustee, the Securities Administrator and the Note Registrar shall recognize the Holders of such Definitive Notes as Noteholders. 
  
 Section 2.13. Tax Treatment. The Issuer has entered into this Indenture, and the Notes will be issued, with the intention that, for federal, state
and local income, single business and 

  

 17 

 
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Collateral. The Issuer, by entering into this Indenture, and each
Noteholder (other than a Holder of a Retained Note), by its acceptance of a Note (and each applicable Note Owner by its acceptance of an interest in the related Book-Entry Note), agree to treat the Notes for federal, state and local income, single
business and franchise tax purposes as indebtedness of the Issuer. 
  
 Section 2.14. Restrictions on Transfer and Retention of Beneficial Ownership Interest in Class B Notes. The Depositor will be the initial Note Owner of a 100% Percentage Interest in the Class B Notes. The Depositor (or any other
Holder of the Ownership Certificate) is hereby prohibited from transferring any beneficial ownership interest in the Class B Notes that would cause a person other than the Depositor (or such other Holder of the Ownership Certificate) to be
considered the beneficial owner of the Class B Notes for federal income tax purposes, unless (i) the transferee simultaneously acquires beneficial ownership of the Ownership Certificate, or (ii) at the time of such transfer, the Indenture Trustee
and the Note Registrar receive an Opinion of Counsel concluding that, at the time of transfer, the Class B Notes will be classified as indebtedness for federal income tax purposes. 
  
 The Depositor (or any other Holder of the Ownership Certificate) is hereby required to transfer its entire beneficial
ownership interest in the Class B Notes simultaneously with any transfer of the Ownership Certificate pursuant to the Trust Agreement to the transferee of the Ownership Certificate, unless the Indenture Trustee and the Note Registrar receive an
Opinion of Counsel concluding that, at the time of such transfer of the Ownership Certificate, the Class B Notes will be classified as indebtedness for federal income tax purposes. The Depositor (or such other Holder of the Ownership Certificate) is
hereby required to notify the Indenture Trustee and the Note Registrar of any transfer or retention of the Class B Notes in contravention of these restrictions. 
  

ARTICLE III 
  
 COVENANTS 
  
 Section 3.01. Payment of Principal and Interest. The Issuer will duly and punctually pay (or will cause to be duly and punctually paid) the principal of and interest on, and any other amounts due in respect of, the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the foregoing, in accordance with Section 8.02(c), the Issuer will cause to be distributed all amounts on deposit in the Note Payment Account on a Payment Date and deposited
therein pursuant to the Transfer and Servicing Agreement for the benefit of the Notes, to the Noteholders. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or principal shall be considered as
having been paid by the Issuer to such Noteholder for all purposes of this Indenture. 
  
 The Notes shall be non-recourse obligations of the Issuer and shall be limited in right of payment to amounts available from the Collateral as provided in this Indenture. The Issuer shall not otherwise be liable for
payments of the Notes, and none of the owners, agents, officers, directors, employees, or successors or assigns of the Issuer shall be personally liable for any amounts payable, or performance due, under the Notes or this Indenture. If any other
provision 

  

 18 

 
of this Indenture shall be deemed to conflict with the provisions of this Section 3.01, the provisions of this Section 3.01 shall control. 
  
 Section 3.02. Maintenance of Office or Agency. The Note Registrar on
behalf of the Issuer will maintain an office or agency where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. 

 
 Section 3.03. Money for Payments to be Held in Trust. As provided
in Section 8.02, all payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Note Payment Account pursuant to Section 6.02 of the Transfer and Servicing Agreement shall be made on behalf of
the Issuer by the Securities Administrator or by another Paying Agent, and no amounts so withdrawn from the such account for payments of Notes shall be paid over to the Issuer except as provided in this Section. 
  
 On or before the Business Day preceding each Payment Date, the Issuer shall
deposit or cause to be deposited in the Collection Account an aggregate sum sufficient to pay the amounts then becoming due under the Notes, such sum to be held in trust for the benefit of the Persons entitled thereto, and (unless the Paying Agent
is the Securities Administrator) shall promptly notify the Securities Administrator of its action or failure so to act. 
  
 The Securities Administrator is hereby appointed the initial Paying Agent. Any successor Paying Agent shall be appointed by Issuer Order with written
notice thereof to the Indenture Trustee and the Securities Administrator. Any Paying Agent appointed by the Issuer shall be a Person that would be eligible to be an indenture trustee hereunder as provided in Section 6.11. The Issuer shall not
appoint any Paying Agent (other than the Indenture Trustee or the Securities Administrator) that is not, at the time of such appointment, a Depository Institution. 
  
 The Issuer shall cause each Paying Agent other than the Indenture Trustee or the Securities Administrator, as initial Paying
Agent, to execute and deliver to the Indenture Trustee and the Securities Administrator an instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee or the Securities Administrator acts as Paying
Agent, it hereby so agrees), subject to the provisions of this Section, that such Paying Agent will: 
  
 (i) hold all sums held by it for the payment of amounts due with respect to the Notes in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided and as is provided in the Transfer and Servicing Agreement; 
  
 (ii) give the Indenture Trustee notice of any default by the
Issuer of which the Paying Agent has actual knowledge in the making of any payment required to be made with respect to the Notes; 
  
 (iii) at any time during the continuance of any such default, upon the written request of the Indenture Trustee, forthwith pay to the
Securities Administrator all sums so held in trust by such Paying Agent; 
  

 19 

 (iv) immediately resign as a Paying Agent and forthwith pay to the Securities
Administrator all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards required to be met by a Paying Agent at the time of its appointment; and 
  
 (v) comply with all requirements of the Code with respect to
the withholding from any payments made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith; provided, however, that with respect to reporting
requirements applicable to original issue discount, the accrual of market discount or the amortization of premium on the Notes, the Securities Administrator shall have first provided the calculations pertaining thereto and the amount of any
resulting withholding taxes to the Indenture Trustee and the Paying Agent. 
  
 The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the Securities Administrator all
sums held in trust by such Paying Agent, such sums to be held by the Securities Administrator upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such payment by any Paying Agent to the Securities
Administrator, such Paying Agent shall be released from all further liability with respect to such money. 
  
 Subject to applicable laws with respect to escheat of funds, any money held by the Securities Administrator or any Paying Agent in trust for the payment
of any amount due with respect to any Note and remaining unclaimed for two years after such amount has become due and payable shall be discharged from such trust and be paid to the Issuer on Issuer Request; and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee, the Securities Administrator or such Paying Agent
with respect to such trust money shall thereupon cease; provided, however, that the Indenture Trustee, the Securities Administrator or such Paying Agent, before being required to make any such repayment, shall at the expense and direction of
the Issuer cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in The City of New York (including, but not limited to, The Bond Buyer), notice
that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuer. The Indenture
Trustee, the Securities Administrator or Paying Agent shall also adopt and employ, at the expense and direction of the Issuer, any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such
repayment to Holders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in moneys due and payable but not claimed is determinable from the records of the Indenture Trustee, the Securities
Administrator or of any Paying Agent, at the last address of record for each such Holder). 
  
 Section 3.04. Existence. (a) The Issuer will keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor Issuer
hereunder is or becomes, organized under the laws of any other State or of the United States of America, in which case the Issuer will keep in full effect its existence, rights and 

  

 20 

 
franchises under the laws of such other jurisdiction) and will obtain and preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and enforceability of this Indenture, the Notes, the Collateral and each other instrument or agreement included in the Collateral. 
  
 (b) Any successor to the Owner Trustee appointed pursuant to Section 9.03 of
the Trust Agreement shall be the successor Owner Trustee under this Indenture without the execution or filing of any paper, instrument or further act to be done on the part of the parties hereto. 
  
 (c) Upon any consolidation or merger of or other succession to the Owner
Trustee, the Person succeeding to the Owner Trustee under the Trust Agreement may exercise every right and power of the Owner Trustee under this Indenture with the same effect as if such Person had been named as the Owner Trustee herein. 

 
 Section 3.05. Protection of Collateral. The Issuer will from time
to time execute, deliver and file all such supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments solely at the expense of the Issuer, and will take such
other action necessary or advisable to: 
  
 (i)
maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or carry out more effectively the purposes hereof, 
  
 (ii) perfect, publish notice of or protect the validity of any Grant made or to be made by this Indenture; 
  
 (iii) enforce any rights with respect to the Collateral; or

  
 (iv) preserve and defend title to the
Collateral and the rights of the Indenture Trustee and the Noteholders in such Collateral against the claims of all persons and parties. 
  
 The Issuer hereby authorizes the Indenture Trustee to file in any filing office any financing statement, amendment to financing statement (to the extent a
Responsible Officer of the Indenture Trustee has actual knowledge or receives written notice that an amendment is required to be filed) or continuation statement required to be executed pursuant to this Section 3.05. 
  
 Section 3.06. Opinions as to Collateral. On the Closing Date, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel to the effect that either, in the opinion of such counsel, such action has been taken with respect to the recording and filing of this Indenture, any indentures supplemental hereto,
and any other requisite documents, and with respect to the execution and filing of any financing statements and continuation statements, as are necessary to make effective the lien and security interest of this Indenture, or stating that, in the
opinion of such counsel, no such action is necessary to make such lien and security interest effective. In addition to any other requirements under the Trust Indenture Act, the Issuer shall furnish to the Indenture Trustee, at least once every two
years and six months after the Closing Date, an Opinion of Counsel to the effect that either, in the opinion of such counsel, such action has been taken with respect to the recording, filing, refilling, re-recording and refilling of this Indenture
as 

  

 21 

 
is necessary to maintain the lien of this Indenture, or stating that, in the opinion of such counsel, no such action is necessary to maintain such lien.

  
 Section 3.07. Performance of Obligations. (a) The
Issuer will not take any action and will use its best efforts not to permit any action to be taken by others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in
the Collateral or that would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture, the
Transfer and Servicing Agreement or such other instrument or agreement. 
  
