Document:

AMERICAN
      HOME MORTGAGE INVESTMENT TRUST 2006-1

     

    ISSUING
      ENTITY

     

    WELLS
      FARGO BANK, N.A.

     

    SECURITIES
      ADMINISTRATOR

     

    AND

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY

     

    INDENTURE
      TRUSTEE

     

    INDENTURE

     

    DATED
      AS
      OF MARCH 29, 2006

     

    MORTGAGE-BACKED
      NOTES

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

     

    
      	 	 	 	
              Page

            
	
               

              ARTICLE
                I

               

            
	
               

              DEFINITIONS

               

            
	
              Section
                1.01 

            	 	
              Definitions

            	
              2

            
	
              Section
                1.02 

            	 	
              Incorporation
                by Reference of Trust Indenture Act

            	
              2

            
	
              Section
                1.03 

            	 	
              Rules
                of Construction

            	
              2

            
	
               

              ARTICLE
                II

               

            
	
               

              ORIGINAL
                ISSUANCE OF NOTES

               

            
	
              Section
                2.01 

            	 	
              Form

            	
              4

            
	
              Section
                2.02 

            	 	
              Execution,
                Authentication and Delivery

            	
              4

            
	
              Section
                2.03 

            	 	
              Acceptance
                of Mortgage Loans by Indenture Trustee

            	
              4

            
	
              Section
                2.04 

            	 	
              Acceptance
                of Cap Contracts and Corridor Contract by Indenture
                Trustee

            	
              6

            
	
               

              ARTICLE
                III

               

            
	
               

              COVENANTS

               

            
	
              Section
                3.01 

            	 	
              Collection
                of Payments with respect to the Mortgage Loans

            	
              6

            
	
              Section
                3.02 

            	 	
              Maintenance
                of Office or Agency

            	
              6

            
	
              Section
                3.03 

            	 	
              Money
                for Payments To Be Held in Trust; Paying Agent

            	
              6

            
	
              Section
                3.04 

            	 	
              Existence

            	
              8

            
	
              Section
                3.05 

            	 	
              Payment
                of Available Funds

            	
              8

            
	
              Section
                3.06 

            	 	
              [Reserved]

            	
              14

            
	
              Section
                3.07 

            	 	
              [Reserved]

            	
              14

            
	
              Section
                3.08 

            	 	
              [Reserved]

            	
              14

            
	
              Section
                3.09 

            	 	
              [Reserved]

            	
              14

            
	
              Section
                3.10 

            	 	
              Other
                Matters With Respect to the Notes.

            	
              14

            
	
              Section
                3.11 

            	 	
              Protection
                of Trust Estate

            	
              15

            
	
              Section
                3.12 

            	 	
              Opinions
                as to Trust Estate

            	
              16

            
	
              Section
                3.13 

            	 	
              Performance
                of Obligations

            	
              17

            
	
              Section
                3.14 

            	 	
              Negative
                Covenants

            	
              17

            
	
              Section
                3.15 

            	 	
              Annual
                Statement as to Compliance

            	
              18

            
	
              Section
                3.16 

            	 	
              Representations
                and Warranties Concerning the Mortgage Loans

            	
              18

            
	
              Section
                3.17 

            	 	
              Amendments
                to Servicing Agreement

            	
              18

            
	
              Section
                3.18 

            	 	
              Servicer
                as Agent and Bailee of the Indenture Trustee

            	
              18

            
	
              Section
                3.19 

            	 	
              Investment
                Company Act

            	
              18

            
	
              Section
                3.20 

            	 	
              Issuing
                Entity May Consolidate, etc.

            	
              19

            
	
              Section
                3.21 

            	 	
              Successor
                or Transferee

            	
              21

            
	
              Section
                3.22 

            	 	
              No
                Other Business

            	
              21

            

    

     

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Section
                3.23 

            	 	
              No
                Borrowing

            	
              21

            
	
              Section
                3.24 

            	 	
              Guarantees,
                Loans, Monthly Advances and Other Liabilities

            	
              21

            
	
              Section
                3.25 

            	 	
              Capital
                Expenditures

            	
              21

            
	
              Section
                3.26 

            	 	
              Determination
                of Note Interest Rate

            	
              21

            
	
              Section
                3.27 

            	 	
              Restricted
                Payments

            	
              22

            
	
              Section
                3.28 

            	 	
              Notice
                of Events of Default

            	
              22

            
	
              Section
                3.29 

            	 	
              Further
                Instruments and Acts

            	
              22

            
	
              Section
                3.30 

            	 	
              Statements
                to Noteholders

            	
              22

            
	
              Section
                3.31 

            	 	
              [Reserved]

            	
              22

            
	
              Section
                3.32 

            	 	
              [Reserved]

            	
              22

            
	
              Section
                3.33 

            	 	
              [Reserved]

            	
              22

            
	
              Section
                3.34 

            	 	
              Replacement
                Derivative Contracts

            	
              22

            
	
              Section
                3.35 

            	 	
              [Reserved]

            	
              23

            
	
              Section
                3.36 

            	 	
              [Reserved]

            	
              23

            
	
              Section
                3.37 

            	 	
              Certain
                Representations Regarding the Trust Estate

            	
              23

            
	
              Section
                3.38 

            	 	
              Allocation
                of Realized Losses

            	
              24

            
	
               

              ARTICLE
                IV

               

            
	
               

              THE
                NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

               

            
	
              Section
                4.01 

            	 	
              The
                Notes

            	
              26

            
	
              Section
                4.02 

            	 	
              Registration
                of and Limitations on Transfer and Exchange of Notes; Appointment
                of Note
                Registrar and Certificate Registrar

            	
              26

            
	
              Section
                4.03 

            	 	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            	
              29

            
	
              Section
                4.04 

            	 	
              Persons
                Deemed Owners

            	
              29

            
	
              Section
                4.05 

            	 	
              Cancellation

            	
              30

            
	
              Section
                4.06 

            	 	
              Book-Entry
                Notes

            	
              30

            
	
              Section
                4.07 

            	 	
              Notices
                to Depository

            	
              31

            
	
              Section
                4.08 

            	 	
              Definitive
                Notes

            	
              31

            
	
              Section
                4.09 

            	 	
              Tax
                Treatment

            	
              31

            
	
              Section
                4.10 

            	 	
              Satisfaction
                and Discharge of Indenture

            	
              31

            
	
              Section
                4.11 

            	 	
              Application
                of Trust Money

            	
              33

            
	
              Section
                4.12 

            	 	
              [Reserved]

            	
              33

            
	
              Section
                4.13 

            	 	
              Repayment
                of Monies Held by Paying Agent

            	
              33

            
	
              Section
                4.14 

            	 	
              Temporary
                Notes

            	
              33

            
	
              Section
                4.15 

            	 	
              Representation
                Regarding ERISA

            	
              33

            
	
               

              ARTICLE
                V

               

            
	
               

              DEFAULT
                AND REMEDIES

               

            
	
              Section
                5.01 

            	 	
              Events
                of Default

            	
              35

            
	
              Section
                5.02 

            	 	
              Acceleration
                of Maturity; Rescission and Annulment

            	
              35

            
	
              Section
                5.03 

            	 	
              Collection
                of Indebtedness and Suits for Enforcement by Indenture
                Trustee

            	
              36

            
	
              Section
                5.04 

            	 	
              Remedies;
                Priorities

            	
              38

            
	
              Section
                5.05 

            	 	
              Optional
                Preservation of the Trust Estate

            	
              39

            

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Section
                5.06 

            	 	
              Limitation
                of Suits

            	
              40

            
	
              Section
                5.07 

            	 	
              Unconditional
                Rights of Noteholders To Receive Principal and Interest

            	
              41

            
	
              Section
                5.08 

            	 	
              Restoration
                of Rights and Remedies

            	
              41

            
	
              Section
                5.09 

            	 	
              Rights
                and Remedies Cumulative

            	
              41

            
	
              Section
                5.10 

            	 	
              Delay
                or Omission Not a Waiver

            	
              41

            
	
              Section
                5.11 

            	 	
              Control
                By Noteholders

            	
              41

            
	
              Section
                5.12 

            	 	
              Waiver
                of Past Defaults

            	
              42

            
	
              Section
                5.13 

            	 	
              Undertaking
                for Costs

            	
              42

            
	
              Section
                5.14 

            	 	
              Waiver
                of Stay or Extension Laws

            	
              42

            
	
              Section
                5.15 

            	 	
              Sale
                of Trust Estate

            	
              43

            
	
              Section
                5.16 

            	 	
              Action
                on Notes

            	
              44

            
	
              Section
                5.17 

            	 	
              Performance
                and Enforcement of Certain Obligations

            	
              44

            
	
               

              ARTICLE
                VI

               

            
	
               

              THE
                INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

               

            
	
              Section
                6.01 

            	 	
              Duties
                of Indenture Trustee and Securities Administrator

            	
              46

            
	
              Section
                6.02 

            	 	
              Rights
                of Indenture Trustee and the Securities Administrator

            	
              47

            
	
              Section
                6.03 

            	 	
              Individual
                Rights

            	
              49

            
	
              Section
                6.04 

            	 	
              Indenture
                Trustee’s and Securities Administrator’s Disclaimer

            	
              49

            
	
              Section
                6.05 

            	 	
              Notice
                of Event of Default

            	
              49

            
	
              Section
                6.06 

            	 	
              Reports
                by Securities Administrator to Holders and Tax
                Administration

            	
              49

            
	
              Section
                6.07 

            	 	
              Compensation
                and Indemnity

            	
              49

            
	
              Section
                6.08 

            	 	
              Replacement
                of Indenture Trustee and the Securities Administrator

            	
              50

            
	
              Section
                6.09 

            	 	
              Successor
                Indenture Trustee and Successor Securities Administrator by
                Merger

            	
              51

            
	
              Section
                6.10 

            	 	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee

            	
              52

            
	
              Section
                6.11 

            	 	
              Eligibility;
                Disqualification

            	
              53

            
	
              Section
                6.12 

            	 	
              Preferential
                Collection of Claims Against Issuing Entity

            	
              53

            
	
              Section
                6.13 

            	 	
              Representations
                and Warranties

            	
              53

            
	
              Section
                6.14 

            	 	
              Directions
                to Indenture Trustee

            	
              54

            
	
              Section
                6.15 

            	 	
              The
                Agents

            	
              54

            
	
              Section
                6.16 

            	 	
              Administrative
                Duties

            	
              54

            
	
              Section
                6.17 

            	 	
              Records

            	
              56

            
	
              Section
                6.18 

            	 	
              Additional
                Information to be Furnished

            	
              56

            
	
              Section
                6.19 

            	 	
              Execution
                of Derivative Contracts and other Documents

            	
              56

            
	
              Section
                6.20 

            	 	
              Indenture
                Trustee’s Application For Instructions From the Issuing
                Entity

            	
              56

            
	
              Section
                6.21 

            	 	
              Limitation
                of Liability

            	
              57

            
	
              Section
                6.22 

            	 	
              Assignment
                of Rights, Not Assumption of Duties

            	
              57

            
	
               

              ARTICLE
                VII

               

            
	
               

              NOTEHOLDERS’
                LISTS AND REPORTS

               

            
	
              Section
                7.01 

            	 	
              Issuing
                Entity To Furnish Indenture Trustee Names and Addresses of
                Noteholders

            	
              59

            

    

     

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              Section
                7.02 

            	 	
              Preservation
                of Information; Communications to Noteholders

            	
              59

            
	
              Section
                7.03 

            	 	
              Reports
                of Issuing Entity

            	
              59

            
	
              Section
                7.04 

            	 	
              Reports
                by Indenture Trustee

            	
              59

            
	
              Section
                7.05 

            	 	
              Statements
                to Noteholders

            	
              60

            
	
               

              ARTICLE
                VIII

               

            
	
               

              ACCOUNTS,
                DISBURSEMENTS AND RELEASES

               

            
	
              Section
                8.01 

            	 	
              Collection
                of Money

            	
              63

            
	
              Section
                8.02 

            	 	
              Trust
                Accounts

            	
              63

            
	
              Section
                8.03 

            	 	
              Officer’s
                Certificate

            	
              63

            
	
              Section
                8.04 

            	 	
              Termination
                Upon Distribution to Noteholders

            	
              64

            
	
              Section
                8.05 

            	 	
              Termination
                Following TMP Trigger Event

            	
              64

            
	
              Section
                8.06 

            	 	
              Release
                of Trust Estate

            	
              64

            
	
              Section
                8.07 

            	 	
              Surrender
                of Notes Upon Final Payment or TMP Trigger Event

            	
              64

            
	
              Section
                8.08 

            	 	
              Optional
                Redemption of the Notes

            	
              65

            
	
               

              ARTICLE
                IX

               

            
	
               

              SUPPLEMENTAL
                INDENTURES

               

            
	
              Section
                9.01 

            	 	
              Supplemental
                Indentures Without Consent of Noteholders

            	
              66

            
	
              Section
                9.02 

            	 	
              Supplemental
                Indentures With Consent of Noteholders

            	
              67

            
	
              Section
                9.03 

            	 	
              Execution
                of Supplemental Indentures

            	
              69

            
	
              Section
                9.04 

            	 	
              Effect
                of Supplemental Indenture

            	
              69

            
	
              Section
                9.05 

            	 	
              Conformity
                with Trust Indenture Act

            	
              69

            
	
              Section
                9.06 

            	 	
              Reference
                in Notes to Supplemental Indentures

            	
              69

            
	
               

              ARTICLE
                X

               

            
	
               

              MISCELLANEOUS

               

            
	
              Section
                10.01 

            	 	
              Compliance
                Certificates and Opinions, etc.

            	
              70

            
	
              Section
                10.02 

            	 	
              Form
                of Documents Delivered to Indenture Trustee

            	
              71

            
	
              Section
                10.03 

            	 	
              Acts
                of Noteholders

            	
              72

            
	
              Section
                10.04 

            	 	
              Notices
                etc., to Indenture Trustee, Issuing Entity, Securities Administrator
                and
                Rating Agencies

            	
              72

            
	
              Section
                10.05 

            	 	
              Notices
                to Noteholders; Waiver

            	
              73

            
	
              Section
                10.06 

            	 	
              Conflict
                with Trust Indenture Act

            	
              74

            
	
              Section
                10.07 

            	 	
              Effect
                of Headings

            	
              74

            
	
              Section
                10.08 

            	 	
              Successors
                and Assigns

            	
              74

            
	
              Section
                10.09 

            	 	
              Separability

            	
              74

            
	
              Section
                10.10 

            	 	
              Benefits
                of Indenture

            	
              74

            
	
              Section
                10.11 

            	 	
              Legal
                Holidays

            	
              74

            
	
              Section
                10.12 

            	 	
              GOVERNING
                LAW

            	
              74

            
	
              Section
                10.13 

            	 	
              Counterparts

            	
              75

            

    

     

     

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Section
                10.14 

            	 	
              Recording
                of Indenture

            	
              75

            
	
              Section
                10.15 

            	 	
              Issuing
                Entity Obligation

            	
              75

            
	
              Section
                10.16 

            	 	
              No
                Petition

            	
              75

            
	
              Section
                10.17 

            	 	
              Inspection

            	
              76

            
	
               

              ARTICLE
                XI

               

            
	
               

              REMIC
                CONVERSION

               

            
	
              Section
                11.01 

            	 	
              Discharge
                of Indenture and Transfer of Mortgage Loans

            	
              77

            
	
              Section
                11.02 

            	 	
              Conditions
                Precedent to a REMIC Conversion

            	
              77

            

    

    

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

    EXHIBITS

     

    
      	
              Exhibit
                A-1

            	
              —

            	
              Form
                of Class [_]-A-[_] Notes

            
	
              Exhibit
                A-2

            	
              —

            	
              Form
                of Class [_]-M-[_] Notes

            
	
              Exhibit
                A-3

            	
              —

            	
              Form
                of Class II-B Notes

            
	
              Exhibit
                A-4

            	
              —

            	
              Reserved

            
	
              Exhibit
                B

            	
              —

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C

            	
              —

            	
              Reserved

            
	
              Exhibit
                D-1

            	
              —

            	
              Form
                of Cap Contract

            
	
              Exhibit
                D-2

            	
              —

            	
              Form
                of Corridor Contract

            
	
              Exhibit
                E

            	
              —

            	
              Reserved

            
	
              Exhibit
                F

            	
              —

            	
              Form
                of Subsequent Transfer Instrument

            
	
              Exhibit
                G

            	
              —

            	
              Form
                of Addition Notice

            
	
              Exhibit
                H

            	
              —

            	
              Form
                of Initial Certification

            
	
              Exhibit
                I

            	
              —

            	
              Form
                of Final Certification

            
	
              Exhibit
                J

            	
              —

            	
              Form
                of Request for Release

            
	
              Exhibit
                K

            	
              —

            	
              Form
                of Rule 144A Investment Representation

            
	
              Exhibit
                L

            	
              —

            	
              Form
                of Certificate of Non-Foreign Status

            
	
              Exhibit
                M

            	
              —

            	
              Form
                of Investment Letter

            
	
              Exhibit
                N

            	
              —

            	
              Form
                of Transferor Certificate

            
	
              Exhibit
                O

            	
              —

            	
              Form
                of ERISA Letter

            
	
              Exhibit
                P

            	
              —

            	
              Form
                of Transferee Certificate

            
	
              Exhibit
                Q

            	
              —

            	
              Form
                of Lender Transferor Certificate

            
	 	 	 
	 	 	 
	
              Appendix
                A

            	
              —

            	
              Definitions

            

    

    

     

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

    This
      Indenture, dated as of March 29, 2006, is entered into among American Home
      Mortgage Investment Trust 2006-1, a Delaware statutory trust, as Issuing Entity
      (the “Issuing Entity”), Deutsche Bank National Trust Company, a national banking
      association, as Indenture Trustee (the “Indenture Trustee”), and Wells Fargo
      Bank, N.A., a national banking association, as Securities Administrator (the
      “Securities Administrator”).

     

    WITNESSETH
      THAT:

     

    Each
      party hereto agrees as follows for the benefit of the other party and for the
      equal and ratable benefit of the Holders of the Issuing Entity’s Mortgage-Backed
      Notes, Series 2006-1 (the “Notes”).

     

    GRANTING
      CLAUSE

     

    The
      Issuing Entity hereby Grants to the Indenture Trustee at the Closing Date,
      as
      trustee for the benefit of the Holders of the Notes, all of the Issuing Entity’s
      right, title and interest in and to, whether now existing or hereafter created,
      (a) the Mortgage Loans and the proceeds thereof and all rights under the Related
      Documents; (b) the related Eligible Substitute Mortgage Loans and the proceeds
      thereof and all rights under the Related Documents; (c) the rights of the
      Issuing Entity under the Cap Contract and the Corridor Contract and all payments
      received under the Cap Contract and the Corridor Contract; (d) all funds on
      deposit from time to time in the Collection Account allocable to the Mortgage
      Loans excluding any investment income from such funds; (e) all funds on deposit
      from time to time in the Payment Account and in all proceeds thereof; (f) all
      rights under (i) the Mortgage Loan Purchase Agreement as assigned to the Issuing
      Entity, with respect to the Mortgage Loans, as assigned to the Issuing Entity,
      (ii) the Servicing Agreement and any Subservicing Agreement and (iii) any title,
      hazard and primary insurance policies with respect to the Mortgaged Properties;
      and (g) all present and future claims, demands, causes 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 and all payments on or under, and all proceeds of every kind and
      nature whatsoever in the conversion thereof, voluntary or involuntary, into
      cash
      or other liquid property, all cash proceeds, accounts, accounts receivable,
      notes, drafts, acceptances, checks, deposit accounts, 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 “Trust Estate” or 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, equally
      and
      ratably without prejudice (except as otherwise provided herein), priority or
      distinction, and to secure compliance with the provisions of this Indenture,
      all
      as provided in this Indenture.

     

    The
      Indenture Trustee, as trustee on behalf of the Holders of the Notes,
      acknowledges such Grant, accepts the trust under this Indenture in accordance
      with the provisions hereof and agrees to perform its duties as Indenture Trustee
      as required herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      I

    
      
         

        DEFINITIONS

      

    

     

    Section
      1.01 Definitions. For
      all
      purposes of this Indenture, except as otherwise expressly provided herein or
      unless the context otherwise requires, capitalized
      terms used but not otherwise defined herein shall have the meanings assigned
      to
      such terms in the Definitions
      attached hereto as Appendix A which is incorporated by reference herein. All
      other capitalized terms used herein shall have the meanings specified
      herein.

     

    Section
      1.02 Incorporation
      by Reference of Trust Indenture Act.
      Whenever this Indenture refers to a provision of the Trust Indenture Act (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 Issuing Entity and any other obligor
      on
      the indenture securities.

     

    All
      other
      TIA terms used in this Indenture that are defined by the TIA, defined by TIA
      reference to another statute or defined by Commission rules have the 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;

     

    (iv) “including”
      means including without limitation;

     

    (v) words
      in
      the singular include the plural and words in the plural include the singular;
      and

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (vi) any
      agreement, instrument, statute, regulation or rule defined or referred to herein
      or in any instrument or certificate delivered in connection herewith means
      such
      agreement, instrument, statute, regulation or rule as from time to time amended,
      modified or supplemented and includes (in the case of agreements or instruments)
      references to all attachments thereto and instruments incorporated therein;
      references to a Person are also to its permitted successors and
      assigns.

     

    
      
        
        

      

      
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    ARTICLE
      II

     

    
      ORIGINAL
        ISSUANCE OF NOTES

    

     

    Section
      2.01 Form.
      The
      Class A, Class M and Class II-B Notes, together with the Indenture Trustee’s
      certificate of authentication, shall be in substantially the form set forth
      in
      Exhibits A-1, A-2 and A-3 to this Indenture, respectively, with such appropriate
      insertions, omissions, substitutions and other variations as are required or
      permitted by this Indenture.

     

    The
      Notes
      shall be typewritten, printed, lithographed or engraved or produced by any
      combination of these methods (with or without steel engraved
      borders).

     

    The
      terms
      of the Notes set forth in Exhibits A-1, A-2 and A-3 to this Indenture are part
      of the terms of this Indenture.

     

    Section
      2.02 Execution,
      Authentication and Delivery.
      The
      Notes shall be executed on behalf of the Issuing Entity by any of its Authorized
      Officers. 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 Issuing Entity shall bind the Issuing Entity,
      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
      Indenture Trustee shall upon Issuing Entity Request authenticate and deliver
      each Class of Notes for original issue in an aggregate initial principal amount
      equal to the Initial Note Principal Balance for such Class of
      Notes.

     

    Each
      of
      the Notes shall be dated the date of its authentication. The Notes shall be
      issuable as registered Notes and shall be issuable in the minimum initial Note
      Principal Balances of $100,000 and in the integral multiples if $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
      Indenture Trustee 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.

     

    Section
      2.03 Acceptance
      of Mortgage Loans by Indenture Trustee.

     

    
      
        
        

      

      
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      (a) The
        Indenture Trustee shall acknowledge receipt of, subject to the exceptions
        the
        Indenture Trustee notes pursuant to the procedures described below, the
        documents (or certified copies thereof) referred to in Section 2.1(b) of
        the
        Mortgage Loan Purchase Agreement, and to declare that it holds and will continue
        to hold those documents and any amendments, replacements or supplements thereto
        and all other assets of the Trust Estate, in trust for the use and benefit
        of
        all present and future Holders of the Notes. No later than the Closing Date,
        with respect to the Mortgage Loans (or, with respect to any Eligible Substitute
        Mortgage Loan, within 5 days after the receipt by the Indenture Trustee thereof
        and, with respect to any documents received after the Closing Date, promptly
        thereafter), the Indenture Trustee shall, for the benefit of the Noteholders,
        review each Mortgage File delivered to it and to execute and deliver, or
        cause
        to be executed and delivered, to the Sponsor and the Servicer, an Initial
        Certification in the form annexed hereto as Exhibit H. In conducting such
        review, the Indenture Trustee shall ascertain whether all required documents
        described in Section 2.1(b)(i) to (v) (except clause (v)(ii)) of the Mortgage
        Loan Purchase Agreement, with respect to the Mortgage Loans, have been executed
        and received and whether those documents relate, to the Mortgage Loans it
        has
        received, as identified in Exhibit B to this Indenture, as supplemented
        (provided,
        however,
        that
        with respect to those documents described in subclause (b)(vi) of such section,
        the Indenture Trustee’s obligations shall extend only to documents actually
        delivered pursuant to such subclause). In performing any such review, the
        Indenture Trustee may conclusively rely on the purported due execution and
        genuineness of any such document and on the purported genuineness of any
        signature thereon. If the Indenture Trustee finds any document constituting
        part
        of the Mortgage File not to have been executed or received, or to be unrelated
        to the Mortgage Loans identified in Exhibit B to this Indenture or to not
        conform with the review criteria set forth in Exhibit H (a “defect”), the
        Indenture Trustee shall promptly notify the Sponsor of such finding and the
        Sponsor’s obligation to cure such defect or repurchase or substitute for the
        related Mortgage Loan. To the extent the Indenture Trustee has not received
        a
        Mortgage File with respect to any of the Mortgage Loans by the Closing Date,
        the
        Indenture Trustee shall not require the deposit of cash into the Payment
        Account
        or any other account to cover the amount of that Mortgage Loan and shall
        solely
        treat such Mortgage Loan as if it were in breach of a representation or
        warranty; provided that the aggregate Stated Principal Balance of such Mortgage
        Loans does not exceed 1% of the (i) sum of the Cut-off Date Balances of the
        Mortgage Loans.

       

    

    (i) No
      later
      than 180 days after the Closing Date (with respect to the Mortgage Loans),
      the
      Indenture Trustee will review, for the benefit of the Noteholders, the Mortgage
      Files and will execute and deliver or cause to be executed and delivered to
      the
      Sponsor and the Servicer, a Final Certification in the form annexed hereto
      as
      Exhibit I. In conducting such review, Indenture Trustee will ascertain whether
      an original of each document described in subclauses (b)(ii)-(iv) of Section
      2.1
      of the Mortgage Loan Purchase Agreement, with respect to the Mortgage Loans,
      required to be recorded has been returned from the applicable recording office
      with evidence of recording thereon or a certified copy has been obtained from
      such recording office. If the Indenture Trustee finds any document constituting
      part of the Mortgage File has not been executed or received, or to be unrelated,
      to the Mortgage Loans identified in Exhibit B to this Indenture or to appear
      defective on its face, the Indenture Trustee shall promptly notify the
      Sponsor.

     

    (ii) Upon
      deposit by the Sponsor of the Repurchase Price in the Payment Account, the
      Indenture Trustee shall release to the Sponsor or the Servicer, the related
      Mortgage File and the Indenture Trustee shall execute and deliver all
      instruments of transfer or assignment, without recourse, representation or
      warranty, furnished to it by the Sponsor or the Servicer, as are necessary
      to
      vest in the Sponsor or the Servicer, title to and rights under the related
      Mortgage Loan. Such purchase shall be deemed to have occurred on the date on
      which the deposit of the Repurchase Price in the Payment Account was received
      by
      the Indenture Trustee. The Indenture Trustee shall amend the Mortgage Loan
      Schedule to reflect such repurchase and shall promptly notify the Master
      Servicer, the Servicer and
      the
      Securities Administrator of such amendment.

     

    
      
        
        

      

      
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    Section
      2.04 Acceptance
      of Cap Contracts and Corridor Contract by Indenture Trustee.
      The
      Indenture Trustee acknowledges receipt of the Cap Contract and the Corridor
      Contract and declares that it holds and will continue to hold these documents
      and any amendments, replacements or supplements thereto and all other assets
      of
      the Trust Estate as Indenture Trustee in trust for the use and benefit of all
      present and future Holders of the Notes. The Indenture Trustee shall enforce
      the
      Cap Contract and the Corridor Contract in accordance with their
      terms.

     

    ARTICLE
      III

     

    
      COVENANTS

    

     

    Section
      3.01 Collection
      of Payments with respect to the Mortgage Loans.
      The
      Indenture Trustee shall establish and maintain an Eligible Account (the “Payment
      Account”) in which the Indenture Trustee shall deposit, on the same day as it is
      received from the Securities Administrator, each remittance received by the
      Indenture Trustee with respect to the Mortgage Loans. The Indenture Trustee
      shall make all payments of principal of and interest on the Notes, subject
      to
      Section 3.03, and as provided in Section 3.05 herein, from monies on deposit
      in
      the Payment Account. The Securities Administrator shall remit such funds to
      the
      Indenture Trustee no later than one Business Day prior to the Payment
      Date.

     

    Section
      3.02 Maintenance
      of Office or Agency.
      The
      Issuing Entity will maintain an office or agency where, subject to satisfaction
      of conditions set forth herein, Notes may be surrendered for registration of
      transfer or exchange, and where notices and demands to or upon the Issuing
      Entity in respect of the Notes and this Indenture may be served. The Issuing
      Entity hereby initially appoints the Indenture Trustee to serve as its agent
      for
      the foregoing purposes. If at any time the Issuing Entity shall fail to maintain
      any such office or agency or shall fail to furnish the Indenture Trustee with
      the address thereof, such surrenders may be made at the office of the Indenture
      Trustee located at c/o DB Services Tennessee, 648 Grassmere Park Road,
      Nashville, Tennessee 37211-3658, Attention: Transfer Unit. Notices and demands
      may be made or delivered at the Corporate Trust Office, and the Issuing Entity
      hereby appoints the Indenture Trustee as its agent to receive all such
      surrenders, notices and demands.

     

    Section
      3.03 Money
      for Payments To Be Held in Trust; Paying Agent.
      (a) As
      provided in Section 3.01, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Payment Account
      pursuant to Section 3.01 shall be made on behalf of the Issuing Entity by the
      Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from
      the
      Payment Account for payments of Notes shall be paid over to the Issuing Entity
      except as provided in this Section 3.03. The Issuing Entity hereby appoints
      the
      Indenture Trustee as its Paying Agent.

     

    The
      Issuing Entity will cause each Paying Agent other than the Indenture Trustee
      to
      execute and deliver to the Indenture Trustee an instrument in which such Paying
      Agent shall agree with the Indenture Trustee (and if the Indenture Trustee
      acts
      as Paying Agent it hereby so agrees), subject to the provisions of this Section
      3.03, that such Paying Agent will:

     

    
      
        
        

      

      
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    (a) 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;

     

    (b) give
      the
      Indenture Trustee notice of any default by the Issuing Entity of which it has
      actual knowledge in the making of any payment required to be made with respect
      to the Notes;

     

    (c) at
      any
      time during the continuance of any such default, upon the written request of
      the
      Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held
      in
      trust by such Paying Agent;

     

    (d) immediately
      resign as Paying Agent and forthwith pay to the Indenture Trustee 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;

     

    (e) 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; and

     

    (f) not
      commence a bankruptcy proceeding against the Issuing Entity in connection with
      this Indenture.

     

    The
      Issuing Entity may at any time, for the purpose of obtaining the satisfaction
      and discharge of this Indenture or for any other purpose, by Issuing Entity
      Request direct any Paying Agent to pay to the Indenture Trustee all sums held
      in
      trust by such Paying Agent, such sums to be held by the Indenture Trustee 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 Indenture Trustee, 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
      Indenture Trustee or any Paying Agent in trust for the payment of any amount
      due
      with respect to any Note and remaining unclaimed for one year after such amount
      has become due and payable shall be discharged from such trust and be paid
      to
      the Issuing Entity; and the Holder of such Note shall thereafter, as an
      unsecured general creditor, look only to the Issuing Entity for payment thereof
      (but only to the extent of the amounts so paid to the Issuing Entity), and
      all
      liability of the Indenture Trustee or such Paying Agent with respect to such
      trust money shall thereupon cease; provided,
      however,
      that the
      Indenture Trustee or such Paying Agent, before being required to make any such
      repayment, shall at the expense and direction of the Issuing Entity cause to
      be
      published once, in an Authorized Newspaper published in the English language,
      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 Issuing
      Entity. The Indenture Trustee may also adopt and employ, at the expense and
      direction of the Issuing Entity, 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 monies due and payable but not
      claimed is determinable from the records of the Indenture Trustee or of any
      Paying Agent, at the last address of record for each such Holder).

     

    
      
        
        

      

      
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    Section
      3.04 Existence.
      The
      Issuing Entity 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 Issuing Entity hereunder is or becomes, organized under the laws
      of any other state or of the United States of America, in which case the Issuing
      Entity will keep in full effect its existence, rights and 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 Mortgage Loans and each other instrument or agreement included in
      the
      Trust Estate.

     

    Section
      3.05 Payment
      of Available Funds.

     

    (a) On
      each
      Payment Date from amounts on deposit in the Payment Account in accordance with
      Section 8.02 hereof, the Indenture Trustee shall pay to the Persons specified
      below, to the extent provided therein in
      accordance with the statement furnished by the Securities
      Administrator
      pursuant
      to Section 7.05 hereof for such Payment Date,
      the
      Available Funds for such Payment Date.

     

    (b) On
      each
      Payment Date, the Indenture Trustee shall withdraw from the Payment Account
      the
      Group I Available Funds and any amounts received from the Cap Counterparty
      for
      such Payment Date and make the following payments in the order of priority
      described below, in each case to the extent of the Group I Available Funds
      remaining for such Payment Date and any applicable amounts received from the
      Cap
      Counterparty:

     

    (i) concurrently,
      on a pro rata basis, to the Holders of the Class I-1A-1, Class I-2A-1, Class
      I-A-2 and Class I-A-3 Notes, the related Accrued Note Interest for each such
      Class for such Payment Date (with respect to the Class I-1A-1, Class I-A-2
      and
      Class I-A-3 Notes, any payment from the Cap Counterparty with respect to the
      related Cap Contract used solely to make payments of Accrued Note Interest
      on
      the related Notes for such Payment Date), plus any related Unpaid Interest
      Shortfall for such Payment Date;

     

    (ii) from
      the
      remaining Group I Available Funds for such Payment Date, together with any
      amounts received from the Cap Counterparty for such Payment Date, to the Holders
      of the Class I-M-1 Notes, the related Accrued Note Interest for such Class
      for
      such Payment Date (with
      any
      payment received from the Cap Counterparty with respect to the related Cap
      Contract used solely to make payments of Accrued Note Interest on such Notes
      for
      such Payment Date);

     

    (iii) from
      the
      remaining Group I Available Funds for such Payment Date, together with any
      amounts received from the Cap Counterparty for such Payment Date, to the Holders
      of the Class I-M-2 Notes, the related Accrued Note Interest for such Class
      for
      such Payment Date (with any payment received from the Cap Counterparty with
      respect to the related Cap Contract used solely to make payments of Accrued
      Note
      Interest on such Notes for such Payment Date);

     

    
      
        
        

      

      
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    (iv) from
      the
      remaining Group I Available Funds for such Payment Date, together with any
      amounts received from the Cap Counterparty for such Payment Date, to the Holders
      of the Class I-M-3 Notes, the related Accrued Note Interest for such Class
      for
      such Payment Date (with any payment received from the Cap Counterparty with
      respect to the related Cap Contract used solely to make payments of Accrued
      Note
      Interest on such Notes for such Payment Date);

     

    (v) from
      the
      remaining Group I Available Funds for such Payment Date, to the Holders of
      the
      Class I-M-4 Notes, the related Accrued Note Interest for such Class for such
      Payment Date;

     

    (vi) from
      the
      remaining Group I Available Funds for such Payment Date, to the Holders of
      the
      Class I-M-5 Notes, the related Accrued Note Interest for such Class for such
      Payment Date;

     

    (vii) from
      the
      remaining Group I Available Funds for such Payment Date, to the Holders of
      the
      Class I-M-6 Notes, the related Accrued Note Interest for such Class for such
      Payment Date; and

     

    (viii) any
      remainder (to the extent not included as a part of the Principal Distribution
      Amount as provided in Section 3.05(c) and (d) below) shall be included in the
      related Net Monthly Excess Cashflow and allocated as described in Section
      3.05(e) below.

     

    (c) On
      each
      Payment Date (a) prior to the Stepdown Date or (b) on which a related Trigger
      Event is in effect, the Holders of each Class of Group I Notes shall be entitled
      to receive payments in respect of principal to the extent of the Principal
      Distribution Amount in the following amounts and order of priority:

     

    (i) the
      Principal Distribution Amount shall be distributed to the Class I-A1-1, Class
      I-2A-1, Class I-A-2 and Class I-A-3 Notes, on a pro rata basis, until the Note
      Principal Balance of each such Class has been reduced to zero;

     

    (ii) any
      remaining Principal Distribution Amount, to the Class I-M-1 Notes until the
      Note
      principal Balance of such Class is reduced to zero;

     

    (iii) any
      remaining Principal Distribution Amount, to the Class I-M-2 Notes until the
      Note
      principal Balance of such Class is reduced to zero;

     

    (iv) any
      remaining Principal Distribution Amount, to the Class I-M-3 Notes until the
      Note
      principal Balance of such Class is reduced to zero;

     

    (v) any
      remaining Principal Distribution Amount, to the Class I-M-4 Notes until the
      Note
      principal Balance of such Class is reduced to zero;

     

    (vi) any
      remaining Principal Distribution Amount, to the Class I-M-5 Notes until the
      Note
      principal Balance of such Class is reduced to zero

     

    
      
        
        

      

      
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    (vii) any
      remaining Principal Distribution Amount, to the Class I-M-6 Notes until the
      Note
      principal Balance of such Class is reduced to zero; and

     

    (viii) any
      remainder as part of the Net Monthly Excess Cashflow to be allocated as
      described in Section 3.05(e) below.