 (b) The Issuer may contract with other Persons to assist it in performing its duties under this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee in an Officer’s Certificate of the Issuer
shall be deemed to be action taken by the Issuer. Initially, the Issuer has contracted with the Securities Administrator, the Indenture Trustee and the Depositor pursuant to the Administration Agreement to assist the Issuer in performing its duties
under this Indenture. 
  
 (c) The Issuer will punctually perform
and observe all of its obligations and agreements contained in this Indenture, the Operative Agreements and in the instruments and agreements included in the Collateral, including but not limited to filing or causing to be filed all financing
statements and continuation statements required to be filed by the terms of this Indenture and the Transfer and Servicing Agreement in accordance with and within the time periods provided for herein and therein. 
  
 (d) If a responsible officer of the Owner Trustee shall have written notice
or actual knowledge of the occurrence of an Event of Default under the Transfer and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee and each Rating Agency thereof. 
  
 (e) As promptly as possible after the giving of notice of termination to the
Master Servicer of the Master Servicer’s rights and powers pursuant to Section 8.01 of the Transfer and Servicing Agreement, the Indenture Trustee shall proceed in accordance with Section 8.01 and 8.02 of the Transfer and Servicing Agreement

  
 (f) Without derogating from the absolute nature of the
assignment granted to the Indenture Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the prior written consent of the Indenture Trustee or the Holders of at least a
majority in Outstanding Balance or Percentage Interest of the Notes affected thereby, amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of
any Collateral or the Operative Agreements (except to the extent otherwise provided in any such Operative Agreement), or waive timely performance or observance by the Securities Administrator, the Master Servicer, the Servicer or the Depositor of
its respective duties under the Transfer and Servicing Agreement; and (ii) that any such amendment shall not (A) increase or reduce in any manner the amount of, or accelerate or delay the timing of, payments that are required to be made for the
benefit of the Noteholders or (B) reduce the aforesaid percentage of the Notes that 

  

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is required to consent to any such amendment, without the consent of the Holders of all the Outstanding Notes affected thereby. If any such amendment,
modification, supplement or waiver shall be so consented to by the Indenture Trustee or such Holders, the Issuer agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in its own name and at its own expense,
such agreements, instruments, consents and other documents as the Indenture Trustee may deem necessary or appropriate in the circumstances. 
  
 Section 3.08. Negative Covenants. So long as any Notes are Outstanding, the Issuer shall not: 
  
 (i) except as expressly permitted by this Indenture, the
Mortgage Loan Purchase Agreement or the Transfer and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those included in the Collateral, unless directed to do so by the
Indenture Trustee; 
  
 (ii) claim any credit on,
or make any deduction from the principal, interest or other amounts payable in respect of, the Notes (other than amounts properly withheld from such payments under the Code) or assert any claim against any present or former Noteholder by reason of
the payment of the taxes levied or assessed upon any part of the Collateral; 
  
 (iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be
released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien
of this Indenture) to be created on or extend to or otherwise arise upon or burden the Collateral or any part thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’ liens and other liens that arise by
operation of law, in each case with respect to any Collateral and arising solely as a result of an action or omission of a Borrower or as otherwise permitted in the Transfer and Servicing Agreement) or (C) permit the lien of this Indenture not to
constitute a valid first priority (other than with respect to any such tax, mechanics’ or other lien) or as otherwise permitted in the Transfer and Servicing Agreement) security interest in the Collateral; 
  
 (iv) dissolve or liquidate in whole or in part or merge or
consolidate with any other Person; 
  
 (v) remove
the Securities Administrator without cause unless the Rating Agency Condition shall have been satisfied in connection with such removal; 
  
 (vi) take any action or fail to take any action that would jeopardize the status of the Holder of the Ownership Certificate as a REIT, a
Qualified REIT Subsidiary or a Disregarded Entity or result in an imposition of tax on the Issuer; or 
  
 (vii) except with the prior written consent of the Noteholders, take any action described in Section 5.06 of the Trust Agreement.

  

 23 

 Section 3.09. Annual Statement as to Compliance. The Issuer will deliver to the Indenture Trustee,
within 120 days after the end of each fiscal year of the Issuer (commencing with the fiscal year 2005), an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that: 
  
 (i) a review of the activities of the Issuer during such
year and of its performance under this Indenture has been made under such Authorized Officer’s supervision; and 
  
 (ii) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has complied with all conditions and
covenants under this Indenture throughout such year or, if there has been a default in its compliance with any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status thereof. 

 
 Section 3.10. Treatment of Notes as Debt for Tax Purposes. The
Issuer shall, and shall cause the Securities Administrator and the Indenture Trustee to, treat the Notes (other than the Class B Notes and the Retained Notes during the time they are retained by the holder of the Ownership Certificate) as
indebtedness for all federal, state and local tax purposes. 
  
 Section 3.11. No Other Business. The Issuer shall not engage in any business other than financing, purchasing, owning, selling and managing the Collateral in the manner contemplated by this Indenture and the Operative Agreements and
activities incidental thereto. 
  
 Section 3.12. No
Borrowing. The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness other than the Notes. 
  
 Section 3.13. Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by the Transfer and Servicing
Agreement or this Indenture, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of
so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 
  
 Section 3.14. Capital Expenditures. The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personality). 
  
 Section 3.15. Removal of
Securities Administrator. So long as any Notes are Outstanding, the Issuer shall not remove the Securities Administrator without cause unless the Issuer has received a letter from each Rating Agency to the effect that such removal will not cause
the then-current ratings on the Notes to be qualified, reduced or withdrawn. 
  
 Section 3.16. Restricted Payments. The Issuer shall not, directly or indirectly, (i) pay any dividend or make any payment (by reduction of capital or otherwise), whether in cash, property, securities or a
combination thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or security in 

  

 24 

 
or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, the Issuer may make, or cause to be made, payments and distributions as contemplated by, and to the extent funds are available for such purpose under, this Indenture or
any other Operative Agreement. The Issuer will not, directly or indirectly, make payments to or from the Trust Accounts except in accordance with this Indenture and the Operative Agreements. 
  
 Section 3.17. Notice of Events of Default. The Issuer shall promptly,
and in no event more than three Business Days following such event, give the Indenture Trustee and each Rating Agency written notice of each Event of Default hereunder, and each default on the part of the Securities Administrator, the Master
Servicer, the Servicer or the Depositor of its obligations under the Transfer and Servicing Agreement, to the extent a responsible officer of the Owner Trustee shall have written notice or actual knowledge thereof. 
  
 Section 3.18. Further Instruments and Acts. Upon request of the
Indenture Trustee, the Issuer will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 Section 3.19. Covenants of the Issuer. All covenants of the Issuer in
this Indenture are covenants of the Issuer and are not covenants of the Owner Trustee in its individual capacity. The Owner Trustee is, and any successor Owner Trustee under the Trust Agreement will be, executing this Indenture on behalf of the
Issuer solely as Owner Trustee under the Trust Agreement and not in its respective individual capacity, and in no case whatsoever shall the Owner Trustee or any such successor Owner Trustee be personally liable on, or for any loss in respect of, any
of the statements, representations, warranties or obligations of the Issuer hereunder, as to all of which the parties hereto agree to look solely to the property of the Issuer. 
  
 Section 3.20. Representations and Warranties of the Issuer. (a) With respect to the Mortgage Notes, the Issuer
represents and warrants that: 
  
 (i) This
Indenture creates a valid and continuing security interest (as defined in the applicable Uniform Commercial Code (the “UCC”) in the Mortgage Notes in favor of the Indenture Trustee, which security interest is prior to all other liens, and
is enforceable as such against creditors of and purchasers from the Issuer; 
  
 (ii) The Mortgage Notes constitute “instruments” within the meaning of the applicable UCC; 
  
 (iii) The Issuer owns and has good title to the Mortgage Notes free and clear of any lien, claim or encumbrance of any Person; 

 
 (iv) The Issuer has received all consents and approvals
required by the terms of the Mortgage Notes to the pledge of the Mortgage Notes hereunder to the Indenture Trustee; 
  

 25 

 (v) All original executed copies of each Mortgage Note have been or will be delivered to
the Indenture Trustee (or its custodian), as set forth in the Transfer and Servicing Agreement; 
  
 (vi) The Issuer has received a written acknowledgement from the Indenture Trustee (or its custodian) that it is holding the Mortgage Notes
solely on behalf and for the benefit of the Indenture Trustee; 
  
 (vii) Other than the security interest granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage
Notes. The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of the collateral covering the Mortgage Notes other than a financing statement relating to the security
interest granted to the Indenture Trustee hereunder or that has been terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer; and 
  
 (viii) None of the Mortgage Notes has any marks or notations indicating that they have been pledged,
assigned or otherwise conveyed to any Person other than the Indenture Trustee. 
  
 (b) The representations and warranties set forth in this Section 3.20 shall survive the Closing Date and shall not be waived. 
  
 ARTICLE IV 
  
 SATISFACTION AND DISCHARGE 
  
 Section 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to the Notes, except as to (i) rights of registration of transfer and exchange, (ii)
substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments of principal thereof and interest thereon, (iv) the rights, obligations and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.07 and the obligations of the Indenture Trustee under Sections 3.03 and 4.02) and (v) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture
Trustee or the Securities Administrator payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect
to the Notes, when either (I) the Transfer and Servicing Agreement has been terminated pursuant to Article IX thereof or (II) 
  
 (A) either 
  
 (1) all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 2.05 and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or 

  

 26 

 
discharged from such trust, as provided in Section 3.03) have been delivered to the Securities Administrator for cancellation; or 
  
 (2) all Notes not theretofore delivered to the Securities
Administrator for cancellation 
  
 (a) have
become due and payable, 
  
 (b) will become due
and payable at the applicable Maturity Date within one year, or 
  
 (c) are to be called for redemption within one year under arrangements satisfactory to the Securities Administrator for the giving of notice of redemption by the Securities Administrator in the name, and at the
expense, of the Issuer, 
  
 and the Issuer, in the case of (a),
(b) or (c) above, has irrevocably deposited or caused to be irrevocably deposited with the Securities Administrator cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such
amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Securities Administrator or the Note Registrar for cancellation when due to the
Maturity Date or Redemption Date (if the Notes are called for redemption pursuant to Section 10.01 hereof), as the case may be; 
  
 (B) the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer; 
  
 (C) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel (at the
Issuer’s expense) and (if required by the TIA or the Indenture Trustee) an Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.01 hereof and, subject to Section 11.02
hereof, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to the Notes have been complied with; and 
  
 (D) the Issuer has delivered to each Rating Agency notice of such satisfaction and discharge. 
  
 Section 4.02. Application of Trust Money. All moneys deposited with
the Securities Administrator pursuant to Sections 3.03 and 4.01 hereof shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, as the
Securities Administrator may determine, to the Holders of the particular Notes for the payment or redemption of which such moneys have been deposited with the Securities Administrator, of all sums due and to become due thereon for principal and
interest; but such moneys need not be segregated from other funds except to the extent required herein or in the Transfer and Servicing Agreement or required by law. 
  
 Section 4.03. Repayment of Moneys Held by Paying Agent. In connection with the satisfaction and discharge of this
Indenture with respect to the Notes, all moneys then held by 

  

 27 

 
any Paying Agent other than the Securities Administrator under the provisions of this Indenture with respect to such Notes shall, upon demand of the Issuer,
be paid to the Indenture Trustee to be held and applied according to Section 3.03 and thereupon such Paying Agent shall be released from all further liability with respect to such moneys. 
  
 Section 4.04. Trust Money Received by Indenture Trustee. If the Indenture Trustee receives any moneys in respect of
the Collateral (other than with respect to any amounts in respect of any payments or reimbursements of fees, expenses or indemnity amounts properly owing to the Indenture Trustee pursuant to the terms of any of the Operative Agreements), the
Indenture Trustee shall remit such funds promptly to the Securities Administrator. 
  
 ARTICLE V 
  
 REMEDIES 

 
 Section 5.01. Events of Default. “Event of Default,”
wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court
or any order, rule or regulation of any administrative or governmental body): 
  
 (i) Default for one month or more in the payment of any Accrued Note Interest on the Notes when the same becomes due and payable under Section 6.02 of the Transfer and Servicing Agreement; 
  
 (ii) failure to pay the entire principal of any Note when
the same becomes due and payable under the Transfer and Servicing Agreement or on the applicable Maturity Date; 
  
 (iii) failure to observe or perform any covenant or agreement of the Issuer made in this Indenture (other than a covenant or agreement, a
default in the observance or performance of which is elsewhere in this Section specifically dealt with), or any representation or warranty of the Issuer made in this Indenture or in any certificate or other writing delivered pursuant hereto or in
connection herewith proving to have been incorrect in any material respect as of the time when the same shall have been made, and such default shall continue or not be cured, or the circumstance or condition in respect of which such
misrepresentation or warranty was incorrect shall not have been eliminated or otherwise cured, for a period of 30 days after there shall have been given, by registered or certified mail, to the Issuer by the Indenture Trustee or to the Issuer and
the Indenture Trustee by the Holders of at least 25% of the Outstanding Balance of the Notes, a written notice specifying such default or incorrect representation or warranty and requiring it to be remedied and stating that such notice is a notice
of Default hereunder; 
  
 (iv) the filing of a
decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial part of the Collateral in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now
or hereafter in effect, or appointing a receiver, liquidator, assignee, 

  

 28 

 
custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the Collateral, or ordering the winding-up or liquidation
of the Issuer’s affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; 
  
 (v) the receipt of notice from the Holder of the Ownership Certificate to the Indenture Trustee of such Holder’s failure to qualify
as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity or of such Holder’s or the Depositor’s transfer or retention of an interest in the Class B Notes in contravention of the transfer and retention restrictions applicable to the
Class B Notes pursuant to Section 2.14; or 
  
 (vi) the commencement by the Issuer of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Issuer to the entry of an order for relief in an
involuntary case under any such law, or the consent by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the
Collateral, or the making by the Issuer of any general assignment for the benefit of creditors, or the failure by the Issuer generally to pay its debts as such debts become due, or the taking of any action by the Issuer in furtherance of any of the
foregoing. 
  
 The Issuer shall deliver to the Indenture Trustee,
within five days after the occurrence thereof, written notice in the form of an Officer’s Certificate of any event which with the giving of notice and the lapse of time would become an Event of Default under clause (iii), its status and what
action the Issuer is taking or proposes to take with respect thereto. 
  
 Section 5.02. Acceleration of Maturity; Rescission and Annulment. If an Event of Default should occur and be continuing, then and in every such case the Indenture Trustee may, or shall, at the direction of the Holders of Notes
representing not less than a majority of the Outstanding Balance of the Priority Class Notes, declare all the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Noteholders), and
upon any such declaration the unpaid principal amount of such Notes, together with accrued and unpaid interest on the Notes through the date of acceleration, shall become immediately due and payable. 
  
 At any time after such declaration of acceleration of maturity has been made
and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as hereinafter in this Article V provided, the Holders of Notes representing a majority of the Outstanding Balance of the Priority Class
Notes, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if: 
  
 (i) the Issuer has paid or deposited with the Securities Administrator a sum sufficient to pay: 
  
 (A) all payments of principal of and interest on all
affected Priority Class Notes and all other amounts that would then be due hereunder or upon such 

  

 29 

 
Notes if the Event of Default giving rise to such acceleration had not occurred; and 
  
 (B) all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel; and 
  
 (ii) all Events of Default, other than the nonpayment of the principal of the Notes that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.12. 
  
 No such rescission shall
affect any subsequent default or impair any right consequent thereto. 
  
 The Holders of Non-Priority Class Notes shall have no right to exercise any Noteholders’ rights referred to in this Article V, except to the extent expressly provided herein. 
  
 Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the payment of any Accrued Note Interest on any Note when the same becomes due and payable, and such default continues for a period of five days, or (ii) default is made
in the payment of the principal of any Note when the same becomes due and payable on the applicable Maturity Date, the Issuer will, upon demand of the Indenture Trustee, pay to the Securities Administrator, for the benefit of the Holders of the
Notes, the whole amount then due and payable on such Notes for principal and interest, with interest on the overdue principal and, to the extent payment at such rate of interest shall be legally enforceable, on overdue installments of interest at
the rate borne by such Notes and, in addition thereto, pay to the Indenture Trustee such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances
of the Indenture Trustee and its agents and counsel. 
  
 (b) In
case the Issuer shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such
Proceeding to judgment or final decree, and may enforce the same against the Issuer upon such Notes and collect in the manner provided by law out of the property of the Issuer upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable. 
  
 (c) If an Event of Default occurs and is continuing,
the Indenture Trustee may, in its discretion, or shall, at the direction of the Holders of Priority Class Notes representing not less than a majority of the Outstanding Balance thereof, as more particularly provided in Section 5.04, proceed to
protect and enforce its rights and the rights of the Noteholders, by such appropriate Proceedings as the Indenture Trustee shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by law. 
  
 (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in the Collateral, Proceedings 

  

 30 

 
under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, or liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable
judicial Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings or
otherwise: 
  
 (i) to file and prove a claim or
claims for the whole amount of principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for
reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Indenture
Trustee and each predecessor Indenture Trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings; 
  
 (ii) unless prohibited by applicable law and regulations, to vote on behalf of the Holders of Notes in any election of a trustee, a
standby trustee or Person performing similar functions in any such Proceedings; 
  
 (iii) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute all amounts received
with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; 
  
 (iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee or the Holders of Notes allowed in any Proceedings relative to the Issuer, its creditors and its property; and 
  
 (v) to participate as a member of any official committee of creditors in the matters as it deems necessary or advisable; 
  
 and any trustee, receiver, liquidator, custodian or other similar official in any such
Proceeding is hereby authorized by each of such Noteholders to make payments to the Securities Administrator and, in such event or in the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay
to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities
incurred by it or its agents, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith. 
  
 (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or
accept or adopt on behalf of any Noteholder any plan of 

  

 31 

 
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Indenture Trustee to vote
in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
  
 (f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders
of the Notes. 
  
 (g) In any Proceedings brought by the Indenture
Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Holders of the Notes, and it shall not be
necessary to make any Noteholder a party to any such Proceedings. 
  
 Section 5.04. Remedies; Priorities. (a) If an Event of Default shall have occurred and be continuing, the Indenture Trustee may, and at the direction of Holders of Priority Class Notes representing a majority of the Outstanding
Balance thereof shall, do one or more of the following (subject to Section 5.05): 
  
 (i) institute Proceedings in its own name and as trustee of an express trust for the collection of all amounts then payable on the Notes
or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any judgment obtained and collect from the Issuer and any other obligor upon such Notes moneys adjudged due; 
  
 (ii) institute Proceedings from time to time for the
complete or partial foreclosure of this Indenture with respect to the Collateral; 
  
 (iii) exercise any remedies of a secured party under the Relevant UCC and take any other appropriate action to protect and enforce the
rights and remedies of the Indenture Trustee and the Holders of the Notes; and 
  
 (iv) sell the Collateral or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted
in any manner permitted by law; 
  
 provided, however, that the Indenture
Trustee may not sell or otherwise liquidate any Collateral following an Event of Default, other than an Event of Default described in Section 5.01(i) or (ii), unless (A) the Holders of 100% of the Outstanding Balance or Percentage Interest of the
Notes consent thereto, (B) the proceeds of such sale or liquidation distributable to the Noteholders are sufficient to discharge in full all amounts then due and unpaid upon such Notes for principal and interest or (C) the Indenture Trustee
determines based on information provided by the Securities Administrator that the Collateral will not continue to provide sufficient funds for the payment of principal of and interest on the Notes as they would have become due if the Notes had not
been declared due and payable, and the Indenture Trustee obtains the consent of Holders of 66-2/3% 

  

 32 

 
of the Voting Interests of the Notes. In determining such sufficiency or insufficiency with respect to clauses (B) and (C), the Indenture Trustee may, but
need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Collateral for such purpose. 
  