     

    (d) On
      each
      Payment Date (a) on or after the Stepdown Date and (b) on which a related
      Trigger Event is not in effect, the Holders of each Class of Class I-A Notes
      and
      Class I-M Notes shall be entitled to receive payments in respect of principal
      to
      the extent of the Principal Distribution Amount in the following amounts and
      order of priority:

     

    (i) the
      Class
      I-A Principal Distribution Amount shall be distributed to the Class I-1A-1,
      Class I-2A-1, Class I-A-2 and Class I-A-3 Notes, on a pro rata basis, until
      the
      Note Principal Balance of such Class has been reduced to zero;

     

    (ii) any
      remaining Principal Distribution Amount shall be distributed to the Class I-M-1
      Notes, up to the Class I-M-1 Principal Distribution Amount, until the Note
      Principal Balance thereof has been reduced to zero;

     

    (iii) any
      remaining Principal Distribution Amount shall be distributed to the Class I-M-2
      Notes, up to the Class I-M-2 Principal Distribution Amount, until the Note
      Principal Balance thereof has been reduced to zero;

     

    (iv) any
      remaining Principal Distribution Amount shall be distributed to the Class I-M-3
      Notes, up to the Class I-M-3 Principal Distribution Amount, until the Note
      Principal Balance thereof has been reduced to zero;

     

    (v) any
      remaining Principal Distribution Amount shall be distributed to the Class I-M-4
      Notes, up to the Class I-M-4 Principal Distribution Amount, until the Note
      Principal Balance thereof has been reduced to zero;

     

    (vi) any
      remaining Principal Distribution Amount shall be distributed to the Class I-M-5
      Notes, up to the Class I-M-5 Principal Distribution Amount, until the Note
      Principal Balance thereof has been reduced to zero;

     

    (vii) any
      remaining Principal Distribution Amount shall be distributed to the Class I-M-6
      Notes, up to the Class I-M-6 Principal Distribution Amount, until the Note
      Principal Balance thereof has been reduced to zero; and

     

    (viii) any
      remainder as part of the Net Monthly Excess Cashflow to be allocated as
      described in Section 3.05(e) below.

     

    (e) On
      each
      Payment Date, any Net Monthly Excess Cashflow shall be paid as follows, in
      each
      case to the extent of remaining Net Monthly Excess Cashflow:

     

    (i) to
      the
      Holders of the Class I-A Notes and Class I-M Notes in an amount equal to the
      Overcollateralization Increase Amount, payable to such Holders as part of the
      Principal Distribution Amount as provided in Sections 3.05(c) and (d)
      above;

     

    
      
        
        

      

      
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    (ii) sequentially,
      to the Holders of the Class I-A-2 Notes and Class I-A-3 Notes, in that order,
      any Allocated Realized Loss Amount for such Classes;

     

    (iii) to
      the
      Holders of the Class I-M-1 Notes, first, an amount equal to any related Unpaid
      Interest Shortfalls for such Notes, and second, an amount equal to any related
      Allocated Realized Loss Amount for such Notes, to the extent not previously
      reimbursed;

     

    (iv) to
      the
      Holders of the Class I-M-2 Notes, first, an amount equal to any related Unpaid
      Interest Shortfalls for such Notes, and second, an amount equal to any related
      Allocated Realized Loss Amount for such Notes, to the extent not previously
      reimbursed;

     

    (v) to
      the
      Holders of the Class I-M-3 Notes, first, an amount equal to any related Unpaid
      Interest Shortfalls for such Notes, and second, an amount equal to any related
      Allocated Realized Loss Amount for such Notes, to the extent not previously
      reimbursed;

     

    (vi) to
      the
      Holders of the Class I-M-4 Notes, first, an amount equal to any related Unpaid
      Interest Shortfalls for such Notes, and second, an amount equal to any related
      Allocated Realized Loss Amount for such Notes, to the extent not previously
      reimbursed;

     

    (vii) to
      the
      Holders of the Class I-M-5 Notes, first, an amount equal to any related Unpaid
      Interest Shortfalls for such Notes, and second, an amount equal to any related
      Allocated Realized Loss Amount for such Notes, to the extent not previously
      reimbursed;

     

    (viii) to
      the
      Holders of the Class I-M-6 Notes, first, an amount equal to any related Unpaid
      Interest Shortfalls for such Notes, and second, an amount equal to any related
      Allocated Realized Loss Amount for such Notes, to the extent not previously
      reimbursed;

     

    (ix) to
      the
      Holders of the Class I-A (on a pro rata basis), Class I-M-1, Class I-M-2, Class
      I-M-3, Class I-M-3, Class I-M-4, Class I-M-5 and Class I-M-6 Notes, in that
      order, any Basis Risk Shortfall Carry-Forward Amount for such Notes, to the
      extent not covered by the related Cap Contract, in each case to the extent
      not
      previously reimbursed; provided, however, that any Basis Risk Shortfall
      Carry-Forward Amount on the Uncapped Notes shall be paid to the Cap Counterparty
      in respect of the related Cap Contract; and provided further that if a Cap
      Counterparty Termination Event is in effect, the Holder of each Class of
      Uncapped Notes will be entitled to receive any related Basis Risk Shortfall
      Carry-Forward Amounts that arise on and after the Payment Date on which the
      related Cap Counterparty Termination Event occurs; and

     

    (x) any
      remaining amounts shall be distributed to the Certificate Paying Agent, as
      designee of the Issuing Entity, for the benefit of the Holders of the Trust
      Certificate, as provided herein and in the Trust Agreement.

     

    
      
        
        

      

      
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    (f) Distributions
      to Holders of each Class of Group II-C Senior Notes and Group II-NC Senior
      Notes
      shall be made on each Payment Date from the Group II-C Available Funds and
      Group
      II-NC Available Funds, respectively, as follows:

     

    (i) On
      each
      Payment Date, the Group II-C Available Funds shall be distributed to the Group
      II-C Senior Notes as follows:

     

    (A) first,
      to the
      Class II-A-1 Notes and Class II-A-2 Notes, on a pro rata basis, the Accrued
      Note
      Interest, any related Unpaid Interest Shortfalls and any Net WAC Cap Shortfall
      Carry-Forward Amount, in that order, on such Classes for such Payment
      Date;

     

    (B) second,
      to the
      Class II-A-1 Notes and Class II-A-2 Notes, on a pro rata basis, in reduction
      of
      the Note Principal Balances thereof, the related Senior Optimal Principal Amount
      for such Payment Date to the extent of remaining Group II-C Available Funds,
      until the Note Principal Balances of such Classes have been reduced to
      zero.

     

    (ii) On
      each
      Payment Date, the Group II-NC Available Funds shall be distributed to the Group
      II-NC Senior Notes as follows:

     

    (A) First,
      to
      the Class II-A-3 Notes and Class II-A-4 Notes, on a pro rata basis, the Accrued
      Note Interest, any related Unpaid Interest Shortfalls and any Net WAC Cap
      Shortfall Carry-Forward Amount, in that order, on such Classes for such Payment
      Date; and

     

    (B) Second,
      to the Class II-A-3 Notes and Class II-A-4 Notes, on a pro rata basis, in
      reduction of the Note Principal Balances thereof, the related Senior Optimal
      Principal Amount for such Payment Date to the extent of remaining Group II-NC
      Available Funds, until the Note Principal Balances of such Classes have been
      reduced to zero.

     

    (g) Except
      as
      provided in paragraphs (h) and (i) below, on each Payment Date on or prior
      to
      the Cross-Over Date, an amount equal to the sum of the remaining Group II-C
      Available Funds and Group II-NC Available Funds after the distributions in
      (f)(i) and f(ii) above shall be distributed sequentially in the following order:
      to the Class II-M-1, Class II-M-2, Class II-M-3, Class II-M-4, Class II-M-5
      and
      Class II-B Notes, in each case up to an amount equal to and in the following
      order: (a) the Accrued Note Interest thereon for such Payment Date, and with
      respect to the Class II-M-1 Notes only, the related Unpaid Interest Shortfall
      and any related Net WAC Shortfall Carry-Forward Amount, in that order, and
      (b)
      such Class’s Allocable Share for such Payment Date, in each case, to the extent
      of the remaining Group II-C Available Funds and Group II-NC Available Funds.
      On
      each Payment Date, the remaining Group II-C Available Funds and Group II-NC
      Available Funds will be distributed as follows: (a) first, to the Class II-A-2
      Notes and Class II-A-4 Notes, pro rata, any Allocated Realized Loss Amount
      for
      such Notes; (b) second, to the Class II-M-1 Notes, any Allocated Realized Loss
      Amount for such Notes; (c) third, sequentially to the Class II-M-2, Class
      II-M-3, Class II-M-4, Class II-M-5 and Class II-B Notes, in that order, in
      each
      case, first, any Unpaid Interest Shortfalls, second, any Allocated Realized
      Loss
      Amount for such Notes and third, any Net WAC Cap Shortfall Carry-Forward Amount
      for such Notes; and (d) fourth, to the Trust Certificate.

     

    
      
        
        

      

      
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    (h) On
      each
      Payment Date prior to the Cross-Over Date but after the reduction of the Note
      Principal Balances of all of the Group II-C Senior Notes or Group II-NC Senior
      Notes to zero, the remaining Class or Classes of Group II Senior Notes shall
      be
      entitled to receive in reduction of their Note Principal Balances, on a pro
      rata
      basis, based upon their Note Principal Balances immediately prior to such
      Payment Date, in addition to any Principal Prepayments related to such remaining
      Group II Senior Note’s respective Loan Group allocated to such Group II Senior
      Notes, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group
      relating to the Class or Classes of Group II Senior Notes of the fully repaid
      Group II Note Group; provided, however, that if (a) the weighted average of
      the
      Subordinate Percentages on such Payment Date equals or exceeds two times the
      initial weighted average of the Subordinate Percentages and (b) the aggregate
      Stated Principal Balance of the Mortgage Loans delinquent 60 days or more
      (including for this purpose any such Mortgage Loans in foreclosure and
      bankruptcy and Mortgage Loans with respect to which the related mortgaged
      property has been acquired by the Trust), averaged over the last six months,
      as
      a percentage of the sum of the aggregate Note Principal Balance of the Group
      II
      Subordinate Notes does not exceed 50%, then the additional allocation of
      Principal Prepayments to the Group II-C Senior Notes and Group II-NC Senior
      Notes in accordance with this paragraph (h) will not be made and 100% of the
      Principal Prepayments on any Mortgage Loan in the Loan Group relating to the
      fully repaid Class or Classes of Group II Senior Notes will be allocated to
      the
      Class II-M Notes and Class II-B Notes.

     

    (i) If
      on any
      Payment Date on which the aggregate Note Principal Balance of the Group II-C
      Senior Notes and Group II-NC Senior Notes will be greater than the aggregate
      Stated Principal Balance of the Mortgage Loans in its related Loan Group and
      any
      Class II-M Notes or Class II-B Notes are still outstanding, in each case, after
      giving effect to distributions to be made on such Payment Date, (i) 100% of
      amounts otherwise allocable to the Class II-M Notes and Class II-B Notes in
      respect of principal will be distributed to the Group II-C Senior Notes or
      Group
      II-NC Senior Notes, as applicable, on a pro rata basis, based upon their Note
      Principal Balances immediately prior to such Payment Date, in reduction of
      the
      Note Principal Balances thereof, until the aggregate Note Principal Balance
      of
      the Group II-C Senior Notes or Group II-NC Senior Notes, as applicable, is
      equal
      to the aggregate Stated Principal Balance of the Mortgage Loans in its related
      Loan Group, and (ii) the Accrued Note Interest otherwise allocable to the Class
      II-M Notes or Class II-B Notes on such Payment Date will be reduced, if
      necessary, and distributed to such Class or Classes of Group II-C Senior Notes
      or Group II-NC Senior Notes, as applicable, in an amount equal to the Accrued
      Note Interest for such Payment Date on the excess of (x) the aggregate Note
      Principal Balance of the Group II-C Senior Notes or Group II-NC Senior Notes,
      as
      applicable, over (y) the aggregate Stated Principal Balance of the Mortgage
      Loans in the related Loan Group. Any such reduction in the Accrued Note Interest
      on the Class II-M Notes and Class II-B Notes shall be allocated first to the
      Class II-B Notes and second, in reverse order of the Class II-M Notes’ numerical
      designations, commencing with the Class II-M-5 Notes.

     

    On
      each
      Payment Date, any Group II-C Available Funds or Group II-NC Available Funds
      remaining after payment of interest and principal to the Classes of Notes
      entitled thereto, as described above, shall be distributed to the Certificate
      Paying Agent, as designee of the Issuing Entity, for the benefit of the Holders
      of the Trust Certificate, as provided herein and in the Trust
      Agreement.

     

    
      
        
        

      

      
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    (j) On
      each
      Payment Date, any payments received from the Corridor Provider with respect
      to
      the Corridor Contract with respect to such Payment Date will be allocated and
      paid in the following order of priority:

     

    (i) first,
      to
      the Class II-M-2 Notes, in reduction of any related Net WAC Shortfall
      Carry-Forward Amount for such Class for that Payment Date;

     

    (ii) second,
      to the Class II-M-3 Notes, in reduction of any related Net WAC Shortfall
      Carry-Forward Amount for such Class for that Payment Date;

     

    (iii) third,
      to
      the Class II-M-4 Notes, in reduction of any related Net WAC Shortfall
      Carry-Forward Amount for such Class for that Payment Date;

     

    (iv) fourth,
      to the Class II-M-5 Notes, in reduction of any related Net WAC Shortfall
      Carry-Forward Amount for such Class for that Payment Date; and 

     

    (v) fifth,
      any remaining amounts from the Corridor Contract shall be included in the Excess
      Derivative Payment Amount and shall be paid as described below.

     

    (k) On
      each
      Payment Date, the Excess
      Derivative Payment Amount shall
      be
      paid as follows, in each case to the extent of amounts remaining:

     

    (i) first,
      to
      the Class II-M-2, Class II-M-3, Class II-M-4 and Class II-M-5 Notes,
      sequentially, in reduction of any remaining related Basis Risk Shortfall
      Carry-Forward Amount for such Class or Classes for that Payment Date;
      and

     

    (ii) second,
      any remaining amounts will be distributed to the Certificate Paying Agent,
      as
      designee of the Issuing Entity, for the benefit of the Holders of the Trust
      Certificate, as provided herein and in the Trust Agreement.

     

    Section
      3.06 [Reserved]

     

    Section
      3.07 [Reserved]

     

    Section
      3.08 [Reserved]

     

    Section
      3.09 [Reserved]

     

    Section
      3.10 Other
      Matters With Respect to the Notes.

     

    (a) Each
      distribution with respect to a Book-Entry Note shall be paid to the Depository,
      as Holder thereof, and the Depository shall be responsible for crediting the
      amount of such distribution to the accounts of its Depository Participants
      in
      accordance with its normal procedures. Each Depository Participant shall be
      responsible for disbursing such distribution to the Note Owners that it
      represents and to each indirect participating brokerage firm (a “brokerage firm”
or “indirect participating firm”) for which it acts as agent. Each brokerage
      firm shall be responsible for disbursing funds to the Note Owners that it
      represents. None of the Indenture Trustee, the Note Registrar, the Paying Agent,
      the Depositor, the Securities Administrator, the Master Servicer or the Servicer
      shall have any responsibility therefor except as otherwise provided by this
      Indenture or applicable law.

     

    
      
        
        

      

      
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    (b) On
      each
      Payment Date, the Certificate Paying Agent shall deposit in the Certificate
      Distribution Account all amounts it received pursuant to Section 3.05 for the
      purpose of distributing such funds to the Certificateholders.

     

    (c) Any
      installment of interest or principal, if any, payable on any Note that is
      punctually paid or duly provided for by the Issuing Entity on the applicable
      Payment Date shall, if such Holder shall have so requested at least five
      Business Days prior to the related Record Date, be paid to each Holder of record
      on the preceding Record Date, by wire transfer to an account specified in
      writing by such Holder reasonably satisfactory to the Indenture Trustee as
      of
      the preceding Record Date or in all other cases or if no such instructions
      have
      been delivered to the Indenture Trustee, by check to such Noteholder mailed
      to
      such Holder’s address as it appears in the Note Register in the amount required
      to be distributed to such Holder on such Payment Date pursuant to such Holder’s
      Notes; provided,
      however,
      that
      the Indenture Trustee shall not pay to such Holders any amount required to
      be
      withheld from a payment to such Holder by the Code.

     

    (d) The
      principal of each Note shall be due and payable in full on the Final Scheduled
      Payment Date for such Note as provided in the forms of Note set forth in
      Exhibits A-1, A-2 and A-3 to this Indenture. All principal payments on the
      Notes
      shall be made to the Noteholders entitled thereto in accordance with the
      Percentage Interests represented by such Notes. Upon notice (such notice to
      include the Final Scheduled Payment Date) to the Indenture Trustee by the
      Issuing Entity, the Indenture Trustee shall notify the Person in whose name
      a
      Note is registered at the close of business on the Record Date preceding the
      Final Scheduled Payment Date or other final Payment Date (including any final
      Payment Date resulting from any redemption pursuant to Section 8.08 hereof).
      Such notice shall to the extent practicable be mailed no later than five
      Business Days prior to such Final Scheduled Payment Date or other final Payment
      Date and shall specify that payment of the principal amount and any interest
      due
      with respect to such Note at the Final Scheduled Payment Date or other final
      Payment Date 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
      such final payment. No interest shall accrue on the Notes on or after the Final
      Scheduled Payment Date or any such other final Payment Date.

     

    Section
      3.11 Protection
      of Trust Estate.

     

    (a) The
      Issuing Entity will from time to time prepare, execute and deliver all such
      supplements and amendments hereto and all such financing statements,
      continuation statements, instruments of further assurance and other instruments,
      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;

     

    
      
        
        

      

      
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    (ii) perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iii) cause
      the
      Issuing Entity or Servicer to enforce any of the rights to the Mortgage Loans;
      or

     

    (iv) preserve
      and defend title to the Trust Estate and the rights of the Indenture Trustee
      and
      the Noteholders in such Trust Estate against the claims of all persons and
      parties.

     

    (b) Except
      as
      otherwise provided in this Indenture, the Indenture Trustee shall not remove
      any
      portion of the Trust Estate that consists of money or is evidenced by an
      instrument, certificate or other writing from the jurisdiction in which it
      was
      held at the date of the most recent Opinion of Counsel delivered pursuant to
      Section 3.12 hereof (or from the jurisdiction in which it was held as described
      in the Opinion of Counsel delivered on the Closing Date pursuant to Section
      3.12(a) hereof, if no Opinion of Counsel has yet been delivered pursuant to
      Section 3.12(b) hereof), unless the Indenture Trustee shall have first received
      an Opinion of Counsel to the effect that the lien and security interest created
      by this Indenture with respect to such property will continue to be maintained
      after giving effect to such action or actions.

     

    The
      Issuing Entity hereby designates the Indenture Trustee its agent and
      attorney-in-fact to sign any financing statement, continuation statement or
      other instrument required to be signed pursuant to this Section 3.11 upon the
      Issuing Entity’s preparation thereof and delivery to the Indenture
      Trustee.

     

    Section
      3.12 Opinions
      as to Trust Estate.

     

    (a) On
      the
      Closing Date, the Issuing Entity shall furnish to the Indenture Trustee and
      the
      Owner Trustee an Opinion of Counsel either stating that, 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 perfect and make
      effective the lien and first priority security interest in the Collateral and
      reciting the details of such action, or stating that, in the opinion of such
      counsel, no such action is necessary to make such lien and first priority
      security interest effective.

     

    (b) On
      or
      before April 15 in each calendar year, beginning in 2007, the Issuing Entity
      shall furnish to the Indenture Trustee an Opinion of Counsel at the expense
      of
      the Issuing Entity either stating that, in the opinion of such counsel, such
      action has been taken with respect to the recording, filing, re-recording and
      refiling 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 is necessary to maintain
      the
      lien and first priority security interest in the Collateral and reciting the
      details of such action or stating that in the opinion of such counsel no such
      action is necessary to maintain such lien and security interest. Such Opinion
      of
      Counsel shall also describe the recording, filing, re-recording and refiling
      of
      this Indenture, any indentures supplemental hereto and any other requisite
      documents and the execution and filing of any financing statements and
      continuation statements that will, in the opinion of such counsel, be required
      to maintain the lien and security interest in the Collateral until December
      31
      in the following calendar year.

     

    
      
        
        

      

      
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    Section
      3.13 Performance
      of Obligations.

     

    (a) The
      Issuing Entity will punctually perform and observe all of its obligations and
      agreements contained in this Indenture, the Basic Documents and in the
      instruments and agreements included in the Trust Estate.

     

    (b) The
      Issuing Entity 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 Issuing
      Entity shall be deemed to be action taken by the Issuing Entity.

     

    (c) The
      Issuing Entity will not take any action or permit any action to be taken by
      others which would release any Person from any of such Person’s covenants or
      obligations under any of the documents relating to the Mortgage Loans or under
      any instrument included in the Trust Estate, or which would result in the
      amendment, hypothecation, subordination, termination or discharge of, or impair
      the validity or effectiveness of, any of the documents relating to the Mortgage
      Loans or any such instrument, except such actions as the Servicer is expressly
      permitted to take in the related Servicing Agreement. The Indenture Trustee,
      as
      pledgee of the Mortgage Loans may exercise the rights of the Issuing Entity
      to
      direct the actions of the Servicer pursuant to the Servicing
      Agreement.

     

    Section
      3.14 Negative
      Covenants.
      So long
      as any Notes are Outstanding, the Issuing Entity shall not:

     

    (a) except
      as
      expressly permitted by this Indenture, sell, transfer, exchange or otherwise
      dispose of the Trust Estate, unless directed to do so by the Indenture
      Trustee;

     

    (b) claim
      any
      credit on, or make any deduction from the principal or interest 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
      Trust
      Estate;

     

    (c) (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 Trust Estate
      or any part thereof or any interest therein or the proceeds thereof or (C)
      permit the lien of this Indenture not to constitute a valid first priority
      security interest in the Trust Estate; or

     

    (d) waive
      or
      impair, or fail to assert rights under, the Mortgage Loans, or impair or cause
      to be impaired the Issuing Entity’s interest in the Mortgage Loans, the Mortgage
      Loan Purchase Agreement or in any Basic Document, if any such action would
      materially and adversely affect the interests of the Noteholders.

     

    
      
        
        

      

      
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    Section
      3.15 Annual
      Statement as to Compliance.
      The
      Issuing Entity will deliver to the Indenture Trustee, by March 15 of each year
      commencing with the calendar year 2007, an Officer’s Certificate stating, as to
      the Authorized Officer signing such Officer’s Certificate, that:

     

    (a) a
      review
      of the activities of the Issuing Entity during the previous calendar year and
      of
      its performance under this Indenture has been made under such Authorized
      Officer’s supervision; and

     

    (b) to
      the
      best of such Authorized Officer’s knowledge, based on such review, the Issuing
      Entity 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
      3.16 Representations
      and Warranties Concerning the Mortgage Loans.
      The
      Indenture Trustee, as pledgee of the Mortgage Loans, shall have the benefit
      of
      the representations and warranties made by the Sponsor in the Mortgage Loan
      Purchase Agreement concerning the Sponsor and the Mortgage Loans to the same
      extent as though such representations and warranties were made directly to
      the
      Indenture Trustee. If a Responsible Officer of the Indenture Trustee has actual
      knowledge of any breach of any representation or warranty made by the Sponsor
      in
      the Mortgage Loan Purchase Agreement, the Indenture Trustee shall promptly
      notify the Sponsor of such finding and of the Sponsor’s obligation to cure such
      defect or repurchase or substitute for the related Mortgage Loan.

     

    Section
      3.17 Amendments
      to Servicing Agreement.
      The
      Issuing Entity covenants with the Indenture Trustee that it will not enter
      into
      any amendment or supplement to any Servicing Agreement without the prior written
      consent of the Indenture Trustee.

     

    Section
      3.18 Servicer
      as Agent and Bailee of the Indenture Trustee.
      Solely
      for purposes of perfection under Section 9-305 of the Uniform Commercial Code
      or
      other similar applicable law, rule or regulation of the state in which such
      property is held by the Servicer, the Issuing Entity and the Indenture Trustee
      hereby acknowledge that the Servicer is acting as bailee of the Indenture
      Trustee in holding amounts on deposit in the related Collection Account and
      the
      related Protected Account, as well as its bailee in holding any Related
      Documents released to the Servicer, and any other items constituting a part
      of
      the Trust Estate which from time to time come into the possession of the
      Servicer. It is intended that, by the Servicer’s acceptance of such bailee
      arrangement, the Indenture Trustee, as a secured party of the Mortgage Loans
      will be deemed to have possession of such Related Documents, such monies and
      such other items for purposes of Section 9-305 of the Uniform Commercial Code
      of
      the state in which such property is held by the Servicer. The Indenture Trustee
      shall not be liable with respect to such documents, monies or items while in
      possession of the Servicer.

     

    Section
      3.19 Investment
      Company Act.
      The
      Issuing Entity shall not become an “investment company” or be under the
“control” of an “investment company” as such terms are defined in the Investment
      Company Act of 1940, as amended (or any successor or amendatory statute), and
      the rules and regulations thereunder (taking into account not only the general
      definition of the term “investment company” but also any available exceptions to
      such general definition); provided,
      however,
      that the
      Issuing Entity shall be in compliance with this Section 3.19 if it shall have
      obtained an order exempting it from regulation as an “investment company” so
      long as it is in compliance with the conditions imposed in such
      order.

     

    
      
        
        

      

      
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    Section
      3.20 Issuing
      Entity May Consolidate, etc.

     

    (a) The
      Issuing Entity shall not consolidate or merge with or into any other Person,
      unless:

     

    (i) the
      Person (if other than the Issuing Entity) formed by or surviving such
      consolidation or merger shall be a Person organized and existing under the
      laws
      of the United States of America or any state or the District of Columbia and
      shall expressly assume, by an indenture supplemental hereto, executed and
      delivered to the Indenture Trustee, in form reasonably satisfactory to the
      Indenture Trustee, the due and punctual payment of the principal of and interest
      on all Notes and all amounts payable to the Indenture Trustee, the Cap
      Counterparty, the Corridor Provider, the payment to the Certificate Paying
      Agent
      of all amounts due to the Certificateholders, and the performance or observance
      of every agreement and covenant of this Indenture on the part of the Issuing
      Entity to be performed or observed, all as provided herein;

     

    (ii) immediately
      after giving effect to such transaction, no Default or Event of Default shall
      have occurred and be continuing;

     

    (iii) the
      Issuing Entity shall have received an Opinion of Counsel (and shall have
      delivered a copy thereof to the Securities Administrator and the Indenture
      Trustee) to the effect that such transaction will not (A) result in a
“substantial modification” of the Notes under Treasury Regulation section
      1.1001-3, or adversely affect the status of the Notes as indebtedness for
      federal income tax purposes, provided that, for purposes of the foregoing,
      a TMP
      Trigger Event shall be deemed to result in a “significant modification” of the
      aforementioned Notes under Treasure Regulation Section 1.1001-3, or (B) if
      100%
      of the Certificates and the Retained Notes (to the extent that such Retained
      Notes have not received a “will be debt” opinion) are not owned by American Home
      Mortgage Acceptance Inc., cause the Trust to be subject to an entity level
      tax
      for federal income tax purposes;

     

    (iv) any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (v) the
      Issuing Entity shall have delivered to the Indenture Trustee an Officer’s
      Certificate and an Opinion of Counsel each stating that such consolidation
      or
      merger and such supplemental indenture comply with this Article III and that
      all
      conditions precedent herein provided for or relating to such transaction have
      been complied with (including any filing required by the Exchange Act), and
      that
      such supplemental indenture is enforceable.

     

    (b) The
      Issuing Entity shall not convey or transfer any of its properties or assets,
      including those included in the Trust Estate, to any Person,
      unless:

     

    
      
        
        

      

      
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    (i) the
      Person that acquires by conveyance or transfer the properties and assets of
      the
      Issuing Entity, the conveyance or transfer of which is hereby restricted, shall
      (A) be a United States citizen or a Person organized and existing under the
      laws
      of the United States of America or any state thereof, (B) expressly assume,
      by
      an indenture supplemental hereto, executed and delivered to the Indenture
      Trustee, in form satisfactory to the Indenture Trustee and, the due and punctual
      payment of the principal of and interest on all Notes and all other amounts
      payable to the Cap Counterparty and the Corridor Provider and the performance
      or
      observance of every agreement and covenant of this Indenture on the part of
      the
      Issuing Entity to be performed or observed, all as provided herein, (C)
      expressly agree by means of such supplemental indenture that all right, title
      and interest so conveyed or transferred shall be subject and subordinate to
      the
      rights of the Holders of the Notes, (D) unless otherwise provided in such
      supplemental indenture, expressly agree to indemnify, defend and hold harmless
      the Securities Administrator and the Indenture Trustee against and from any
      loss, liability or expense arising under or related to this Indenture and the
      Notes and (E) expressly agree by means of such supplemental indenture that
      such
      Person (or if a group of Persons, then one specified Person) shall make all
      filings with the Commission (and any other appropriate Person) required by
      the
      Exchange Act in connection with the Notes;

     

    (ii) immediately
      after giving effect to such transaction, no Default or Event of Default shall
      have occurred and be continuing;

     

    (iii) the
      Rating Agencies shall have notified the Issuing Entity and the Indenture Trustee
      that such transaction shall not cause the rating of the Notes to be reduced,
      qualified, suspended or withdrawn;

     

    (iv) the
      Issuing Entity shall have received an Opinion of Counsel (and shall have
      delivered a copy thereof to the Securities Administrator and the Indenture
      Trustee) to the effect that such transaction will not (A) result in a
“substantial modification” of the Notes under Treasury Regulation section
      1.1001-3, or adversely affect the status of the Notes as indebtedness for
      federal income tax purposes, provided that, for purposes of the foregoing,
      a TMP
      Trigger Event shall be deemed to result in a “significant modification” of the
      aforementioned Notes under Treasury Regulation Section1.1001-3, or (B) if 100%
      of the Certificates and the Retained Notes (to the extent that such Retained
      Notes have not received a “will be debt” opinion) are not owned by American Home
      Mortgage Acceptance, Inc., cause the Trust to be subject to an entity level
      tax
      for federal income tax purposes;

     

    (v) any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi) the
      Issuing Entity shall have delivered to the Indenture Trustee an Officer’s
      Certificate and an Opinion of Counsel each stating that such conveyance or
      transfer and such supplemental indenture comply with this Article III and that
      all conditions precedent herein provided for relating to such transaction have
      been complied with (including any filing required by the Exchange
      Act).

     

    
      
        
        

      

      
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    Section
      3.21 Successor
      or Transferee.

     

    (a) Upon
      any
      consolidation or merger of the Issuing Entity in accordance with Section
      3.20(a), the Person formed by or surviving such consolidation or merger (if
      other than the Issuing Entity) shall, following the Issuing Entity’s
      satisfaction of all of the conditions precedent set forth therein with respect
      thereto, succeed to, and be substituted for, and may exercise every right and
      power of, the Issuing Entity under this Indenture with the same effect as if
      such Person had been named as the Issuing Entity herein.

     

    (b) Upon
      a
      conveyance or transfer of all the assets and properties of the Issuing Entity
      pursuant to Section 3.20(b), the Issuing Entity, following its satisfaction
      of
      all of the conditions precedent set forth herein with respect thereto, will
      be
      released from every covenant and agreement of this Indenture to be observed
      or
      performed on the part of the Issuing Entity with respect to the Notes
      immediately upon the delivery of written notice to the Indenture Trustee of
      such
      conveyance or transfer.

     

    Section
      3.22 No
      Other Business.
      The
      Issuing Entity shall not engage in any business other than as set forth with
      respect thereto in the Trust Agreement and other than financing, purchasing,
      owning and selling and managing the Mortgage Loans and the issuance of the
      Notes
      and Certificates in the manner contemplated by this Indenture and the Basic
      Documents and all activities incidental thereto.

     

    Section
      3.23 No
      Borrowing.
      The
      Issuing Entity shall not issue, incur, assume, guarantee or otherwise become
      liable, directly or indirectly, for any indebtedness except for the Notes under
      this Indenture.

     

    Section
      3.24 Guarantees,
      Loans, Monthly Advances and Other Liabilities.
      Except
      as contemplated by this Indenture or the Basic Documents, the Issuing Entity
      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
      3.25 Capital
      Expenditures.
      The
      Issuing Entity shall not make any expenditure (by long-term or operating lease
      or otherwise) for capital assets (either realty or personalty).

     

    Section
      3.26 Determination
      of Note Interest Rate.
      On each
      Interest Determination Date the Securities Administrator shall determine
      One-Month LIBOR and Six-Month LIBOR and the related Note Interest Rate for
      each
      Class of related Notes for the following Accrual Period and shall make such
      information available pursuant to Section 7.05 hereof to the Indenture Trustee,
      the Issuing Entity, the Servicer and the Depositor. The establishment of
      One-Month LIBOR and Six-Month LIBOR on each Interest Determination Date by
      the
      Securities Administrator and the Securities Administrator’s calculation of the
      rate of interest applicable to each Class of applicable Notes for the related
      Accrual Period shall (in the absence of manifest error) be final and
      binding.

     

    
      
        
        

      

      
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    Section
      3.27 Restricted
      Payments.
      The
      Issuing Entity shall not, directly or indirectly, (i) pay any dividend or make
      any distribution (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 Issuing Entity or otherwise with respect to
      any
      ownership or equity interest or security in or of the Issuing Entity, (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,
      that the
      Issuing Entity may make, or cause to be made, (x) distributions and payments
      to
      the Securities Administrator, the Owner Trustee, the Indenture Trustee, the
      Certificate Registrar, the Certificate Paying Agent, the Noteholders and the
      Certificateholders as contemplated by, and to the extent funds are available
      for
      such purpose under this Indenture and the Trust Agreement and (y) payments
      to
      the Servicer and the Master Servicer pursuant to the terms of the Servicing
      Agreement and the Master Servicing Agreement. The Issuing Entity will not,
      directly or indirectly, make payments to or distributions from the Collection
      Account except in accordance with this Indenture and the Basic
      Documents.

     

    Section
      3.28 Notice
      of Events of Default.
      The
      Issuing Entity shall give the Indenture Trustee and the Rating Agencies prompt
      written notice of each Event of Default hereunder and under the Trust
      Agreement.

     

    Section
      3.29 Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee, the Issuing Entity 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
      3.30 Statements
      to Noteholders.
      On each
      Payment Date, the Securities Administrator shall make available on the
      Securities Administrator’s website, www.ctslink.com (or deliver at the
      recipient’s option), to each Noteholder and Certificateholder the statement
      prepared by the Securities Administrator pursuant to and in the manner provided
      for in Section 7.05 hereof.

     

    Section
      3.31 [Reserved]

     

    Section
      3.32 [Reserved]

     

    Section
      3.33 [Reserved]

     

    Section
      3.34 Replacement
      Derivative Contracts.
      In the
      event of an Event of Default or Termination Event (each, as defined in the
      related Derivative Contract) with respect to the Cap Counterparty or the
      Corridor Provider, as applicable, under a Derivative Contract (a “Derivative
      Contract Default”), the Issuing Entity, at its expense, may, but shall not be
      required to, substitute a new derivative contract or any other form of similar
      coverage for such Derivative Contract; provided,
      however,
      that
      the timing and mechanism for receiving payments under such new derivative
      contract shall be reasonably acceptable to the Indenture Trustee. It shall
      be a
      condition to substitution of any new derivative contract that there be delivered
      to the Indenture Trustee an Opinion of Counsel to the effect that such
      substitution would not (a) result in a “substantial modification” of the Notes
      under Treasury Regulation section 1.1001-3, or adversely affect the status
      of
      the Notes as indebtedness for federal income tax purposes, or (b) if 100% of
      the
      Certificates and the Retained Notes (to the extent that such Retained Notes
      have
      not received a “will be debt” opinion) are not owned by American
      Home Mortgage Acceptance Inc.,
      cause
      the Trust to be subject to entity level tax for federal income tax
      purposes.

     

    
      
        
        

      

      
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    Section
      3.35 [Reserved]

     

    Section
      3.36 [Reserved]

     

    Section
      3.37 Certain
      Representations Regarding the Trust Estate.

     

    (a) With
      respect to that portion of the Collateral described in clauses (a) through
      (h)
      of the Granting Clause, the Issuing Entity represents to the Indenture Trustee
      that:

     

    (i) This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuing Entity.

     

    (ii) The
      Collateral constitutes “deposit accounts” or “instruments,” as applicable,
      within the meaning of the applicable UCC.

     

    (iii) The
      Issuing Entity owns and has good and marketable title to the Collateral, free
      and clear of any lien, claim or encumbrance of any Person.

     

    (iv) The
      Issuing Entity has taken all steps necessary to cause the Indenture Trustee
      to
      become the account holder of the Collateral.

     

    (v) Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, or the conveyances that the Issuing Entity would be required to
      make
      at the time of a REMIC Conversion following the satisfaction and discharge
      of
      this Indenture following a TMP Trigger Event, the Issuing Entity has not
      pledged, assigned, sold, granted a security interest in, or otherwise conveyed
      any of the Collateral.

     

    (vi) The
      Collateral is not in the name of any Person other than the Issuing Entity or
      the
      Indenture Trustee. The Issuing Entity has not consented to the bank maintaining
      the Collateral to comply with instructions of any Person other than the
      Indenture Trustee.

     

    (b) With
      respect to that portion of the Collateral described in clauses (i) and (h)
      of
      the Granting Clause, the Issuing Entity represents to the Indenture Trustee
      that:

     

    (i) This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuing Entity.

     

    (ii) The
      Collateral constitutes “general intangibles” within the meaning of the
      applicable UCC.

     

    
      
        
        

      

      
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    (iii) The
      Issuing Entity owns and has good and marketable title to the Collateral, free
      and clear of any lien, claim or encumbrance of any Person.

     

    (iv) Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuing Entity has not pledged, assigned, sold, granted a
      security interest in, or otherwise conveyed any of the Collateral.