 (b) If the Indenture Trustee collects any money or property pursuant to this
Article V, it shall remit such money or property to the Securities Administrator and the Securities Administrator shall pay out such money or property in the following order: 
  
 first: in the following order, to the Indenture Trustee, for any costs or expenses, including
any reasonable out-of-pocket attorneys’ fees, incurred by it in connection with the enforcement of the remedies provided for in this Article V and for any other unpaid amounts due to the Indenture Trustee hereunder; to the Custodian, the
Securities Administrator and the Master Servicer, to the extent of any fees and expenses due and owing to each of them under any Operative Agreement; and to the Owner Trustee, to the extent of any fees and expenses due and owing to it (including
pursuant to Section 7.03 of the Trust Agreement) and for any other unpaid amounts due to the Owner Trustee hereunder or under the Transfer and Servicing Agreement; 
  
 second: to the Master Servicer and the Servicer for any Servicing Fees then due and unpaid and
any unreimbursed Monthly Advances and other servicing advances; 
  
 third: to the applicable parties, any other outstanding expenses of the Trust remaining unpaid; 
  
 fourth: to the Notes, all accrued and unpaid interest thereon and amounts in respect of principal paid to the Trust during
the related Prepayment Period, in each case in according to the priorities set forth in Section 6.02 of the Transfer and Servicing Agreement; provided, however, that accrued and unpaid interest shall be paid to Noteholders of each Class of Notes
before any payments in respect of principal; and 
  
 fifth: to the Certificate Paying Agent for any amounts to be distributed to the Holder of the Ownership Certificate. 
  
 The Securities Administrator may fix a record date and payment date for any payment to Noteholders pursuant to this Section.
At least 15 days before such record date, the Issuer shall mail to each Noteholder and the Indenture Trustee a notice that states the record date, the payment date and the amount to be paid. 
  
 Section 5.05. Optional Preservation of the Collateral. If the Notes
have been declared to be due and payable under Section 5.02 following an Event of Default and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may, but need not, elect to maintain possession of the
Collateral. It is the desire of the parties hereto and the Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Collateral. In determining whether to maintain possession of the Collateral, the Indenture Trustee may, but need not, obtain and rely upon an opinion (at the expense of the Issuer) of an
Independent investment banking or accounting firm 

  

 33 

 
of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Collateral for such purpose. 
  
 Section 5.06. Limitation of Suits. Other than as otherwise expressly
provided herein in the case of an Event of Default, no Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless: 
  
 (i) such Holder has
previously given written notice to the Indenture Trustee of a continuing Event of Default; 
  
 (ii) the Holders of not less than 25% of the Outstanding Balance of the Notes have made written request to the Indenture Trustee to
institute such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder; 
  
 (iii) such Holder or Holders have offered to the Indenture Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in complying with such request; 
  
 (iv)
the Indenture Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute such Proceedings; and 
  
 (v) no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders
of a majority of the Outstanding Balance of the Notes. 
  
 It is
understood and intended that no one or more Holders of Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to
obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein provided. 
  
 In the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of Holders of Notes, each
representing less than a majority of the Outstanding Balance of the Notes, the Indenture Trustee shall take the action requested by the Holders of the largest percentage in Outstanding Balance of the Notes and, if there is no single largest
percentage in Outstanding Balance of the Notes, in its sole discretion may determine what action, if any, shall be taken, notwithstanding any other provisions of this Indenture. 
  
 Section 5.07. Unconditional Rights of Noteholders To Receive Principal and Interest. Notwithstanding any other
provisions in this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on or after the respective due dates thereof expressed in such
Note or in this Indenture (or, in the case of redemption, on or after the Redemption Date) to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder. 
  

 34 

 Section 5.08. Restoration of Rights and Remedies. If the Indenture Trustee or any Noteholder has
instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in every
such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted. 
  
 Section 5.09. Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Indenture Trustee or to the Noteholders
is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 Section 5.10. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee or any Holder of any Note to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a waiver of any such Default or Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case
may be. 
  
 Section 5.11. Control by Noteholders. Except as
otherwise provided in Section 5.02, the Holders of a majority of the Outstanding Balance of the Notes shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with
respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that: 
  
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
  
 (ii) subject to the express terms of Section 5.04, any
direction to the Indenture Trustee to sell or liquidate the Collateral shall be by Holders of Notes representing not less than 100% of the Outstanding Balance of the Notes; 
  
 (iii) if the conditions set forth in Section 5.05 have been satisfied and the Indenture Trustee elects to
retain the Collateral pursuant to such Section, then any direction to the Indenture Trustee by Holders of Notes representing less than 100% of the Outstanding Balance of the Notes to sell or liquidate the Collateral shall be of no force and effect;
and 
  
 (iv) the Indenture Trustee may take any
other action deemed proper by the Indenture Trustee that is not inconsistent with such direction. 
  

 35 

 Notwithstanding the rights of the Noteholders set forth in this Section, subject to Section 6.01(g), the
Indenture Trustee need not take any action that it determines might involve it in liability or might materially adversely affect the rights of any Noteholders not consenting to such action. In the event the Indenture Trustee takes any action or
follows any direction pursuant to this Indenture, the Indenture Trustee shall be entitled to indemnification against any loss or expense caused by taking such action or following such direction in accordance with Section 6.07. 
  
 Section 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the Holders of Notes of not less than a majority of the Outstanding Balance of the Notes may waive, in writing, any past Default or Event of Default and its consequences except a
Default (a) in payment of principal of or interest on any of the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Note. In the case of any such waiver, the
Issuer, the Indenture Trustee and the Holders of the Notes shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto.

  
 Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto. 
  
 Section 5.13. Undertaking for Costs. All parties to this Indenture agree, and each Holder of a Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of
an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of Noteholders, in each case holding in
the aggregate more than 10% of the Outstanding Balance or Percentage Interest of the Notes or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date). 
  
 Section 5.14. Waiver of Stay or Extension Laws. The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted. 
  

 36 

 Section 5.15. Action on Notes. The Indenture Trustee’s right to seek and recover judgment on
the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee or
the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of the Issuer. Any money
or property collected by the Indenture Trustee and remitted to the Securities Administrator shall be applied by the Securities Administrator in accordance with Section 5.04(b). 
  
 Section 5.16. Performance and Enforcement of Certain Obligations. (a) Promptly following a request from the Indenture
Trustee to do so, the Issuer shall take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by the Seller, the Depositor, the Securities Administrator, the Master Servicer or the Servicer,
as applicable, of each of their obligations to the Issuer under or in connection with the Mortgage Loan Purchase Agreement and the Transfer and Servicing Agreement, and to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Transfer and Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of the Seller, the Depositor,
the Securities Administrator, the Master Servicer or the Servicer, as applicable, under the Mortgage Loan Purchase Agreement and Transfer and Servicing Agreement and the institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller, the Depositor, the Securities Administrator, the Master Servicer or the Servicer, as applicable, of each of their applicable obligations under the Mortgage Loan Purchase Agreement and the Transfer and Servicing
Agreement. 
  
 (b) If an Event of Default has occurred and is
continuing, the Indenture Trustee may, and at the direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the Holders of a majority of the Outstanding Balance of the Priority Class Notes shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer against the Depositor, the Securities Administrator, the Master Servicer or the Servicer under or in connection with the Transfer and Servicing Agreement or the Seller under
or in connection with the Mortgage Loan Purchase Agreement, including the right or power to take any action to compel or secure performance or observance by the Seller, the Depositor, the Securities Administrator, the Master Servicer or the
Servicer, of each of their respective obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the Transfer and Servicing Agreement, and any right of the Issuer to take such action
shall be suspended. 
  
 ARTICLE VI 
  
 THE INDENTURE TRUSTEE 
  
 Section 6.01. Duties of Indenture Trustee. (a) If an Event of Default
has occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs. 
  

 37 

 (b) Except during the continuance of an Event of Default: 
  
 (i) the Indenture Trustee undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture and shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Indenture Trustee; and 
  
 (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Indenture Trustee and on their face conforming to the requirements of this Indenture; however, the Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform on their face to the
requirements of this Indenture. 
  
 (c) The Indenture Trustee may
not be relieved from liability for its own negligent action, its own negligent failure to act, its own willful misconduct or its own bad faith, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section; 
  
 (ii) the Indenture Trustee shall not be liable for any error
of judgment made in good faith by a Responsible Officer unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with this
Indenture or upon a direction received by it from the requisite Noteholders pursuant to Article V; and 
  
 (iv) the Indenture Trustee shall not be required to take notice or be deemed to have notice or knowledge of (a) any failure by the Issuer
to comply with its obligations hereunder or in the Operative Agreements or (b) any Default or Event of Default, unless a Responsible Officer of the Indenture Trustee assigned to and working in its corporate trust department obtains actual knowledge
of such Default or Event of Default or shall have received written notice thereof. In the absence of such actual knowledge or notice, the Indenture Trustee may conclusively assume that there is no Default or Event of Default. 
  
 (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to the provisions of this Section. 
  
 (e) The Indenture Trustee shall not be liable for indebtedness evidenced by or arising under any of the Operative Agreements, including principal of or interest on the Notes, or interest on any money received by it except as the Indenture
Trustee may agree in writing with the Issuer. 
  
 (f) Money held
in trust by the Indenture Trustee need not be segregated from other funds except to the extent required by law or the terms of this Indenture or the Transfer and Servicing Agreement. 
  

 38 

 (g) No provision of this Indenture shall require the Indenture Trustee to expend, advance or risk its own
funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it provided, however, that the Indenture Trustee shall not refuse or fail to perform any of its duties hereunder solely as a result of nonpayment of its normal fees and expenses.

  
 (h) Every provision of this Indenture or any Operative
Agreement relating to the conduct or affecting the liability of or affording protection to the Indenture Trustee shall be subject to the provisions of this Section, Section 6.02 and to the provisions of the TIA. 
  
 (i) The Indenture Trustee shall execute and deliver the Transfer and
Servicing Agreement and such other documents and instruments as shall be necessary or appropriate in accordance with its duties and obligations under this Indenture. 
  