     

    (c) With
      respect to any Collateral in which a security interest may be perfected by
      filing, the Issuing Entity has not authorized the filing of, and is not aware
      of
      any financing statements against, the Issuing Entity, that include a description
      of collateral covering such Collateral, other than any financing statement
      relating to the security interest granted to the Indenture Trustee hereunder
      or
      that has been terminated. The Issuing Entity is not aware of any judgment or
      tax
      lien filings against the Issuing Entity.

     

    (d) The
      Issuing Entity has caused or will have caused, within ten days of the Closing
      Date, the filing of all appropriate financing statements in the proper filing
      office in the appropriate jurisdictions under applicable law in order to perfect
      the security interest in all Collateral granted to the Indenture Trustee
      hereunder in which a security interest may be perfected by filing. Any financing
      statement that is filed in connection with this Section 3.37 shall contain
      a
      statement that a purchase or security interest in any collateral described
      therein will violate the rights of the secured party named in such financing
      statement.

     

    (e) The
      foregoing representations may not be waived and shall survive the issuance
      of
      the Notes.

     

    Section
      3.38 Allocation
      of Realized Losses.

     

    (a) Any
      Realized Losses on Group I Mortgage Loans will be allocated or covered on any
      Payment Date, in accordance with the statement for such Payment Date provided
      by
      the Securities Administrator pursuant to Section 7.05 hereof, as follows:
first,
      to the
      Net Monthly Excess Cashflow, by an increase in the Overcollateralization
      Increase Amount for that Payment Date as provided in Section 3.05 of this
      Indenture; second,
      in
      reduction of the Overcollateralized Amount until reduced to zero (meaning,
      no
      losses will be allocated to the Class I-M Notes until the aggregate Note
      Principal Balance of the Notes equals the aggregate Stated Principal Balance
      of
      the Group I Mortgage Loans; third,
      to the
      Class I-M-6 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; fourth,
      to the
      Class I-M-5 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; fifth,
      to the
      Class I-M-4 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; sixth,
      to the
      Class I-M-3 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; seventh,
      to the
      Class I-M-2 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; eighth,
      to the
      Class I-M-1 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; and ninth,
      sequentially to the Class I-A-3 Notes and Class I-A-2 Notes, in that order,
      in
      reduction of the Note Principal Balance thereof, until reduced to zero. No
      Realized Losses shall be allocated to the Class I-1A-1 Notes or Class I-2A-1
      Notes.

     

    
      
        
        

      

      
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    (b) Any
      Realized Losses on the Group II-C Mortgage Loans and Group II-NC Mortgage Loans
      will be allocated on any Payment Date, in accordance with the statement for
      such
      Payment Date provided by the Securities Administrator pursuant to Section 7.05
      hereof, as follows: first,
      to the
      Class II-B Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; second,
      to the
      Class II-M-5 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; third,
      to the
      Class II-M-4 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; fourth,
      to the
      Class II-M-3 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; fifth,
      to the
      Class II-M-2 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero; sixth,
      to the
      Class II-M-1 Notes, in reduction of the Note Principal Balance thereof, until
      reduced to zero. Thereafter, (A) any Realized Losses on the Group II-C Mortgage
      Loans will be allocated on any Payment Date to the Class II-A-2 Notes, in
      reduction of the Note Principal Balance thereof, until reduced to zero, and
      the
      portion of any Realized Losses on a Group II-C Mortgage Loans that would
      otherwise be allocated to the Class II-A-1 Notes will instead be allocated
      to
      the Class II-A-2 Notes, and (B) any Realized Losses on the Group II-NC Mortgage
      Loans will be allocated on any Payment Date to the Class II-A-4 Notes, in
      reduction of the Note Principal Balance thereof, until reduced to zero, and
      the
      portion of any Realized Losses on Group II-NC Mortgage Loans that would
      otherwise be allocated to the Class II-A-3 Notes will instead be allocated
      to
      the Class II-A-4 Notes.

     

    
      
        
        

      

      
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    ARTICLE
      IV

     

    
      THE
        NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

       

    

     

    Section
      4.01 The
      Notes.
      Each
      Class of Offered Notes shall be registered in the name of a nominee designated
      by the Depository. With respect to the Offered Notes, Beneficial Owners will
      hold interests in such Notes through the book-entry facilities of the Depository
      in minimum initial Note Principal Balances of $100,000 and integral multiples
      of
      $1 in excess thereof. The Non-Offered Notes will be issued in fully registered
      definitive physical form in minimum dollar denominations of $25,000 and integral
      multiples of $1 in excess thereof.

     

    The
      Indenture Trustee may for all purposes (including the making of payments due
      on
      the Notes) deal with the Depository as the authorized representative of the
      Beneficial Owners with respect to the Offered
      Notes
      for
      the purposes of exercising the rights of Holders of the Notes hereunder. Except
      as provided in the next succeeding paragraph of this Section 4.01, the rights
      of
      Beneficial Owners with respect to the Offered Notes shall be limited to those
      established by law and agreements between such Beneficial Owners and the
      Depository and Depository Participants. Except as provided in Section 4.08
      hereof, Beneficial Owners shall not be entitled to definitive certificates
      for
      the Offered Notes as to which they are the Beneficial Owners. Requests and
      directions from, and votes of, the Depository as Holder of the Offered Notes
      shall not be deemed inconsistent if they are made with respect to different
      Beneficial Owners. The Indenture Trustee may establish a reasonable record
      date
      in connection with solicitations of consents from or voting by Noteholders
      and
      give notice to the Depository of such record date. Without the consent of the
      Issuing Entity and the Indenture Trustee, no Offered Note may be transferred
      by
      the Depository except to a successor Depository that agrees to hold such Note
      for the account of the Beneficial Owners.

     

    In
      the
      event the Depository Trust Company resigns or is removed as Depository, the
      Indenture Trustee with the approval of the Issuing Entity may appoint a
      successor Depository. If no successor Depository has been appointed within
      30
      days of the effective date of the Depository’s resignation or removal, each
      Beneficial Owner shall be entitled to certificates representing the Offered
      Notes it beneficially owns in the manner prescribed in Section
      4.08.

     

    The
      Notes
      shall, on original issue, be executed on behalf of the Issuing Entity by the
      Owner Trustee, not in its individual capacity but solely as Owner Trustee,
      authenticated by the Indenture Trustee and delivered by the Indenture Trustee
      to
      or upon an Issuing Entity Request.

     

    Section
      4.02 Registration
      of and Limitations on Transfer and Exchange of Notes; Appointment of Note
      Registrar and Certificate Registrar.

     

    (a) The
      Issuing Entity shall cause to be kept at the Corporate Trust Office of the
      Note
      Registrar a Note Register in which, subject to such reasonable regulations
      as it
      may prescribe, the Note Registrar shall provide for the registration of Notes
      and of transfers and exchanges of Notes as herein provided.

     

    Subject
      to the restrictions and limitations set forth below, upon surrender for
      registration of transfer of any Note at
      the
office
      designated by
      the
Indenture
      Trustee,
      the
      Issuing Entity shall execute and the Note Registrar shall authenticate and
      deliver, in the name of the designated transferee or transferees, one or more
      new Notes in authorized initial Note Principal Balances evidencing the same
      Class and aggregate Percentage Interests.

     

    
      
        
        

      

      
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    Subject
      to the foregoing, at the option of the Noteholders, Notes may be exchanged
      for
      other Notes of like tenor and in authorized initial Note Principal Balances
      evidencing the same Class and aggregate Percentage Interests upon surrender
      of
      the Notes to be exchanged at the office designated by the Note Registrar.
      Whenever any Notes are so surrendered for exchange, the Issuing Entity shall
      execute and the Indenture Trustee shall authenticate and deliver the Notes
      which
      the Noteholder making the exchange is entitled to receive. Each Note presented
      or surrendered for registration of transfer or exchange shall (if so required
      by
      the Note Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer in form reasonably satisfactory to the Note Registrar
      duly executed by the Holder thereof or his attorney duly authorized in writing
      with such signature guaranteed by a commercial bank or trust company located
      or
      having a correspondent located in the city of New York. Notes delivered upon
      any
      such transfer or exchange will evidence the same obligations, and will be
      entitled to the same rights and privileges, as the Notes
      surrendered.

     

    No
      service charge shall be made for any registration of transfer or exchange of
      Notes, but the Note Registrar shall require payment of a sum sufficient to
      cover
      any tax or governmental charge that may be imposed in connection with any
      registration of transfer or exchange of Notes.

     

    The
      Issuing Entity hereby appoints the Indenture Trustee as (i) Certificate
      Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
      to Section 3.09 of the Trust Agreement in which, subject to such reasonable
      regulations as it may prescribe, the Certificate Registrar shall provide for
      the
      registration of Certificates and of transfers and exchanges thereof pursuant
      to
      Section 3.05 of the Trust Agreement and (ii) Note Registrar under this
      Indenture. The Indenture Trustee hereby accepts such appointments.

     

    (b) No
      Person
      shall become a Holder of Non-Offered Notes until it shall establish its
      non-foreign status by submitting to the Paying Agent an IRS Form W-9 and the
      Certificate of Non-Foreign Status set forth in Exhibit L hereto.

     

    No
      transfer, sale, pledge or other disposition of a Non-Offered Note shall be
      made
      unless such transfer, sale, pledge or other disposition is exempt from the
      registration requirements of the Securities Act and any applicable state
      securities laws or is made in accordance with said Act and laws. In the event
      of
      any such transfer, the Note Registrar or the Depositor shall prior to such
      transfer require the transferee to execute (A) either (i) (a) an investment
      letter in substantially the form attached hereto as Exhibit K (or in such form
      and substance reasonably satisfactory to the Note Registrar and the Depositor)
      which investment letter shall not be an expense of the Trust, the Owner Trustee,
      the Indenture Trustee, the Securities Administrator, the Note Registrar, the
      Master Servicer, the Servicer, the Sponsor or the Depositor and which investment
      letter states that, among other things, such transferee (1) is a “qualified
      institutional buyer” as defined under Rule 144A, acting for its own account or
      the accounts of other “qualified institutional buyers” as defined under Rule
      144A, and (2) is aware that the proposed transferor intends to rely on the
      exemption from registration requirements under the Securities Act of 1933,
      as
      amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
      acceptable to and in form and substance satisfactory to the Note Registrar
      and
      the Depositor that such transfer may be made pursuant to an exemption,
      describing the applicable exemption and the basis therefor, from said Act and
      laws or is being made pursuant to said Act and laws, which Opinion of Counsel
      shall not be an expense of the Trust, the Owner Trustee, the Indenture Trustee,
      the Securities Administrator, the Note Registrar, the Master Servicer, the
      Servicer, the Sponsor or the Depositor and (b) either (1) the transferee
      executes a representation letter, substantially in the form of Exhibit M hereto,
      and the transferor executes a representation letter, substantially in the form
      of Exhibit N hereto, each acceptable to and in form and substance satisfactory
      to the Note Registrar certifying the facts surrounding such transfer, which
      representation letters shall not be an expense of the Trust, the Owner Trustee,
      the Indenture Trustee, the Securities Administrator, the Note Registrar, the
      Master Servicer, the Servicer, the Sponsor or the Depositor or (2) an
      Opinion of Counsel has been rendered by nationally recognized tax counsel
      stating that such Notes will be treated as debt for federal income tax
      purposes
      and (B)
      the Certificate of Non-Foreign Status (in substantially the form attached hereto
      as Exhibit L) acceptable to and in form and substance reasonably satisfactory
      to
      the Note Registrar, which certificate shall not be an expense of the Trust,
      the
      Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
      Registrar, the Master Servicer, the Servicer, the Sponsor or the Depositor.
      The
      Holder of a Non-Offered Note desiring to effect such transfer shall, and does
      hereby agree to, indemnify the Trust, the Owner Trustee, the Indenture Trustee,
      the Paying Agent, the Note Registrar, the Master Servicer, the Servicer and
      the
      Depositor against any liability that may result if the transfer is not so exempt
      or is not made in accordance with such federal and state laws.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

     

    No
      person
      shall become a Holder of Non-Offered Notes, so long as any Notes are
      Outstanding, until it shall establish its status as a real estate investment
      trust (“REIT”) or as a “qualified REIT subsidiary” (“QRS”) within the meaning of
      Section 856(a) or Section 856(i) of the Code, respectively, by submitting to
      the
      Note Registrar and the Transferee Certificate set forth in Exhibit P hereto
      and,
      following such transfer, such Holder of Non-Offered Notes shall own 100% of
      the
      Non-Offered Notes and the Trust Certificates.

     

    No
      offer,
      sale, transfer, pledge, hypothecation or other disposition (including any
      pledge, sale or transfer under a repurchase transaction or securities loan)
      of
      any Non-Offered Note shall be made to any transferee unless, prior to such
      disposition, the proposed transferor delivers to the Note Registrar (i) an
      Opinion of Counsel, rendered by a law firm generally recognized to be qualified
      to opine concerning the tax aspects of asset securitization, to the effect
      that
      such transfer (including any disposition permitted following any default under
      any pledge or repurchase transaction) will not cause the Trust to be no longer
      be treated for federal income tax purposes as a “qualified REIT subsidiary”
within the meaning of Section 856(i) of the Code and (ii) a certificate that
      stating that any Non-Offered Notes may be transferred by the related lender
      under any such related loan agreement or repurchase agreement upon a default
      under any such indebtedness, in which case the transferor shall deliver to
      the
      Note Registrar and the Indenture Trustee substantially in the form attached
      hereto as Exhibit Q certifying to such effect. Notwithstanding the foregoing,
      the provisions of this paragraph shall not apply to the initial transfer of
      the
      Non-Offered Notes to the Depositor.

     

    No
      offer,
      sale, transfer or other disposition (including pledge) of any Non-Offered Note
      shall be made to any affiliate of the Depositor or the Issuing Entity, other
      than the initial transfer of the Non-Offered Notes to the
      Depositor.

     

    
      
        
        

      

      
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    With
      respect to the restriction on transfer of the Notes contained in this Section
      4.02 and in Section 4.15, any transferor providing an Opinion of Counsel shall
      (i) deliver such opinion to the appropriate addressees, (ii) confirm the
      acceptability of such opinion with the applicable addressees and (iii) inform
      the Note Registrar of delivery and confirmation described in clause (i) and
      clause (ii).

     

    Section
      4.03 Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Indenture Trustee, or the Indenture
      Trustee receives evidence to its satisfaction of the destruction, loss or theft
      of any Note, and (ii) there is delivered to the Indenture Trustee such security
      or indemnity as may be required by it to hold the Issuing Entity and the
      Indenture Trustee harmless, then, in the absence of notice to the Issuing
      Entity, the Note Registrar or the Indenture Trustee that such Note has been
      acquired by a bona fide purchaser, and provided that the requirements of Section
      8-405 of the UCC are met, the Issuing Entity shall execute, and upon Issuing
      Entity Request the Indenture Trustee 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, instead of issuing a
      replacement Note, the Issuing Entity may pay such destroyed, lost or stolen
      Note
      when so due or payable without surrender thereof. If, 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 Issuing Entity and the Indenture Trustee 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 Issuing Entity or the Indenture Trustee in connection
      therewith.

     

    Upon
      the
      issuance of any replacement Note under this Section 4.03, the Issuing Entity
      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) connected therewith.

     

    Every
      replacement Note issued pursuant to this Section 4.03 in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuing Entity, 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 4.03 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
      4.04 Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuing Entity,
      the Indenture Trustee, the Paying Agent and any agent of the Issuing Entity
      or
      the Indenture Trustee or the Paying Agent 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 neither the Issuing Entity, the Indenture Trustee, the Paying
      Agent
      nor any agent of the Issuing Entity or the Indenture Trustee or the Paying
      Agent
      shall be affected by notice to the contrary.

     

    
      
        
        

      

      
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    Section
      4.05 Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall, if surrendered to any Person other than the Indenture Trustee, be
      delivered to the Indenture Trustee and shall be promptly cancelled by the
      Indenture Trustee. The Issuing Entity may at any time deliver to the Indenture
      Trustee for cancellation any Notes previously authenticated and delivered
      hereunder which the Issuing Entity 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 4.05, except as expressly permitted by
      this Indenture. All cancelled Notes may be held or disposed of by the Indenture
      Trustee in accordance with its standard retention or disposal policy as in
      effect at the time unless the Issuing Entity shall direct by an Issuing Entity
      Request that they be destroyed or returned to it; provided,
      however,
      that
      such Issuing Entity Request is timely and the Notes have not been previously
      disposed of by the Indenture Trustee.

     

    Section
      4.06 Book-Entry
      Notes.
      The
Offered
      Notes,
      upon original issuance, will be issued in the form of typewritten Notes
      representing the Book-Entry Notes, to be delivered to The Depository Trust
      Company, the initial Depository, or its designated custodian, by, or on behalf
      of, the Issuing Entity. The Offered Notes shall initially be registered on
      the
      Note Register in the name of Cede & Co., the nominee of the initial
      Depository, and no Beneficial Owner will receive a Definitive Note representing
      such Beneficial Owner’s interest in such Note, except as provided in Section
      4.08. With respect to such Notes, unless and until definitive, fully registered
      Notes (the “Definitive Notes”) have been issued to Beneficial Owners pursuant to
      Section 4.08:

     

    (i) the
      provisions of this Section 4.06 shall be in full force and effect;

     

    (ii) the
      Note
      Registrar, the Paying Agent and the Indenture Trustee shall be entitled to
      deal
      with the Depository for all purposes of this Indenture (including the payment
      of
      principal of and interest on the Notes and the giving of instructions or
      directions hereunder) as the sole Holder of the Notes, and shall have no
      obligation to the Beneficial Owners of the Notes;

     

    (iii) to
      the
      extent that the provisions of this Section 4.06 conflict with any other
      provisions of this Indenture, the provisions of this Section 4.06 shall
      control;

     

    (iv) the
      rights of Beneficial Owners shall be exercised only through the Depository
      and
      shall be limited to those established by law and agreements between such Owners
      of Notes and the Depository and/or the Depository Participants. Unless and
      until
      Definitive Notes are issued pursuant to Section 4.08, the initial Depository
      will make book-entry transfers among the Depository Participants and receive
      and
      transmit payments of principal of and interest on the Notes to such Depository
      Participants; and

     

    
      
        
        

      

      
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    (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
      Note
      Principal Balances of the Notes, the Depository shall be deemed to represent
      such percentage with respect to the Notes only to the extent that it has
      received instructions to such effect from Beneficial Owners and/or Depository
      Participants owning or representing, respectively, such required percentage
      of
      the beneficial interest in the Notes and has delivered such instructions to
      the
      Indenture Trustee.

     

    Section
      4.07 Notices
      to Depository.
      Whenever a notice or other communication to the Noteholders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      Beneficial Owners pursuant to Section 4.08, the Indenture Trustee shall give
      all
      such notices and communications specified herein to be given to Holders of
      the
      Offered Notes to the Depository, and shall have no obligation to the Beneficial
      Owners.

     

    Section
      4.08 Definitive
      Notes.
      If (i)
      the Depositor advises the Indenture Trustee or the Note Registrar in writing
      that the Depository is no longer willing or able to properly discharge its
      responsibilities as clearing agency with respect to the Offered Notes and the
      Depositor is unable to locate a qualified successor within 30 days, (ii) the
      Depositor, at its option (with the consent of the Indenture Trustee, which
      consent shall not by unreasonably withheld), elects to terminate the book-entry
      system through the Depository or (iii) after the occurrence of an Event of
      Default, any Note Owner materially and adversely affected thereby may, at its
      option, request and receive a Definitive Note evidencing such Note Owner’s
      Percentage Interest in the related Class of Offered Notes. Upon surrender to
      the
      Indenture Trustee of the global Offered Note or definitive typewritten Notes
      representing the Book-Entry Notes by the Depository, accompanied by registration
      instructions, the Note Registrar will re-issue the Book-Entry Notes as
      Definitive Notes issued in the respective Note Principal Balances owned by
      individual Note Owners. None of the Issuing Entity, the Note Registrar 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
      shall
      recognize the Holders of the Definitive Notes as Noteholders.

     

    Section
      4.09 Tax
      Treatment.
      The
      Issuing Entity has entered into this Indenture, and the Notes will be issued
      with the intention that, for federal, state and local income, single business
      and franchise tax purposes, the Notes (other than the Non-Offered Notes, which
      at the time of issuance, American Home Mortgage Investment Corp. or one of
      its
      qualified REIT subsidiaries acquires beneficial ownership thereof)will qualify
      as indebtedness. The Issuing Entity and the Indenture Trustee (in accordance
      with Section 6.06 hereof), by entering into this Indenture, and each Noteholder,
      by its acceptance of its Note (and each Beneficial Owner by its acceptance
      of an
      interest in the applicable Book-Entry Note), agree to treat the Notes for
      federal, state and local income, single business and franchise tax purposes
      as
      indebtedness.

     

    Section
      4.10 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) Sections 3.03
      and 3.05, (v) the rights 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 Section 4.11 and (vi) the rights
      of
      Noteholders as beneficiaries hereof with respect to the property so deposited
      with the Indenture Trustee payable to all or any of them, and the Indenture
      Trustee, on demand of and at the expense of the Issuing Entity, shall execute
      proper instruments acknowledging satisfaction and discharge of this Indenture
      with respect to the Notes and shall release and deliver the Collateral to or
      upon the Issuing Entity Request, when

     

    
      
        
        

      

      
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    (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 4.03 hereof and (ii) Notes for whose payment money has theretofore
      been
      deposited in trust or segregated and held in trust by the Issuing Entity and
      thereafter repaid to the Issuing Entity or discharged from such trust, as
      provided in Section 3.03) have been delivered to the Indenture Trustee for
      cancellation; or

     

    (2) all
      Notes
      not theretofore delivered to the Indenture Trustee for cancellation

     

    
      	 	
              a.

            	
              have
                become due and payable,

            

    

     

    
      	 	
              b.

            	
              will
                become due and payable at the Final Scheduled Payment Date within
                one
                year,

            

    

     

    
      	 	
              c.

            	
              have
                been called for early redemption and the Trust has been terminated
                pursuant to Section 8.08 hereof, or

            

    

     

    
      	 	
              d.

            	
              have
                been called for surrender in exchange for the corresponding Classes
                of
                REMIC Notes or REMIC Privately Offered Certificates pursuant to Section
                8.07 following the occurrence of the REMIC Conversion as described
                in
                Article XI and the Trust has been termination pursuant to Section
                8.05
                hereof,

            

    

     

    and
      the
      Issuing Entity, in the case of a. or b. above, has irrevocably deposited or
      caused to be irrevocably deposited with the Indenture Trustee 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 then outstanding not theretofore delivered to the Indenture Trustee
      for cancellation when due on the Final Scheduled Payment Date or other final
      Payment Date and has delivered to the Indenture Trustee a verification report
      with respect to such direct obligations or obligations guaranteed by the United
      States of America from a nationally recognized accounting firm certifying that
      the amounts deposited with the Indenture Trustee are sufficient to pay and
      discharge the entire indebtedness of such Notes, or, in the case of c. above,
      the Issuing Entity shall have complied with all requirements of Section 8.08
      hereof; and

     

    (B) the
      Issuing Entity has delivered to the Indenture Trustee, an Officer’s Certificate
      and an Opinion of Counsel, each meeting the applicable requirements of Section
      10.01 hereof, each stating that all conditions precedent herein provided for
      relating to the satisfaction and discharge of this Indenture have been complied
      with and, if the Opinion of Counsel relates to a deposit made in connection
      with
      Section 4.10(A)(2)b. above, such opinion shall further be to the effect that
      such deposit will constitute an “in-substance defeasance” within the meaning of
      Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance therewith, the Issuing
      Entity will be the owner of the assets deposited in trust for federal income
      tax
      purposes.

     

    
      
        
        

      

      
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    Section
      4.11 Application
      of Trust Money.
      All
      monies deposited with the Indenture Trustee pursuant to Section 4.10 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 or the Certificate Paying Agent as designee of the Issuing Entity,
      as the Indenture Trustee may determine, to the Holders of Securities, of all
      sums due and to become due thereon for principal and interest or otherwise;
      but
      such monies need not be segregated from other funds except to the extent
      required herein or required by law.

     

    Section
      4.12 [Reserved]

     

    Section
      4.13 Repayment
      of Monies Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all monies then held by any Person other than the Indenture Trustee
      under the provisions of this Indenture with respect to such Notes shall, upon
      demand of the Issuing Entity, be paid to the Indenture Trustee to be held and
      applied according to Section 3.05 and thereupon such Person shall be released
      from all further liability with respect to such monies.

     

    Section
      4.14 Temporary
      Notes.
      Pending
      the preparation of any Definitive Notes, the Issuing Entity may execute and
      upon
      its written direction, the Indenture Trustee may authenticate and make available
      for delivery, temporary Notes that are printed, lithographed, typewritten,
      photocopied or otherwise produced, in any denomination, substantially of the
      tenor of the Definitive Notes in lieu of which they are issued and with such
      appropriate insertions, omissions, substitutions and other variations as the
      officers executing such Notes may determine, as evidenced by their execution
      of
      such Notes.

     

    If
      temporary Notes are issued, the Issuing Entity will cause Definitive Notes
      to be
      prepared without unreasonable delay. After the preparation of the Definitive
      Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
      surrender of the temporary Notes at the office of the agent of the Indenture
      Trustee located at c/o DB Services Tennessee, 648 Grassmere Park Road,
      Nashville, Tennessee 37211-3658, without charge to the Holder. Upon surrender
      for cancellation of any one or more temporary Notes, the Issuing Entity shall
      execute and, upon Issuing Entity Request, the Indenture Trustee shall
      authenticate and make available for delivery, in exchange therefor, Definitive
      Notes of authorized denominations and of like tenor, class and aggregate
      principal amount. Until so exchanged, such temporary Notes shall in all respects
      be entitled to the same benefits under this Indenture as Definitive
      Notes.

     

    Section
      4.15 Representation
      Regarding ERISA.
      By
      acquiring an Offered Note or interest therein, each Holder of such Note or
      Beneficial Owner of any such interest will be deemed to represent that either
      (1) it is not acquiring such Note with Plan Assets or (2) (A) the acquisition,
      holding and transfer of such Note will not give rise to a non-exempt prohibited
      transaction under Section 406 of ERISA or Section 4975 of the Code and (B)
      the
      Offered Note is rated investment grade or better and such person believes that
      the Offered Note is properly treated as indebtedness without substantial equity
      features for purposes of Department of Labor regulation 29 C.F.R. § 2510.3-101
      (the “DOL Regulations”), and agrees to so treat the Note. Alternatively,
      regardless of the rating of the Offered Note, such person may provide the
      Indenture Trustee and the Owner Trustee with an opinion of counsel, which
      opinion of counsel will not be at the expense of the Issuing Entity, the
      Sponsor, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Securities Administrator, the Servicer or any successor servicer
      which opines that the acquisition, holding and transfer of such Offered Note
      or
      interest therein is permissible under applicable law, will not constitute or
      result in a non-exempt prohibited transaction under ERISA or Section 4975 of
      the
      Code and will not subject the Issuing Entity, the Sponsor, the Depositor, any
      Underwriter, the Owner Trustee, the Indenture Trustee, the Servicer, the Master
      Servicer or the Securities Administrator or any successor servicer to any
      obligation in addition to those undertaken in the Indenture.

     

    
      
        
        

      

      
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    No
      transfer of Non-Offered Notes or any interest therein shall be made to any
      Person unless the Depositor, the Owner Trustee, the Indenture Trustee, the
      Note
      Registrar and the Servicer are provided with an Opinion of Counsel which
      establishes to the satisfaction of the Note Registrar that the purchase of
      Non-Offered Notes, operation of the Trust and management of Trust assets are
      permissible under applicable law, will not constitute or result in any
      prohibited transaction under ERISA or Section 4975 of the Code and will not
      subject the Depositor, the Owner Trustee, the Note Registrar, the Securities
      Administrator, the Master Servicer, the Sponsor, the Servicer or any successor
      servicer to any obligation or liability (including obligations or liabilities
      under ERISA or Section 4975 of the Code) in addition to those undertaken in
      this
      Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
      the Owner Trustee, the Indenture Trustee, the Note Registrar, the Securities
      Administrator, the Master Servicer, the Servicer or the Sponsor. In lieu of
      such
      Opinion of Counsel, a Person acquiring such Non-Offered Notes may provide a
      certification in the form of Exhibit O hereto to the Depositor, the Owner
      Trustee and the Note Registrar, which the Depositor, the Owner Trustee, the
      Indenture Trustee, the Note Registrar, the Securities Administrator, the Master
      Servicer, the Servicer and the Sponsor may rely upon without further inquiry
      or
      investigation. Neither an Opinion of Counsel nor a certification will be
      required in connection with the initial transfer of any such Non-Offered Note
      by
      the Depositor to an affiliate of the Depositor (in which case, the Depositor
      or
      any affiliate thereof shall be deemed to have represented that such affiliate
      is
      not a Plan or a Person investing Plan Assets of any Plan) and the Owner Trustee
      and the Note Registrar shall be entitled to conclusively rely upon a
      representation (which, upon the request of the Owner Trustee or the Note
      Registrar, shall be a written representation) from the Depositor of the status
      of such transferee as an affiliate of the Depositor.

     

    
      
        
        

      

      
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    ARTICLE
      V

     

    
      DEFAULT
        AND REMEDIES

    

     

    Section
      5.01 Events
      of Default.
      The
      Issuing Entity shall deliver to the Indenture Trustee, within five days after
      learning of the occurrence of an Event of Default, 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 (c) or (d) of the
      definition of “Event of Default”, its status and what action the Issuing Entity
      is taking or proposes to take with respect thereto. The Indenture Trustee shall
      not be deemed to have knowledge of any Event of Default unless a Responsible
      Officer has actual knowledge thereof or unless written notice of such Event
      of
      Default is received by a Responsible Officer and such notice references the
      Notes, the Trust Estate or this Indenture.

     

    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 (i) with respect to the Notes, at the written direction of
      the
      Holders of Notes representing not less than a majority of the aggregate Note
      Principal Balance of the Notes, and upon any such declaration the unpaid Note
      Principal Balance of the Notes, together with accrued and unpaid interest
      thereon through the date of acceleration, shall become immediately due and
      payable.

     

    At
      any
      time after such declaration of acceleration of maturity with respect to an
      Event
      of Default 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, (i) with respect to the Notes, the Holders of the Notes
      representing not less than a majority of the aggregate Note Principal Balance
      of
      each Class of Notes, by written notice to the Issuing Entity and the Indenture
      Trustee, may waive the related Event of Default and rescind and annul such
      declaration and its consequences if:

     

    (a) the
      Issuing Entity has paid or deposited with the Indenture Trustee a sum sufficient
      to pay:

     

    (A) all
      payments of principal of and interest on the Notes and all other amounts that
      would then be due hereunder or under the Notes if the Event of Default giving
      rise to such acceleration had not occurred;

     

    (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

     

    (C) all
      amounts owed to the Cap Counterparty and the Corridor Provider.

     

    (b) 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.

     

    
      
        
        

      

      
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    Section
      5.03 Collection
      of Indebtedness and Suits for Enforcement by Indenture Trustee.

     

    (a) The
      Issuing Entity covenants that if (i) default is made in the payment of any
      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 or any installment of the principal of any Note when the same
      becomes due and payable, the Issuing Entity shall, upon demand of the Indenture
      Trustee, with respect to the Notes at the written direction of the Holders
      of a
      majority of the aggregate Note Principal Balances of the Notes, pay to the
      Indenture Trustee, the Holders of Notes, the whole amount then due and payable
      on the related Notes for principal and interest, with interest at the applicable
      Note Interest Rate upon the overdue principal, and in addition thereto 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 Issuing Entity shall fail forthwith to pay such amounts upon such demand,
      the Indenture Trustee, in its own name and as trustee of an express trust,
      subject to the provisions of Section 4.12 and Section 10.16 hereof, 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 Issuing Entity or other obligor upon the Notes and collect in the
      manner provided by law out of the property of the Issuing Entity or other
      obligor upon the Notes, wherever situated, the monies adjudged or decreed to
      be
      payable.

     

    (c) If
      an
      Event of Default occurs and is continuing, the Indenture Trustee, subject to
      the
      provisions of Section 4.12 and Section 10.16 hereof, may, as more particularly
      provided in Section 5.04 hereof, in its discretion, proceed to protect and
      enforce its rights and the rights of the Noteholders by such appropriate
      Proceedings as directed in writing by the Holders of a majority of the aggregate
      Note Principal Balances of each Class of Notes, 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 Issuing Entity or any other obligor
      upon
      the Notes or any Person having or claiming an ownership interest in the Trust
      Estate, Proceedings 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,
      liquidator, sequestrator or similar official shall have been appointed for
      or
      taken possession of the Issuing Entity or its property or such other obligor
      or
      Person, or in case of any other comparable judicial Proceedings relative to
      the
      Issuing Entity or other obligor upon the Notes, or to the creditors or property
      of the Issuing Entity or such other obligor, the Indenture Trustee, as directed
      in writing by the Holders of a majority of the aggregate Note Principal Balances
      of each Class of Notes, 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:

     

    
      
        
        

      

      
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    (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, willful misconduct 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 monies 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, and

     

    (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 judicial proceedings relative to the Issuing Entity, its
      creditors and its property;

     

    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 Indenture Trustee, and, 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, and all advances made, by the Indenture Trustee and each
      predecessor Indenture Trustee.

     

    (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 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, subject to Section 5.05 hereof.

     

    
      
        
        

      

      
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    (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.

     

    (h) When
      the
      Indenture Trustee incurs expenses or renders services in connection with an
      Event of Default specified in clause (e) of the definition thereof or any other
      related Proceedings the expenses (including the reasonable charges and expenses
      of its counsel) and the compensation for the services are intended to constitute
      expenses of administration under any applicable Federal or state bankruptcy,
      insolvency or other similar law.

     

    Section
      5.04 Remedies;
      Priorities.

     

    (a) If
      an
      Event of Default shall have occurred and be continuing and if an acceleration
      has been declared and not rescinded pursuant to Section 5.02 hereof, the
      Indenture Trustee, subject to the provisions of Section 10.16 hereof, may and
      shall, with respect to the Notes, at
      the
      written direction of the Holders of a majority of the aggregate Note Principal
      Balances of the Notes,
      do one
      or more of the following (subject to Section 5.05 hereof):

     

    (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 Issuing Entity and any other obligor upon such
      Notes monies adjudged due;

     

    (ii) institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Trust Estate;

     

    (iii) exercise
      any remedies of a secured party under the 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
      Trust Estate 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 the Trust Estate
      following an Event of Default, unless (A) the Indenture Trustee receives the
      consent of the Holders of 100% of the aggregate Note Principal Balance of the
      Notes then outstanding, (B) it is determined that the proceeds of such sale
      or
      liquidation distributable to the Holders of the Notes are sufficient to
      discharge in full all amounts then due and unpaid upon such Notes for principal
      and interest or (C) it is determined that the mortgage loans will not continue
      to provide sufficient funds for the payment of principal of and interest on
      the
      applicable Notes as they would have become due if the Notes had not been
      declared due and payable, and the Indenture Trustee receives the consent of
      the
      Holders of 66 2/3% of the aggregate Note Principal Balance of the Notes then
      outstanding. In determining such sufficiency or insufficiency with respect
      to
      clause (B) and (C), the Indenture Trustee may, but need not, obtain and rely
      upon an opinion (obtained at the expense of the Trust) 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 Trust
      Estate for such purpose. Notwithstanding the foregoing, so long as an Event
      of
      Master Servicer Termination has not occurred, any Sale of the Trust Estate
      shall
      be made subject to the continued servicing of the Mortgage Loans by the Servicer
      as provided in the related Servicing Agreement.

     

    
      
        
        

      

      
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    (b) If
      the
      Indenture Trustee collects any money or property with respect to the Group
      I
      Loans, Group II-C Loans or Group II-NC Loans, pursuant to this Article V, it
      shall pay out the money or property in the following order as determined by
      the
      Securities Administrator for each Loan Group:

     

    FIRST:
      to
      the Indenture Trustee, the Securities Administrator, the Master Servicer and
      Servicer for amounts due and not previously paid under
      the
      Basic Documents;

     

    SECOND:
      to the Cap Counterparty and the Corridor Provider, any amounts due and unpaid
      to
      the Cap Counterparty and the Corridor Provider under the Cap Contracts and
      the
      Corridor Contract, respectively;

     

    THIRD:
      to
      the related Noteholders, the amount of interest then due and unpaid on the
      related Notes (other than Basis Risk Shortfall Carry-Forward Amounts and Net
      WAC
      Shortfall Carry-Forward Amounts), first, to the related Class A Noteholders,
      on
      a pro
      rata basis,
      the
      related Accrued Note Interest for such Class, plus any related Unpaid Interest
      Shortfalls, and second, to the Class M Noteholders, sequentially, according
      to
      the amounts due and payable on such Notes for interest;

     

    FOURTH:
      to the related Noteholders the amount of principal then due and unpaid on the
      related Notes, and to each such Noteholder, on a pro rata basis, without
      preference or priority of any kind, until the Note Principal Balance of each
      such Class is reduced to zero;

     

    FIFTH:
      with respect to the Group I Loans, to the Class I-A-2, Class I-A-3 and Class
      I-M
      Notes, and with respect to the Group II-C Loans and Group II-NC Loans, II-A-2
      Notes or the Class II-A-4 Notes, as applicable, and Class II-B Notes and Class
      II-M Notes, in order of payment priority as set forth in Section 3.38, the
      amount of any related Allocated Realized Loss Amount not previously
      paid;

     

    SIXTH:
      to
      the related Notes, in order of payment priority, the amount of any related
      Basis
      Risk Shortfall Carry-Forward Amounts or Net WAC Shortfall Carry-Forward Amounts,
      as applicable, not previously paid; and

     

    SEVENTH:
      to the payment of the remainder, if any, to the Holder of the Trust Certificate
      on behalf of the Issuing Entity.