 (j) The Indenture Trustee shall not have any duty or obligation to manage, make any payment with respect to, register,
record, sell, dispose of, or otherwise deal with the Collateral, or to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the Indenture Trustee is a party, except as expressly
provided (i) in accordance with the powers granted to and the authority conferred upon the Indenture Trustee pursuant to this Agreement or any other Operative Agreement, and (ii) in accordance with any document or instruction delivered to the
Indenture Trustee pursuant to the terms of this Agreement; and no implied duties or obligations shall be read into this Agreement or any Operative Agreement against the Indenture Trustee. The Indenture Trustee agrees that it will, at its own cost
and expense, promptly take all action as may be necessary to discharge any liens on any part of the Collateral that result from actions by, or claims against itself (in its individual capacity, and not in the capacity of Indenture Trustee) that are
not related to the administration of the Collateral. 
  
 (k) In
the absence of bad faith, negligence or willful misconduct on the part of the Indenture Trustee or the Securities Administrator, neither the Indenture Trustee nor the Securities Administrator shall be responsible for the application of any money by
any Paying Agent other than the Indenture Trustee or the Securities Administrator, respectively. Neither the Indenture Trustee nor the Securities Administrator shall have any liability or responsibility for the acts or omissions of the other Person,
it being understood that this Indenture shall not be construed to render them agents of one another. 
  
 Section 6.02. Rights of Indenture Trustee. (a) The Indenture Trustee may rely on any document believed by it to be genuine and to have been signed
or presented by the proper person. The Indenture Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel, which shall not be
at the expense of the Indenture Trustee. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel. The right of the Indenture Trustee to
perform any discretionary act enumerated in this Indenture or in any Operative Agreement shall 

  

 39 

 
not be construed as a duty and the Indenture Trustee shall not be answerable for other than its negligence or willful misconduct in the performance of such
act. 
  
 (c) The Indenture Trustee may execute any of the trusts
or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee. 
  
 (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, that the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith. 
  
 (e) The Indenture Trustee may consult with counsel, and any Opinion of Counsel with respect to legal matters relating to this Indenture, any Operative
Agreement and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with any Opinion of Counsel of such counsel.

  
 (f) In the event that the Indenture Trustee is also acting as
Paying Agent, Note Registrar or Administrator hereunder or under any Operative Agreement, the rights and protections afforded to the Indenture Trustee pursuant to this Article VI shall be afforded to such Paying Agent, Note Registrar and
Administrator. 
  
 (g) The Indenture Trustee shall be under no
obligation to exercise any of its rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Indenture Trustee
reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby. 
  
 (h) The Indenture Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate (including any
Officers’ Certificate), statement, instrument, opinion (including any Opinion of Counsel), notice, request, direction, consent, order, bond, debenture or other paper or document, unless requested to do so in writing by Holders of Notes
representing not less than 25% of the Outstanding Balance of the Notes and provided that such Holders shall have offered to the Indenture Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which
may be incurred thereby. 
  
 (i) The Indenture Trustee shall not
be required to give any bond or surety in respect of the performance of its powers and duties hereunder. 
  
 (j) The permissive rights of the Indenture Trustee to do things enumerated in this Indenture shall not be construed as duties. 
  
 Section 6.03. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture Trustee. Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the Indenture Trustee must comply with Section 6.11. 
  

 40 

 Section 6.04. Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be responsible
for and makes no representation as to the validity or adequacy of any of the Operative Agreements or the Notes or the sufficiency of the Collateral; it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer or the Servicer in this Indenture, any Operative Agreement or in any other document issued in connection with the sale of the Notes or in the Notes. 
  
 Section 6.05. Notice of Defaults. If a Default occurs and is
continuing and if a Responsible Officer of the Indenture Trustee has actual knowledge thereof, the Indenture Trustee shall give prompt written notice thereof to each Noteholder. 
  
 Section 6.06. Reports by Indenture Trustee to Holders. The Indenture Trustee shall deliver or shall cause the
Securities Administrator to deliver to each Noteholder such information with respect to the Notes as may be required to enable such holder to prepare its federal and state income tax returns and shall file such information returns with the Internal
Revenue Service with respect to payments or accruals of interest on the Notes as are required to be filed under the Code or applicable Treasury Regulations. 
  
 Section 6.07. Compensation and Indemnity. The Indenture Trustee shall be entitled, as compensation for its services, the Indenture Trustee Fee to
be paid by the Master Servicer as provided in the Transfer and Servicing Agreement. The Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Indenture Trustee and any co-trustee
shall be reimbursed on behalf of the Issuer from funds in the Accounts, as provided in the Transfer and Servicing Agreement, for all reasonable ordinary out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the
compensation for its services (as provided in the Transfer and Servicing Agreement). Reimbursable expenses under this Section shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents,
counsel, accountants and experts. The Issuer shall indemnify the Indenture Trustee, any co-trustee and their respective employees, directors and agents, as provided in the Transfer and Servicing Agreement and from funds in the Accounts, against any
and all claim, loss, liability or expense (including attorneys’ fees) incurred by it in connection with the administration of this trust and the performance of its duties hereunder or under any Operative Agreement. The Indenture Trustee or
co-trustee, as applicable, shall notify the Issuer promptly of any claim for which it may seek indemnity. Failure by the Indenture Trustee or the co-trustee, as applicable, to so notify the Issuer shall not relieve the Issuer of its obligations
hereunder. The Issuer shall defend any such claim, and the Indenture Trustee and any co-trustee may have separate counsel fees and expenses of such counsel shall be payable on behalf of the Issuer from funds in the Accounts. The Issuer shall not be
required to reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee or any co-trustee, as applicable, through the Indenture Trustee’s or co-trustee’s, as the case may be, own willful
misconduct, negligence or bad faith. 
  
 The Issuer’s
obligations to the Indenture Trustee and any co-trustee pursuant to this Section shall survive the resignation or removal of the Indenture Trustee and the termination of this Indenture. When the Indenture Trustee or any co-trustee incurs expenses
after the occurrence of a Default specified in Section 5.01(iv) or (v) with respect to the Issuer, the expenses are intended to constitute expenses of administration under Title 11 of the United States 

  

 41 

 
Code or any other applicable federal or state bankruptcy, insolvency or similar law. 
  
 Section 6.08. Replacement of Indenture Trustee. No resignation or removal of the Indenture Trustee and no appointment
of a successor Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section. The Indenture Trustee may resign at any time by giving 90 days’ written notice thereof to
the Depositor, the Issuer, each Noteholder and each Rating Agency. The Issuer shall remove the Indenture Trustee if: 
  
 (i) the Indenture Trustee fails to comply with Section 6.11; 
  
 (ii) the Indenture Trustee is adjudged bankrupt or insolvent; 
  
 (iii) a receiver or other public officer takes charge of the
Indenture Trustee or its property; or 
  
 (iv)
the Indenture Trustee otherwise becomes incapable of acting. 
  
 If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of the Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Issuer shall
promptly appoint a successor Indenture Trustee that satisfies the eligibility requirements of Section 6.11. 
  
 The resigning or removed Indenture Trustee agrees to cooperate with any successor Indenture Trustee in effecting the termination of the resigning or
removed Indenture Trustee’s responsibilities and rights hereunder and shall promptly provide such successor Indenture Trustee all documents and records reasonably requested by it to enable it to assume the Indenture Trustee’s functions
hereunder. 
  
 A successor Indenture Trustee shall deliver a
written acceptance of its appointment to the retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights,
powers and duties of the Indenture Trustee under this Indenture. The successor Indenture Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture
Trustee to the successor Indenture Trustee. 
  
 If a successor
Indenture Trustee does not take office within 30 days after the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the Holders of a majority in Outstanding Balance of the Notes may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee. 
  
 If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture
Trustee. 
  
 Section 6.09. Successor Indenture Trustee or the
Securities Administrator by Merger. (a) If the Indenture Trustee or the Securities Administrator consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another 

  

 42 

 
corporation or banking association, as applicable, the resulting, surviving or transferee corporation without any further act shall be the successor
Indenture Trustee or successor Securities Administrator, as the case may be; provided that such corporation or banking association shall be otherwise qualified and eligible hereunder and under any other Operative Agreement. The Indenture
Trustee or the Securities Administrator, as applicable, shall provide each Rating Agency prior written notice of any such transaction. 
  
 In case at the time such successor or successors by merger, conversion or consolidation to the Securities Administrator shall succeed to the obligations
of the Securities Administrator under this Indenture any of the Notes which shall have been authenticated by the Securities Administrator but not delivered, any such successor to the Securities Administrator may adopt the certificate of
authentication of any predecessor securities administrator and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Securities Administrator may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the successor to the Securities Administrator; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided
that the certificate of the Securities Administrator shall have. 
  
 Section 6.10. Appointment of Co-Indenture Trustee or Separate Indenture Trustee. (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Collateral may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate
trustees, of all or any part of the Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Collateral, or any part hereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and
no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under Section 6.08 hereof. 
  
 (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

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

 43 

 (ii) no trustee hereunder shall be personally liable by reason of any act or omission of
any other trustee hereunder; and 
  
 (iii) the
Indenture Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee. 
  
 (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture Trustee. 
  
 (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee. 
  
 Section 6.11. Eligibility;
Disqualification. The Indenture Trustee shall at all times (i) satisfy the requirements of TIA Section 310(a), (ii) have a combined capital and surplus of at least $100,000,000 as set forth in its most recently published annual report of
condition, (iii) have a long-term debt rating equivalent to “A” or better by the Rating Agencies or be otherwise acceptable to the Rating Agencies and (iv) not be an Affiliate of the Issuer or the Owner Trustee. The Indenture Trustee shall
comply with TIA Section 310(b), including the optional provision permitted by the second sentence of TIA Section 310(b)(9); provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or indentures under
which other securities of the Issuer are outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. 
  