     

    The
      Indenture Trustee may fix a record date and Payment Date for any payment to
      Noteholders pursuant to this Section 5.04. At least 15 days before such record
      date, the Indenture Trustee shall mail to each Noteholder a notice that states
      the record date, the Payment Date and the amount to be paid.

     

    Section
      5.05 Optional
      Preservation of the Trust Estate.
      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, and shall, at the written
      direction of the Holders of a majority of the aggregate Note Principal Balances
      of the Notes, elect to take and maintain possession of the Trust Estate. 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
      other obligations of the Issuing Entity and the Indenture Trustee, shall take
      such desire into account when determining whether or not to take and maintain
      possession of the Trust Estate. In determining whether to take and maintain
      possession of the Trust Estate, 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 Trust Estate for such purpose.

     

    
      
        
        

      

      
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    Section
      5.06 Limitation
      of Suits.
      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 and subject
      to
      the provisions of Section 10.16 hereof:

     

    (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 aggregate Note Principal Balances of the
      Notes have made a 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 of 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 Note
      Principal Balances 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. No Holder of any Note shall have any right to institute any
      Proceeding, judicial or otherwise, with respect to a TMP Trigger Event, with
      respect to the meeting of the conditions to a REMIC Conversion or with respect
      to a REMIC Conversion.

     

    Subject
      to the last paragraph of Section 5.11 herein, 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
      Note Principal Balances of the Notes, the Indenture Trustee shall take the
      action requested by the group of Holders representing the largest percentage
      of
      the Note Principal Balance.

     

    
      
        
        

      

      
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    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 and to institute
      suit for the enforcement of any such payment, and such right shall not be
      impaired without the consent of such Holder. Notwithstanding the foregoing,
      in
      the event of a REMIC Conversion, Holders of Offered Notes shall receive, in
      a
      mandatory exchange for such Notes, REMIC Notes, whose principal and interest
      entitlement shall not be determined by this Indenture but rather by the
      provisions of an indenture and pooling and servicing agreement governing the
      cashflows of the REMIC Notes and REMIC Privately Offered Certificates, as
      applicable. In addition, in the event of a REMIC Conversion, Holders of the
      Non-Offered Notes shall receive, in a mandatory exchange for such Notes, REMIC
      Privately Offered Certificates, whose principal and interest entitlement shall
      not be determined by this Indenture but rather by the provisions of a pooling
      and servicing agreement governing the cashflows of the REMIC Privately Offered
      Certificates.

     

    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 Issuing Entity,
      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 Event of Default shall impair any such
      right or remedy or constitute a waiver of any such 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.
      (i)
      With respect to the Notes, the Holders of a majority of the aggregate Note
      Principal Balances of 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 related Notes or exercising any trust or power
      conferred on the Indenture Trustee; provided that:

     

    (a) such
      direction shall not be in conflict with any rule of law or with this
      Indenture;

     

    
      
        
        

      

      
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    (b) any
      direction to the Indenture Trustee to sell or liquidate the Trust Estate shall
      be by Holders of Notes representing not less than 100% of the Note Principal
      Balances of the Notes; and

     

    (c) the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction of the Holders of Notes
      representing a majority of the Note Principal Balances of the
      Notes.

     

    Notwithstanding
      the rights of Noteholders set forth in this Section 5.11 the Indenture Trustee
      need not take any action that it determines might involve it in
      liability.

     

    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 hereof, with respect to the Notes, the Holders of Notes
      representing not less than a majority of the aggregate Note Principal Balance
      of
      each Class of Notes may waive any past Event of Default and its consequences
      except an Event of Default (a) with respect to 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 Issuing Entity, 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 Event of Default or impair any right consequent
      thereto.

     

    Upon
      any
      such waiver, 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 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 any Note and each Beneficial
      Owner of any interest therein by such Holder’s or Beneficial Owner’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 5.13 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 Note Principal Balances 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.

     

    Section
      5.14 Waiver
      of Stay or Extension Laws.
      The
      Issuing Entity 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 Issuing Entity (to the extent that it may lawfully
      do
      so) hereby expressly waives all benefit or advantage of any such law, and
      covenants that it shall 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.

     

    
      
        
        

      

      
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    Section
      5.15 Sale
      of Trust Estate.

     

    (a) The
      power
      to effect any sale or other disposition (a “Sale”) of any portion of the Trust
      Estate pursuant to Section 5.04 hereof is expressly subject to the provisions
      of
      Sections 5.05 and 5.11(b) hereof and this Section 5.15. The power to effect
      any
      such Sale shall not be exhausted by any one or more Sales as to any portion
      of
      the Trust Estate remaining unsold, but shall continue unimpaired until the
      entire Trust Estate shall have been sold or all amounts payable on the Notes
      and
      under this Indenture shall have been paid. The Indenture Trustee may from time
      to time postpone any public Sale by public announcement made at the time and
      place of such Sale. The Indenture Trustee hereby expressly waives its right
      to
      any amount fixed by law as compensation for any Sale.

     

    (b) The
      Indenture Trustee shall not in any private Sale sell the Trust Estate, or any
      portion thereof, unless

     

    (1) the
      Holders of all Notes consent to or direct the Indenture Trustee to make, such
      Sale, or

     

    (2) the
      proceeds of such Sale would be not less than the entire amount which would
      be
      payable to the Noteholders under the Notes on the Payment Date next succeeding
      the date of such Sale,

     

    (3) the
      Indenture Trustee determines that the conditions for retention of the Trust
      Estate set forth in Section 5.05 hereof cannot be satisfied (in making any
      such
      determination, the Indenture Trustee may rely upon an opinion of an Independent
      investment banking firm obtained and delivered as provided in Section 5.05
      hereof), the Holders of Notes representing at least 100% of the Note Principal
      Balances of the Notes consent to such Sale; or

     

    (4) such
      Sale
      occurs following the occurrence of a TMP Trigger Event in accordance with the
      terms and conditions of this Indenture and the Trust Agreement.

     

    The
      purchase by the Indenture Trustee of all or any portion of the Trust Estate
      at a
      private Sale shall not be deemed a Sale or other disposition thereof for
      purposes of this Section 5.15(b).

     

    (c) [Reserved]

     

    (d) In
      connection with a Sale of all or any portion of the Trust Estate,

     

    (1) any
      Holder or Holders of Notes may bid for and purchase the property offered for
      sale, and upon compliance with the terms of sale may hold, retain and possess
      and dispose of such property, without further accountability, and may, in paying
      the purchase money therefor, deliver any Notes or claims for interest thereon
      in
      lieu of cash up to the amount which shall, upon distribution of the net proceeds
      of such sale, be payable thereon, and such Notes, in case the amounts so payable
      thereon shall be less than the amount due thereon, shall be returned to the
      Holders thereof after being appropriately stamped to show such partial
      payment;

     

    
      
        
        

      

      
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    (2) the
      Indenture Trustee may, but is in no event obligated to, bid for and acquire
      the
      property offered for Sale in connection with any Sale thereof, and, subject
      to
      any requirements of, and to the extent permitted by, applicable law in
      connection therewith, may purchase all or any portion of the Trust Estate in
      a
      private sale, and, in lieu of paying cash therefor, may make settlement for
      the
      purchase price by crediting the gross Sale price against the sum of (A) the
      amount which would be distributable to the Holders of the Notes and Holders
      of
      Certificates as a result of such Sale in accordance with Section 5.04(b) hereof
      on the Payment Date next succeeding the date of such Sale and (B) the expenses
      of the Sale and of any Proceedings in connection therewith which are
      reimbursable to it, without being required to produce the Notes in order to
      complete any such Sale or in order for the net Sale price to be credited against
      such Notes, and any property so acquired by the Indenture Trustee shall be
      held
      and dealt with by it in accordance with the provisions of this
      Indenture;

     

    (3) the
      Indenture Trustee shall execute and deliver an appropriate instrument of
      conveyance, prepared by the Issuing Entity and satisfactory to the Indenture
      Trustee, transferring its interest in any portion of the Trust Estate in
      connection with a Sale thereof;

     

    (4) the
      Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact
      of the Issuing Entity to transfer and convey its interest in any portion of
      the
      Trust Estate in connection with a Sale thereof, and to take all action necessary
      to effect such Sale; and

     

    (5) no
      purchaser or transferee at such a Sale 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.

     

    Section
      5.16 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 Issuing Entity or by the levy of any execution under such
      judgment upon any portion of the Trust Estate or upon any of the assets of
      the
      Issuing Entity. Any money or property collected by the Indenture Trustee shall
      be applied in accordance with Section 5.04(b) hereof.

     

    Section
      5.17 Performance
      and Enforcement of Certain Obligations.

     

    (a) Promptly
      following a request from the Indenture Trustee to do so, the Issuing Entity
      in
      its capacity as holder of the Mortgage Loans, shall take all such lawful action
      as the Indenture Trustee may request to cause the Issuing Entity to compel
      or
      secure the performance and observance by the Sponsor and the Servicer, as
      applicable, of each of their obligations to the Issuing Entity under or in
      connection with the Mortgage Loan Purchase Agreement and the Servicing
      Agreement, and to exercise any and all rights, remedies, powers and privileges
      lawfully available to the Issuing Entity under or in connection with the
      Mortgage Loan Purchase Agreement and the Servicing Agreement to the extent
      and
      in the manner directed by the Indenture Trustee, as pledgee of the Mortgage
      Loans, including the transmission of notices of default on the part of the
      Sponsor or the Servicer thereunder and the institution of legal or
      administrative actions or proceedings to compel or secure performance by the
      Sponsor or the Servicer of each of their obligations under the Mortgage Loan
      Purchase Agreement and the Servicing Agreement.

     

    
      
        
        

      

      
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    (b) The
      Indenture Trustee, as pledgee of the Mortgage Loans and the Servicing Agreement,
      may, and at the direction of the Holders of 66-2/3% of the Note Principal
      Balances of the Notes, shall exercise all rights, remedies, powers, privileges
      and claims of the Issuing Entity against the Sponsor or the Servicer under
      or in
      connection with the Mortgage Loan Purchase Agreement and the Servicing
      Agreement, including the right or power to take any action to compel or secure
      performance or observance by the Sponsor or the Servicer, as the case may be,
      of
      each of their obligations to the Issuing Entity thereunder and to give any
      consent, request, notice, direction, approval, extension or waiver under the
      Mortgage Loan Purchase Agreement and the Servicing Agreement, as the case may
      be, and any right of the Issuing Entity to take such action shall not be
      suspended.

     

    
      
        
        

      

      
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    ARTICLE
      VI

    
      THE
        INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

       

    

     

    Section
      6.01 Duties
      of Indenture Trustee and Securities Administrator.

     

    (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 their exercise as a prudent Person would exercise
      or
      use under the circumstances in the conduct of such Person’s own
      affairs.

     

    (b) Except
      during the continuance of an Event of Default:

     

    (i) the
      Indenture Trustee and the Securities Administrator undertakes to perform such
      duties and only such duties as are specifically set forth in this Indenture
      and
      no implied covenants or obligations shall be read into this Indenture against
      the Indenture Trustee or the Securities Administrator; and

     

    (ii) in
      the
      absence of bad faith on its part, the Indenture Trustee and the Securities
      Administrator may each conclusively rely, as to the truth of the statements
      and
      the correctness of the opinions expressed therein, upon certificates, reports,
      documents, Issuing Entity Requests or other instruments or opinions furnished
      to
      each of the Indenture Trustee and the Securities Administrator and conforming
      to
      the requirements of this Indenture; however, the Indenture Trustee and the
      Securities Administrator shall examine the certificates, reports, documents,
      Issuing Entity Requests or other instruments and opinions to determine whether
      or not they conform to the requirements of this Indenture (but need not confirm
      or investigate the accuracy of mathematical calculations or other facts stated
      therein).

     

    (c) The
      Indenture Trustee and the Securities Administrator may not be relieved from
      liability for its own negligent action, its own negligent failure to act or
      its
      own willful misconduct, except that:

     

    (i) this
      paragraph does not limit the effect of paragraph (b) of this Section
      6.01;

     

    (ii) neither
      the Indenture Trustee nor the Securities Administrator shall 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) neither
      the Indenture Trustee nor the Securities Administrator shall be liable with
      respect to any action it takes or omits to take in good faith in accordance
      with
      a written direction received by it from Noteholders, the Certificateholders
      or
      the Issuing Entity, which they are entitled to give under the Basic
      Documents;

     

    (iv) neither
      the Indenture Trustee nor the Securities Administrator shall be liable for
      interest or income on any money received by it, except, in the case of the
      Securities Administrator, as set forth in the Basic Documents;

     

    
      
        
        

      

      
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    (v) money
      held in trust by the Indenture Trustee or the Securities Administrator need
      not
      be segregated from other trust funds except to the extent required by law or
      the
      terms of this Indenture or the Trust Agreement;

     

    (vi) no
      provision of this Indenture or other Basic Document shall require the Indenture
      Trustee or the Securities
      Administrator to
      expend
      or risk its own funds or otherwise incur financial liability in the performance
      of any of its duties hereunder or in the exercise of any of its rights or
      powers, if it shall have reasonable grounds to believe that repayment of such
      funds or indemnity satisfactory to it against such risk or liability is not
      reasonably assured to it;

     

    (vii) every
      provision of this Indenture or other Basic Document 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 and to the provisions of
      the
      TIA;

     

    (viii) the
      Indenture Trustee shall execute and act in accordance with the Servicing
      Agreement and
      the
      Master Servicing Agreement;
      in no
      event however, shall the Indenture Trustee or the Securities Administrator
      have
      any liability for any act or omission of the Master Servicer, the Servicer,
      any
      Subservicer or the Owner Trustee or for each other; and

     

    (ix) the
      Indenture Trustee shall not be deemed to have notice or knowledge of any Default
      or Event of Default, any Servicer Default or other event unless a Responsible
      Officer of the Indenture Trustee has actual knowledge thereof or unless written
      notice of any such event that is in fact an Event of Default, Default, Servicer
      Default or other event is received by the Indenture Trustee at its Corporate
      Trust Office and such notice references the Notes or Certificates generally,
      the
      Issuing Entity, the Trust Estate or this Indenture.

     

    Section
      6.02 Rights
      of Indenture Trustee and the Securities Administrator.

     

    (a) The
      Indenture Trustee and the Securities Administrator may rely conclusively on
      and
      shall be protected in acting or refraining from acting upon any resolution,
      certificate, statement, instrument, opinion, report, notice, request, direction,
      consent, order, bond, debenture, note, other evidence of indebtedness or other
      paper or document believed by it to be genuine and to have been signed or
      presented by the proper Person, party or parties. The Indenture Trustee and
      the
      Securities Administrator need not investigate any fact or matter stated in
      any
      such document.

     

    (b) Before
      the Indenture Trustee or the Securities Administrator acts or refrains from
      acting, it may require an Officer’s Certificate or an Opinion of Counsel.
      Neither the Indenture Trustee nor the Securities Administrator shall be liable
      for any action it takes or omits to take in good faith in reliance on and in
      accordance with an Officer’s Certificate or Opinion of Counsel.

     

    (c) Subject
      to the provisions of Section 6.01(c), neither the Indenture Trustee nor the
      Securities Administrator shall 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.

     

    
      
        
        

      

      
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    (d) The
      Indenture Trustee and the Securities Administrator may each consult with counsel
      of its selection, and the written advice or Opinion of Counsel with respect
      to
      legal matters relating to this Indenture and the Notes or any Basic Document
      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 the written advice or Opinion of such
      counsel.

     

    (e) For
      the
      limited purpose of effecting any action to be undertaken by each of the
      Indenture Trustee and the Securities Administrator, but not specifically as
      a
      duty of the Indenture Trustee or the Securities Administrator in the Indenture,
      each of the Indenture Trustee and the Securities Administrator may execute
      any
      of the trusts or powers hereunder or perform any duties hereunder, either
      directly or by or through agents, attorneys, custodians or nominees appointed
      with due care, and shall not be responsible for any willful misconduct or
      negligence on the part of any agent, attorney, custodian or nominee so
      appointed.

     

    (f) The
      Indenture Trustee or its Affiliates are permitted to receive additional
      compensation that could be deemed to be in the Indenture Trustee’s economic
      self-interest for (i) serving as investment adviser, administrator, shareholder
      servicing agent, custodian or sub-custodian with respect to certain of the
      Eligible Investments, (ii) using Affiliates to effect transactions in certain
      Eligible Investments and (iii) effecting transactions in certain Eligible
      Investments. Such compensation shall not be considered an amount, or effect
      a
      reduction in any amount, that is reimbursable or payable to the Indenture
      Trustee (i) as part of the Indenture Trustee Fee, (ii) pursuant to Sections
      5.04(b), 6.07, 8.02(c), 8.05(a) or 8.07 hereunder or (iii) out of Available
      Funds.

     

    (g) In
      order
      to comply with laws, rules and regulations applicable to banking institutions,
      including those relating to the funding of terrorist activities and money
      laundering, the Indenture Trustee is required to obtain, verify and record
      certain information relating to individuals and entities which maintain a
      business relationship with the Indenture Trustee. Accordingly, each of the
      parties agrees to provide to the Indenture Trustee upon its request from time
      to
      time such party’s complete name, address, tax identification number and such
      other identifying information together with copies of such party’s constituting
      documentation, securities disclosure documentation and such other identifying
      documentation as may be available for such party.

     

    (h) Whenever
      in the administration of this Indenture the Indenture Trustee or the Securities
      Administrator shall deem it desirable that a matter be proved or established
      prior to taking, suffering or omitting any action hereunder, the Indenture
      Trustee or the Securities Administrator (unless other evidence be herein
      specifically prescribed) may, in the absence of bad faith on its part,
      conclusively rely upon an Officer’s Certificate of the Issuing
      Entity.

     

    (i) The
      rights, privileges, protections, immunities and benefits given to the Indenture
      Trustee, including, without limitation, its right to be indemnified, are
      extended to, and shall be enforceable by, the Indenture Trustee and the
      Securities Administrator in each of its capacities hereunder, and to each
      custodian employed to act hereunder.

     

    
      
        
        

      

      
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    (j) The
      Indenture Trustee and the Securities Administrator may request that the Issuing
      Entity deliver an Officer’s Certificate setting forth the names of individuals
      and/or titles of officers authorized at such time to take specified actions
      pursuant to this Indenture, which Officer’s Certificate may be signed by any
      person authorized to sign an Officer’s Certificate, including any person
      specified as so authorized in any such certificate previously delivered and
      not
      superseded.

     

    Section
      6.03 Individual
      Rights.
      Each of
      the Indenture Trustee and the Securities Administrator in its individual or
      any
      other capacity may become the owner or pledgee of Notes and may otherwise deal
      with the Issuing Entity or its Affiliates with the same rights it would have
      if
      it were not Indenture Trustee or Securities Administrator, as applicable,
      subject to the requirements of the Trust Indenture Act. Any Note Registrar,
      co-registrar or co-paying agent may do the same with like rights. However,
      the
      Indenture Trustee must comply with Sections 6.11 and 6.12 hereof.

     

    Section
      6.04 Indenture
      Trustee’s and Securities Administrator’s Disclaimer.
      The
      Indenture Trustee and the Securities Administrator shall not be responsible
      for
      and make no representation as to the validity or adequacy of this Indenture,
      the
      Notes or any other Basic Document, it shall not be accountable for the Issuing
      Entity’s use of the proceeds from the Notes, and it shall not be responsible for
      any statement of the Issuing Entity in the Indenture or in any document issued
      in connection with the sale of the Notes or in the Notes other than the
      Indenture Trustee’s certificate of authentication.

     

    Section
      6.05 Notice
      of Event of Default.
      Subject
      to Section 5.01, the Indenture Trustee shall promptly mail to each Noteholder
      notice of the Event of Default after it is known to a Responsible Officer of
      the
      Indenture Trustee, unless such Event of Default shall have been waived or cured.
      Except in the case of an Event of Default in payment of principal of or interest
      on any Note, the Indenture Trustee may withhold the notice if and so long as
      a
      committee of its Responsible Officers in good faith determines that withholding
      the notice is in the best interests of Noteholders.

     

    Section
      6.06 Reports
      by Securities Administrator to Holders and Tax Administration.
      The
Securities
      Administrator shall
      deliver to each Noteholder such information as may be required to enable such
      holder to prepare its federal and state income tax returns.

     

    The
      Securities Administrator shall prepare and file (or cause to be prepared and
      filed), on behalf of the Owner Trustee, all information reports on Form 1099
      required to be provided to Noteholders and the Holder of the Certificates.
      The
      Securities Administrator shall prepare and file all tax returns required to
      be
      filed on behalf of the Trust pursuant to Section 5.03 of the Trust Agreement.
      All tax returns and information reports shall be signed by the Owner Trustee
      as
      provided in Section 5.03 of the Trust Agreement.

     

    
      
        
        

      

      
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    Section
      6.07 Compensation
      and Indemnity.
      The
      Indenture Trustee’s compensation shall not be limited by any law on compensation
      of a trustee of an express trust. The Issuing Entity shall reimburse the
      Indenture Trustee and the Securities Administrator as provided in Section
      8.02(c) for all reasonable out-of-pocket expenses incurred or made by it,
      including costs of collection, in addition to compensation for its services.
      Such expenses shall include reasonable compensation and expenses, disbursements
      and advances of the Indenture Trustee’s or Securities Administrator’s agents,
      counsel, accountants and experts. The Issuing Entity shall indemnify the
      Indenture Trustee and the Securities Administrator as provided in Section
      8.02(c) against any and all loss, liability, claims, damage, costs or expense
      (including reasonable attorneys’ fees and expenses) incurred by it in connection
      with the administration of this Trust and the performance of its duties
      hereunder and under the other Basic Documents. The Indenture Trustee and the
      Securities Administrator shall notify the Issuing Entity promptly of any claim
      for which it may seek indemnity. Failure by the Indenture Trustee or the
      Securities Administrator to so notify the Issuing Entity shall not relieve
      the
      Issuing Entity of its obligations hereunder. The Issuing Entity shall defend
      any
      such claim, and the Indenture Trustee and the Securities Administrator may
      have
      separate counsel and the Issuing Entity shall pay the fees and expenses of
      such
      counsel. The Issuing Entity is not obligated to reimburse any expense or
      indemnify against any loss, liability or expense incurred by the Indenture
      Trustee or the Securities Administrator or any of its agents, counsel,
      accountants or experts through the Indenture Trustee’s or such agent’s,
      counsel’s, accountant’s or expert’s own willful misconduct, negligence or bad
      faith.

     

    The
      Issuing Entity’s payment and indemnity obligations to the Indenture Trustee or
      the Securities Administrator pursuant to this Section 6.07 shall survive the
      discharge of this Indenture and the termination or resignation of the Indenture
      Trustee or the Securities Administrator. If the Indenture Trustee or the
      Securities Administrator incurs expenses after the occurrence of an Event of
      Default with respect to the Issuing Entity, the expenses are intended to
      constitute expenses of administration under Title 11 of the United States Code
      or any other applicable federal or state bankruptcy, insolvency or similar
      law.

     

    Section
      6.08 Replacement
      of Indenture Trustee and the Securities Administrator.
      No
      resignation or removal of the Indenture Trustee or the Securities Administrator
      and no appointment of a successor Indenture Trustee or successor Securities
      Administrator shall become effective until the acceptance of appointment by
      the
      successor Indenture Trustee or successor Securities Administrator pursuant
      to
      this Section 6.08. The Indenture Trustee or the Securities Administrator may
      resign at any time by so notifying the Issuing Entity. The Holders of a majority
      of Note Principal Balances of each Class of Notes may remove the Indenture
      Trustee or the Securities Administrator by so notifying the Indenture Trustee
      or
      the Securities Administrator and may appoint a successor Indenture Trustee
      or
      successor Securities Administrator. The Issuing Entity shall remove the
      Indenture Trustee or Securities Administrator , as applicable, if:

     

    (i) the
      Indenture Trustee fails to comply with or qualify pursuant to the provisions
      of
      Section 6.11 hereof;

     

    (ii) the
      Indenture Trustee or the Securities Administrator is adjudged a bankrupt or
      insolvent;

     

    (iii) a
      receiver or other public officer takes charge of the Indenture Trustee or the
      Securities Administrator or its property; or

     

    (iv) the
      Indenture Trustee or the Securities Administrator otherwise becomes incapable
      of
      acting.

     

    
      
        
        

      

      
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    (v) If
      the
      Indenture Trustee or the Securities Administrator resigns or is removed or
      if a
      vacancy exists in the office of the Indenture Trustee or the Securities
      Administrator for any reason (the Indenture Trustee or the Securities
      Administrator in such event being referred to herein as the retiring Indenture
      Trustee or retiring Securities Administrator), the Issuing Entity shall promptly
      appoint a successor Indenture Trustee or successor Securities
      Administrator.

     

    Each
      of a
      successor Indenture Trustee or successor Securities Administrator shall deliver
      a written acceptance of its appointment to the retiring Indenture Trustee,
      retiring Securities Administrator and to the Issuing Entity. Thereupon, the
      resignation or removal of the retiring Indenture Trustee or retiring Securities
      Administrator shall become effective, and the successor Indenture Trustee or
      successor Securities Administrator shall have all the rights, powers and duties
      of the Indenture Trustee or Securities Administrator under this Indenture.
      Each
      of the successor Indenture Trustee and successor Securities Administrator shall
      mail a notice of its succession to Noteholders. The retiring Indenture Trustee
      or retiring Securities Administrator shall promptly transfer all property held
      by it as Indenture Trustee or Securities Administrator to the successor
      Indenture Trustee or successor Securities Administrator.

     

    If
      a
      successor Indenture Trustee or successor Securities Administrator does not
      take
      office within 60 days after the retiring Indenture Trustee or retiring
      Securities Administrator resigns or is removed, the retiring Indenture Trustee
      or retiring Securities Administrator, the successor Indenture Trustee or
      successor Securities Administrator, the Issuing Entity or the Holders of a
      majority of Note Principal Balances of the Notes may petition any court of
      competent jurisdiction for the appointment of a successor Indenture Trustee
      or
      successor Securities Administrator.

     

    Notwithstanding
      the replacement of the Indenture Trustee or the Securities Administrator
      pursuant to this Section, the Issuing Entity’s obligations under
      Section 6.07 shall continue for the benefit of the retiring Indenture
      Trustee or retiring Securities Administrator.

     

    Section
      6.09 Successor
      Indenture Trustee and Successor Securities Administrator by
      Merger.
      If the
      Indenture Trustee or Securities Administrator consolidates with, merges or
      converts into, or transfers all or substantially all of its corporate trust
      business or assets to, another corporation, company or banking association,
      the
      resulting, surviving or transferee corporation, without any further act, shall
      be the successor Indenture Trustee or successor Securities Administrator;
      provided, that, in the case of the Indenture Trustee, such corporation, company
      or banking association shall be otherwise qualified and eligible under Section
      6.11 hereof. The Indenture Trustee and Securities Administrator shall each
      provide the Rating Agencies and the Issuing Entity with prior written notice,
      and the Noteholders with prompt written notice, of any such
      transaction.

     

    If
      at the
      time such successor or successors by merger, conversion or consolidation to
      the
      Indenture Trustee or shall succeed to the trusts created by this Indenture
      and
      any of the Notes shall have been authenticated but not delivered, any such
      successor to the Indenture Trustee may adopt the certificate of authentication
      of any predecessor trustee and deliver such Notes so authenticated; and if
      at
      that time any of the Notes shall not have been authenticated, any successor
      to
      the Indenture Trustee may authenticate such Notes either in the name of any
      predecessor hereunder or in the name of the successor to the Indenture Trustee;
      and in all such cases such certificates shall have the full force which is
      in
      the Notes or in this Indenture provided that the certificate of the Indenture
      Trustee shall have.

     

    
      
        
        

      

      
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    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 Trust Estate
      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 Estate, and to vest in such Person or Persons, in such
      capacity and for the benefit of the Noteholders, such title to the Trust Estate,
      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 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 Trust Estate
      or
      any portion thereof in any such jurisdiction) shall be exercised and performed
      singly by such separate trustee or co-trustee, but solely at the direction
      of
      the Indenture Trustee;

     

    (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.

     

    (iv) 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.

     

    
      
        
        

      

      
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    (v) 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. 

     

    (a) The
      Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a).
      The Indenture Trustee shall have a combined capital and surplus of at least
      $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 Standard & Poor’s. The Indenture Trustee shall
      comply with TIA § 310(b), including the optional provision permitted by the
      second sentence of TIA § 310(b)(9); provided,
      however,
      that
      there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
      indentures under which other securities of the Issuing Entity are outstanding
      if
      the requirements for such exclusion set forth in TIA § 310(b)(1) are
      met.

     

    (b) 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, (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 such rating acceptable to Fitch pursuant to a rating
      confirmation), or the equivalent rating by Standard & Poor’s or Moody's. If
      no successor Securities Administrator shall have been appointed and shall have
      accepted appointment within 60 days after the Securities Administrator ceases
      to
      be the securities administrator pursuant to Section 6.08, then the Indenture
      Trustee shall become the successor Securities Administrator in accordance with
      this Article VI and in such capacity shall perform the duties of the Securities
      Administrator pursuant to this Agreement. The Indenture Trustee shall notify
      the
      Rating Agencies of any change of Securities Administrator. 

     

    Section
      6.12 Preferential
      Collection of Claims Against Issuing Entity.
      The
      Indenture Trustee shall comply with TIA § 311(a), excluding any creditor
      relationship listed in TIA § 311(b). An Indenture Trustee who has resigned or
      been removed shall be subject to TIA § 311(a) to the extent
      indicated.

     

    Section
      6.13 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;

     

    
      
        
        

      

      
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    (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.

     

    (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 association or bylaws of the
      Indenture Trustee or any material agreement or other instrument to which the
      Indenture Trustee is a party or by which it is bound which would adversely
      affect its performance under this Indenture; and

     

    (d) There
      are
      no proceedings or investigations pending or to, the Indenture Trustee's
      knowledge, threatened before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Indenture
      Trustee: (A) asserting the invalidity of this Indenture (B) seeking to prevent
      the consummation of any of the transactions contemplated by this Indenture
      or
      (C) 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
      6.14 Directions
      to Indenture Trustee.
      The
      Indenture Trustee is hereby directed:

     

    (a) to
      accept
      the pledge of the Mortgage Loans and hold the assets of the Trust Estate in
      trust for the Noteholders;

     

    (b) to
      authenticate and deliver the Notes substantially in the form prescribed by
      Exhibits A-1, A-2 and A-3 to this Indenture in accordance with the terms of
      this
      Indenture; and

     

    (c) to
      take
      all other actions as shall be required to be taken by it under the terms of
      this
      Indenture.

     

    Section
      6.15 The
      Agents.
      The
      provisions of this Indenture relating to the limitations of the Indenture
      Trustee’s liability and to its indemnity, rights and protections shall inure
      also to the Paying Agent and Note Registrar.

     

    Section
      6.16 Administrative
      Duties.

     

    (a) The
      Indenture Trustee agrees to perform all of the duties of the Issuing Entity
      under the Depository Agreement. In addition to its duties performed under the
      Depository Agreement, the Indenture Trustee shall take all appropriate action
      that is the duty of the Issuing Entity to take with respect to the following
      matters under the Trust Agreement, the Mortgage Loan Purchase Agreement and
      the
      Indenture (references are to sections of the Indenture):

     

    (i) The
      Indenture Trustee shall notify the Owner Trustee if the Indenture Trustee
      obtains actual knowledge or written notice that any withholding tax is imposed
      on the Trust’s payments (or allocations of income) to a
      Certificateholder;

     

    (ii) the
      duty
      to cause the Note Register to be kept if the Issuing Entity assumes the duties
      of Note Registrar, and to give the Indenture Trustee notice of any appointment
      of a new Note Registrar and the location, or change in location, of the Note
      Register (Section 4.02);

     

    
      
        
        

      

      
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    (iii) causing
      the preparation of the Notes for execution by the Owner Trustee upon the
      registration of any transfer or exchange of the Notes or execution of a
      supplemental indenture (Sections 4.02, 4.03 and 9.06);

     

    (iv) 
      [reserved];

     

    (v) causing
      the preparation of Definitive Notes in accordance with the instructions of
      any
      Clearing Agency (including the preparation of any temporary notes) (Section
      4.14);

     

    (vi) the
      maintenance of an office for registration of transfer or exchange of Notes
      (Section 3.02);

     

    (vii) [reserved];

     

    (viii) [reserved];

     

    (ix) [reserved];

     

    (x) the
      notification to the Owner Trustee of the Issuing Entity’s non-compliance with
      its negative covenants or restricted payment covenants upon actual knowledge
      by
      the Indenture Trustee of such non-compliance (Sections 3.09 and
      3.25);

     

    (xi) the
      furnishing of the Indenture Trustee with the names and addresses of Holders
      of
      Notes during any period when the Indenture Trustee is not the Note Registrar
      (Section 7.01).

     

    (b) In
      carrying out the foregoing duties or any of its other obligations under this
      Indenture, the Indenture Trustee may enter into transactions with or otherwise
      deal with any of its Affiliates; provided, however, that the terms of any such
      transactions or dealings shall be in accordance with any directions received
      from the Issuing Entity and shall be, in the Indenture Trustee’s opinion, no
      less favorable to the Issuing Entity than would be available from unaffiliated
      parties.

     

    (c) The
      Indenture Trustee in its capacity as the Certificate Registrar, and upon a
      request received from the Owner Trustee, shall promptly notify the
      Certificateholders of (i) any change in the Corporate Trust Office of the Owner
      Trustee, (ii) any amendment to the Trust Agreement requiring notice be given
      to
      the Certificateholders and (iii) any other notice required to be given to the
      Certificateholders by the Owner Trustee under the Trust Agreement.

     

    (d) With
      respect to matters that in the reasonable judgment of the Indenture Trustee
      are
      non-ministerial, the Indenture Trustee shall not take any action pursuant to
      this Article VII unless within a reasonable time before the taking of such
      action, the Indenture Trustee shall have notified the Owner Trustee and the
      Rating Agencies of the proposed action and the Rating Agencies shall have
      notified the Issuing Entity in writing that such transaction shall not cause
      their respective ratings of the Notes, to be reduced, qualified, suspended
      or
      withdrawn and the Owner Trustee shall not have withheld consent or provided
      an
      alternative direction. For the purpose of the preceding sentence,
“non-ministerial matters” shall include:

     

    
      
        
        

      

      
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    (i) the
      amendment of or any supplement to the Indenture;

     

    (ii) the
      initiation of any claim or lawsuit by the Issuing Entity and the compromise
      of
      any action, claim or lawsuit brought by or against the Issuing Entity (other
      than in connection with the collection of the Mortgage Loans);

     

    (iii) the
      amendment, change or modification of this Indenture or any of the other Basic
      Documents;

     

    (iv) the
      appointment of successor Paying Agents and successor Indenture Trustees pursuant
      to the Indenture or the appointment of a successor Master Servicer or the
      consent to the assignment by the Certificate Registrar, Paying Agent or
      Indenture Trustee of its obligations under the Indenture; and

     

    (v) the
      removal of the Indenture Trustee;

     

    provided,
      however, that the Owner Trustee shall receive notices of items pursuant to
      clause (i) above and with respect to clause (iii) above to the extent it is
      a
      party to the related Basic Document.

     

    Section
      6.17 Records.
      The
      Indenture Trustee shall maintain appropriate books of account and records
      relating to services performed under this Indenture, which books of account
      and
      records shall be accessible for inspection by the Issuing Entity at any time
      during normal business hours.

     

    Section
      6.18 Additional
      Information to be Furnished.
      The
      Indenture Trustee shall furnish to the Issuing Entity from time to time such
      additional information regarding the Mortgage Loans and the Notes as the Issuing
      Entity shall reasonably request, to the extent such information is readily
      available to it.

     

    Section
      6.19 Execution
      of Derivative Contracts and other Documents.
      The
      Issuing Entity hereby directs the Indenture Trustee to enter into and execute
      the Cap Contracts and the Corridor Contract and make all representations and
      warranties contained therein on behalf of the Trust. The Issuing Entity hereby
      directs the Indenture Trustee to enter into and execute the Servicing Agreement
      and any related document. The Indenture Trustee hereby acknowledges receipt
      by
      it of the Cap Contracts and the Corridor Contract. Upon receipt thereof from
      the
      Cap Counterparty under the Cap Contracts and the Corridor Provider under the
      Corridor Contract, the Indenture Trustee shall deposit into the Payment Account
      an amount equal to all amounts actually received by it under the Cap Contracts
      and the Corridor Contract, in each case not previously deposited into the
      Payment Account.

     

    Section
      6.20 Indenture
      Trustee’s Application For Instructions From the Issuing Entity.

     

    
      
        
        

      

      
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    Any
      application by the Indenture Trustee for written instructions from the Issuing
      Entity may, at the option of the Indenture Trustee, set forth in writing any
      action proposed to be taken or omitted by the Indenture Trustee under this
      Indenture and the date on and/or after which such action shall be taken or
      such
      omission shall be effective. The Indenture Trustee shall not be liable for
      any
      action taken by, or omission of, the Indenture Trustee in accordance with a
      proposal included in such application on or after the date specified in such
      application (which date shall not be less than three Business Days after the
      date any officer of the Issuing Entity actually receives such application,
      unless any such officer shall have consented in writing to any earlier date)
      unless prior to taking any such action (or the effective date in the case of
      an
      omission), the Indenture Trustee shall have received written instructions in
      response to such application specifying the action to be taken or
      omitted.

     

    Section
      6.21 Limitation
      of Liability.