 Section 6.12. Representations and Warranties. The Indenture Trustee hereby represents that: 
  
 (a) the Indenture Trustee is duly organized and validly existing as a
national banking association in good standing under the laws of the United States with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted; 

 
 (b) the Indenture Trustee has the power and authority to execute and
deliver this Indenture and to carry out its terms; and the execution, delivery and performance of this Indenture have been duly authorized by the Indenture Trustee by all necessary corporate action; 
  

 44 

 (c) the consummation of the transactions contemplated by this Indenture and the fulfillment of the terms
hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under the articles of organization or bylaws of the Indenture Trustee or any agreement or
other instrument to which the Indenture Trustee is a party or by which it is bound; and 
  
 (d) to the Indenture Trustee’s knowledge, there are no proceedings or investigations pending or threatened before any court, regulatory body, administrative agency or other governmental instrumentality having
jurisdiction over the Indenture Trustee or its properties: (i) asserting the invalidity of this Indenture, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Indenture or (iii) seeking any determination or
ruling that might materially and adversely affect the performance by the Indenture Trustee of its obligations under, or the validity or enforceability of, this Indenture. 
  
 Section 6.13. Preferential Collection of Claims Against Issuer. The Indenture Trustee shall comply with TIA Section
311(a), excluding any creditor relationship listed in TIA Section 311(b). An Indenture Trustee which has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated. 
  
 ARTICLE VII 
  
 NOTEHOLDERS’ LISTS AND REPORTS 
  

Section 7.01. Issuer To Furnish Names and Addresses of Noteholders. The Note Registrar will furnish or cause to be furnished to the Indenture
Trustee or at the Indenture Trustee’s direction (a) not more than five days after each Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of such Record Date,
and (b) at such other times as the Indenture Trustee may request in writing, within 30 days after receipt by the Note Registrar of any such request, a list of similar form and content as of a date not more than 10 days prior to the time such list is
furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished. 
  
 Section 7.02. Preservation of Information; Communications to Noteholders. (a) The Note Registrar shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.01 and the names and addresses of Holders of Notes received by the Securities
Administrator in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished. If three or more Noteholders, or one or more Holders of a Class of
Notes evidencing not less than 25% of the Outstanding Balance thereof (hereinafter referred to as “Applicants”), apply in writing to the Indenture Trustee, and such application states that the Applicants desire to communicate with other
holders with respect to their rights under this Indenture or under the Notes, then the Indenture Trustee shall, within five Business Days after the receipt of such application, afford such Applicants access, during normal business hours, to the
current list of Holders. Every Holder, by receiving and holding a Note, agrees with the Issuer, the Securities Administrator, the Note Registrar and the Indenture Trustee that none of the Issuer, the Securities 

  

 45 

 
Administrator or the Indenture Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the
Holders under this Indenture, regardless of the source from which such information was derived. 
  
 (b) Noteholders may communicate pursuant to TIA Section 312(b) with other Noteholders with respect to their rights under this Indenture or under the
Notes. 
  
 (c) The Issuer, the Indenture Trustee, Securities
Administrator and the Note Registrar shall have the protection of TIA Section 3l2(c). 
  
 Section 7.03. Reports by Issuer. (a) The Issuer shall: 
  
 (i) file with the Indenture Trustee and the Commission in accordance with the rules and regulations prescribed from time to time by the
Commission such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations. Delivery of such
information, documents and reports to the Indenture Trustee is for informational purposes only and the Indenture Trustee’s receipt of such reports shall not constitute constructive notice of any information contained therein or determinable
from information contained therein, including the Issuer’s compliance with any of its covenants hereunder (as to which the Indenture Trustee is entitled to rely exclusively on Officers’ Certificates); and 
  
 (ii) supply to the Indenture Trustee (and the Indenture
Trustee shall, or shall cause the Securities Administrator on behalf of the Indenture Trustee to, transmit by mail to all Noteholders described in TIA Section 313(c) to the extent required by applicable law) such summaries of any information,
documents and reports required to be filed by the Issuer pursuant to clause (i) of this Section 7.03(a) and by rules and regulations prescribed from time to time by the Commission. 
  
 (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31 of each year. 

 
 Section 7.04. Reports by Indenture Trustee. If required by TIA
Section 313(a), within 60 days after each March 1, beginning with March 1, 2006, the Indenture Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief report dated as of such date that complies with TIA Section 313(a). The
Indenture Trustee also shall comply with TIA Section 313(b). 
  
 A
copy of each report at the time of its mailing to Noteholders shall be filed by the Indenture Trustee with the Commission and each securities exchange, if any, on which the Notes are listed. The Issuer shall notify the Indenture Trustee if and when
the Notes are listed on any securities exchange. 
  

 46 

 ARTICLE VIII 
  
 ACCOUNTS, DISBURSEMENTS AND RELEASES 
  
 Section 8.01. Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture Trustee
shall apply all such money received by it as provided in this Indenture. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of
the Collateral, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right to
claim a Default or Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 
  
 Section 8.02. Note Payment Account and Certificate Distribution Account. (a) On or prior to the Closing Date, the Securities Administrator shall
establish and maintain in its name the Certificate Distribution Account (in its capacity as Securities Administrator), as provided in Article VI of the Transfer and Servicing Agreement and Article IV of the Trust Agreement, respectively. 

 
 (b) On each Payment Date and Redemption Date, the Paying Agent (or, if the
Securities Administrator acts as Paying Agent, the Securities Administrator) shall distribute all amounts on deposit in the Note Payment Account as provided in Section 6.02 of the Transfer and Servicing Agreement. 
  
 (c) On each Payment Date and each Redemption Date, the Indenture Trustee
hereby authorizes the Owner Trustee or the Certificate Paying Agent, as applicable, to make the distributions from the Certificate Distribution Account as required pursuant to Section 6.02 of the Transfer and Servicing Agreement and Section 4.02 of
the Trust Agreement. 
  
 Section 8.03. General Provisions
Regarding Accounts. Funds in the Note Payment Account maintained by the Securities Administrator shall be invested as provided in the Transfer and Servicing Agreement. 
  
 Section 8.04. Release of Collateral. (a) Subject to the payment of its fees and expenses pursuant to Section 6.07,
the Indenture Trustee may, and when required by the provisions of this Indenture and the Transfer and Servicing Agreement shall, execute instruments to release property from the lien of this Indenture, or convey the Indenture Trustee’s interest
in the same, in a manner and under circumstances that are not inconsistent with the provisions of this Indenture. No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies. 
  
 (b) At such time as the Securities Administrator notifies the Indenture Trustee in writing that there are no Notes outstanding and all sums due to the
Noteholders pursuant to the Transfer 

  

 47 

 
and Servicing Agreement and any fees and expenses of the Indenture Trustee, the Master Servicer, the Securities Administrator, the Custodian, the Owner
Trustee and the Servicer pursuant to this Indenture or any other Operative Agreement have been paid, the Indenture Trustee shall release any remaining portion of the Collateral that secured the Notes from the lien of this Indenture, and the
Securities Administrator shall release to the Issuer or any other Person entitled thereto any funds then on deposit in the Note Payment Account and the Indenture Trustee shall assign or transfer any outstanding Cap Agreements as directed by the
Securities Administrator. The Indenture Trustee shall release property from the lien of this Indenture and the Securities Administrator shall release the remaining funds on deposit in the Note Payment Account pursuant to this subsection (b) only
upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable requirements of
Section 11.01 hereof. 
  
 ARTICLE IX 
  
 SUPPLEMENTAL INDENTURES 
  
 Section 9.01. Supplemental Indentures Without Consent of Noteholders.
(a) Without the consent of the Holders of any Notes but with prior notice to each Rating Agency, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force at the date of the execution thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes: 
  
 (i) to correct or amplify the description of any property at
any time subject to the lien of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the lien of this Indenture additional
property; 
  
 (ii) to evidence the succession, in
compliance with the applicable provisions hereof, of another person to the Issuer, and the assumption by any such successor of the covenants of the Issuer herein and in the Notes contained; 
  
 (iii) to add to the covenants of the Issuer, for the benefit
of the Holders of the Notes, or to surrender any right or power herein conferred upon the Issuer; 
  
 (iv) to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 
  
 (v) (A) to cure any ambiguity, (B) to correct or supplement
any provision herein or in any supplemental indenture that may be inconsistent with any other provisions herein or in any supplemental indenture or to conform the provisions hereof to those of the Offering Document, (C) to obtain or maintain a
rating for a Class of Notes from a nationally recognized statistical rating organization, (D) to make any other provisions with respect to matters or questions arising under this Indenture; provided, however, that no such supplemental
indenture entered into pursuant to clause (D) of this 

  

 48 

 
subparagraph (v) shall adversely affect in any material respect the interests of any Holder not consenting thereto; 
  
 (vi) to evidence and provide for the acceptance of the
appointment hereunder by a successor trustee with respect to the Notes and to add to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant
to the requirements of Article VI; 
  
 (vii) to
issue a Class of Notes that is subordinate in rights of payment of interest and principal to each Class of Notes issued pursuant to this Indenture on the Closing Date; provided, however, that no such supplemental indenture entered into
pursuant to this subparagraph (vii) or, issuance or sale of such Class of Notes, shall adversely affect in any material respect the interests of any Holder not consenting thereto; or 
  
 (viii) to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary
to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this Indenture such other provisions as may be expressly required by the TIA. 
  
 provided, however, that no such supplemental indenture shall be entered into unless
the Indenture Trustee shall have received an Opinion of Counsel stating that as a result of such supplemental indenture, the Trust will not be subject to federal income tax as long as an entity that qualifies as a REIT under the Code holds directly,
or indirectly through one or more Qualified REIT Subsidiaries or a Disregarded Entity, a 100% ownership interest in the Ownership Certificate, and the Indenture Trustee receives an Officer’s Certificate from the Holder of the Ownership
Certificate that the Holder of the Ownership Certificate either qualifies as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity under the Code and the Holder of the Ownership Certificate holds a 100% ownership Interest in the Ownership
Certificate. 
  
 The Indenture Trustee is hereby authorized to
join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 
  
 (b) A letter from each Rating Agency addressed and delivered to the Indenture Trustee to the effect that any supplemental indenture entered into pursuant
to this Section 9.01 will not cause the then-current ratings on the Notes to be qualified, reduced or withdrawn shall constitute conclusive evidence that such amendment does not adversely affect in any material respect the interests of the
Noteholders. 
  