     

    It
      is
      understood by the parties hereto other than Deutsche Bank National Trust Company
      (the “Bank”) that the sole recourse of the parties hereto other than the Bank in
      respect of the obligations of the Trust hereunder and under the other documents
      contemplated thereby and related thereto to which it is a party shall be to
      the
      parties hereto other than the Bank. In addition, the Bank is entering into
      this
      Indenture and the other documents contemplated thereby and related thereto
      to
      which it is a party solely in its capacity as Indenture Trustee under the
      Indenture and not in its individual capacity (except as expressly stated herein)
      and in no case shall the Bank (or any Person acting as successor Indenture
      Trustee under the Indenture) be personally liable for or on account of any
      of
      the statements, representations, warranties, covenants or obligations stated
      to
      be those of the Issuing Entity hereunder or thereunder, all such liability,
      if
      any, being expressly waived by the parties hereto and any person claiming by,
      through or under such party, provided, however, that the Bank (or any such
      successor Indenture Trustee) shall be personally liable hereunder and thereunder
      for its own negligence or willful misconduct or for its material breach of
      its
      covenants, representations and warranties contained herein or therein, to the
      extent expressly covenanted or made in its individual capacity. In no event
      shall the Indenture Trustee, in its capacity as Paying Agent, Note Registrar
      or
      in any other capacity hereunder, be liable under or in connection with this
      Indenture for indirect, special, incidental, punitive or consequential losses
      or
      damages of any kind whatsoever, including but not limited to lost profits,
      whether or not foreseeable, even if the Indenture Trustee has been advised
      of
      the possibility thereof and regardless of the form of action in which such
      damages are sought. The provisions of this section shall survive the termination
      of the Indenture and the resignation or removal of the Indenture
      Trustee.

     

    Section
      6.22 Assignment
      of Rights, Not Assumption of Duties.

     

    
      
        
        

      

      
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    Anything
      herein contained to the contrary notwithstanding, (a) the Issuing Entity shall
      remain liable under this Indenture and each Basic Document to which it is a
      party to the extent set forth therein to perform all of its duties and
      obligations thereunder to the same extent as if this Indenture had not been
      executed, (b) the exercise by the Indenture Trustee or any Holder of any of
      their rights, remedies or powers hereunder shall not release the Issuing Entity
      from any of its duties or obligations under each of such documents to which
      it
      is a party and (c) none of any Holder nor the Indenture Trustee shall have
      any
      obligation or liability under any of such documents to which the Issuing Entity
      is a party by reason of or arising out of this Indenture, nor shall any Holder
      or the Indenture Trustee be obligated to perform any of the obligations or
      duties of the Issuing Entity thereunder or, except as expressly provided herein
      with respect to the Indenture Trustee, to take any action to collect or enforce
      any claim for payment assigned hereunder or otherwise.

     

    
      
        
        

      

      
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    ARTICLE
      VII

    

      NOTEHOLDERS’
        LISTS AND REPORTS

       

    

     

    Section
      7.01 Issuing
      Entity To Furnish Indenture Trustee Names and Addresses of
      Noteholders.
      The
      Issuing Entity will furnish or cause to be furnished to the Indenture Trustee
      (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
      Issuing Entity 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 to the Indenture Trustee.

     

    Section
      7.02 Preservation
      of Information; Communications to Noteholders.

     

    (a) The
      Indenture Trustee 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
      hereof and the names and addresses of Holders of Notes received by the Indenture
      Trustee 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.

     

    (b) Noteholders
      may communicate pursuant to TIA § 312(b) with other Noteholders with respect to
      their rights under this Indenture or under the Notes.

     

    (c) The
      Issuing Entity, the Indenture Trustee and the Note Registrar shall have the
      protection of TIA § 312(c).

     

    Section
      7.03 Reports
      of Issuing Entity.

     

    (a) Subject
      to Section 4.06 of the Master Servicing Agreement, the Securities Administrator
      shall file with the Commission on behalf of the Issuing Entity, with a copy
      to
      the Issuing Entity, the annual reports and the information, documents and other
      reports (or such portions of any of the foregoing as the Commission may from
      time to time by rules and regulations prescribe) that the Issuing Entity may
      be
      required to file with the Commission pursuant to Sections 13 or 15(d) of the
      Exchange Act.

     

    (b) The
      Indenture Trustee shall supply (and the Indenture Trustee shall transmit by
      mail
      to all Noteholders described in TIA § 313(c)) such summaries of any information,
      documents and reports required to be filed by the Issuing Entity pursuant to
      this Section 7.03(a) and by rules and regulations prescribed from time to time
      by the Commission.

     

    (c) Unless
      the Issuing Entity otherwise determines, the fiscal year of the Issuing Entity
      shall end on December 31 of each year.

     

    Section
      7.04 Reports
      by Indenture Trustee.
      If
      required by TIA § 313(a), within 60 days after each January 30 beginning with
      March 31, 2007, the Indenture Trustee shall mail to each Noteholder as required
      by TIA § 313(c) a brief report dated as of such date that complies with TIA §
313(a). The Indenture Trustee also shall comply with TIA § 313(b).

     

    
      
        
        

      

      
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    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Securities Administrator with the Commission via EDGAR provided that a copy
      of
      such report is furnished to the Securities Administrator by the Indenture
      Trustee.

     

    Section
      7.05 Statements
      to Noteholders.
      With
      respect to each Payment Date, the Securities Administrator shall make available
      via the Securities Administrator’s website, initially located at
      www.ctslink.com, to each Noteholder and each Certificateholder, the Indenture
      Trustee, the Cap Counterparty, the Corridor Provider, the Depositor, the Owner
      Trustee, the Paying Agent and each Rating Agency, a statement setting forth
      the
      following information as to the Notes, to the extent applicable:

     

    (i) the
      aggregate amount of collections with respect to the Mortgage Loans;

     

    (ii) the
      Group
      I Available Funds, Group II-C Available Funds and Group II-NC Available Funds
      and Net Monthly Excess Cash Flow with respect to the Group I Loans, payable
      to
      each Class of Noteholders for such Payment Date, the Basis Risk Shortfall
      Carry-Forward Amount and Net WAC Shortfall Carry-Forward Amount on each Class
      of
      Notes for such Payment Date and the aggregate Unpaid Interest Shortfall on
      each
      Class of Notes for such Payment Date;

     

    (iii) (a)
      the
      amount of such distribution to each Class of Notes applied to reduce the Note
      Principal Balance thereof and (b) the aggregate amount included therein
      representing Principal Prepayments;

     

    (iv) the
      amount of such distribution to Holders of each Class of Notes allocable to
      interest;

     

    (v) the
      amount of any distribution to the Certificates;

     

    (vi) if
      the
      distribution to the Holders of any Class of Notes is less than the full amount
      that would be distributable to such Holders if there were sufficient funds
      available therefor, the amount of the shortfall;

     

    (vii) the
      number and the aggregate Stated Principal Balance of the Mortgage Loans as
      of
      the end of the related Due Period, determined in the aggregate and separately
      for Loan Group I, Loan Group II-C and Loan Group II-NC;

     

    (viii) the
      aggregate Note Principal Balance of each Class of Notes, after giving effect
      to
      the amounts distributed on such Payment Date, separately identifying any
      reduction thereof due to Realized Losses and the aggregate Note Principal
      Balance of all of the Notes after giving effect to the distribution of principal
      on such Payment Date;

     

    (ix) the
      number and aggregate Stated Principal Balances of Mortgage Loans, using the
      OTS
      method, (a) as to which the Monthly Payment is delinquent for 31-60 days, 61-90
      days, 91 or more days, respectively, (b) in foreclosure and (c) that have become
      REO Property, in each case as of the end of the preceding calendar month,
      determined in the aggregate and separately for Loan Group I, Loan Group II-C
      and
      Loan Group II-NC;

     

    
      
        
        

      

      
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    (x) the
      amount of payments from the Cap Contracts and the Corridor
      Contract;

     

    (xi) with
      respect to Loan Group I, the Overcollateralization Increase Amount,
      Overcollateralization Target Amount and Overcollateralized Amount, if any,
      as of
      the end of the related Payment Date;

     

    (xii) the
      amount of any Advances and Compensating Interest payments;

     

    (xiii) the
      aggregate Realized Losses with respect to the related Payment Date and
      cumulative Realized Losses since the Closing Date;

     

    (xiv) the
      number and aggregate Stated Principal Balance of Mortgage Loans repurchased
      pursuant to the Mortgage Loan Purchase Agreement for the related Payment Date
      and cumulatively since the Closing Date determined in the aggregate and
      separately for Loan Group I, Loan Group II-C and Loan Group II-NC;

     

    (xv) to
      the
      extent reported to the Securities Administrator, the book value of any REO
      Property as of the close of business on the last Business Day of the calendar
      month preceding the Payment Date and prior to a TMP Trigger Event, the amount
      of
      proceeds received for all REO Property;

     

    (xvi) the
      amount of any Prepayment Interest Shortfalls or Relief Act Shortfalls for such
      Payment Date;

     

    (xvii) the
      aggregate Stated Principal Balance of Mortgage Loans purchased pursuant to
      Section 3.18 of the Servicing Agreement for the related Payment Date and
      cumulatively since the Closing Date;

     

    (xviii) the
      amounts withdrawn from the related Group I, Group II-C and Group II-NC and
      used
      to make payments to Noteholders on that Payment Date, the amount remaining
      on
      deposit following such Payment Date;

     

    (xix) Servicing
      Fee for such Payment Date;

     

    (xx) if
      a
      Stepdown Date has occurred on the related Loan Group;

     

    (xxi) the
      percentage of cumulative losses under a Servicer Termination Event;

     

    (xxii) the
      Overcollateralization Target Amount for the Loan Group I as of the preceding
      Payment Date;

     

    (xxiii) the
      Overcollateralization Target Amount for the Loan Group I for such Payment
      Date;

     

    
      
        
        

      

      
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    (xxiv) the
      Principal Distribution Amount for such Payment Date;

     

    (xxv) the
      Overcollateralization Reduction Amount for Loan Group I for such Payment Date;
      and

     

    (xxvi) the
      Excess Overcollateralization Amount for Loan Group I for such Payment
      Date.

     

    Items
      (iii) and (v) above shall be presented on the basis of a Note having a $1,000
      denomination. In addition, by January 31 of each calendar year following any
      year during which the Notes are outstanding, the Securities Administrator shall
      furnish a report to each Noteholder of record if so requested in writing at
      any
      time during each calendar year as to the aggregate of amounts reported pursuant
      to (iii) and (v) with respect to the Notes for such calendar year.

     

    The
      Securities Administrator may conclusively rely upon the Remittance Report
      provided by the Master Servicer to the Securities Administrator pursuant to
      the
      Master Servicing Agreement in its preparation of its Statement to Noteholders
      and on information provided to it by the Cap Counterparty and the Corridor
      Provider.

     

    The
      Securities Administrator will make the monthly statements provided for in this
      Section (and, at its option, any additional files containing the same
      information in an alternative format) available each month to Noteholders,
      other
      parties to this Agreement and any other interested parties via the Securities
      Administrator’s website. The Securities Administrator’s website shall initially
      be located at www.ctslink.com. Parties that are unable to use the website are
      entitled to have a paper copy mailed to them via first class mail by calling
      the
      customer service desk at 301-815-6600 and indicating such. The Securities
      Administrator may have the right to change the way the monthly 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 Securities Administrator shall also make such monthly statements
      and other information that the Indenture Trustee reasonably requires to make
      distributions hereunder and under the Trust Agreement available to the Indenture
      Trustee no later than two Business Days prior to each Payment Date.

     

    The
      Securities Administrator shall be entitled to rely on but shall not be
      responsible for the content or accuracy of any information provided by third
      parties for purposes of preparing the monthly statement, and may affix thereto
      any disclaimer it deems appropriate in its reasonable discretion (without
      suggesting liability on the part of any other party hereto).

     

    
      
        
        

      

      
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    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 Trust Estate, 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 Trust
      Accounts.

     

    (a) On
      or
      prior to the Closing Date, the Issuing Entity shall cause the Indenture Trustee
      to establish and maintain, in the name of the Indenture Trustee, for the benefit
      of the Noteholders and the Cap Counterparty and the Corridor Provider, the
      Payment Account as provided in Section 3.01 hereof.

     

    (b) All
      monies deposited from time to time in the Payment Account and the Certificate
      Distribution Account and all deposits therein pursuant to this Indenture (other
      than deposits of any gain or income on investments thereof) are for the benefit
      of the Noteholders and the Certificateholders. The funds in the Certificate
      Distribution Account and Payment Account shall be held uninvested.

     

    (c) On
      each
      Payment Date, the Indenture Trustee as Paying Agent, in accordance with the
      statement for such Payment Date provided by the Securities Administrator
      pursuant to Section 7.05, shall be entitled to withdraw from the Payment Account
      the all amounts reimbursable by the Issuing Entity or from the Payment Account
      to the Indenture Trustee or the Securities Administrator pursuant to any
      provision of any Basic Document, and shall distribute all remaining amounts
      on
      deposit in the Payment Account to the Noteholders in respect of the Notes and
      to
      such other persons in the order of priority set forth in Section 3.05 hereof
      (except as otherwise provided in Section 5.04(b) hereof).

     

    (d) The
      Indenture Trustee shall not invest any funds in the Payment
      Account.

     

    Section
      8.03 Officer’s
      Certificate.
      The
      Indenture Trustee shall receive at least seven Business Days’ notice when
      requested by the Issuing Entity to take any action pursuant to Section 8.06(a)
      hereof, accompanied by copies of any instruments to be executed, and the
      Indenture Trustee shall also require, as a condition to such action, an
      Officer’s Certificate, in form and substance satisfactory to the Indenture
      Trustee, stating the legal effect of any such action, outlining the steps
      required to complete the same, and concluding that all conditions precedent
      to
      the taking of such action have been complied with.

     

    
      
        
        

      

      
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    Section
      8.04 Termination
      Upon Distribution to Noteholders.
      This
      Indenture and the respective obligations and responsibilities of the Issuing
      Entity, the Securities Administrator and the Indenture Trustee created hereby
      shall terminate upon the distribution to Noteholders, the Certificate Paying
      Agent on behalf of the Certificateholders and the Indenture Trustee of all
      amounts required to be distributed pursuant to Article III; provided,
      however,
      that in
      no event shall the trust created hereby continue beyond the expiration of 21
      years from the death of the survivor of the descendants of Joseph P. Kennedy,
      the late ambassador of the United States to the Court of St. James, living
      on
      the date hereof.

     

    Section
      8.05 Termination
      Following TMP Trigger Event.
      This
      Indenture and the respective obligations and responsibilities of the Issuing
      Entity, the Securities Administrator, the Note Registrar, the Paying Agent
      and
      the Indenture Trustee created hereby shall terminate, and this Indenture shall
      be satisfied and discharged, following the occurrence of a TMP Trigger Event
      and
      the conditions precedent to a REMIC Conversion, upon the mandatory exchange
      of
      the Notes for the corresponding Classes of REMIC Notes or REMIC Privately
      Offered Certificates, pursuant to Article XI hereof; provided, however, that
      in
      no event shall the trust created hereby continue beyond the expiration of 21
      years from the death of the survivor of the descendants of Joseph P. Kennedy,
      the late ambassador of the United States to the Court of St. James, living
      on
      the date hereof.

     

    Section
      8.06 Release
      of Trust Estate.

     

    (a) Subject
      to the payment of its fees and expenses, the Indenture Trustee may, and when
      required by the provisions of this Indenture 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, including for the purposes
      of any repurchase by the Servicer of a Mortgage Loan pursuant to Section 3.18
      of
      the Servicing Agreement. No party relying upon an instrument executed by the
      Indenture Trustee as provided in Article VIII hereunder 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) The
      Indenture Trustee shall, at such time as (i) there are no Notes Outstanding
      and
      (ii) all sums then due and unpaid to the Indenture Trustee, the Securities
      Administrator and the Master Servicer pursuant to this Indenture have been
      paid,
      release any remaining portion of the Trust Estate that secured the Notes from
      the lien of this Indenture.

     

    (c) The
      Indenture Trustee shall release property from the lien of this Indenture
      pursuant to this Section 8.06 only upon receipt of a request from the Issuing
      Entity accompanied by an Officers’ Certificate and an Opinion of Counsel stating
      that all applicable requirements have been satisfied, except as otherwise
      provided in clause (a) or in conjunction with a sale or other transfer of such
      property required to occur for the proposed transfer of the Notes prior to
      a TMP
      Trigger Event, as described in Section 11.01 herein and in the Trust
      Agreement.

     

    Section
      8.07 Surrender
      of Notes Upon Final Payment or TMP Trigger Event.
      By
      acceptance of any Note, the Holder thereof agrees to surrender such Note to
      the
      Indenture Trustee promptly, prior to such Noteholder’s receipt of the final
      payment thereon or concurrently against receipt of the corresponding Class
      of
      REMIC Note or REMIC Privately Offered Certificate following the occurrence
      of
      the REMIC Conversion as described in Article XI.

     

    
      
        
        

      

      
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    Section
      8.08 Optional
      Redemption of the Notes.

     

    (a) (i) The
      Majority Certificateholder shall have the option to purchase the Group I Loans
      and the related assets of the Trust and thereby redeem the Group I Notes on
      or
      after the Payment Date on which the Stated Principal Balance of the Group I
      Loans, and properties acquired in respect thereof has been reduced to less
      than
      20% of the aggregate Stated Principal Balance of the Group I Loans as of the
      Cut-off Date Balance.

     

    (ii) The
      Majority Certificateholder shall have the option to purchase the Group II Loans
      and the related assets of the Trust and thereby redeem the Group II Notes on
      or
      after the Payment Date on which the Stated Principal Balance of the Group II
      Loans, and properties acquired in respect thereof has been reduced to less
      than
      20% of the aggregate Stated Principal Balance of the Group II Loans as of the
      Cut-off Date Balance

     

    (b) The
      aggregate redemption price (the “Redemption Price”) for the related Notes in
      connection with any termination pursuant to clause (a) above will be equal
      to
      100% of the aggregate outstanding Note Principal Balance of the related Notes
      plus and
      accrued and unpaid interest thereon (including any related Unpaid Interest
      Shortfall, Net WAC Shortfall Carry-Forward Amount and Basis Risk Shortfall
      Carry-Forward Amount) at the Note Interest Rate through the date on which the
      related Notes are redeemed in full together with all amounts due and owing
      to
      the Master Servicer, the
      Securities Administrator
      and the
      Indenture Trustee under this Indenture or any other applicable Basic Document
      (which amounts shall be specified in writing upon request of the Issuing Entity
      by the Indenture Trustee, the Securities Administrator, the Servicer or the
      Master Servicer, as applicable).

     

    (c) In
      order
      to exercise the foregoing option with respect to the Notes, the Majority
      Certificateholder shall provide written notice of its exercise of such option
      and the Redemption Price to the Indenture Trustee, the Securities Administrator,
      the Issuing Entity, the Owner Trustee, the Master Servicer and the applicable
      Servicer at least 15 days prior to its exercise. Following receipt of the
      notice, the Indenture Trustee shall provide written notice to the applicable
      Noteholders of the final payment on the applicable Notes. In addition, the
      Majority Certificateholder shall, not less than one Business Day prior to the
      proposed Payment Date on which such redemption is to be made, deposit the
      Redemption Price specified in (b) above with the Indenture Trustee, who shall
      deposit the Redemption Price into the Payment Account and shall, on the Payment
      Date after receipt of the funds, apply such funds to make final payments of
      principal and interest on the Notes in accordance with Sections 3.05 or 3.06,
      as
      applicable, hereof and payment to the Indenture Trustee and the Master Servicer
      as set forth in (b) above. If for any reason the amount deposited by the
      Majority Certificateholder is not sufficient to make such redemption or as
      the
      Indenture Trustee is notified such redemption cannot be completed for any
      reason, (a) the amount so deposited by the Majority Certificateholder with
      the
      Indenture Trustee shall be immediately returned to the Majority
      Certificateholder in full and shall not be used for any other purpose or be
      deemed to be part of the Trust Estate and (b) the Note Principal Balance of
      the
      applicable Notes shall continue to bear interest at the related Note Interest
      Rate.

     

    
      
        
        

      

      
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    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 the Rating
      Agencies and the Owner Trustee, the Issuing Entity, the Securities Administrator
      and the Indenture Trustee, when authorized by an Issuing Entity Request, 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 TIA 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 Issuing Entity, and the assumption by any such successor
      of the covenants of the Issuing Entity herein and in the Notes
      contained;

     

    (iii) to
      add to
      the covenants of the Issuing Entity, for the benefit of the Holders of the
      Notes, or to surrender any right or power herein conferred upon the Issuing
      Entity;

     

    (iv) to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v) to
      cure
      any ambiguity, to correct or supplement any provision herein or in any
      supplemental indenture that may be inconsistent with any other provision herein
      or in any supplemental indenture;

     

    (vi) to
      make
      any other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture; provided, that such action shall
      not
      materially and adversely affect the interests of the Holders of the Notes as
      evidenced by an Opinion of Counsel;

     

    (vii) 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 hereof;

     

    (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 as
      evidenced by an Opinion of Counsel; or

     

    
      
        
        

      

      
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    (ix) following
      the occurrence of a TMP Trigger Event and the exchange of the Offered Notes
      and
      the Non-Offered Notes for the REMIC Notes and the REMIC Privately Offered
      Certificates, respectively, pursuant to Article XI hereof;

     

    provided,
      however,
      that no
      such indenture supplements shall be entered into unless the Indenture Trustee
      shall have received an Opinion of Counsel as to the enforceability of any such
      indenture supplement, and that, except for indenture supplements entered into
      for the purposes described in (v) and (viii) above, such indenture supplements
      shall not adversely affect in any material respect the interests of any
      Noteholder and to the effect that (i) such indenture supplement is permitted
      hereunder and (ii) entering into such indenture supplement will not result
      in a
“substantial modification” of the Notes under Treasury Regulation Section
      1.1001-3 or adversely affect the status of the Notes as indebtedness for federal
      income tax purposes, provided that, for purposes of the foregoing, a TMP Trigger
      Event shall be deemed to result in a “significant modification” of the
      aforementioned Notes under Treasury Regulation Section 1.1001-3.

     

    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) The
      Issuing Entity, the Securities Administrator and the Indenture Trustee, when
      authorized by an Issuing Entity Request, may, also without the consent of any
      of
      the Holders of the Notes and prior notice to the Rating Agencies, 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
      such action as evidenced by an Opinion of Counsel, (i) is permitted by this
      Indenture, (ii) shall not adversely affect in any material respect the interests
      of any Noteholder and (iii) if 100% of the Certificates and the Retained Notes
      (to the extent that such Retained Notes have not received a “will be debt”
opinion) are not owned by American Home Mortgage Acceptance, Inc., cause the
      Issuing Entity to be subject to an entity level tax for federal income tax
      purposes.

     

    Section
      9.02 Supplemental
      Indentures With Consent of Noteholders.
      The
      Issuing Entity, the Securities Administrator and the Indenture Trustee, when
      authorized by an Issuing Entity Request, also may, with prior notice to the
      Rating Agencies and, with the consent of the Holders of not less than a majority
      of the Note Principal Balance of each Class of Notes affected thereby, by Act
      (as defined in Section 10.03 hereof) of such Holders, delivered to the Issuing
      Entity, the Securities Administrator 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, without the consent of the Holder of each
      Note affected thereby:

     

    (i) change
      the date of payment of any installment of principal of or interest on any Note,
      or reduce the principal amount thereof or the interest rate thereon, change
      the
      provisions of this Indenture relating to the application of collections on,
      or
      the proceeds of the sale of, the Trust Estate and to payment of principal of
      or
      interest on the Notes, or change any place of payment where, or the coin or
      currency in which, any Note or the interest thereon is payable, or impair the
      right to institute suit for the enforcement of the provisions of this Indenture
      requiring the application of funds available therefor, as provided in Article
      V,
      to the payment of any such amount due on the Notes on or after the respective
      due dates thereof;

     

    
      
        
        

      

      
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    (ii) reduce
      the percentage of the Note Principal Balances of the Notes, or any Class of
      Notes, the consent of the Holders of which is required for any such supplemental
      indenture, or the consent of the Holders of which is required for any waiver
      of
      compliance with certain provisions of this Indenture or certain defaults
      hereunder and their consequences provided for in this Indenture;

     

    (iii) modify
      or
      alter the provisions of the proviso to the definition of the term “Outstanding”
or modify or alter the exception in the definition of the term
“Holder”;

     

    (iv) reduce
      the percentage of the Note Principal Balances of the Notes, or any Class of
      Notes, required to direct the Indenture Trustee to direct the Issuing Entity
      to
      sell or liquidate the Trust Estate pursuant to Section 5.04 hereof;

     

    (v) modify
      any provision of this Section 9.02 except to increase any percentage specified
      herein or to provide that certain additional provisions of this Indenture or
      the
      Basic Documents cannot be modified or waived without the consent of the Holder
      of each Note affected thereby;

     

    (vi) modify
      any of the provisions of this Indenture in such manner as to affect the
      calculation of the amount of any payment of interest or principal due on any
      Note on any Payment Date (including the calculation of any of the individual
      components of such calculation); or

     

    (vii) 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 Trust Estate 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, cause the Issuing
      Entity (if 100% of the Certificates and the Retained Notes (to the extent that
      such Retained Notes have not received a “will be debt” opinion) are not owned by
      American Home Mortgage Acceptance Inc.) to be subject to an entity level tax
      for
      federal income tax purposes.

     

    Any
      such
      action shall not adversely affect in any material respect the interest of any
      Holder (other than a Holder who shall consent to such supplemental indenture)
      as
      evidenced by an Opinion of Counsel (provided by the Person requesting such
      supplemental indenture) delivered to the Indenture Trustee.

     

    It
      shall
      not be necessary for any Act of Noteholders under this Section 9.02 to approve
      the particular form of any proposed supplemental indenture, but it shall be
      sufficient if such Act shall approve the substance thereof.

     

    
      
        
        

      

      
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    Promptly
      after the execution by the Issuing Entity, the Securities Administrator and
      the
      Indenture Trustee of any supplemental indenture pursuant to this Section 9.02,
      the Indenture Trustee shall mail to the Owner Trustee and the Holders of the
      Notes to which such amendment or supplemental indenture relates 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 VI or the modification thereby of the trusts
      created by this Indenture, the Indenture Trustee shall be entitled to receive,
      and subject to Sections 6.01 and 6.02 hereof, shall be fully protected in
      relying upon, an Opinion of Counsel stating that the execution of such
      supplemental indenture is authorized or permitted by this Indenture and that
      all
      conditions precedent thereto have been complied with. 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
      immunities under this Indenture of the Indenture Trustee, the Issuing Entity
      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 and the Notes
      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 Indenture Trustee shall,
      bear a notation in form approved by the Indenture Trustee as to any matter
      provided for in such supplemental indenture. If the Issuing Entity or the
      Indenture Trustee shall so determine, new Notes so modified as to conform,
      in
      the opinion of the Indenture Trustee and the Issuing Entity, to any such
      supplemental indenture may be prepared and executed by the Issuing Entity and
      authenticated and delivered by the Indenture Trustee in exchange for Outstanding
      Notes.

     

    
      
        
        

      

      
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    ARTICLE
      X

    

      MISCELLANEOUS

       

    

    Section
      10.01 Compliance
      Certificates and Opinions, etc.
      (a)
      Upon any
      application or request by the Issuing Entity to the Indenture Trustee to take
      any action under any provision of this Indenture, the Issuing Entity 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 and (ii) an Opinion of Counsel stating
      that in the opinion of such counsel all such conditions precedent, if any,
      have
      been complied with, 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.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (1) 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;

     

    (2) 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;

     

    (3) 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;

     

    (4) a
      statement as to whether, in the opinion of each such signatory, such condition
      or covenant has been complied with; and

     

    (5) if
      the
      signatory of such certificate or opinion is required to be Independent, the
      statement required by the definition of the term “Independent”.

     

    (b) Prior
      to
      the deposit of any Collateral or other property or securities with the Indenture
      Trustee that is to be made the basis for the release of any property or
      securities subject to the lien of this Indenture, the Issuing Entity shall,
      in
      addition to any obligation imposed in Section 10.01 (a) or elsewhere in this
      Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying
      or stating the opinion of each person signing such certificate as to the fair
      value (within 90 days prior to such deposit) to the Issuing Entity of the
      Collateral or other property or securities to be so deposited and a report
      from
      a nationally recognized accounting firm verifying such value.

     

    (c) Whenever
      the Issuing Entity is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (i) above, the Issuing Entity shall also deliver
      to
      the Indenture Trustee an Independent Certificate from a nationally recognized
      accounting firm as to the same matters, if the fair value of the securities
      to
      be so deposited and of all other such securities made the basis of any such
      withdrawal or release since the commencement of the then current fiscal year
      of
      the Issuing Entity, as set forth in the certificates delivered pursuant to
      clause (i) above and this clause (ii), is 10% or more of the Note Principal
      Balances of the Notes, but such a certificate need not be furnished with respect
      to any securities so deposited, if the fair value thereof as set forth in the
      related Officer’s Certificate is less than $25,000 or less than one percent of
      the then outstanding Note Principal Balances of the Notes.

     

    
      
        
        

      

      
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    (d) Whenever
      any property or securities are to be released from the lien of this Indenture,
      the Issuing Entity shall also furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of each person signing such
      certificate as to the fair value (within 90 days prior to such release) of
      the
      property or securities proposed to be released and stating that in the opinion
      of such person the proposed release will not impair the security under this
      Indenture in contravention of the provisions hereof.

     

    (e) Whenever
      the Issuing Entity is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (iii) above, the Issuing Entity shall also furnish
      to the Indenture Trustee an Independent Certificate as to the same matters
      if
      the fair value of the property or securities and of all other property or
      securities released from the lien of this Indenture since the commencement
      of
      the then-current calendar year, as set forth in the certificates required by
      clause (iii) above and this clause (iv), equals 10% or more of the Note
      Principal Balances of the Notes, but such certificate need not be furnished
      in
      the case of any release of property or securities if the fair value thereof
      as
      set forth in the related Officer’s Certificate is less than $25,000 or less than
      one percent of the then outstanding Note Principal Balances of the
      Notes.

     

    Section
      10.02 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 Issuing Entity 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 his 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 Sponsor or
      the
      Issuing Entity, stating that the information with respect to such factual
      matters is in the possession of the Sponsor or the Issuing Entity, 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.

     

    
      
        
        

      

      
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    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuing Entity shall deliver
      any document as a condition of the granting of such application, or as evidence
      of the Issuing Entity’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
      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 Issuing Entity 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
      10.03 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 Issuing
      Entity. 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 hereof)
      conclusive in favor of the Indenture Trustee and the Issuing Entity, if made
      in
      the manner provided in this Section 10.03 hereof.

     

    (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 Registrar.

     

    (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 Issuing Entity in reliance thereon, whether or not notation
      of
      such action is made upon such Note.

     

    Section
      10.04 Notices
      etc., to Indenture Trustee, Issuing Entity, Securities Administrator 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:

     

    (a) the
      Indenture Trustee by any Noteholder or by the Issuing Entity shall be sufficient
      for every purpose hereunder if made, given, furnished or filed in writing to
      or
      with the Indenture Trustee at the Corporate Trust Office. All notices to the
      Indenture Trustee shall be deemed effective only upon actual receipt. The
      Indenture Trustee shall promptly transmit any material notice received by it
      from the Noteholders to the Issuing Entity; or

     

    
      
        
        

      

      
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    (b) the
      Issuing Entity by the Indenture Trustee or by any Noteholder shall be sufficient
      for every purpose hereunder if made, given, furnished or filed in writing and
      mailed first-class, postage prepaid to the Issuing Entity addressed to: American
      Home Mortgage Investment Trust 2006-1, in care of Wilmington Trust Company,
      City
      of Wilmington, County of New Castle, State of Delaware at Rodney Square North,
      1100 North Market Street, Wilmington, DE 19890, or at any other address
      previously furnished in writing to the Indenture Trustee by the Issuing Entity.
      The Issuing Entity shall promptly transmit any notice received by it from the
      Noteholders to the Indenture Trustee; or

     

    (c) the
      Securities Administrator by the Indenture Trustee, any Noteholder or by the
      Issuing Entity shall be sufficient if made, given, furnished or filed in writing
      and mailed first-class, postage prepaid to the Securities Administrator
      addressed to: P.O. Box 98, Columbia, MD 21046 or for overnight deliveries,
      9062
      Old Annapolis Road, Columbia, MD, 21045, Attention: AHM 2006-1, or at any other
      address previously furnished in writing to the Indenture Trustee by the
      Securities Administrator. The Securities Administrator shall promptly transmit
      any notice received by it from the Noteholders to the Indenture Trustee and
      the
      Issuing Entity; or

     

    (d) Notices
      required to be given to the Rating Agencies by the Issuing Entity, the Indenture
      Trustee or the Owner Trustee shall be in writing, mailed first-class postage
      pre-paid, (i) to Standard & Poor’s, at the following address: Standard &
Poor’s, 55 Water Street, 41st
      Floor,
      New York, New York 10041, Attention of Asset Backed Surveillance Department;
      (ii) to Moody’s, at the following address: Moody’s Investors Service, Inc., 99
      Church Street, New York, New York 10007; and (iii) to Fitch Ratings, One State
      Street Plaza, New York, New York 10004; or as to each of the foregoing, at
      such
      other address as shall be designated by written notice to the other parties;
      or

     

    Section
      10.05 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
      made, given, furnished or filed in writing and mailed, first-class, postage
      prepaid to each Noteholder affected by such event, at such Person’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 regardless of whether such notice is in fact
      actually received.

     

    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.

     

    
      
        
        

      

      
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    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 an Event of Default.

     

    Section
      10.06 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 §§ 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
      10.07 Effect
      of Headings.
      The
      Article and Section headings herein are for convenience only and shall not
      affect the construction hereof.

     

    Section
      10.08 Successors
      and Assigns.
      All
      covenants and agreements in this Indenture and the Notes by the Issuing Entity
      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
      10.09 Separability.
      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
      10.10 Benefits
      of Indenture.
      Nothing
      in this Indenture or in the, express or implied, shall give to any Person,
      other
      than the parties hereto and their successors hereunder and the Noteholders,
      any
      benefit or any legal or equitable right, remedy or claim under this
      Indenture.

     

    Section
      10.11 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
      10.12 GOVERNING
      LAW.
      THIS
      INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS EXCEPT SECTIONS 5-1401
      AND 5-1402 OF NEW YORK GENERAL OBLIGATIONS LAWS, AND THE OBLIGATIONS, RIGHTS
      AND
      REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    

     

    The
      parties to this Indenture each hereby irrevocably submits to the non exclusive
      jurisdiction of any New York State or federal court sitting in the Borough
      of
      Manhattan in The City of New York in any action or proceeding arising out of
      or
      relating to the Notes, this Indenture or the transactions contemplated hereby,
      and all such parties hereby irrevocably agree that all claims in respect of
      such
      action or proceeding may be heard and determined in such New York State or
      federal court and hereby irrevocably waive, to the fullest extent that they
      may
      legally do so, the defense of an inconvenient forum to the maintenance of such
      action or proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
      TO
      THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
      BY
      JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE,
      THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section
      10.13 Counterparts.
      This
      Indenture may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument.

     

    Section
      10.14 Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuing Entity and at its expense
      accompanied by an Opinion of Counsel at its expense (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
      10.15 Issuing
      Entity Obligation.
      No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuing Entity, 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 its individual capacity, (ii) any owner of a beneficial interest
      in
      the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer,
      director, employee or agent of the Indenture Trustee or the Owner Trustee in
      its
      individual capacity, any holder of a beneficial interest in the Issuing Entity,
      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 individual
      capacity) 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 Issuing Entity hereunder, the Owner Trustee
      shall be subject to, and entitled to the benefits of, the terms and provisions
      of Article VI, VII and VIII of the Trust Agreement.

     

    Section
      10.16 No
      Petition.
      The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note, hereby covenant and agree that they will not at any time
      prior
      to one year from the date of termination hereof, institute against the Depositor
      or the Issuing Entity, or join in any institution against the Depositor or
      the
      Issuing Entity 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 Basic Documents, provided, however,
      that
      nothing herein shall prohibit the Indenture Trustee from filing proofs of
      claim.

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    

     

    Section
      10.17 Inspection.
      The
      Issuing Entity agrees that, at its expense, on reasonable prior notice, it
      shall
      permit any representative of the Indenture Trustee, during the Issuing Entity’s
      normal business hours, to examine all the books of account, records, reports
      and
      other papers of the Issuing Entity, to make copies and extracts therefrom,
      to
      cause such books to be audited by Independent certified public accountants,
      and
      to discuss the Issuing Entity’s affairs, finances and accounts with the Issuing
      Entity’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 cause its representatives to hold in confidence all
      such
      information except to the extent disclosure may be required by law, regulation,
      administrative or regulatory authority (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, provided, however, that the Indenture Trustee
      may disclose such information, on a confidential basis, to its agents, attorneys
      and auditors in connection with the performance of its responsibilities under
      this Indenture.

     

     

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    ARTICLE
      XI

     

    REMIC CONVERSION

     

    Section
      11.01 Discharge
      of Indenture and Transfer of Mortgage Loans.
      It is
      the intention of all parties to this Indenture that upon the occurrence of
      a
      REMIC Conversion, that:

     

    (i) There
      shall be a mandatory surrender to the Issuing Entity by the Holders thereof
      of
      the Offered Notes and the Non-Offered Notes, in exchange for (A) the REMIC
      Notes
      and (B) the delivery to the Holders of the Non-Offered Notes of the REMIC
      Privately Offered Certificates;

     

    (ii) All
      of
      the Mortgage Loans shall be transferred by the Issuing Entity to the trustee
      named under a pooling and servicing agreement in exchange for the REMIC
      Certificates; and

     

    (iii) Concurrently
      with a REMIC Conversion, this Indenture shall be discharged and terminated
      pursuant to Section 4.10 and Section 8.05 herein, respectively.

     

    Section
      11.02 Conditions
      Precedent to a REMIC Conversion.
      Prior
      to a REMIC Conversion:

     

    (i) American
      Home Mortgage Investment Corp. shall have purchased all the REO properties
      in
      the Trust Estate at their fair market value;

     

    (ii) 
      the
      party who caused the TMP Trigger Event shall have contributed to the Trust
      Estate an amount equal to any allocation of Realized Losses on the Offered
      Notes, if any, resulting from the sale of the REO properties described in clause
      (i) above; and 

     

    (iii) the
      entity that delivered notice causing the REMIC Conversion to be undertaken
      shall
      have made provision for payment satisfactory to the Owner Trustee, the Indenture
      Trustee, the Securities Administrator, the Paying Agent and the Note Registrar
      and others for any initial or ongoing additional administrative expenses
      associated with the REMIC elections.

     

    

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuing Entity, the Securities Administrator and the
      Indenture Trustee have caused their names to be signed hereto by their
      respective officers thereunto duly authorized, all as of the day and year first
      above written.

     

    
      	 	 	 
	 	AMERICAN
              HOME
              MORTGAGE INVESTMENT TRUST 2006-1, 
as Issuing Entity by WILMINGTON
              TRUST
              COMPANY,
              
not in its individual capacity but solely as Owner
              Trustee
	 
 	 
 	 
 
	 	By:  	/s/ Anita
              E.
              Dallago
	 	
              

              Name:
                Anita E. Dallago

              Title:
                Senior Financial Services Officer

            
	 	 
              

    

     

    
      
        	 	 	 
	 	WELLS
                FARGO BANK,
                N.A., as Securities Administrator
	 
 	 
 	 
 
	 	By:  	/s/ Peter
                A.
                Gobell
	 	
                

                Name:
                  Peter A. Gobell

                Title:
                  Vice President

              
	 	 

      

    

    
       

      
        	 	 	 
	 	DEUTSCHE
                BANK,
                NATIONAL TRUST COMPANY, as Indenture Trustee
	 
 	 
 	 
 
	 	By:  	/s/ Eiko
                Akiyama
	 	
                

                Name:
                  Eiko Akiyama

                Title:
                  Associate

              
	 	 

      

    

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Barbara
              Campbell
	 	
              

              Name:
                Barbara Campbell

              Title:
                Vice President

            
	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              STATE
                OF _____________

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF _____________

               

            	
              )

               

            

    

     

    On
      this
29th
      day of
      March, 2006,
      before
      me personally appeared Barbara Campbell to me known, who being by me duly sworn,
      did depose and say, that she is a Vice President of the Indenture Trustee,
      one
      of the corporations described in and which executed the above instrument; and
      that he signed his name thereto by like order.

    
       

      Notary
        Public

       

      NOTARY
        PUBLIC

       

      [NOTARIAL
        SEAL]

       

    

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

    
      	
              STATE
                OF _____________

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF _____________

               

            	
              )

               

            

    

     

    On
      this
      29th
      day of
      March, 2006, before me personally appeared Peter A. Gobell to me known, who
      being by me duly sworn, did depose and say, that he is the Vice President of
      the
      Securities Administrator, one of the corporations described in and which
      executed the above instrument; and that he signed his name thereto by like
      order.

     

    Notary
      Public

     

    NOTARY
      PUBLIC

     

    [NOTARIAL
      SEAL]

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF DELAWARE

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW CASTLE

               

            	
              )

               

            

    

    On
      this
      29th
      day of
      March, 2006, before me personally appeared Anita E. Dallago to me known, who
      being by me duly sworn, did depose and say, that she is a(n)Senior Financial
      Services Officer of the Owner Trustee, one of the entities described in and
      which executed the above instrument; and that she signed her name thereto by
      like order.

     

    Notary
      Public

     

    NOTARY
      PUBLIC

     

    [NOTARIAL
      SEAL]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1

     

    CLASS
      [__]-A-[__] NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
      RIGHT
      OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE
      INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT OTHERWISE PERSONALLY
      LIABLE FOR PAYMENTS ON THIS NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN
      ON THE FACE HEREOF.

     

    BY
      ACCEPTANCE OF THIS NOTE, THE HOLDER HEREOF AGREES TO SURRENDER THIS NOTE TO
      THE
      INDENTURE TRUSTEE PROMPTLY UPON RECEIPT OF THE CORRESPONDING CLASS OF REMIC
      NOTES FOLLOWING THE OCCURRENCE OF THE REMIC CONVERSION AS DESCRIBED IN THE
      INDENTURE.

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

    AMERICAN
      HOME MORTGAGE INVESTMENT TRUST 2006-1

    MORTGAGE-BACKED
      NOTES, SERIES 2006-1

    CLASS
      [__]-A-[__]

     

    

    
      	
              AGGREGATE
                NOTE PRINCIPAL

              BALANCE:
                $[________________]

               

            	
              NOTE
                INTEREST

              RATE:
                [Adjustable Rate][__%]

               

            
	
              INITIAL
                NOTE PRINCIPAL

              BALANCE
                OF THIS NOTE: $[_____________]

               

            	
              NOTE
                NO. 1

               

            
	
              PERCENTAGE
                INTEREST: 100%

               

            	
              CUSIP
                NO: [_______________]

               

            

    

    

    American
      Home Mortgage Investment Trust 2006-1 (the “Issuing Entity”), a Delaware
      statutory trust, for value received, hereby promises to pay to [____________].
      or registered assigns, the principal sum of $[____________________] in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in April 2006 and ending on or before the Payment Date occurring
      in
      _____________ (the “Final Scheduled Payment Date”) and to pay interest on the
      Note Principal Balance of this Note (this “Note”) outstanding from time to time
      as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuing Entity’s Mortgage-Backed Notes,
      Series 2006-1 (the “Notes”), issued under an Indenture dated as of March 29,
      2006 (the “Indenture”), between the Issuing Entity, Deutsche Bank National Trust
      Company, as indenture trustee (the “Indenture Trustee”) and Wells Fargo Bank,
      N.A., as securities administrator (the “Securities Administrator”) to which
      Indenture and all indentures supplemental thereto reference is hereby made
      for a
      statement of the respective rights thereunder of the Issuing Entity, the
      Indenture Trustee, the Securities Administrator and the Holders of the Notes
      and
      the terms upon which the Notes are to be authenticated and delivered. All terms
      used in this Note which are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Principal Balance”
of a Note as of any date of determination is equal to the initial Note Principal
      Balance thereof, reduced by the aggregate of all amounts previously paid with
      respect to such Note on account of principal [and reduced by the aggregate
      amount of cumulative Realized Losses allocated to such Note on all prior Payment
      Dates, and increased by any Subsequent Recoveries allocated to such
      Note.]

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuing Entity with respect to this Note shall be equal
      to
      this Note’s pro rata share of the aggregate payments on all Class [__]-A-[__]
      Notes as
      described above, and shall be applied as between interest and principal as
      provided in the Indenture.

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

    

    

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Scheduled Payment Date.

     

    By
      acceptance of this Note, the Holder hereof agrees to surrender this Note to
      the
      Indenture Trustee promptly upon receipt of the corresponding Class of REMIC
      Notes following the occurrence of the REMIC Conversion as described in the
      Indenture.

     

    The
      Majority Certificateholder shall have the option to purchase the related assets
      of the Trust and thereby redeem the related Notes on or after the Payment Date
      on which the Stated Principal Balance of the related Mortgage Loans, and
      properties acquired in respect thereof has been reduced to less than 20% of
      the
      aggregate stated principal balance of the related Mortgage Loans as of the
      Cut-Off Date.

     

    The
      Issuing Entity shall not be liable upon the indebtedness evidenced by the Notes
      except to the extent of amounts available from the Trust Estate which
      constitutes security for the payment of the Notes. The assets included in the
      Trust Estate will be the sole source of payments on the Class [__]-A-[__]
      Notes,
      and each Holder hereof, by its acceptance of this Note, agrees that (i) such
      Note will be limited in right of payment to amounts available from the Trust
      Estate as provided in the Indenture and (ii) such Holder shall have no recourse
      to the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Depositor,
      the Sponsor, the Securities Administrator, the Master Servicer, the Servicer
      or
      any of its affiliates, or to the assets of any of the foregoing entities, except
      the assets of the Issuing Entity pledged to secure the Class [__]-A-[__]
      Notes
      pursuant to the Indenture and the rights conveyed to the Issuing Entity under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of

    principal
      and interest payable with respect to such Note, which shall be payable as
      provided below. Notwithstanding the foregoing, upon written request with
      appropriate instructions by the Holder of this Note delivered to the Indenture
      Trustee at least five Business Days prior to the Record Date, any payment of
      principal or interest, other than the final installment of principal or
      interest, shall be made by wire transfer to an account in the United States
      designated by such Holder. All reductions in the principal amount of a Note
      effected by payments of principal made on any Payment Date shall be binding
      upon
      all Holders of this Note and of any Note issued upon the registration of
      transfer thereof or in exchange therefor or in lieu thereof, whether or not
      such
      payment is noted on such Note. The final payment of this Note shall be payable
      upon presentation and surrender thereof on or after the Payment Date thereof
      at
      the office or agency designated by the Indenture Trustee and maintained by
      it
      for such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note,
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

    

    

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Principal
      Balance of the Notes, the amount payable to the Holder of this Note will be
      equal to the sum of the unpaid Note Principal Balance of this Note, together
      with accrued and unpaid interest thereon as described in the Indenture. The
      Indenture provides that, notwithstanding the acceleration of the maturity of
      the
      Notes, under certain circumstances specified therein, all amounts collected
      as
      proceeds of the Trust Estate securing the Notes or otherwise shall continue
      to
      be applied to payments of principal of and interest on the Notes as if they
      had
      not been declared due and payable.

     

    The
      failure to pay any Unpaid Interest Shortfall at any time when funds are not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring the Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of a Note will not give rise to a
      non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) the Note is rated investment grade or better and such person
      believes that the Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      the
      Note. Alternatively, regardless of the rating of the Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuing Entity,
      the
      Sponsor, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Securities Administrator, the Master Servicer, the Servicer or
      any
      successor servicer, which opines that the acquisition, holding and transfer
      of
      such Note or interest therein is permissible under applicable law, will not
      constitute or result in a non-exempt prohibited transaction under ERISA or
      Section 4975 of the Code and will not subject the Issuing Entity, the Sponsor,
      the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Securities Administrator, the Master Servicer, the Servicer or any successor
      servicer to any obligation in addition to those undertaken in the
      Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuing
      Entity. Upon surrender for registration of transfer of, or presentation of
      a
      written instrument of transfer for, this Note at the office or agency designated
      by the Issuing Entity pursuant to the Indenture, accompanied by proper
      instruments of assignment in form satisfactory to the Indenture Trustee, one
      or
      more new Notes of any authorized denominations and of a like aggregate then
      outstanding Note Principal Balance, will be issued to the designated transferee
      or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuing
      Entity, the Indenture Trustee and any agent of the Issuing Entity or the
      Indenture Trustee may treat the Person in whose name this Note is registered
      as
      the owner of such Note (i) on the applicable Record Date for the purpose of
      making payments and interest of such Note, and (ii) on any other date for all
      other purposes whatsoever, as the owner hereof, whether or not this Note be
      overdue, and neither the Issuing Entity, the Indenture Trustee nor any such
      agent of the Issuing Entity or the Indenture Trustee shall be affected by notice
      to the contrary.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

    

    

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuing Entity
      and the rights of the Holders of the Notes under the Indenture at any time
      by
      the Issuing Entity and the Holders of a majority of each Class of Notes affected
      thereby. The Indenture also contains provisions permitting the Holders of Notes
      representing not less than a majority of the aggregate Note Principal Balance
      of
      the Notes, to waive any past Event of Default and its consequences except an
      Event of Default (a) with respect to payment of principal of or interest on
      any
      of the Notes, or (b) in respect of a covenant or provision of the Indenture
      which cannot be modified or amended without the consent of the Holder of each
      Note. Any such waiver by the Holder, at the time of the giving thereof, of
      this
      Note (or any one or more predecessor Notes) shall bind the Holder of every
      Note
      issued upon the registration of transfer hereof or in exchange hereof or in
      lieu
      hereof, whether or not notation of such consent or waiver is made upon such
      Note. The Indenture also permits the Issuing Entity and the Indenture Trustee,
      following prior notice to the Rating Agencies, to amend or waive certain terms
      and conditions set forth in the Indenture without the consent of the Holders
      of
      the Notes issued thereunder.

     

    Initially,
      the Notes will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for the Notes. The Notes will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. The Notes are exchangeable
      for a like aggregate then outstanding Note Principal Balance of Notes of
      different authorized denominations, as requested by the Holder surrendering
      same.

     

    Unless
      the Certificate of Authentication hereon has been executed by the Indenture
      Trustee by manual signature, this Note shall not be entitled to any benefit
      under the Indenture, or be valid or obligatory for any purpose.

     

    Anything
      herein to the contrary notwithstanding, except as expressly provided in the
      Basic Documents, neither the Owner Trustee in its individual capacity, nor
      any
      of its respective partners, beneficiaries, agents, officers, directors,
      employees, or successors or assigns, shall be personally liable for, nor shall
      recourse be had to any of them for, the payment of principal of or interest
      on,
      or performance of, or omission to perform, any of the covenants, obligations
      or
      indemnifications contained in this Note, it being expressly understood that
      said
      covenants, obligations and indemnifications have been made solely by the Trust
      to the extent of the assets of the Trust. The Holder of this Note by the
      acceptance hereof agrees that, except as expressly provided in the Basic
      Documents, the Holder shall have no claim against any of the foregoing for
      any
      deficiency, loss or claim therefrom; provided, however, that nothing contained
      herein shall be taken to prevent recourse to, and enforcement against, the
      assets of the Trust Estate for any and all liabilities, obligations and
      undertakings contained in this Note.

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        A-1-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuing Entity has caused this instrument to be duly
      executed by Wilmington Trust Company, not in its individual capacity but solely
      as Owner Trustee.

     

    Dated:
      March 29, 2006

    
      	 	 	 
	 	AMERICAN
              HOME
              MORTGAGE INVESTMENT TRUST 2006-1
	 
 	 
 	 
 
	 	BY:  	WILMINGTON
              TRUST
              COMPANY, not in its individual capacity but solely in its capacity
              as
              Owner Trustee
	 	 	 
	 	By: 	 
	 	
              
Authorized
              Signatory
	 	 

    

     

     

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

    This
      is
      one of the Class [__]-A-[__]
      Notes
      referred to in the within-mentioned Indenture.

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY, as Indenture Trustee

     

    By: ________________________

    Authorized
      Signatory

    
      
        
        

      

      
        A-1-6

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of the Note,
      shall be construed as though they were written out in full according to
      applicable laws or regulations:

    

    
      	
              TEN
                COM

               

            	
              --

               

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

               

            	
              --

               

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

               

            	
              --

               

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

               

            	
              --

               

            	
              __________
                Custodian 

              ______________________________

              (Cust)   
                 
                (Minor)

               

              under
                Uniform Gifts to Minor Act _____________________

              (State)

               

            

    

    

    ADDITIONAL
      ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

     

    
      
        
        

      

      
        A-1-7

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

     

    (PLEASE
      PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
      ASSIGNEE)

     

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints ________________________ attorney to transfer said Note on the books
      kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:            

     

    Signature
      Guaranteed by        

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

    
      
        
        

      

      
        A-1-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

    CLASS
      [__]-M-[__] NOTES

     

    THIS
      NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [__]-A-[__]
      NOTES AND [CLASS [__]-M-[__]] NOTES AS DESCRIBED IN THE
      INDENTURE.

     

    [UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.]

     

    [FOR
      OFFERED NOTES] THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST
      HEREIN WILL BE DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED
      IN
      SECTION 4.15 OF THE INDENTURE.

     

    THIS
      NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
      RIGHT
      OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE
      INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT OTHERWISE PERSONALLY
      LIABLE FOR PAYMENTS ON THIS NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN
      ON THE FACE HEREOF.

     

    [NO
      TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
      RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE'S
      STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

     

    NO
      TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR HAS RECEIVED
      PROOF
      OF THE TRANSFEREE'S STATUS AS A REIT OR AS A QUALIFIED REIT SUBSIDIARY, WITHIN
      THE MEANING OF SECTION 856(a) OR SECTION 856(i) OF THE CODE, RESPECTIVELY [FOR
      NON-OFFERED NOTES] [, AND FOLLOWING SUCH TRANSFER, SUCH HOLDER OF NON-OFFERED
      NOTES SHALL OWN 100% OF THE NON-OFFERED NOTES AND THE TRUST
      CERTIFICATES].

     

    THIS
      NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
      TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
      OR
      TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
      AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
      PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED TO
      HEREIN.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    

     

    [FOR
      NON-OFFERED NOTES] NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE
      REGISTRAR SHALL HAVE RECEIVED EITHER (i) A REPRESENTATION LETTER FROM THE
      TRANSFEREE OF THIS NOTE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN OR OTHER PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE
      OF 1986, AS AMENDED (THE “CODE”), OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN
      OR USING THE ASSETS OF ANY SUCH PLAN, OR (ii) IF THIS NOTE IS PRESENTED FOR
      REGISTRATION IN THE NAME OF A PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE
      CODE
      (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE OF ANY
      SUCH PLAN, OR ANY OTHER PERSON WHO IS USING THE ASSETS OF ANY SUCH PLAN TO
      EFFECT SUCH ACQUISITION, AN OPINION OF COUNSEL TO THE EFFECT THAT THE PURCHASE
      OF NOTES, OPERATION OF TRUST AND MANAGEMENT OF TRUST ASSETS ARE PERMISSIBLE
      UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY PROHIBITED
      TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE
      DEPOSITOR, THE SPONSOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE
      REGISTRAR, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER OR THE SERVICER
      TO
      ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER ERISA
      OR
      SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE TRUST
      AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE DEPOSITOR,
      THE SPONSOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE REGISTRAR,
      THE
      MASTER SERVICER, THE SECURITIES ADMINISTRATOR OR THE
      SERVICER.]

     

    BY
      ACCEPTANCE OF THIS NOTE, THE HOLDER HEREOF AGREES TO SURRENDER THIS NOTE TO
      THE
      INDENTURE TRUSTEE PROMPTLY UPON RECEIPT OF THE CORRESPONDING CLASS OF REMIC
      NOTES OR REMIC PUBLICLY OFFERED CERTIFICATES, AS APPLICABLE, FOLLOWING THE
      OCCURRENCE OF THE REMIC CONVERSION AS DESCRIBED IN THE
      INDENTURE.

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

    

      AMERICAN
      HOME MORTGAGE INVESTMENT TRUST 2006-1

    MORTGAGE-BACKED
      NOTES, SERIES 2006-1

    CLASS
      [__]-M-[__]

    

    
      	
              AGGREGATE
                NOTE PRINCIPAL

              BALANCE:
                $[______________]

               

            	
              NOTE
                INTEREST

              RATE:
                Adjustable Rate

               

            
	
              INITIAL
                NOTE PRINCIPAL

              BALANCE
                OF THIS NOTE: $[_____________]

               

            	
              NOTE
                NO. 1

               

            
	
              PERCENTAGE
                INTEREST: 100%

               

            	
              CUSIP
                NO:

               

            

    

    

    American
      Home Mortgage Investment Trust 2006-1 (the “Issuing Entity”), a Delaware
      statutory trust, for value received, hereby promises to pay to [____________]
      or
      registered assigns, the principal sum of $[______________] in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in April 2006 and ending on or before the Payment Date occurring
      in
      _________________ (the “Final Scheduled Payment Date”) and to pay interest on
      the Note Principal Balance of this Note (this “Note”) outstanding from time to
      time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuing Entity’s Mortgage-Backed Notes,
      Series 2006-1 (the “Notes”), issued under an Indenture dated as of March 29,
      2006 (the “Indenture”), between the Issuing Entity, Deutsche Bank National Trust
      Company, as indenture trustee (the “Indenture Trustee”) and Wells Fargo Bank,
      N.A., as securities administrator (the “Securities Administrator”), to which
      Indenture and all indentures supplemental thereto reference is hereby made
      for a
      statement of the respective rights thereunder of the Issuing Entity, the
      Indenture Trustee, the Securities Administrator and the Holders of the Notes
      and
      the terms upon which the Notes are to be authenticated and delivered. All terms
      used in this Note which are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Principal Balance”
of a Note as of any date of determination is equal to the initial Note Principal
      Balance thereof, reduced by the aggregate of all amounts previously paid with
      respect to such Note on account of principal and the aggregate amount of
      cumulative Realized Losses allocated to such Note on all prior Payment Dates,
      and increased by any Subsequent Recoveries allocated to such Note.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuing Entity with respect to this Note shall be equal
      to
      this Note’s pro rata share of the aggregate payments on all Class [__]-M-[__]
      Notes as described above, and shall be applied as between interest and principal
      as provided in the Indenture.

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

    

    

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Scheduled Payment Date.

     

    By
      acceptance of this Note, the Holder hereof agrees to surrender this Note to
      the
      Indenture Trustee promptly upon receipt of the corresponding Class of REMIC
      Notes or REMIC Privately Offered Certificates, as applicable, following the
      occurrence of the REMIC Conversion as described in the Indenture.

     

    The
      Majority Certificateholder shall have the option to purchase the related assets
      of the Trust and thereby redeem the related Notes on or after the Payment Date
      on which the Stated Principal Balance of the related Mortgage Loans, and
      properties acquired in respect thereof has been reduced to less than 20% of
      the
      aggregate stated principal balance of the related Mortgage Loans as of the
      Cut-Off Date.

     

    The
      Issuing Entity shall not be liable upon the indebtedness evidenced by the Notes
      except to the extent of amounts available from the Trust Estate which
      constitutes security for the payment of the Notes. The assets included in the
      Trust Estate will be the sole source of payments on the Class [__]-M-[__] Notes,
      and each Holder hereof, by its acceptance of this Note, agrees that (i) such
      Note will be limited in right of payment to amounts available from the Trust
      Estate as provided in the Indenture and (ii) such Holder shall have no recourse
      to the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Depositor,
      the Securities Administrator, the Sponsor, the Master Servicer, the Servicer
      or
      any of its affiliates, or to the assets of any of the foregoing entities, except
      the assets of the Issuing Entity pledged to secure Class [__]-M-[__] Notes
      pursuant to the Indenture and the rights conveyed to the Issuing Entity under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All reductions in the principal amount of a Note effected by payments
      of
      principal made on any Payment Date shall be binding upon all Holders of this
      Note and of any note issued upon the registration of transfer thereof or in
      exchange therefor or in lieu thereof, whether or not such payment is noted
      on
      such Note. The final payment of this Note shall be payable upon presentation
      and
      surrender thereof on or after the Payment Date thereof at the office or agency
      designated by the Indenture Trustee and maintained by it for such purpose
      pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note,
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    
      
        
        

      

      
        A-2-4

        
          

        

      

      
        
        

      

    

    

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Principal
      Balance of the Notes, the amount payable to the Holder of this Note will be
      equal to the sum of the unpaid Note Principal Balance of this Note, together
      with accrued and unpaid interest thereon as described in the Indenture. The
      Indenture provides that, notwithstanding the acceleration of the maturity of
      the
      Notes, under certain circumstances specified therein, all amounts collected
      as
      proceeds of the Trust Estate securing the Notes or otherwise shall continue
      to
      be applied to payments of principal of and interest on the Notes as if they
      had
      not been declared due and payable.

     

    The
      failure to pay any Unpaid Interest Shortfall at any time when funds are not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    [For
      Offered Notes] [The Holder of this Note or Beneficial Owner of any interest
      herein is deemed to represent that either (1) it is not acquiring the Note
      with
      Plan Assets or (2) (A) the acquisition, holding and transfer of a Note will
      not
      give rise to a non-exempt prohibited transaction under Section 406 of ERISA
      or
      Section 4975 of the Code and (B) the Note is rated investment grade or better
      and such person believes that the Note is properly treated as indebtedness
      without substantial equity features for purposes of the DOL Regulations, and
      agrees to so treat the Note. Alternatively, regardless of the rating of the
      Note, such person may provide the Indenture Trustee and the Owner Trustee with
      an opinion of counsel, which opinion of counsel will not be at the expense
      of
      the Issuing Entity, the Sponsor, the Depositor, any Underwriter, the Owner
      Trustee, the Indenture Trustee, the Securities Administrator, the Master
      Servicer, the Servicer of any successor servicer, which opines that the
      acquisition, holding and transfer of such Note or interest therein is
      permissible under applicable law, will not constitute or result in a non-exempt
      prohibited transaction under ERISA or Section 4975 of the Code and will not
      subject the Issuing Entity, the Sponsor, the Depositor, any Underwriter, the
      Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master
      Servicer, the Servicer or any successor servicer to any obligation in addition
      to those undertaken in the Indenture.]

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuing
      Entity. Upon surrender for registration of transfer of, or presentation of
      a
      written instrument of transfer for, this Note at the office or agency designated
      by the Issuing Entity pursuant to the Indenture, accompanied by proper
      instruments of assignment in form satisfactory to the Indenture Trustee, one
      or
      more new Notes of any authorized denominations and of a like aggregate then
      outstanding Note Principal Balance, will be issued to the designated transferee
      or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuing
      Entity, the Indenture Trustee and any agent of the Issuing Entity or the
      Indenture Trustee may treat the Person in whose name this Note is registered
      as
      the owner of such Note (i) on the applicable Record Date for the purpose of
      making payments and interest of such Note, and (ii) on any other date for all
      other purposes whatsoever, as the owner hereof, whether or not this Note be
      overdue, and neither the Issuing Entity, the Indenture Trustee nor any such
      agent of the Issuing Entity or the Indenture Trustee shall be affected by notice
      to the contrary.

     

    
      
        
        

      

      
        A-2-5

        
          

        

      

      
        
        

      

    

    

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuing Entity
      and the rights of the Holders of the Notes under the Indenture at any time
      by
      the Issuing Entity and the Holders of a majority of each Class of Notes affected
      thereby. The Indenture also contains provisions permitting the Holders of Notes
      representing not less than a majority of the aggregate Note Principal Balance
      of
      the Notes, to waive any past Event of Default and its consequences except an
      Event of Default (a) with respect to payment of principal of or interest on
      any
      of the Notes, or (b) in respect of a covenant or provision of the Indenture
      which cannot be modified or amended without the consent of the Holder of each
      Note. Any such waiver by the Holder, at the time of the giving thereof, of
      this
      Note (or any one or more predecessor Notes) shall bind the Holder of every
      Note
      issued upon the registration of transfer hereof or in exchange hereof or in
      lieu
      hereof, whether or not notation of such consent or waiver is made upon such
      Note. The Indenture also permits the Issuing Entity and the Indenture Trustee,
      following prior notice to the Rating Agencies, to amend or waive certain terms
      and conditions set forth in the Indenture without the consent of the Holders
      of
      the Notes issued thereunder.

     

    [Initially,
      the Notes will be registered in the name of ____________- ] [Initially, the
      Notes will be registered in the name of Cede & Co. as nominee of DTC, acting
      in its capacity as the Depository for the Notes. The Notes will be delivered
      by
      the clearing agency in denominations as provided in the Indenture and subject
      to
      certain limitations therein set forth.] The Notes are exchangeable for a like
      aggregate then outstanding Note Principal Balance of Notes of different
      authorized denominations, as requested by the Holder surrendering
      same.

     

    [No
      transfer, sale, pledge or other disposition of a Non-Offered Note shall be
      made
      unless such transfer, sale, pledge or other disposition is exempt from the
      registration requirements of the Securities Act and any applicable state
      securities laws or is made in accordance with said Act and laws. In the event
      of
      any such transfer, the Note Registrar or the Depositor shall prior to such
      transfer require the transferee to execute (A) either (i) (a) an investment
      letter in substantially the form attached to the Indenture as Exhibit K (or
      in
      such form and substance reasonably satisfactory to the Note Registrar and the
      Depositor) which investment letter shall not be an expense of the Trust, the
      Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
      Registrar, the Master Servicer, the Servicer, the Sponsor or the Depositor
      and
      which investment letter states that, among other things, such transferee (1)
      is
      a “qualified institutional buyer” as defined under Rule 144A, acting for its own
      account or the accounts of other “qualified institutional buyers” as defined
      under Rule 144A, and (2) is aware that the proposed transferor intends to rely
      on the exemption from registration requirements under the Securities Act of
      1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
      acceptable to and in form and substance satisfactory to the Note Registrar
      and
      the Depositor that such transfer may be made pursuant to an exemption,
      describing the applicable exemption and the basis therefor, from said Act and
      laws or is being made pursuant to said Act and laws, which Opinion of Counsel
      shall not be an expense of the Trust, the Owner Trustee, the Indenture Trustee,
      the Securities Administrator, the Note Registrar, the Master Servicer, the
      Servicer, the Sponsor or the Depositor and (b) either (1) the transferee
      executes a representation letter, substantially in the form of Exhibit M hereto,
      and the transferor executes a representation letter, substantially in the form
      of Exhibit N hereto, each acceptable to and in form and substance satisfactory
      to the Note Registrar certifying the facts surrounding such transfer, which
      representation letters shall not be an expense of the Trust, the Owner Trustee,
      the Indenture Trustee, the Securities Administrator, the Note Registrar, the
      Master Servicer, the Servicer, the Sponsor or the Depositor or (2) an Opinion
      of
      Counsel has been rendered by nationally recognized tax counsel stating that
      such
      Notes will be treated as debt for federal income tax purposes and (B) the
      Certificate of Non-Foreign Status (in substantially the form attached to the
      Indenture as Exhibit L) acceptable to and in form and substance reasonably
      satisfactory to the Note Registrar, which certificate shall not be an expense
      of
      the Trust, the Owner Trustee, the Indenture Trustee, the Securities
      Administrator, the Note Registrar, the Master Servicer, the Servicer, the
      Sponsor or the Depositor. The Holder of a Non-Offered Note desiring to effect
      such transfer shall, and does hereby agree to, indemnify the Trust, the Owner
      Trustee, the Indenture Trustee, the Paying Agent, the Note Registrar, the Master
      Servicer, the Servicer and the Depositor against any liability that may result
      if the transfer is not so exempt or is not made in accordance with such federal
      and state laws.

     

    
      
        
        

      

      
        A-2-6

        
          

        

      

      
        
        

      

    

    

     

    [For
      Non-Offered Notes] No transfer of Non-Offered Notes or any interest therein
      shall be made to any Person unless the Depositor, the Owner Trustee, the
      Securities Administrator, the Note Registrar, the Master Servicer, the Servicer
      and the Sponsor are provided with an Opinion of Counsel which establishes to
      the
      satisfaction of the Depositor, the Owner Trustee, the Indenture Trustee and
      the
      Note Registrar that the purchase of Non-Offered Notes is permissible under
      applicable law, will not constitute or result in any prohibited transaction
      under ERISA or Section 4975 of the Code and will not subject the Depositor,
      the
      Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
      Registrar, the Master Servicer, the Servicer or the Sponsor to any obligation
      or
      liability (including obligations or liabilities under ERISA or Section 4975
      of
      the Code) in addition to those undertaken in the Indenture, which Opinion of
      Counsel shall not be an expense of the Depositor, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Note Registrar, the Master
      Servicer, the Servicer or the Sponsor. In lieu of such Opinion of Counsel,
      a
      Person may provide a certification in the form of Exhibit G to the Indenture,
      which the Depositor, the Owner Trustee, the Indenture Trustee, the Securities
      Administrator, the Note Registrar, the Master Servicer, the Servicer and the
      Sponsor may rely upon without further inquiry or investigation. Neither an
      Opinion of Counsel nor a certification will be required in connection with
      the
      initial transfer of any such Note by the Depositor to an affiliate of the
      Depositor (in which case, the Depositor or any affiliate thereof shall have
      deemed to have represented that such affiliate is not a Plan or a Person
      investing Plan Assets) and the Owner Trustee shall be entitled to conclusively
      rely upon a representation (which, upon the request of the Owner Trustee, shall
      be a written representation) from the Depositor of the status of such transferee
      as an affiliate of the Depositor.

     

    No
      person
      shall become a Holder of Non-Offered Notes, so long as any Notes are
      Outstanding, until it shall establish its status as a real estate investment
      trust (“REIT”) or as a “qualified REIT subsidiary” (“QRS”) within the meaning of
      Section 856(a) or Section 856(i) of the Code, respectively, by submitting to
      the
      Note Registrar and the Transferee Certificate set forth in Exhibit H to the
      Indenture [for Non-Offered Notes] [, and following such transfer, such Holder
      of
      the Non-Offered Notes shall own 100% of the Non-Offered Notes and the Trust
      Certificates].

     

    No
      offer,
      sale, transfer, pledge, hypothecation or other disposition (including any
      pledge, sale or transfer under a repurchase transaction or securities loan)
      of
      any Non-Offered Note shall be made to any transferee unless, prior to such
      disposition, the proposed transferor delivers to the Note Registrar (i) an
      Opinion of Counsel, rendered by a law firm generally recognized to be qualified
      to opine concerning the tax aspects of asset securitization, to the effect
      that
      such transfer (including any disposition permitted following any default under
      any pledge or repurchase transaction) will not cause the Trust to be no longer
      be treated for federal income tax purposes as a “qualified REIT subsidiary”
within the meaning of Section 856(i) of the Code and (ii) a certificate that
      stating that any Non-Offered Notes may be transferred by the related lender
      under any such related loan agreement or repurchase agreement upon a default
      under any such indebtedness, in which case the transferor shall deliver to
      the
      Note Registrar and the Indenture Trustee substantially in the form attached
      as
      Exhibit I to the Indenture certifying to such effect. Notwithstanding the
      foregoing, the provisions of this paragraph shall not apply to the initial
      transfer of the Non-Offered Notes to the Depositor.]

     

    
      
        
        

      

      
        A-2-7

        
          

        

      

      
        
        

      

    

    

     

    Unless
      the Certificate of Authentication hereon has been executed by the Indenture
      Trustee by manual signature, this Note shall not be entitled to any benefit
      under the Indenture, or be valid or obligatory for any purpose.

     

    Anything
      herein to the contrary notwithstanding, except as expressly provided in the
      Basic Documents, neither the Owner Trustee in its individual capacity, nor
      any
      of its respective partners, beneficiaries, agents, officers, directors,
      employees, or successors or assigns, shall be personally liable for, nor shall
      recourse be had to any of them for, the payment of principal of or interest
      on,
      or performance of, or omission to perform, any of the covenants, obligations
      or
      indemnifications contained in this Note, it being expressly understood that
      said
      covenants, obligations and indemnifications have been made solely by the Trust
      to the extent of the assets of the Trust. The Holder of this Note by the
      acceptance hereof agrees that, except as expressly provided in the Basic
      Documents, the Holder shall have no claim against any of the foregoing for
      any
      deficiency, loss or claim therefrom; provided, however, that nothing contained
      herein shall be taken to prevent recourse to, and enforcement against, the
      assets of the Trust Estate for any and all liabilities, obligations and
      undertakings contained in this Note.

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        A-2-8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuing Entity has caused this instrument to be duly
      executed by Wilmington Trust Company, not in its individual capacity but solely
      as Owner Trustee.

     

    Dated:
      March 29, 2006

    
      	 	 	 
	 	AMERICAN
              HOME
              MORTGAGE INVESTMENT TRUST 2006-1
	 
 	 
 	 
 
	 	BY:  	WILMINGTON
              TRUST
              COMPANY,
              not in its individual capacity but solely in its capacity as Owner
              Trustee
	 	 	 
	 	By: 	 
	 	
              
Authorized
              Signatory
	 	 

    

     

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

    This
      is
      one of the Class [__-]M-__] Notes referred to in the within-mentioned
      Indenture.

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY, as Indenture Trustee

     

    
      	
              By:

            	
              __________________________

            

    

    Authorized
      Signatory

    
      
        
        

      

      
        A-2-9

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of the Note,
      shall be construed as though they were written out in full according to
      applicable laws or regulations:

    

    
      	
              TEN
                COM

               

            	
              --

               

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

               

            	
              --

               

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

               

            	
              --

               

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

               

            	
              --

               

            	
              __________
                Custodian 

              ______________________________

              (Cust)  
 
                (Minor)

               

              under
                Uniform Gifts to Minor Act _____________________

              (State)

               

            

    

    

    ADDITIONAL
      ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

     

    
      
        
        

      

      
        A-2-10

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

     

    (PLEASE
      PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
      ASSIGNEE)

     

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints ________________________ attorney to transfer said Note on the books
      kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:            

     

    Signature
      Guaranteed by           

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

    
      
        
        

      

      
        A-2-11

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3

    CLASS
      II-B NOTES

     

    THIS
      NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [__]-A-[__] NOTES AND
      CLASS [__]-M-[__] NOTES AS DESCRIBED IN THE INDENTURE.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
      RIGHT
      OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE
      INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT OTHERWISE PERSONALLY
      LIABLE FOR PAYMENTS ON THIS NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN
      ON THE FACE HEREOF.

     

    NO
      TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
      RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE'S
      STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

     

    NO
      TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR HAS RECEIVED
      PROOF
      OF THE TRANSFEREE'S STATUS AS A REIT OR AS A QUALIFIED REIT SUBSIDIARY, WITHIN
      THE MEANING OF SECTION 856(a) OR SECTION 856(i) OF THE CODE, RESPECTIVELY,
      AND
      FOLLOWING SUCH TRANSFER, SUCH HOLDER OF NON-OFFERED NOTES SHALL OWN 100% OF
      THE
      NON-OFFERED NOTES AND THE TRUST CERTIFICATES.