 Section 9.02. Supplemental Indentures with
Consent of Noteholders. The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice to each Rating Agency and with the consent of the Holders of not less than 66-2/3% of the Voting Interests of the
Notes, by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that no such supplemental indenture shall, adversely affect the interests of the 

  

 49 

 
Noteholders without the consent of the Holder of each Outstanding Note affected thereby (i) reduce in any manner the amount of, or delay the timing of,
payments in respect of any Note, (ii) alter the obligations of the Servicer to make a Monthly Advance or alter the servicing standards set forth in the Transfer and Servicing Agreement or the Servicing Agreement, (iii) reduce the aforesaid
percentages of Notes the Holders of which are required to consent to any such supplemental indenture, without the consent of the Holders of all Notes affected thereby, or (iv) permit the creation of any lien ranking prior to or on a parity with the
lien of this Indenture with respect to any part of the Collateral or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of the
security provided by the lien of this Indenture and provided, further, that such action shall not, as evidenced by an Opinion of Counsel, subject the Trust to federal income tax as long as an entity that qualifies as a REIT under the Code
holds directly, or indirectly through one or more Qualified REIT Subsidiaries or Disregarded Entities, a 100% ownership interest in the Ownership Certificate, and provided, further, that the Indenture Trustee receives an Officer’s
Certificate from the Holder of the Ownership Certificate that the Holder of the Ownership Certificate either qualifies as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity under the Code and the Holder of the Ownership Certificate holds a
100% ownership Interest in the Ownership Certificate. 
  
 The
Indenture Trustee shall be entitled to conclusively rely on an Opinion of Counsel to determine whether or not any Notes would be affected by any supplemental indenture and any such determination shall be conclusive upon the Holders of all Notes,
whether theretofore or thereafter authenticated and delivered hereunder. 
  
 It shall not be necessary for any Act of Noteholders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance
thereof. 
  
 Promptly after the execution by the Issuer and the
Indenture Trustee of any supplemental indenture pursuant to this Section, the Indenture Trustee shall mail or shall cause to be mailed to the Holders of the Notes to which such amendment or supplemental indenture relates and each Rating Agency a
notice setting forth in general terms the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such
supplemental indenture. 
  
 Section 9.03. Execution of
Supplemental Indentures. In executing, or permitting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and subject to Section 6.02, shall be fully protected in relying upon, an Opinion of Counsel to the effect provided in Section 9.06. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental
indenture that affects the Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise. 
  
 Section 9.04. Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and 

  

 50 

 
immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

  
 Section 9.05. Conformity with Trust Indenture Act.
Every amendment of this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act. 
  
 Section 9.06. Reference in Notes to
Supplemental Indentures. Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the Securities Administrator shall, bear a notation in a form approved by the
Securities Administrator as to any matter provided for in such supplemental indenture. If the Issuer or the Securities Administrator shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to
any such supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered by the Securities Administrator in exchange for Outstanding Notes. 
  
 Section 9.07. Opinion of Counsel. In connection with any supplemental indenture pursuant to this Article IX, the
Indenture Trustee shall be entitled to receive an Opinion of Counsel to the effect that such supplemental indenture is authorized or permitted by this Indenture and that all conditions precedent to the execution of such supplemental indenture in
accordance with the relevant provisions of this Article IX have been met. 
  
 Nothing in this Section shall be construed to require that any Person obtain the consent of the Indenture Trustee to any amendment or waiver or any provision of any document where the making of such amendment or the
giving of such waiver without obtaining the consent of the Indenture Trustee is not prohibited by this Indenture or by the terms of the document that is the subject of the proposed amendment or waiver. 
  
 ARTICLE X 
  
 REDEMPTION OF NOTES 
  
 Section 10.01. Redemption. The Notes are subject to redemption pursuant to Section 9.02 of the Transfer and Servicing Agreement. The Issuer shall
furnish each Rating Agency and the Indenture Trustee and the Securities Administrator notice of such redemption. If any Notes are to be redeemed pursuant to Section 9.02 of the Transfer and Servicing Agreement, the holder of the Ownership
Certificate shall furnish notice of its exercise of its option to redeem the applicable Notes to the Indenture Trustee and the Securities Administrator not later than 30 days prior to the applicable Redemption Date and the party exercising its
option to redeem such Notes shall deposit by 10:00 A.M. New York City time on the applicable Redemption Date with the Securities Administrator in the Note Payment Account the Redemption Price of the Notes to be redeemed, whereupon all such
applicable Notes shall be due and payable on the applicable Redemption Date upon the furnishing of a notice complying with Section 10.02 hereof to each Holder of the Notes. 
  

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 Section 10.02. Form of Redemption Notice. Notice of redemption under Section 10.01 shall be given
by the Indenture Trustee or the Securities Administrator on its behalf by first-class mail, postage prepaid, or by facsimile mailed or transmitted not later than 5 days prior to the applicable Redemption Date to each Holder of Notes, as of the close
of business on the Record Date preceding the applicable Redemption Date, at such Holder’s address or facsimile number appearing in the Note Register. 
  
 All notices of redemption shall state: 
  
 (i) the Redemption Date; 
  
 (ii) the Redemption Price; and 
  
 (iii) the place where such Notes are to be surrendered for payment of the Redemption Price (which shall be the office or agency of the
Issuer to be maintained as provided in Section 3.02). 
  
 Notice
of redemption of the Notes shall be given by the Indenture Trustee or the Securities Administrator on its behalf in the name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any Note
shall not impair or affect the validity of the redemption of any other Note. 
  
 Section 10.03. Notes Payable on Redemption Date. The applicable Notes or portions thereof to be redeemed shall, following notice of redemption as required under Section 10.02 (in the case of redemption pursuant
to Section 10.01) and remittance to the Securities Administrator of the Redemption Price as required under Section 10.01, on the applicable Redemption Date become due and payable at the Redemption Price and (unless the Issuer shall default in the
payment of the Redemption Price) no interest shall accrue on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Redemption Price. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 Section 11.01. Compliance Certificates and Opinions, etc. Upon any application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee: (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public
accountants meeting the applicable requirements of this Section, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished. 
  

 52 

 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this
Indenture shall include: 
  
 (i) a statement that
each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 
  
 (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (iii)
a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been
complied with; and 
  
 (iv) a statement as to
whether, in the opinion of each such signatory, such condition or covenant has been complied with. 
  
 Section 11.02. Form of Documents Delivered to Indenture Trustee. In any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give
an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with
respect to the matters upon which such officer’s certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Seller, the Master Servicer, the Servicer, the Depositor, the Issuer or the Securities Administrator, stating that the information with respect to such factual matters is in the
possession of the Seller, the Master Servicer, the Servicer, the Depositor, the Issuer or the Securities Administrator, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous. 
  
 Where any Person
is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 Whenever in this Indenture, in connection with any application or certificate
or report to the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and
accuracy, at the time of the granting of such application or at the 

  

 53 

 
effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided in Article VI. 
  
 Section 11.03. Acts of Noteholders. (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Noteholders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee and, where it is hereby expressly required, to the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as
the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.01)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section. 
  
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems
sufficient. 
  
 (c) The ownership of Notes shall be proved by the
Note Register. 
  
 (d) Any request, demand, authorization,
direction, notice, consent, waiver or other action by the Holder of any Notes shall bind the Holder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be
done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 Section 11.04. Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this Indenture shall be in writing and if such request, demand, authorization, direction, notice, consent, waiver or act of Noteholders is to be made upon, given or furnished
to or filed with: 
  
 (i) the Indenture Trustee
by any Noteholder or by the Issuer shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Indenture Trustee at its Corporate Trust Office, or 
  
 (ii) the Securities Administrator by the Indenture Trustee,
any Noteholder or by the Issuer shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Securities Administrator at its Corporate Trust Office, or 
  
 (iii) the Issuer by the Indenture Trustee or any Noteholder
shall be sufficient for every purpose hereunder if in writing and mailed first-class, postage prepaid to the Issuer addressed to the address provided in the Transfer and Servicing Agreement, or at any other address previously furnished in writing to
the Indenture Trustee by the Issuer. 
  

 54 

 The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture
Trustee. 
  
 Notices required to be given to the Rating Agencies
by the Issuer, the Indenture Trustee, the Securities Administrator or the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to the address provided in the Transfer and Servicing Agreement
or such other address as shall be designated by written notice to the other parties. 
  
 Section 11.05. Notices to Noteholders; Waiver. Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class, postage prepaid to each Noteholder affected by such event, at such Holder’s address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to
other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given. 
  
 Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance
upon such a waiver. 
  
 In case, by reason of the suspension of
regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner
of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice. 
  
 Where this Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute a Default or Event of Default. 
  
 Section 11.06. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the provisions
of the Trust Indenture Act, such required provision shall control. 
  
 The provisions of TIA Sections 310 through 317 that impose duties on any person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or
not physically contained herein. 
  
 Section 11.07. Effect of
Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  

 55 

 Section 11.08. Successors and Assigns. All covenants and agreements in this Indenture and the
Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents. 
  
 Section 11.09. Severability. In case any provision in this Indenture
or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 11.10. Benefits of Indenture and Consents of Noteholders. Nothing in this Indenture or in the Notes, express
or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the Owner Trustee and the Noteholders, any benefit or any legal or equitable right, remedy or claim under this Indenture. Each Noteholder and Note
Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, consents to and agrees to be bound by the terms and conditions of this Indenture. 
  
 Section 11.11. Legal Holidays. In any case where the date on which any payment is due shall not be a Business Day,
then (notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no
interest shall accrue for the period from and after any such nominal date. 
  
 Section 11.12. Governing Law. THIS INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section 11.13. Counterparts. This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument. 
  
 Section 11.14. Recording of Indenture. If this Indenture is subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense accompanied by an
Opinion of Counsel (which may be counsel to the Indenture Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture. 
  
 Section 11.15. Trust Obligations. (a) No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner
Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or other writing delivered in connection herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee in their respective individual
capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner 

  

 56 

 
Trustee in its respective individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their
respective individual capacities) and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions
of Articles VI, VII and VIII of the Trust Agreement. 
  