     

    THIS
      NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
      TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
      OR
      TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
      AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
      PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED TO
      HEREIN.

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

    

     

    NO
      TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
      RECEIVED EITHER (i) A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS NOTE
      TO
      THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN
      SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”), OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF
      ANY SUCH PLAN, OR (ii) IF THIS NOTE IS PRESENTED FOR REGISTRATION IN THE NAME
      OF
      A PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS
      OF
      ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON
      WHO IS USING THE ASSETS OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, AN OPINION
      OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF NOTES, OPERATION OF TRUST AND
      MANAGEMENT OF TRUST ASSETS ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
      CONSTITUTE OR RESULT IN ANY PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975
      OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE SPONSOR, THE OWNER TRUSTEE,
      THE INDENTURE TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR, THE
      MASTER SERVICER OR THE SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING
      OBLIGATIONS OR LIABILITIES UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION
      TO THOSE UNDERTAKEN IN THE TRUST AGREEMENT, WHICH OPINION OF COUNSEL SHALL
      NOT
      BE AN EXPENSE OF THE DEPOSITOR, THE SPONSOR, THE OWNER TRUSTEE, THE INDENTURE
      TRUSTEE, THE NOTE REGISTRAR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR
      OR THE SERVICER.

    

    BY
      ACCEPTANCE OF THIS NOTE, THE HOLDER HEREOF AGREES TO SURRENDER THIS NOTE TO
      THE
      INDENTURE TRUSTEE PROMPTLY UPON RECEIPT OF THE CORRESPONDING CLASS OF REMIC
      PRIVATELY OFFERED CERTIFICATES FOLLOWING THE OCCURRENCE OF THE REMIC CONVERSION
      AS DESCRIBED IN THE INDENTURE.

    
      
        
        

      

      
        A-3-2

        
          

        

      

      
        
        

      

    

      AMERICAN
      HOME MORTGAGE INVESTMENT TRUST 2006-1

    MORTGAGE-BACKED
      NOTES, SERIES 2006-1

    CLASS
      II-B

    

    
      	
              AGGREGATE
                NOTE PRINCIPAL

              BALANCE:
                $[______________]

               

            	
              NOTE
                INTEREST

              RATE:
                [0.000%]

               

            
	
              INITIAL
                NOTE PRINCIPAL

              BALANCE
                OF THIS NOTE: $[_____________]

               

            	
              NOTE
                NO. 1

               

            
	
              PERCENTAGE
                INTEREST: 100%

               

            	
              CUSIP
                NO:

               

            

    

    

    American
      Home Mortgage Investment Trust 2006-1 (the “Issuing Entity”), a Delaware
      statutory trust, for value received, hereby promises to pay to [____________]
      or
      registered assigns, the principal sum of $[______________] in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in April 2006 and ending on or before the Payment Date occurring
      in
      ______________ (the “Final Scheduled Payment Date”) [and to pay interest on the
      Note Principal Balance of this Note (this “Note”) outstanding from time to time
      as provided below.]

     

    This
      Note
      is one of a duly authorized issue of the Issuing Entity’s Mortgage-Backed Notes,
      Series 2006-1 (the “Notes”), issued under an Indenture dated as of March 29,
      2006 (the “Indenture”), between the Issuing Entity, Deutsche Bank National Trust
      Company, as indenture trustee (the “Indenture Trustee”) and Wells Fargo Bank,
      N.A., as securities administrator (the “Securities Administrator”), to which
      Indenture and all indentures supplemental thereto reference is hereby made
      for a
      statement of the respective rights thereunder of the Issuing Entity, the
      Indenture Trustee and the Holders of the Notes and the terms upon which the
      Notes are to be authenticated and delivered. All terms used in this Note which
      are defined in the Indenture shall have the meanings assigned to them in the
      Indenture.

     

    Payments
      of principal on this Note will be made on each Payment Date to the Noteholder
      of
      record as of the related Record Date. The “Note Principal Balance” of a Note as
      of any date of determination is equal to the initial Note Principal Balance
      thereof, reduced by the aggregate of all amounts previously paid with respect
      to
      such Note on account of principal and the aggregate amount of cumulative
      Realized Losses allocated to such Note on all prior Payment Dates, and increased
      by any Subsequent Recoveries allocated to such Note.

     

    The
      principal of this Note is due and payable as described in the Indenture, in
      such
      coin or currency of the United States of America as at the time of payment
      is
      legal tender for payment of public and private debts. All payments made by
      the
      Issuing Entity with respect to this Note shall be equal to this Note’s pro rata
      share of the aggregate payments on all Class II-B Notes
      as
      described above, and shall be applied as principal as provided in the
      Indenture.

     

    All
      principal on the Notes, if not previously paid, will become finally due and
      payable at the Final Scheduled Payment Date.

     

    
      
        
        

      

      
        A-3-3

        
          

        

      

      
        
        

      

    

    

     

    By
      acceptance of this Note, the Holder hereof agrees to surrender this Note to
      the
      Indenture Trustee promptly upon receipt of the corresponding Class of REMIC
      Privately Offered Certificates following the occurrence of the REMIC Conversion
      as described in the Indenture.

     

    The
      Majority Certificateholder shall have the option to purchase the related assets
      of the Trust and thereby redeem the related Notes on or after the Payment Date
      on which the Stated Principal Balance of the related Mortgage Loans, and
      properties acquired in respect thereof has been reduced to less than 10% of
      the
      aggregate stated principal balance of the related Mortgage Loans as of the
      Cut-Off Date.

     

    The
      Issuing Entity shall not be liable upon the indebtedness evidenced by the Notes
      except to the extent of amounts available from the Trust Estate which
      constitutes security for the payment of the Notes. The assets included in the
      Trust Estate will be the sole source of payments on the Class II-B Notes,
      and each Holder hereof, by its acceptance of this Note, agrees that (i) such
      Note will be limited in right of payment to amounts available from the Trust
      Estate as provided in the Indenture and (ii) such Holder shall have no recourse
      to the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Depositor,
      the Securities Administrator, the Sponsor, the Master Servicer, Servicer or
      any
      of its affiliates, or to the assets of any of the foregoing entities, except
      the
      assets of the Issuing Entity pledged to secure the Class II-B Notes
      pursuant to the Indenture and the rights conveyed to the Issuing Entity under
      the Indenture.

     

    Any
      payment of principal payable on this Note which is punctually paid on the
      applicable Payment Date shall be paid to the Person in whose name such Note
      is
      registered at the close of business on the Record Date for such Payment Date
      by
      check mailed to such person’s address as it appears in the Note Register on such
      Record Date, except for the final installment of principal payable with respect
      to such Note, which shall be payable as provided below. Notwithstanding the
      foregoing, upon written request with appropriate instructions by the Holder
      of
      this Note delivered to the Indenture Trustee at least five Business Days prior
      to the Record Date, any payment of principal, other than the final installment
      of principal, shall be made by wire transfer to an account in the United States
      designated by such Holder. All reductions in the principal amount of a Note
      effected by payments of principal made on any Payment Date shall be binding
      upon
      all Holders of this Note and of any note issued upon the registration of
      transfer thereof or in exchange therefor or in lieu thereof, whether or not
      such
      payment is noted on such Note. The final payment of this Note shall be payable
      upon presentation and surrender thereof on or after the Payment Date thereof
      at
      the office or agency designated by the Indenture Trustee and maintained by
      it
      for such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note,
      shall carry the right to unpaid principal that was carried by such other
      Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Principal
      Balance of the Notes, the amount payable to the Holder of this Note will be
      equal to the sum of the unpaid Note Principal Balance of this Note. The
      Indenture provides that, notwithstanding the acceleration of the maturity of
      the
      Notes, under certain circumstances specified therein, all amounts collected
      as
      proceeds of the Trust Estate securing the Notes or otherwise shall continue
      to
      be applied to payments of principal of the Notes as if they had not been
      declared due and payable.

     

    
      
        
        

      

      
        A-3-4

        
          

        

      

      
        
        

      

    

    

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuing
      Entity. Upon surrender for registration of transfer of, or presentation of
      a
      written instrument of transfer for, this Note at the office or agency designated
      by the Issuing Entity pursuant to the Indenture, accompanied by proper
      instruments of assignment in form satisfactory to the Indenture Trustee, one
      or
      more new Notes of any authorized denominations and of a like aggregate then
      outstanding Note Principal Balance, will be issued to the designated transferee
      or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuing
      Entity, the Indenture Trustee and any agent of the Issuing Entity or the
      Indenture Trustee may treat the Person in whose name this Note is registered
      as
      the owner of such Note (i) on the applicable Record Date for the purpose of
      making payments of such Note, and (ii) on any other date for all other purposes
      whatsoever, as the owner hereof, whether or not this Note be overdue, and
      neither the Issuing Entity, the Indenture Trustee nor any such agent of the
      Issuing Entity or the Indenture Trustee shall be affected by notice to the
      contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuing Entity
      and the rights of the Holders of the Notes under the Indenture at any time
      by
      the Issuing Entity and the Holders of a majority of each Class of Notes affected
      thereby. The Indenture also contains provisions permitting the Holders of Notes
      representing not less than a majority of the aggregate Note Principal Balance
      of
      the Notes, to waive any past Event of Default and its consequences except an
      Event of Default (a) with respect to payment of principal of on any of the
      Notes, or (b) in respect of a covenant or provision of the Indenture which
      cannot be modified or amended without the consent of the Holder of each Note.
      Any such waiver by the Holder, at the time of the giving thereof, of this Note
      (or any one or more predecessor Notes) shall bind the Holder of every Note
      issued upon the registration of transfer hereof or in exchange hereof or in
      lieu
      hereof, whether or not notation of such consent or waiver is made upon such
      Note. The Indenture also permits the Issuing Entity and the Indenture Trustee,
      following prior notice to the Rating Agencies, to amend or waive certain terms
      and conditions set forth in the Indenture without the consent of the Holders
      of
      the Notes issued thereunder.

     

    Initially,
      the Notes will be registered in the name of ____________. The Notes are
      exchangeable for a like aggregate then outstanding Note Principal Balance of
      Notes of different authorized denominations, as requested by the Holder
      surrendering same.

     

    
      
        
        

      

      
        A-3-5

        
          

        

      

      
        
        

      

    

    

     

    No
      transfer, sale, pledge or other disposition of a Non-Offered Note shall be
      made
      unless such transfer, sale, pledge or other disposition is exempt from the
      registration requirements of the Securities Act and any applicable state
      securities laws or is made in accordance with said Act and laws. In the event
      of
      any such transfer, the Note Registrar or the Depositor shall prior to such
      transfer require the transferee to execute (A) either (i) (a) an investment
      letter in substantially the form attached to the Indenture as Exhibit K (or
      in
      such form and substance reasonably satisfactory to the Note Registrar and the
      Depositor) which investment letter shall not be an expense of the Trust, the
      Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
      Registrar, the Master Servicer, the Servicer, the Sponsor or the Depositor
      and
      which investment letter states that, among other things, such transferee (1)
      is
      a “qualified institutional buyer” as defined under Rule 144A, acting for its own
      account or the accounts of other “qualified institutional buyers” as defined
      under Rule 144A, and (2) is aware that the proposed transferor intends to rely
      on the exemption from registration requirements under the Securities Act of
      1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
      acceptable to and in form and substance satisfactory to the Note Registrar
      and
      the Depositor that such transfer may be made pursuant to an exemption,
      describing the applicable exemption and the basis therefor, from said Act and
      laws or is being made pursuant to said Act and laws, which Opinion of Counsel
      shall not be an expense of the Trust, the Owner Trustee, the Indenture Trustee,
      the Securities Administrator, the Note Registrar, the Master Servicer, the
      Servicer, the Sponsor or the Depositor and (b) either (1) the transferee
      executes a representation letter, substantially in the form of Exhibit M hereto,
      and the transferor executes a representation letter, substantially in the form
      of Exhibit N hereto, each acceptable to and in form and substance satisfactory
      to the Note Registrar certifying the facts surrounding such transfer, which
      representation letters shall not be an expense of the Trust, the Owner Trustee,
      the Indenture Trustee, the Securities Administrator, the Note Registrar, the
      Master Servicer, the Servicer, the Sponsor or the Depositor or (2) an Opinion
      of
      Counsel has been rendered by nationally recognized tax counsel stating that
      such
      Notes will be treated as debt for federal income tax purposes and (B) the
      Certificate of Non-Foreign Status (in substantially the form attached to the
      Indenture as Exhibit L) acceptable to and in form and substance reasonably
      satisfactory to the Note Registrar, which certificate shall not be an expense
      of
      the Trust, the Owner Trustee, the Indenture Trustee, the Securities
      Administrator, the Note Registrar, the Master Servicer, the Servicer, the
      Sponsor or the Depositor. The Holder of a Non-Offered Note desiring to effect
      such transfer shall, and does hereby agree to, indemnify the Trust, the Owner
      Trustee, the Indenture Trustee, the Paying Agent, the Note Registrar, the Master
      Servicer, the Servicer and the Depositor against any liability that may result
      if the transfer is not so exempt or is not made in accordance with such federal
      and state laws.

     

    No
      transfer of Non-Offered Notes or any interest therein shall be made to any
      Person unless the Depositor, the Owner Trustee, the Securities Administrator,
      the Note Registrar, the Master Servicer, the Servicer and the Sponsor are
      provided with an Opinion of Counsel which establishes to the satisfaction of
      the
      Depositor, the Owner Trustee, the Indenture Trustee and the Note Registrar
      that
      the purchase of Non-Offered Notes is permissible under applicable law, will
      not
      constitute or result in any prohibited transaction under ERISA or Section 4975
      of the Code and will not subject the Depositor, the Owner Trustee, the Indenture
      Trustee, the Securities Administrator, the Note Registrar, the Master Servicer,
      the Servicer or the Sponsor to any obligation or liability (including
      obligations or liabilities under ERISA or Section 4975 of the Code) in addition
      to those undertaken in the Indenture, which Opinion of Counsel shall not be
      an
      expense of the Depositor, the Owner Trustee, the Indenture Trustee, the
      Securities Administrator, the Note Registrar, the Master Servicer, the Servicer
      or the Sponsor. In lieu of such Opinion of Counsel, a Person may provide a
      certification in the form of Exhibit G to the Indenture, which the Depositor,
      the Owner Trustee, the Indenture Trustee, the Securities Administrator, the
      Note
      Registrar, the Master Servicer, the Servicer and the Sponsor may rely upon
      without further inquiry or investigation. Neither an Opinion of Counsel nor
      a
      certification will be required in connection with the initial transfer of any
      such Note by the Depositor to an affiliate of the Depositor (in which case,
      the
      Depositor or any affiliate thereof shall have deemed to have represented that
      such affiliate is not a Plan or a Person investing Plan Assets) and the Owner
      Trustee shall be entitled to conclusively rely upon a representation (which,
      upon the request of the Owner Trustee, shall be a written representation) from
      the Depositor of the status of such transferee as an affiliate of the
      Depositor.

     

    
      
        
        

      

      
        A-3-6

        
          

        

      

      
        
        

      

    

    

     

    No
      person
      shall become a Holder of Non-Offered Notes, so long as any Notes are
      Outstanding, until it shall establish its status as a real estate investment
      trust (“REIT”) or as a “qualified REIT subsidiary” (“QRS”) within the meaning of
      Section 856(a) or Section 856(i) of the Code, respectively, by submitting to
      the
      Note Registrar and the Owner Trustee and the Transferee Certificate set forth
      in
      Exhibit H to the Indenture, and following such transfer, such Holder of
      Non-Offered Notes shall own 100% of the Non-Offered Notes and the Trust
      Certificates.

     

    No
      offer,
      sale, transfer, pledge, hypothecation or other disposition (including any
      pledge, sale or transfer under a repurchase transaction or securities loan)
      of
      any Non-Offered Note shall be made to any transferee unless, prior to such
      disposition, the proposed transferor delivers to the Note Registrar (i) an
      Opinion of Counsel, rendered by a law firm generally recognized to be qualified
      to opine concerning the tax aspects of asset securitization, to the effect
      that
      such transfer (including any disposition permitted following any default under
      any pledge or repurchase transaction) will not cause the Trust to be no longer
      be treated for federal income tax purposes as a “qualified REIT subsidiary”
within the meaning of Section 856(i) of the Code and (ii) a certificate that
      stating that any Non-Offered Notes may be transferred by the related lender
      under any such related loan agreement or repurchase agreement upon a default
      under any such indebtedness, in which case the transferor shall deliver to
      the
      Note Registrar, the Owner Trustee and the Indenture Trustee substantially in
      the
      form attached as Exhibit I to the Indenture certifying to such effect.
      Notwithstanding the foregoing, the provisions of this paragraph shall not apply
      to the initial transfer of the Non-Offered Notes to the Depositor.

     

    Unless
      the Certificate of Authentication hereon has been executed by the Indenture
      Trustee by manual signature, this Note shall not be entitled to any benefit
      under the Indenture, or be valid or obligatory for any purpose.

     

    Anything
      herein to the contrary notwithstanding, except as expressly provided in the
      Basic Documents, neither the Owner Trustee in its individual capacity, nor
      any
      of its respective partners, beneficiaries, agents, officers, directors,
      employees, or successors or assigns, shall be personally liable for, nor shall
      recourse be had to any of them for, the payment of principal of [or interest
      on,] or performance of, or omission to perform, any of the covenants,
      obligations or indemnifications contained in this Note, it being expressly
      understood that said covenants, obligations and indemnifications have been
      made
      solely by the Trust to the extent of the assets of the Trust. The Holder of
      this
      Note by the acceptance hereof agrees that, except as expressly provided in
      the
      Basic Documents, the Holder shall have no claim against any of the foregoing
      for
      any deficiency, loss or claim therefrom; provided, however, that nothing
      contained herein shall be taken to prevent recourse to, and enforcement against,
      the assets of the Trust Estate for any and all liabilities, obligations and
      undertakings contained in this Note.

     

    
      
        
        

      

      
        A-3-7

        
          

        

      

      
        
        

      

    

    

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        A-3-8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuing Entity has caused this instrument to be duly
      executed by Wilmington Trust Company, not in its individual capacity but solely
      as Owner Trustee.

     

    Dated:
      March 29, 2006

    
      	 	 	 
	 	AMERICAN
              HOME
              MORTGAGE INVESTMENT TRUST 2006-1
	 
 	 
 	 
 
	 	BY:  	
              WILMINGTON
                TRUST COMPANY,
                not in its individual capacity but solely in its capacity as Owner
                Trustee

            
	 	 	 
	 	By:  	 
	 	
              
Authorized
              Signatory
	 	 

    

     

     

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

    This
      is
      one of the Class II-B Notes
      referred to in the within-mentioned Indenture.

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY, as Indenture Trustee

     

    
      	
              By:

            	
              __________________________

            

    

    Authorized
      Signatory

    
      
        
        

      

      
        A-3-9

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of the Note,
      shall be construed as though they were written out in full according to
      applicable laws or regulations:

    

    
      	
              TEN
                COM

               

            	
              --

               

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

               

            	
              --

               

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

               

            	
              --

               

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

               

            	
              --

               

            	
              __________
                Custodian 

              ______________________________

              (Cust)    
                 (Minor)

               

              under
                Uniform Gifts to Minor Act _____________________

              (State)

               

            

    

    

    ADDITIONAL
      ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

     

    
      
        
        

      

      
        A-3-10

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

     

    (PLEASE
      PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
      ASSIGNEE)

     

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints ________________________ attorney to transfer said Note on the books
      kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:            

     

    Signature
      Guaranteed by           

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    
      
        
        

      

      
        A-3-11

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3

     

    [RESERVED]

     

    

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    MORTGAGE
      LOAN SCHEDULE

     

    (FILED
      MANUALLY)

     

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    

    [RESERVED]

    

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D-1

     

    FORM
      OF
      CAP CONTRACT

     

    [TO
      BE
      INSERTED]

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D-2

     

    FORM
      OF
      CORRIDOR CONTRACT

     

    [TO
      BE
      INSERTED]

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

     

    [RESERVED]

     

    

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    [RESERVED]

     

    

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

     

    [RESERVED]

     

    

     

    

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

     

    FORM
      OF
      INITIAL CERTIFICATION

     

    ,
      200_

     

    AMERICAN
      HOME MORTGAGE SECURITIES LLC

    538
      Broadhollow Road

    Melville,
      New York 11747

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY

    1761
      East
      St. Andrew Place

    Santa
      Ana, California 92705

     

    AMERICAN
      HOME MORTGAGE SERVICING, INC.

    7142
      Columbia Gateway Drive

    Columbia,
      Maryland 21046

     

    Attention:
      American Home Mortgage Investment Trust 2006-1

    

      
        	 	
                Re: 

              	
                Indenture,
                  dated as of March 29, 2006 (the “Indenture”), between American Home
                  Mortgage Investment Trust 2006-1, a Delaware business trust, as
                  Issuing
                  Entity (the “Issuing Entity”), Deutsche Bank National Trust Company, as
                  Indenture Trustee (the “Indenture Trustee”) and Wells Fargo Bank, N.A., as
                  Securities Administrator (the “Securities
                  Administrator”)

              

      

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.03(a) of the Indenture and Section 2.1(b)(i)-(v)
      of
      the Mortgage Loan Purchase Agreement, dated as of March 29, 2006, between
      American Home Mortgage Acceptance, Inc. and American Home Mortgage Securities
      LLC (the “MLPA”, and together with the Indenture, the “Agreements”), the
      undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage
      Loan listed in the related Mortgage Loan Schedule (other than any Mortgage
      Loan
      paid in full or listed on the exception report attached hereto) it has reviewed
      the Mortgage File and the related Mortgage Loan Schedule and has determined
      that: (i) all documents required to be included in the Mortgage File pursuant
      to
      Section 2.1(b)(i)-(v) (except clause (v)(ii)) of the MLPA are in its possession;
      (ii) such documents have been reviewed by it and appear regular on their face
      and relate to such Mortgage Loan; and (iii) based on examination by it, and
      only
      as to such documents, the information set forth in items (iii) and (v) of the
      definition or description of “Mortgage Loan Schedule” is correct.

     

    The
      Indenture Trustee has made no independent examination of any documents contained
      in each Mortgage File beyond the review specifically required in the
      above-referenced Agreements. The Indenture Trustee makes no representation
      that
      any documents specified in clauses (v)(ii) and (vi) of Section 2.1 (b) of the
      MLPA should be included in any Mortgage File. The Indenture Trustee makes no
      representations as to and shall not be responsible to verify: (i) the validity,
      legality, sufficiency, enforceability, due authorization, recordability or
      genuineness of any of the documents contained in each Mortgage File of any
      of
      the Mortgage Loans identified on the related Mortgage Loan Schedule, (ii) the
      collectability, insurability, effectiveness, perfection, priority or suitability
      of any such Mortgage Loan, or (iii) the existence of any hazard insurance policy
      or assumption, modification, written assurance or substitution agreement with
      respect to any Mortgage File if no such documents appear in the Mortgage File
      delivered to the Indenture Trustee.

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

    

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Indenture.

    
      	 	 	 
	 	
              DEUTSCHE
                BANK NATIONAL

              TRUST
                COMPANY,

              as
                Indenture Trustee

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            
	 	 

    

    

     

    
      
        
        

      

      
        H-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    FORM
      OF
      FINAL CERTIFICATION

     

    ,
      200__

     

    AMERICAN
      HOME MORTGAGE SECURITIES, LLC

    538
      Broadhollow Road

    Melville,
      New York 11747

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY

    1761
      East
      St. Andrew Place

    Santa
      Ana, California 92705

     

    AMERICAN
      HOME MORTGAGE SERVICING, INC.

    7142
      Columbia Gateway Drive

    Columbia,
      Maryland 21046

     

    Attention:
      American Home Mortgage Investment Trust 2006-1

    

      
        	 	
                Re:

              	
                Indenture,
                  dated as of March 29, 2006 (the “Indenture”), between American Home
                  Mortgage Investment Trust 2006-1, a Delaware business trust, as
                  Issuing
                  Entity (the “Issuing Entity”), Deutsche Bank National Trust Company, as
                  Indenture Trustee (the “Indenture Trustee”) and Wells Fargo Bank, N.A., as
                  Securities Administrator (the “Securities Administrator”)  

              

      

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.03(a) of the Indenture and Section 2.1(b)(i)-(v)
      of
      the Mortgage Loan Purchase Agreement, dated as of March 29, 2006, between
      American Home Mortgage Acceptance, Inc. and American Home Mortgage Securities
      LLC (the “MLPA”, and together with the Indenture, the “Agreements”), the
      undersigned, as 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 the exception report attached hereto) it has received the
      documents set forth in Section 2.1(b)(i)-(v) (except clause (v)(ii)) of the
      MLPA.

     

    The
      Indenture Trustee has made no independent examination of any documents contained
      in each Mortgage File beyond the review specifically required in the Agreements.
      The Indenture Trustee makes no representation that any documents specified
      in
      clauses (v)(ii) and (vi) of Section 2.1 (b) should be included in any Mortgage
      File. The Indenture Trustee makes no representations as to and shall not be
      responsible to verify: (i) the validity, legality, sufficiency, enforceability,
      due authorization, recordability or genuineness of any of the documents
      contained in each Mortgage File of any of the Mortgage Loans identified on
      the
      related Mortgage Loan Schedule, (ii) the collectability, insurability,
      effectiveness, perfection, priority or suitability of any such Mortgage Loan,
      or
      (iii) the existence of any hazard insurance policy or assumption, modification,
      written assurance or substitution agreement with respect to any Mortgage File
      if
      no such documents appear in the Mortgage File delivered to the Indenture
      Trustee.

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Indenture.

    
      
        	 	 	 
	 	
                
                  DEUTSCHE
                    BANK NATIONAL

                  TRUST
                    COMPANY,

                  as
                    Indenture Trustee

                

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:

                Title:

              
	 	 

      

      
 

    

     

    
      
        
        

      

      
        I-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      J

     

    FORM
      OF
      REQUEST FOR RELEASE

     

    DATE:

     

    TO:

     

    
      	
              RE:

            	
              REQUEST
                FOR RELEASE OF DOCUMENTS

            

    

     

    In
      connection with your administration of the Mortgage Loans, we request the
      release of the Mortgage File described below.

     

    Servicing
      Agreement Dated:

    Series
      #:

    Account
      #:

    Pool
      #:

    Loan
      #:

    Borrower
      Name(s):

    Reason
      for Document Request: (circle one)  Mortgage
      Loan Prepaid in Full

     
      Other

     
Mortgage
      Loan Repurchased

    

    PLEASE
      DELIVER THE MORTGAGE FILE TO 

     

    “We
      hereby certify that all amounts received or to be received in connection with
      such payments which are required to be deposited have been deposited as provided
      in the Servicing Agreement.”

     

    [Name
      of
      Master Servicer]

    Authorized
      Signature

    ******************************************************************************

    TO
      INDENTURE TRUSTEE: Please acknowledge this request, and check off documents
      being enclosed with a copy of this form. You should retain this form for your
      files in accordance with the terms of the Indenture.

    

      
        	
                Enclosed
                  Documents: 

              	
                [
                  ]  Promissory Note

              
	 	
                [
                  ]  Primary Insurance Policy

              
	 	
                [
                  ]  Mortgage or Deed of Trust

              
	 	
                [
                  ]  Assignment(s) of Mortgage or Deed of Trust

              
	 	
                [
                  ]  Title Insurance Policy

              
	 	
                [
                  ]  Other:

              
	 	 

      

    

    _______________________

    Name

    _______________________

    Title

    _______________________

    Date

    

    
      
        
        

      

      
        J-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      K

     

    FORM
      OF
      RULE 144A INVESTMENT REPRESENTATION

     

    Description
      of Rule 144A Securities, including numbers:

    
      	 
	 
	 
	 

    

    

    The
      undersigned seller, as registered holder (the “Sponsor”), intends to transfer
      the Rule 144A Securities described above to the undersigned buyer (the
“Buyer”).

     

    1.
      In
      connection with such transfer and in accordance with the agreements pursuant
      to
      which the Rule 144A Securities were issued, the Sponsor hereby certifies the
      following facts: Neither the Sponsor nor anyone acting on its behalf has
      offered, transferred, pledged, sold or otherwise disposed of the Rule 144A
      Securities, any interest in the Rule 144A Securities or any other similar
      security to, or solicited any offer to buy or accept a transfer, pledge or
      other
      disposition of the Rule 144A Securities, any interest in the Rule 144A
      Securities or any other similar security from, or otherwise approached or
      negotiated with respect to the Rule 144A Securities, any interest in the Rule
      144A Securities or any other similar security with, any person in any manner,
      or
      made any general solicitation by means of general advertising or in any other
      manner, or taken any other action, that would constitute a distribution of
      the
      Rule 144A Securities under the Securities Act of 1933, as amended (the “1933
      Act”), or that would render the disposition of the Rule 144A Securities a
      violation of Section 5 of the 1933 Act or require registration pursuant thereto,
      and that the Sponsor has not offered the Rule 144A Securities to any person
      other than the Buyer or another “qualified institutional buyer” as defined in
      Rule 144A under the 1933 Act.

     

    2.
      The
      Buyer warrants and represents to, and covenants with, the Owner Trustee, the
      Note Registrar and the Depositor (as defined in the Indenture (the “Agreement”),
      dated as of March 29, 2006, among American Home Mortgage Investment Trust
      2006-1, (the “Issuing Entity”), Deutsche Bank National Trust Company, as
      Indenture Trustee (the “Indenture Trustee”), and Wells Fargo Bank, N.A., as
      Securities Administrator (the “Securities Administrator”) pursuant to Section
      4.02 of the Agreement and Deutsche Bank National Trust Company, as indenture
      trustee, as follows:

     

    a.
      The
      Buyer understands that the Rule 144A Securities have not been registered under
      the 1933 Act or the securities laws of any state.

     

    b.
      The
      Buyer considers itself a substantial, sophisticated institutional investor
      having such knowledge and experience in financial and business matters that
      it
      is capable of evaluating the merits and risks of investment in the Rule 144A
      Securities.

     

    
      
        
        

      

      
        K-1

        
          

        

      

      
        
        

      

    

    

     

    c.
      The
      Buyer has been furnished with all information regarding the Rule 144A Securities
      that it has requested from the Sponsor, the Indenture Trustee, the Owner
      Trustee, the Master Servicer or the Servicer.

     

    d.
      Neither the Buyer nor anyone acting on its behalf has offered, transferred,
      pledged, sold or otherwise disposed of the Rule 144A Securities, any interest
      in
      the Rule 144A Securities or any other similar security to, or solicited any
      offer to buy or accept a transfer, pledge or other disposition of the Rule
      144A
      Securities, any interest in the Rule 144A Securities or any other similar
      security from, or otherwise approached or negotiated with respect to the Rule
      144A Securities, any interest in the Rule 144A Securities or any other similar
      security with, any person in any manner, or made any general solicitation by
      means of general advertising or in any other manner, or taken any other action,
      that would constitute a distribution of the Rule 144A Securities under the
      1933
      Act or that would render the disposition of the Rule 144A Securities a violation
      of Section 5 of the 1933 Act or require registration pursuant thereto, nor
      will
      it act, nor has it authorized or will it authorize any person to act, in such
      manner with respect to the Rule 144A Securities.

     

    e.
      The
      Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A
      under the 1933 Act and has completed either of the forms of certification to
      that effect attached hereto as Annex 1 or Annex 2. The Buyer is aware that
      the
      sale to it is being made in reliance on Rule 144A. The Buyer is acquiring the
      Rule 144A Securities for its own account or the accounts of other qualified
      institutional buyers, understands that such Rule 144A Securities may be resold,
      pledged or transferred only (i) to a person reasonably believed to be a
      qualified institutional buyer that purchases for its own account or for the
      account of a qualified institutional buyer to whom notice is given that the
      resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
      pursuant to another exemption from registration under the 1933 Act.

     

    3.
      The
      Buyer warrants and represents to, and covenants with, the Sponsor, the Indenture
      Trustee, the Owner Trustee, the Note Registrar, the Master Servicer, the
      Securities Administrator, the Servicer and the Depositor that either (1) the
      Buyer is (A) not an employee benefit plan (within the meaning of Section 3(3)
      of
      the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), or a
      plan (within the meaning of Section 4975(e)(1) of the Internal Revenue Code
      of
      1986 (“Code”)), which (in either case) is subject to ERISA or Section 4975 of
      the Code (each, a “Plan”), and (B) is not directly or indirectly purchasing the
      Rule 144A Securities on behalf of, as investment manager of, as named fiduciary
      of, as trustee of, or with “plan assets” of a Plan, or (2) the Buyer understands
      that registration of transfer of any Rule 144A Securities to any Plan, or to
      any
      Person acting on behalf of any Plan, will not be made unless such Plan delivers
      an opinion of its counsel, addressed and satisfactory to the Owner Trustee,
      Indenture Trustee, Note Registrar and the Depositor, to the effect (A) that
      the
      purchase and holding of the Rule 144A Securities by, on behalf of or with “plan
      assets” of any Plan, (B) operation of the Trust and (C) management of Trust
      assets are permissible under applicable law, would not constitute or result
      in a
      prohibited transaction under ERISA or Section 4975 of the Code, and would not
      subject the Depositor, the Sponsor, the Owner Trustee, the Indenture Trustee,
      the Note Registrar, the Securities Administrator, the Master Servicer or the
      Servicer to any obligation or liability (including liabilities under ERISA
      or
      Section 4975 of the Code) in addition to those undertaken in the Agreement,
      which Opinion of Counsel shall not be an expense of the Depositor, the Sponsor,
      the Owner Trustee, the Note Registrar, the Indenture Trustee, the Securities
      Administrator, the Master Servicer or the Servicer.

     

    
      
        
        

      

      
        K-2

        
          

        

      

      
        
        

      

    

    

     

    4.
      This
      document may be executed in one or more counterparts and by the different
      parties hereto on separate counterparts, each of which, when so executed, shall
      be deemed to be an original; such counterparts, together, shall constitute
      one
      and the same document.

     

    IN
      WITNESS WHEREOF, each of the parties has executed this document as of the date
      set forth below.

     

    

    

      
        	
                 

              	 	
                 

              
	
                Print
                  Name of Sponsor

              	 	
                Print
                  Name of Buyer

              
	 	 	 	 	 
	
                By:

              	
                 

              	 	
                By:

              	
                 

              
	
                Name:

                Title:

              	 	
                Name:

                Title:

              
	 	 	 
	
                Taxpayer
                  Identification:

              	 	
                Taxpayer
                  Identification:

              
	
                No.

              	
                 

              	 	
                No.

              	
                 

              
	
                Date:

              	
                 

              	 	
                Date:

              	
                 

              
	 	 	 	 	 

      

    

    

    
      
        
        

      

      
        K-3

        
          

        

      

      
        
        

      

    

    ANNEX
      1 TO EXHIBIT K

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [FOR
      BUYERS OTHER THAN REGISTERED INVESTMENT COMPANIES]

     

    The
      undersigned hereby certifies as follows in connection with the Rule 144A
      Investment Representation to which this Certification is attached:

     

    1.
      As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the Buyer.

     

    2.
      In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional
      buyer” as that term is defined in Rule 144A under the Securities Act of 1933
      (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary
      basis $   1 
      in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Buyer's most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the
      category marked below.

     

    
      	
              ___

            	
              Corporation,
                etc.
                The Buyer is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or charitable organization described in Section
                501(c)(3) of the Internal Revenue
                Code.

            

    

     

    
      	
              ___

            	
              Bank.
                The Buyer (a) is a national bank or banking institution organized
                under
                the laws of any State, territory or the District of Columbia, the
                business
                of which is substantially confined to banking and is supervised by
                the
                State or territorial banking commission or similar official or is
                a
                foreign bank or equivalent institution, and (b) has an audited net
                worth
                of at least $25,000,000 as demonstrated in its latest annual financial
                statements, a copy of which is attached
                hereto.

            

    

     

    
      	
              ___

            	
              Savings
                and Loan.
                The Buyer (a) is a savings and loan association, building and loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has
                an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements.

            

    

     

    
      	
              ___

            	
              Broker-Dealer.
                The Buyer is a dealer registered pursuant to Section 15 of the Securities
                Exchange Act of 1934.

            

    

     

    
      

    

    
      1 Buyer
        must own and/or invest on a discretionary basis at least $100,000,000 in
        securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
        invest on a discretionary basis at least $10,000,000 in securities.

        
          
            
            

          

          
            K-4

            
              

            

          

          
            
            

          

        

    

    

     

    
      	
              ___

            	
              Insurance
                Company.
                The Buyer is an insurance company whose primary and predominant business
                activity is the writing of insurance or the reinsuring of risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State
                or
                territory or the District of
                Columbia.

            

    

     

    
      	
              ___

            	
              State
                or Local Plan.
                The Buyer is a plan established and maintained by a State, its political
                subdivisions, or any agency or instrumentality of the State or its
                political subdivisions, for the benefit of its
                employees.

            

    

     

    
      	
              ___

            	
              ERISA
                Plan.
                The Buyer is an employee benefit plan within the meaning of Title
                I of the
                Employee Retirement Income Security Act of
                1974.

            

    

     

    
      	
              ___

            	
              Investment
                Adviser.
                The Buyer is an investment adviser registered under the Investment
                Advisers Act of 1940.

            

    

     

    
      	
              ___

            	
              SBIC.
                The Buyer is a Small Business Investment Company licensed by the
                U.S.
                Small Business Administration under Section 301(c) or (d) of the
                Small
                Business Investment Act of 1958.

            

    

     

    
      	
              ___

            	
              Business
                Development Company.
                The Buyer is a business development company as defined in Section
                202(a)(22) of the Investment Advisers Act of
                1940.