 (b) In
addition, (i) this Indenture is executed and delivered by Wilmington Trust Company, not individually or personally but solely as Owner Trustee, 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 Issuer or the Owner Trustee is made and intended not as personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose for binding
only the Trust, (iii) nothing herein contained shall be construed as creating any liability on Wilmington Trust Company, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any,
being expressly waived by the Indenture Trustee and by any Person claiming by, through or under the Indenture Trustee, and (iv) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or
expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Indenture or the Operative Agreements. 
  
 Section 11.16. No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note or interest therein, hereby covenant and agree that they will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, this Indenture or
any of the Operative Agreements. 
  
 Section 11.17.
Inspection. The Issuer agrees that, on reasonable prior notice, it will permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine all the books of account, records, reports and other papers
of the Issuer, to make copies and extracts therefrom, to cause such books to be audited by Independent Public Accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees and Independent
certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee shall, and shall cause its representatives to, hold in confidence all such information except to the extent disclosure may
be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder.

  
 Section 11.18. Agreements of Noteholders. Each
Noteholder, by accepting a Note, hereby acknowledges and agrees that, to the extent that the Noteholders are deemed to have any 

  

 57 

 
interest in any assets of the Depositor that constitute the assets of the trust for any other series of securities with respect to which the Depositor acts
as depositor: 
  
 (a) the interest of the Noteholders in such
assets is subordinate to claims or rights of the holders of such other series of securities to such assets; and 
  
 (b) this Indenture constitutes a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code. 
  

 58 

  
 IN WITNESS WHEREOF, the
Issuer, the Securities Administrator and the Indenture Trustee have caused this Indenture to be duly executed by their respective officers, thereunto duly authorized and duly attested, all as of the day and year first above written. 
  

					
	 HOMEBANC MORTGAGE TRUST 2005-3, as Issuer

		
	By:	 	WILMINGTON TRUST COMPANY,
not in its individual capacity but solely as Owner Trustee
			
	 	 	 By:
	 	 /s/ Janel R. Havrilla

	 	 	 Name:
	 	 Janel R. Havrilla

	 	 	 Title:
	 	 Financial Services Officer

	
	 WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities Administrator

			
	 	 	 By:
	 	 /s/ Stacey Taylor

	 	 	 Name:
	 	 Stacey Taylor

	 	 	 Title:
	 	 Assistant Vice president

	
	 U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee

			
	 	 	 By:
	 	 /s/ Karen R. Beard

	 	 	 Name:
	 	 Karen R. Beard

	 	 	 Title:
	 	 Vice President

  

  
 EXHIBIT A 
  
 FORMS OF NOTES 
  

 A-1 

  
 EXHIBIT B-1 
  
 FORM OF RULE 144A INVESTMENT LETTER 
  
 __________________ 
 date              
  
 Wells Fargo Bank, NA 
 as Note Registrar 
 Sixth Street and Marquette Avenue 
 Minneapolis, Minnesota 55479 

 

	 	Re:	HomeBanc Mortgage Trust 2005-3 

	 	 	Mortgage Backed Notes, [Class [        ] Notes] 

  
 Ladies and Gentlemen: 
  
 In connection with our acquisition of the above-referenced Notes (the “Notes”) we certify that (a) we understand that the Notes have not been
registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Notes, (c) we have had the opportunity to ask questions of and receive answers from HMB Acceptance Corp.
(the “Depositor”) concerning the purchase of the Notes and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Notes, (d) we have not, nor has anyone acting on our behalf, offered,
transferred, pledged, sold or otherwise disposed of the Notes or any interest in the Notes, or solicited any offer to buy, transfer, pledge or otherwise dispose of the Notes or any interest in the Notes from any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or taken any other action that would constitute a payment of the Notes under the Act or that would render the disposition of the Notes a violation of Section 5 of the Act
or any state securities laws or require registration pursuant thereto, and we will not act, or authorize any person to act, in such manner with respect to the Notes, (e) we are a “qualified institutional buyer” as that term is defined in
Rule 144A under the Act (“Rule 144A”). We are aware that the sale to us is being made in reliance on Rule 144A. 
  
 We are acquiring the Notes for our own account or for resale pursuant to Rule 144A and understand that such Notes may be resold, pledged or transferred
only (1) to a person reasonably believed to be a qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in
reliance on Rule 144A or (2) pursuant to another exemption from registration under the Act. 
  
 We hereby acknowledge that under the terms of the Indenture among HomeBanc Mortgage Trust 2005-3, as Issuer, Wells Fargo Bank, N.A., as Securities Administrator, and U.S. Bank National Association, as Indenture
Trustee, dated as of May 1, 2005, no transfer of the 

  

 B-1-1 

 
Notes shall be permitted to be made to any person unless the Note Registrar has received a certificate from such transferee in the form hereof. 

 
 We hereby indemnify the Depositor, Indenture Trustee, the Note Registrar
and the Trust against any liability that may result to either of them if our transfer or other disposition of any Notes (or any interest therein) is not exempt from the registration requirements of the Act and any applicable state securities laws or
is not made in accordance with such federal and state laws, the provisions of this certificate or the applicable provisions of the Indenture. 
  

					
	 Very truly yours,

	
	 
	Print Name of Purchaser
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 B-1-2 

  
 EXHIBIT B-2 
  
 FORM OF NON-RULE 144A INVESTMENT LETTER 
  
 __________________ 
 date              
  
 Wells Fargo Bank, NA 
 as Note Registrar 
 Sixth Street and Marquette Avenue 
 Minneapolis, Minnesota 55479 

 

	 	Re:	HomeBanc Mortgage Trust 2005-3 

	 	 	Mortgage Backed Notes, [Class [        ] Notes] 

  
 Ladies and Gentlemen: 
  
 In connection with our acquisition of the above-referenced Notes (the “Notes”) we certify that (a) we understand that the Notes have not been
registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we have
had the opportunity to ask questions of and receive answers from the Depositor concerning the purchase of the Notes and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Notes, (c) we are
acquiring the Notes for investment for our own account and not with a view to any payment of such Notes (but without prejudice to our right at all times to sell or otherwise dispose of the Notes in accordance with clause (e) below), (d) we have not
offered or sold any Notes to, or solicited offers to buy any Notes from, any person, or otherwise approached or negotiated with any person with respect thereto, or taken any other action that would result in a violation of Section 5 of the Act or
any state securities laws and (e) we will not sell, transfer or otherwise dispose of any Notes unless (1) such sale, transfer or other disposition is made pursuant to an effective registration statement under the Act and in compliance with any
relevant state securities laws or is exempt from such registration requirements and, if requested, we will at our expense provide an opinion of counsel satisfactory to the addressees of this certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or transferee of such Note has executed and delivered to you a certificate to substantially the same effect as this certificate and (3) the purchaser or transferee has otherwise
complied with any conditions for transfer set forth in the Indenture (the “Indenture”) dated as of May 1, 2005, among HomeBanc Mortgage Trust 2005-3, as issuer, Wells Fargo Bank, N.A., as Securities Administrator, and U.S. Bank National
Association, as indenture trustee. 
  
 We hereby acknowledge that
under the terms of the Indenture, no transfer of the Notes shall be permitted to be made to any person unless the Note Registrar has received a certificate from such transferee in the form hereof. 
  
 We hereby indemnify the Depositor, Indenture Trustee, the Note Registrar and
the Trust against any liability that may result to either of them if our transfer or other disposition of any 

  

 B-2-1 

 
Notes (or any interest therein) is not exempt from the registration requirements of the Act and any applicable state securities laws or is not made in
accordance with such federal and state laws, the provisions of this certificate or the applicable provisions of the Indenture. 
  

					
	 Very truly yours,

	
	 
	Print Name of Purchaser
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 B-2-2 

  
 EXHIBIT C 
  
 FORM OF ERISA TRANSFER AFFIDAVIT 
  
 ______________ 
 date             
  

			
	STATE OF NEW YORK	  	)
	 	  	)   ss.:
	COUNTY OF NEW YORK	  	)

  

	 	Re:	HomeBanc Mortgage Trust 2005-3  

	 	  	Mortgage Backed Notes  

  
 1. The undersigned is the
                                     of (the
“Investor”), a [corporation duly organized] and existing under the laws of                 , on behalf of which he makes this affidavit. 
  
 2. The Investor either (i) is not, and on
                 [date of transfer] will not be, acquiring the Notes for, or on behalf of, an employee benefit plan or other retirement arrangement that is
subject to Section 406 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or to Section 4975 of the Internal Revenue Code of 1986, as amended (or to any substantially similar law (“Similar Law”)) or any
entity deemed to hold the plan assets of the foregoing (a “Benefit Plan”) or (ii), our acquisition and holding of the Notes for, or on behalf of, a Benefit Plan will not result in a non-exempt prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code which is not covered under Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or some other applicable exemption, and will not result in a non-exempt
violation of any Similar Law. 
  
 3. The Investor hereby
acknowledges that under the terms of the Indenture among HomeBanc Mortgage Trust 2005-3, as Issuer, Wells Fargo Bank, N.A., as Securities Administrator, and U.S. Bank National Association, as Indenture Trustee, dated as of May 1, 2005, no transfer
of any Note shall be permitted to be made to any person unless the Securities Administrator has received a certificate from such transferee in the form hereof. 
  

 C-1 

  
 IN WITNESS WHEREOF, the
Investor has caused this instrument to be executed on its behalf, pursuant to proper authority, by its duly authorized officer, duly attested, this              day of
                        , 20    . 
  

			
	 
	 [Investor]

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  
 ATTEST: 
  
 ____________________________ 
  

			
	STATE OF                                 	  	)
	 	  	)   ss.:
	COUNTY OF                             	  	)

  
 Personally appeared
before me the above-named
                                        ,
known or proved to me to be the same person who executed the foregoing instrument and to be the
                             of the Investor, and acknowledged that he executed the same as his free
act and deed and the free act and deed of the Investor. 
  
 Subscribed and sworn before me this              day of
                         20    . 
  

	
	
	 
	 NOTARY PUBLIC

	
	 My commission expires the
              day of
                    , 20    .

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