            

    

     

    
      	
              ___

            	
              Trust
                Fund.
                The Buyer is a trust fund whose trustee is a bank or trust company
                and
                whose participants are exclusively (a) plans established and maintained
                by
                a State, its political subdivisions, or any agency or instrumentality
                of
                the State or its political subdivisions, for the benefit of its employees,
                or (b) employee benefit plans within the meaning of Title I of the
                Employee Retirement Income Security Act of 1974, but is not a trust
                fund
                that includes as participants individual retirement accounts or H.R.
                10
                plans.

            

    

     

    3.
      The
      term “securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Buyer, (ii) securities that
      are part of an unsold allotment to or subscription by the Buyer, if the Buyer
      is
      a dealer, (iii) bank deposit Notes and certificates of deposit, (iv) loan
      participations, (v) repurchase agreements, (vi) securities owned but subject
      to
      a repurchase agreement and (vii) currency, interest rate and commodity
      swaps.

     

    4.
      For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Buyer, the Buyer used the cost of such
      securities to the Buyer and did not include any of the securities referred
      to in
      the preceding paragraph. Further, in determining such aggregate amount, the
      Buyer may have included securities owned by subsidiaries of the Buyer, but
      only
      if such subsidiaries are consolidated with the Buyer in its financial statements
      prepared in accordance with generally accepted accounting principles and if
      the
      investments of such subsidiaries are managed under the Buyer's direction.
      However, such securities were not included if the Buyer is a majority-owned,
      consolidated subsidiary of another enterprise and the Buyer is not itself a
      reporting company under the Securities Exchange Act of 1934.

     

    
      
        
        

      

      
        K-5

        
          

        

      

      
        
        

      

    

    

     

    5.
      The
      Buyer acknowledges that it is familiar with Rule 144A and understands that
      the
      seller to it and other parties related to the Certificates are relying and
      will
      continue to rely on the statements made herein because one or more sales to
      the
      Buyer may be in reliance on Rule 144A.

     

    

      
        	
                _____
 Yes

              	
                ____
 No

              	
                Will
                  the Buyer be purchasing the Rule 144A 
Securities only for the Buyer's
                  own account?

              

      

     

    6.
      If the
      answer to the foregoing question is “no”, the Buyer agrees that, in connection
      with any purchase of securities sold to the Buyer for the account of a third
      party (including any separate account) in reliance on Rule 144A, the Buyer
      will
      only purchase for the account of a third party that at the time is a “qualified
      institutional buyer” within the meaning of Rule 144A. In addition, the Buyer
      agrees that the Buyer will not purchase securities for a third party unless
      the
      Buyer has obtained a current representation letter from such third party or
      taken other appropriate steps contemplated by Rule 144A to conclude that such
      third party independently meets the definition of “qualified institutional
      buyer” set forth in Rule 144A.

     

    7.
      The
      Buyer will notify each of the parties to which this certification is made of
      any
      changes in the information and conclusions herein. Until such notice is given,
      the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation
      of
      this certification as of the date of such purchase.

     

    
      	 	 	 	 
	  
               	 	 
	Print Name
              of
              Buyer 	 	
            
	 	 	 
	By:	 
	 	 
	
               

            	
              Name:

              Title:

            	 	 
	 	  	 	 
	Date: 	   	 	 

    

    
      
        
        

      

      
        K-6

        
          

        

      

      
        
        

      

    

    ANNEX
      2 TO EXHIBIT K

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [FOR
      BUYERS THAT ARE REGISTERED INVESTMENT COMPANIES]

     

    The
      undersigned hereby certifies as follows in connection with the Rule 144A
      Investment Representation to which this Certification is attached:

     

    1.
      As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the Buyer or, if the Buyer is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933 (“Rule 144A”) because Buyer is part of a Family of Investment
      Companies (as defined below), is such an officer of the Adviser.

     

    2.
      In
      connection with purchases by Buyer, the Buyer is a “qualified institutional
      buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment
      company registered under the Investment Company Act of 1940, and (ii) as marked
      below, the Buyer alone, or the Buyer's Family of Investment Companies, owned
      at
      least $100,000,000 in securities (other than the excluded securities referred
      to
      below) as of the end of the Buyer's most recent fiscal year. For purposes of
      determining the amount of securities owned by the Buyer or the Buyer's Family
      of
      Investment Companies, the cost of such securities was used.

    

      
        	
                ____

              	 	
                The
                  Buyer owned $___________ in securities (other than the excluded
                  securities
                  referred to below) as of the end of the Buyer's most recent fiscal
                  year
                  (such amount being calculated in accordance with Rule
                  144A).

              
	 	 	 
	
                ____

              	 	
                The
                  Buyer is part of a Family of Investment Companies which owned in
                  the
                  aggregate $___________ in securities (other than the excluded securities
                  referred to below) as of the end of the Buyer's most recent fiscal
                  year
                  (such amount being calculated in accordance with Rule
                  144A).

              

      

    

     

     

    3.
      The
      term “Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4.
      The
      term “securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Buyer or are part of the Buyer's Family of Investment Companies, (ii) bank
      deposit Notes and certificates of deposit, (iii) loan participations, (iv)
      repurchase agreements, (v) securities owned but subject to a repurchase
      agreement and (vi) currency, interest rate and commodity swaps.

     

    5.
      The
      Buyer is familiar with Rule 144A and understands that each of the parties to
      which this certification is made are relying and will continue to rely on the
      statements made herein because one or more sales to the Buyer will be in
      reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
      own account.

     

    
      
        
        

      

      
        K-7

        
          

        

      

      
        
        

      

    

    

     

    6.
      The
      undersigned will notify each of the parties to which this certification is
      made
      of any changes in the information and conclusions herein. Until such notice,
      the
      Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
      this
      certification by the undersigned as of the date of such purchase.

     

    
       

      
        	 	 	 	 
	   
                 	 	 
	Print Name
                of
                Buyer 	 	
              
	 	 	 
	By:	 
	 	 
	
                 

              	
                Name:

                Title:

              	 	 
	 	  	 	 
	Date: 	   	 	 

      

      
         

        
          	 	 	 	 
	   
                   	 	 
	IF
                  AN
                  ADVISER:	 	
                
	  
	 	 
	Print
                  Name of Buyer 	 	 
	 	 	 
	 	  	 	 
	Date: 	   	 	 

        

    

    

     

    
      
      

    

    
      
        
        

      

      
        K-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      L

     

    CERTIFICATE
      OF NON-FOREIGN STATUS

     

    This
      Certificate of Non-Foreign Status (“certificate”) is delivered pursuant to
      Section 4.02 of the Indenture, dated as of March 29, 2006 (the “Indenture”),
      among American Home Mortgage Investment Trust 2006-1, (the “Issuing Entity”),
      Deutsche Bank National Trust Company, as Indenture Trustee (the “Indenture
      Trustee”), and Wells Fargo Bank, N.A., as Securities Administrator (the
“Securities Administrator”), in connection with the acquisition of, transfer to
      or possession by the undersigned, whether as beneficial owner for U.S. federal
      income tax purposes (the “Beneficial Owner”), or nominee on behalf of the
      Beneficial Owner of the Class ____ Notes, Series 2006-1 (the “Note”).
      Capitalized terms used but not defined in this certificate have the respective
      meanings given them in the Indenture.

     

    Each
      Holder must complete Part I, Part II (if the Holder is a nominee), and in all
      cases sign and otherwise complete Part III.

     

    In
      addition, each Holder shall submit with the Certificate an IRS Form W-9 relating
      to such Holder.

     

    To
      confirm to the Trust that the provisions of Sections 871, 881 or 1446 of the
      Internal Revenue Code (relating to withholding tax on foreign partners) do
      not
      apply in respect of the Note held by the undersigned, the undersigned hereby
      certifies:

     

    
      	
              Part
                I -

            	 	
              Complete
                Either A or B

            

    

     

    
      	 	
              A.
                

            	
              Individual
                as Beneficial Owner

            

    

     

    
      	 	
              1.

            	
              I
                am (The Beneficial Owner is) not a non-resident alien for purposes
                of U.S.
                income taxation;

            

    

     

    
      	 	
              2.

            	
              My
                (The Beneficial Owner's) name and home address
                are:

            

    

     

    ;
      and

     

    
      	 	
              3.

            	
              My
                (The Beneficial Owner's) U.S. taxpayer identification number (Social
                Security Number) is

            

    

     

    B. Corporate,
      Partnership or Other Entity as Beneficial Owner

     

    
      	
            	1.	
              (Name
                of the Beneficial Owner) is not a foreign corporation, foreign
                partnership, foreign trust or foreign estate (as those terms are
                defined
                in the Code and Treasury
                Regulations;

            

    

     

    
      	 	
              2.

            	
              The
                Beneficial Owner's office address and place of incorporation (if
                applicable) is

            

    

    ;
      and

     

    
      
        
        

      

      
        L-1

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              3.

            	
              The
                Beneficial Owner's U.S. employer identification number is                         
                .

            

    

     

    Part
      II
      -  Nominees

     

    If
      the
      undersigned is the nominee for the Beneficial Owner, the undersigned certifies
      that this certificate has been made in reliance upon information contained
      in:

     

    an
      IRS
      Form W-9

     

    a
      form
      such as this or substantially similar

     

    provided
      to the undersigned by an appropriate person and (i) the undersigned agrees
      to
      notify the Note Registrar at least thirty (30) days prior to the date that
      the
      form relied upon becomes obsolete, and (ii) in connection with change in
      Beneficial Owners, the undersigned agrees to submit a new Certificate of
      Non-Foreign Status to the Note Registrar promptly after such
      change.

     

    Part
      III
      -  Declaration

     

    The
      undersigned, as the Beneficial Owner or a nominee thereof, agrees to notify
      the
      Note Registrar within sixty (60) days of the date that the Beneficial Owner
      becomes a foreign person. The undersigned understands that this certificate
      may
      be disclosed to the Internal Revenue Service by the Note Registrar and any
      false
      statement contained therein could be punishable by fines, imprisonment or
      both.

     

    Under
      penalties of perjury, I declare that I have examined this certificate and to
      the
      best of my knowledge and belief it is true, correct and complete and will
      further declare that I will inform the Trust of any change in the information
      provided above, and, if applicable, I further declare that I have the authority*
      to sign this document.

     

     

      
        

      

    

    Name

     

     

      
        

      

    

    Title
      (if
      applicable)

     

     

      
        

      

    

    Signature
      and Date

     

    *Note:
      If
      signed pursuant to a power of attorney, the power of attorney must accompany
      this certificate.

     

    

     

    
      
        
        

      

      
        L-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      M

     

    FORM
      OF
      INVESTMENT LETTER [NON-RULE 144A]

     

    [DATE]

     

    Wilmington
      Trust Company, as Owner Trustee

    [_____________]

     

    Deutsche
      Bank National Trust Company

    1761
      E.
      St. Andrew Place

    Santa
      Ana, CA 92705

     

    
      	          	
              Re:

            	
              American
                Home Mortgage Investment Trust 2006-1 Non-Offered Notes, 
Series
                2006-1, Class [___] (the “Non-Offered
                Notes”)                           
                

            

    

     

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-captioned Non-Offered Notes, we
      certify that (a) we understand that the Non-Offered Notes are not being
      registered under the Securities Act of 1933, as amended (the “Act”), or any
      state securities laws and are being transferred to us in a transaction that
      is
      exempt from the registration requirements of the Act and any such laws, (b)
      we
      are an “accredited investor,” as defined in Regulation D under the Act, and have
      such knowledge and experience in financial and business matters that we are
      capable of evaluating the merits and risks of investments in the Non-Offered
      Notes, (c) we have had the opportunity to ask questions of and receive answers
      from the Depositor concerning the purchase of the Non-Offered Notes and all
      matters relating thereto or any additional information deemed necessary to
      our
      decision to purchase the Non-Offered Notes, (d) we are not an employee benefit
      plan that is subject to the Employee Retirement Income Security Act of 1974,
      as
      amended, or a plan that is subject to Section 4975 of the Internal Revenue
      Code
      of 1986, as amended, nor are we acting on behalf of any such plan, (e) we are
      acquiring the Non-Offered Notes for investment for our own account and not
      with
      a view to any distribution of such Non-Offered Notes (but without prejudice
      to
      our right at all times to sell or otherwise dispose of the Non-Offered Notes
      in
      accordance with clause (g) below), (f) we have not offered or sold any
      Non-Offered Notes to, or solicited offers to buy any Non-Offered Notes from,
      any
      person, or otherwise approached or negotiated with any person with respect
      thereto, or taken any other action which would result in a violation of Section
      5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any
      Non-Offered Notes unless (1) such sale, transfer or other disposition is made
      pursuant to an effective registration statement under the Act or is exempt
      from
      such registration requirements, and if requested, we will at our expense provide
      an opinion of counsel satisfactory to the addressees of this certificate that
      such sale, transfer or other disposition may be made pursuant to an exemption
      from the Act, (2) the purchaser or transferee of such Non-Offered 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.

     

    
      
        
        

      

      
        M-1

        
          

        

      

      
        
        

      

    

    

     

    Very
      truly yours,

     

    [TRANSFEREE]

     

    By:________________________________

    Authorized
      Officer

    

     

    
      
        
        

      

      
        M-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      N

     

    TRANSFEROR
      CERTIFICATE

     

    Wilmington
      Trust Company, as Owner Trustee

    [_______________]

     

    Deutsche
      Bank National Trust Company

    1761
      E.
      St. Andrew Place

    Santa
      Ana, CA 92705

     

    
      	             
              	
              Re:

            	
              Proposed
                Transfer of Non-Offered Notes, Class [___], American Home Mortgage
                Investment Trust 2006-1

            

    

     

    Gentlemen:

     

    This
      certification is being made by ____________________ (the “Transferor”) in
      connection with the proposed Transfer to _____________________ (the
“Transferee”) of a non-offered note, Class [___] (the “Non-Offered Note”)
      representing ___% fractional undivided interest in American Home Mortgage
      Investment Trust 2006-1 (the “Trust”), issued pursuant to an Indenture, dated as
      of March 29, 2006 (the “Indenture”), among American Home Mortgage Investment
      Trust 2006-1, (the “Issuing Entity”), Deutsche Bank National Trust Company, as
      Indenture Trustee (the “Indenture Trustee”), and Wells Fargo Bank, N.A., as
      Securities Administrator (the “Securities Administrator”). Initially capitalized
      terms used but not defined herein have the meanings assigned to them in Appendix
      A to the Indenture. The Transferor hereby certifies, represents and warrants
      to,
      and covenants with, the Company, the Owner Trustee and the Note Registrar
      that:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Non-Offered Note, any interest in
      any
      Non-Offered Note or any other similar security to any person in any manner,
      (b)
      has solicited any offer to buy or to accept a pledge, disposition or other
      transfer of any Non-Offered Note, any interest in any Non-Offered Note or any
      other similar security from any person in any manner, (c) has otherwise
      approached or negotiated with respect to any Non-Offered Note, any interest
      in
      any Non-Offered Note or any other similar security with any person in any
      manner, (d) has made any general solicitation by means of general advertising
      or
      in any other manner, or (e) has taken any other action, that (as to any of
      (a)
      through (e) above) would constitute a distribution of the Non-Offered Notes
      under the Securities Act of 1933 (the “Act”), that would render the disposition
      of any Non-Offered Note a violation of Section 5 of the Act or any state
      securities law, or that would require registration or qualification pursuant
      thereto. The Transferor will not act in any manner set forth in the foregoing
      sentence with respect to any Non-Offered Note. The Transferor has not and will
      not sell or otherwise transfer any of the Non-Offered Notes, except in
      compliance with the provisions of the Indenture.

     

    
      
        
        

      

      
        N-1

        
          

        

      

      
        
        

      

    

    

    
      	Date:
              __________________________	 	 
	 	________________________________
	 	Name
              of Transferor
	 	________________________________
	 	Signature
	 	________________________________
	 	Name
	 	________________________________
	 	Title
	 
 	 
 	 
 

    

    

     

    

    

     

    
      
        
        

      

      
        N-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      O

     

    FORM
      OF
      ERISA LETTER

     

    [DATE]

     

    Wilmington
      Trust Company, as Owner Trustee

    [_______________]

     

    Deutsche
      Bank National Trust Company

    1761
      E.
      St. Andrew Place

    Santa
      Ana, CA 92705

     

    
      	       
              	
              Re:

            	
              Proposed
                Transfer of Non-Offered Notes, Class [____],
American Home Mortgage
                Investment Trust 2006-1 (the “Non-Offered
                Notes”)

            

    

     

     

    Gentlemen:

     

    This
      certification is being made by     
      (the
“Transferee”) in connection with the proposed Transfer by   (the
      “Transferor”) of non-offered note (the “Non-Offered Note”) representing __%
      fractional undivided interest in American Home Mortgage Investment Trust 2006-1
      (the “Trust”), issued pursuant to an Indenture, dated as of March 29, 2006 (the
“Indenture”), among American Home Mortgage Investment Trust 2006-1 (the “Issuing
      Entity”), Deutsche Bank National Trust Company, as Indenture Trustee (the
“Indenture Trustee”), and Wells Fargo Bank, N.A., as Securities Administrator
      (the “Securities Administrator”). Initially capitalized terms used but not
      defined herein have the meanings assigned to them in Appendix A to the
      Indenture. The Transferor hereby certifies, represents and warrants to, and
      covenants with, the Company, the Owner Trustee and the Note Registrar
      that:

     

    
      	 	
              (i)

            	
              either
                (a) or (b) is satisfied, as marked
                below:

            

    

     

    ___ a. The
      Transferor is not any employee benefit plan or other plan subject to the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
      Section 4975 of the Internal Revenue Code of 1986 (the “Code”)(each, a “Plan”),
      a Person acting, directly or indirectly, on behalf of a Plan or any Person
      acquiring such Non-Offered Note with “plan assets” of a Plan within the meaning
      of the Department of Labor regulation promulgated at 29 C.F.R. § 2510.3-101;
      or

     

    ___ b. The
      Transferor is a Plan, a Person acting, directly or indirectly, on behalf of
      a
      Plan or a Person acquiring such Certificates with “plan assets” of a Plan within
      the meaning of the Department of Labor regulation promulgated at 29 C.F.R.
§
2510.3-101 and has provided the Depositor, the Owner Trustee, the Indenture
      Trustee, the Note Registrar and the Sponsor with an Opinion of Counsel,
      satisfactory to the Note Registrar to the effect (A) that the purchase and
      holding of a Non-Offered Note by or on behalf of the Transferor (B) operation
      of
      the Trust and (C) management of Trust assets are permissible under applicable
      law, will not constitute or result in a prohibited transaction under Section
      406
      of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
      enactments) and will not subject the Depositor, the Owner Trustee, the Indenture
      Trustee, the Note Registrar, the Sponsor, the Securities Administrator, the
      Master Servicer or the Servicer to any obligation or liability (including
      liabilities under ERISA or Section 4975 of the Code) in addition to those
      undertaken in the Indenture, which opinion of counsel shall not be an expense
      of
      the Depositor, the Owner Trustee, the Indenture Trustee, the Note Registrar,
      the
      Securities Administrator, the Sponsor, the Master Servicer or the Servicer;
      and

     

    
      
        
        

      

      
        O-1

        
          

        

      

      
        
        

      

    

    

     

    (ii)
      the
      Transferor is familiar with the prohibited transaction restrictions and
      fiduciary responsibility requirements of Sections 406 and 407 of ERISA and
      Section 4975 of the Code and understands that each of the parties to which
      this
      certification is made is relying and will continue to rely on the statements
      made in this paragraph.

     

    Very
      truly yours,

     

    
      	                          
              	
              By:

            	
              _____________________________

            

    

    
      	 	
              Name:

            	
              _____________________________

            

    

    
      	 	
              Title:

            	
              _____________________________

            

    

    

     

    
      
        
        

      

      
        O-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      P

     

    FORM
      OF
      TRANSFEREE CERTIFICATE

     

    Wilmington
      Trust Company, as Owner Trustee

    [_______________]

     

    Deutsche
      Bank National Trust Company

    1761
      E.
      St. Andrew Place

    Santa
      Ana, CA 92705

     

    
      	          
              	
              Re:

            	
              Proposed
                Transfer of Trust Non-Offered Notes, Class [____],
American Home
                Mortgage Investment Trust 2006-1 (the “Non-Offered
                Notes”)

            

    

     

     

    Gentlemen:

     

    This
      certification is being made by    
      (the
“Transferee”) in connection with the proposed Transfer by    
      (the “Transferor”) of a non-offered note (the “Non-Offered Note”) representing
      __% fractional undivided interest in American Home Mortgage Investment Trust
      2006-1 (the “Trust”), issued pursuant to an Indenture, dated as of March 29,
      2006 (the “Indenture”), among American Home Mortgage Investment Trust 2006-1,
      (the “Issuing Entity”), Deutsche Bank National Trust Company, as Indenture
      Trustee (the “Indenture Trustee”), and Wells Fargo Bank, N.A., as Securities
      Administrator (the “Securities Administrator”). Initially capitalized terms used
      but not defined herein have the meanings assigned to them in Appendix A to
      the
      Indenture. The Transferor hereby certifies, represents and warrants to, and
      covenants with, the Company, the Owner Trustee and the Note Registrar
      that:

     

    The
      Transferee is a REIT or a Qualified REIT Subsidiary within the meaning of
      Section 856(a) or Section 856(i) of the Code, respectively.

     

    
      

      
        	Date:
                __________________________	 	 
	 	________________________________
	 	Name
                of Transferee
	 	________________________________
	 	Signature
	 	________________________________
	 	Name
	 	________________________________
	 	Title
	 
 	 
 	 
 

      

      

    

    

      
        
          
          

        

        
          P-1

          
            

          

        

        
          
          

        

      

    EXHIBIT
      Q

     

    FORM
      OF
      LENDER TRANSFEROR CERTIFICATE

     

    Wilmington
      Trust Company, as Owner Trustee

    [________________]

     

    Deutsche
      Bank National Trust Company,

    as
      Indenture Trustee

    1761
      East
      St. Andrew Place

    Santa
      Ana, California 92705

     

    
      	               
              	
              Re:

            	
              Proposed
                Transfer of Non-Offered Notes, Class [____],
American Home Mortgage
                Investment Trust 2006-1 (the “Non-Offered
                Notes”)

            

    

     

     

    Gentlemen:

     

    This
      certification is being made by ___________ (the “Transferor”) in connection with
      the proposed pledge or transfer to __________ of Certificates representing
      __%
      fractional undivided interest in American Home Mortgage Investment Trust 2006-1,
      issued pursuant to an Indenture, dated as of March 29, 2006 (the “Indenture”),
      among American Home Mortgage Investment Trust 2006-1, (the “Issuing Entity”),
      Deutsche Bank National Trust Company, as Indenture Trustee (the “Indenture
      Trustee”), and Wells Fargo Bank, N.A., as Securities Administrator (the
“Securities Administrator”). Initially capitalized terms used but not defined
      herein have the meanings assigned to them in Appendix A to the Indenture. The
      Transferor hereby certifies, represents and warrants to, and covenants with,
      the
      Owner Trustee, the Indenture Trustee and the Note Registrar that:

     

    (a)
      The
      Non-Offered Notes are being pledged by the Transferor to secure indebtedness
      of
      [___________] or is the subject of a loan agreement or repurchase agreement
      treated as secured indebtedness of [___________] for federal income tax purposes
      as permitted under the Indenture; 

     

    (b)
      The
      Non-Offered Notes are being transferred by the related lender under a loan
      agreement or repurchase agreement upon a default under any such indebtedness
      as
      permitted under the Indenture; or

     

    (c) Either:

     

    (i)
      The
      Transfer will not result in a TMP Trigger Event, as evidenced by an opinion
      of
      nationally recognized tax counsel addressed and provided to the Note Registrar,
      the Securities Administrator, the Owner Trustee and the Indenture Trustee (at
      the expense of the proposed transferor or transferee); or 

     

    (ii)
      The
      Transfer will result in a TMP Trigger Event, as evidenced by an opinion of
      nationally recognized tax counsel addressed and provided to the Note Registrar,
      the Securities Administrator, the Owner Trustee and the Indenture Trustee (at
      the expense of the proposed transferor or transferee), and 

     

    
      
        
        

      

      
        Q-1

        
          

        

      

      
        
        

      

    

    

     

    
      	 	 	
              (1)
                American Home Mortgage Investment Corp. shall have purchased all
                the REO
                properties in the Trust Estate at their fair market value,
                

            

    

     

    
      	 	 	
              (2)
                the party who caused the TMP Trigger Event shall have contributed
                to the
                Trust Estate an amount equal to any allocation of Realized Losses
                on the
                Offered Notes, if any, resulting from the sale of the REO properties
                described in clause (i) above, and

            

    

     

    
      	 	 	
              (3)
                the entity that delivered notice causing the REMIC Conversion to
                be
                undertaken shall have made provision for payment satisfactory to
                the Owner
                Trustee, the Indenture Trustee, the Securities Administrator, the
                Paying
                Agent and the Note Registrar and others for any initial or ongoing
                additional administrative expenses associated with the REMIC
                elections.

            

    

     

    
      
        

        
          	Date:
                  	 	 
	 	________________________________
	 	Name
                  of Transferor
	 	________________________________
	 	Signature
	 	________________________________
	 	Name
	 	________________________________
	 	Title
	 
 	 
 	 
 

        

        
 

      

    

    

    
      
        
        

      

      
        Q-2

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    DEFINITIONS

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan, those customary mortgage master servicing
      practices of prudent mortgage servicing institutions that master service
      mortgage loans of the same type and quality as such Mortgage Loan in the
      jurisdiction where the related Mortgaged Property is located, to the extent
      applicable to the Indenture Trustee or the Master Servicer (except in its
      capacity as successor to the Servicer).

     

    Accrual
      Period:
      With
      respect to any Payment Date and the Notes, other than the Class II-A Notes
      and
      Class II-M-1 Notes, the period from the preceding Payment Date (or in the case
      of the first Payment Date, from the Closing Date) to and including the day
      preceding such Payment Date. With respect to any Payment Date and the Class
      II-A
      Notes and Class II-M-1 Notes, the prior calendar month. Accrued Note Interest
      for the Notes, other than the Class II-A Notes and Class II-M-1 Notes, shall
      be
      calculated on the basis of the actual number of days in the Accrual Period
      and a
      360-day year. Accrued Note Interest on the Class II-A Notes and Class II-M-1
      Notes shall be calculated on the basis of a 360-day year consisting of twelve
      30-day months.

     

    Accrued
      Note Interest:
      With
      respect to any Payment Date and each Class of Notes, interest accrued during
      the
      related Accrual Period at the then-applicable Note Interest Rate on the related
      Note Principal Balance thereof immediately prior to such Payment Date, plus
      any
      Accrued Note Interest remaining unpaid from any prior Payment Date with interest
      thereon at the related Note Interest Rate.

     

    Additional
      Form 10-D Disclosure:
      Has the
      meaning set forth in Section 4.06 of the Master Servicing
      Agreement.

     

    Additional
      Form 10-K Disclosure:
      Has the
      meaning set forth in Section 4.06 of the Master Servicing
      Agreement.

     

    Additional
      Negative Amortization Principal Amount:
      For any
      Payment Date, the excess, if any, of (x) the Negative Amortization Amount over
      (y) the Principal Remittance Amount for the Group I Loans (without regard to
      the
      last sentence of the definition thereof).

     

    Adjustment
      Fraction:
      For any
      Payment Date with respect to the Class
      I-A
      Notes and Class I-M Notes,
      a
      fraction, (x) the numerator of which is the aggregate Stated Principal Balance
      of the Group I Loans at the beginning of the related Due Period, and (y) the
      denominator of which is the aggregate Note Principal Balance of the Class I-A
      Notes and Class I-M Notes immediately prior to that Payment Date.

     

    Adjustment
      Date:
      As to
      each Mortgage Loan, each date set forth in the related Mortgage Note on which
      an
      adjustment to the interest rate on such Mortgage Loan becomes
      effective.

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Allocable
      Share:
      As to
      any Payment Date, the Subordinate Optimal Principal Amount and any Class of
      Group II Subordinate Notes, the portion of the Subordinate Optimal Principal
      Amount allocable to such Class, equal to the product of the Subordinate Optimal
      Principal Amount on such Payment Date and a fraction, the numerator of which
      is
      the related Note Principal Balance thereof and the denominator of which is
      the
      aggregate of the Note Principal Balances of the Group II Subordinate Notes;
      provided, that except as described in the succeeding sentence, no class of
      Group
      II Subordinate Notes (other than the class of Class II-M Notes
      outstanding with the lowest numerical designation, or the Class II-B Notes,
      if
      the aggregate Note Principal Balance of the Class II-M Notes has been reduced
      to
      zero) shall be entitled on any Payment Date to receive distributions pursuant
      to
      clauses (2), (3) and (5) of the definition of Subordinate Optimal Principal
      Amount unless the Class Prepayment Distribution Trigger for the related Class
      is
      satisfied for such Payment Date. If on any Payment Date the Note Principal
      Balance of any Class of Group II Subordinate Notes for which the related Class
      Prepayment Distribution Trigger was satisfied on such Payment Date is reduced
      to
      zero, any amounts distributable to such Class pursuant to clauses (2), (3)
      and
      (5) of the definition of Subordinate Optimal Principal Amount, to the extent
      of
      such Class’s remaining Allocable Share, shall be distributed to the remaining
      Classes of Group II Subordinate Notes in reduction of their respective Note
      Principal Balances, sequentially, first, to the Class II-M Notes in the order
      of
      their numerical Class designations, and then to the Class II-B
      Notes.

     

    Allocated
      Realized Loss Amount:
      With
      respect to any class of the Class I-A-2, Class I-A-3, Class I-M, Class II-A-2,
      Class II-A-4, Class II-M and Class II-B Notes and any Payment Date, an amount
      equal to the sum of any Realized Losses allocated to that Class of Notes on
      that
      Payment Date and any Allocated Realized Loss Amount for that Class remaining
      unpaid from the previous Payment Dates, in each case, with interest thereon
      at
      the applicable Note Interest Rate for such Payment Date for such Class for
      the
      related Accrual Period.

     

    Appraised
      Value:
      The
      appraised value of a Mortgaged Property based upon the appraisal made by or
      for
      the Sponsor, in compliance with the Sponsor’s underwriting criteria, of such
      Mortgaged Property at such time of origination. With respect to a Mortgage
      Loan,
      the proceeds of which were used to refinance an existing Mortgage Loan, the
      appraised value of the Mortgaged Property based upon the appraisal obtained
      at
      the time of refinancing.

     

    ARM
      Loans:
      At any
      time, collectively, all the Mortgage Loans which have adjustable Mortgage
      Rates.

     

    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.

     

    Authorized
      Newspaper:
      A
      newspaper of general circulation in the Borough of Manhattan, The City of New
      York, printed in the English language and customarily published on each Business
      Day, whether or not published on Saturdays, Sundays or holidays.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Authorized
      Officer:
      With
      respect to the Issuing Entity, any officer of the Owner Trustee who is
      authorized to act for the Owner Trustee in matters relating to the Issuing
      Entity 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).

     

    Available
      Funds:
      The
      Group I Available Funds, Group II-C Available Funds or Group II-NC Available
      Funds, as applicable.

     

    Available
      Funds Rate:
      Any
      of
      the Group I Available Funds Rate, the Group II-C Available Funds Rate, the
      Group
      II-NC Available Funds Rate and the Group II Subordinate Available Funds
      Rate.

     

    Bankruptcy
      Code:
      The
      Bankruptcy Code of 1978, as amended.

     

    Basic
      Documents:
      The
      Trust Agreement, the Certificate of Trust, the Indenture, the Notes, the Trust
      Certificates, the Master Servicing Agreement, the Servicing Agreement, the
      Mortgage Loan Purchase Agreement, the Cap Contracts, the Corridor Contract
      and
      the other documents and certificates delivered in connection with any of the
      above.

     

    Basic
      Principal Distribution Amount:
      With
      respect to any Payment Date and Loan Group I, the lesser of (a) the excess
      of
      (i) the related Available Funds for such Payment Date over (ii) the aggregate
      amount of Accrued Note Interest for the Class I-A Notes and Class I-M Notes
      for
      such Payment Date and (b) the related Principal Remittance Amount for the Group
      I Loans for such Payment Date. 

     

    Basis
      Risk Shortfall:
      With
      respect to any Class of LIBOR Notes, on each Payment Date where clause (iii)
      of
      the definition of “Note Interest Rate” is less than clauses (i) or (ii) of the
      definition of “Note Interest Rate,” the excess, if any, of (x) the aggregate
      Accrued Note Interest thereon for such Payment Date calculated pursuant to
      the
      lesser of clause (i) or (ii) of the definition of Note Interest Rate over (y)
      Accrued Note Interest thereon for such Payment Date calculated at the related
      Available Funds Rate.

     

    Basis
      Risk Shortfall Carry-Forward Amount:
      With
      respect to each Class of Group I Notes and any Payment Date, as determined
      separately for each such Class of Notes, an amount equal to the aggregate amount
      of Basis Risk Shortfall for such 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 related Note Interest Rate for such Payment Date, to
      the
      extent previously unreimbursed by the related Net Monthly Excess Cashflow or
      the
      related Cap Contract.

     

    Beneficial
      Owner:
      With
      respect to any Book-Entry Note, the Person who is the beneficial owner of such
      Note as reflected on the books of the Depository or on the books of a Person
      maintaining an account with such Depository (directly as a Depository
      Participant or indirectly through a Depository Participant, in accordance with
      the rules of such Depository).

     

    Book-Entry
      Notes:
      Beneficial interests in the Offered Notes, ownership and transfers of which
      shall be made through book entries by the Depository as described in Section
      4.06 of the Indenture.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday or (ii) a day on which banking
      institutions in the States of Maryland, Minnesota, New York, Delaware or
      Maryland or in the city in which a Corporate Trust Office is located, is
      required or authorized by law to be closed.

     

    Calendar
      Quarter:
      A
      calendar quarter shall consist of one of the following time periods in any
      given
      year: January 1 through March 31, April 1 through June 30, July 1 though
      September 30, and October 1 through December 31.

     

    Cap
      Contracts: The
      six
      interest rate Cap Contracts, each between the Owner Trustee (or assigned to
      the
      Owner Trustee) on behalf of the trust and the Cap Counterparty primarily for
      the
      benefit of the Class I-1A-1, Class I-A-2, Class I-A-3, Class I-M-1, Class I-M-2
      and Class I-M-3 Notes, respectively.

     

    Cap
      Counterparty:
      Barclays Bank PLC.

     

    Cap
      Counterparty Termination Event:
      As
      provided in the related Cap Contract, any default with respect to the Cap
      Counterparty with respect to the related Cap Contract where the related Cap
      Counterparty is terminated and is not replaced by a new cap counterparty or
      the
      related Cap Counterparty is unable to make payments.

     

    Cash
      Liquidation:
      As to
      any defaulted Mortgage Loan other than a Mortgage Loan as to which an REO
      Acquisition occurred, a determination by the Servicer evidenced in a certificate
      of a Servicing Officer that it has received all Insurance Proceeds, Liquidation
      Proceeds and other payments or cash recoveries which the Servicer reasonably
      and
      in good faith expects to be finally recoverable with respect to such Mortgage
      Loan.

     

    Certificate
      Distribution Account:
      The
      account or accounts created and maintained pursuant to Section 3.10(c) of the
      Trust Agreement. The Certificate Distribution Account shall be an Eligible
      Account.

     

    Certificate
      of Trust:
      The
      Certificate of Trust filed for the Trust pursuant to Section 3810(a) of the
      Statutory Trust Statute.

     

    Certificate
      Paying Agent:
      Initially, Deutsche Bank National Trust Company, in its capacity as Certificate
      Paying Agent, or any successor to Deutsche Bank National Trust Company in such
      capacity.

     

    Certificate
      Percentage Interest:
      With
      respect to each Certificate, the Certificate Percentage Interest stated on
      the
      face thereof.

     

    Certificate
      Register:
      The
      register maintained by the Certificate Registrar in which the Certificate
      Registrar shall provide for the registration of Certificates and of transfers
      and exchanges of Certificates.

     

    Certificate
      Registrar:
      Initially, Deutsche Bank National Trust Company, in its capacity as Certificate
      Registrar, or any successor to Deutsche Bank National Trust Company in such
      capacity.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Certificates
      or Trust Certificates:
      The
      American Home Mortgage Investment Trust 2006-1 Trust Certificates, Series
      2006-1, evidencing the beneficial ownership interest in the Issuing Entity
      and
      executed by the Owner Trustee in substantially the form set forth in Exhibit
      A
      to the Trust Agreement.

     

    Certificateholder
      or Holder:
      The
      Person in whose name a Certificate is registered in the Certificate Register.
      Owners of Certificates that have been pledged in good faith may be regarded
      as
      Holders if the pledgee establishes to the satisfaction of the Certificate
      Registrar or the Owner Trustee, as the case may be, the pledgee’s right so to
      act with respect to such Certificates and that the pledgee is not the Issuing
      Entity, any other obligor upon the Certificates or any Affiliate of any of
      the
      foregoing Persons.

     

    Class:
      Any of
      the Class A, Class M or Class B Notes.

     

    Class
      A Notes:
      The
      Class I-A Notes and Class II-A Notes, in the form attached as Exhibit A-1 to
      the
      Indenture.

     

    Class
      B Notes:
      The
      Class B Notes in the form attached as Exhibit A-3 to the Indenture.

     

    Class
      I-A Notes:
      The
      Class I-1A-1, Class I-2A-1, Class I-A-2 and Class I-A-3 Notes.

     

    Class
      I-A Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the lesser of (A) the related aggregate Principal Distribution
      Amount for such Payment Date and (B) the excess (if any) of (x) the aggregate
      Note Principal Balance of the Class I-A Notes immediately prior to such Payment
      Date over (y) the lesser of (a) the aggregate Stated Principal Balance of the
      Group I Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the related Prepayment Period) multiplied by (i) prior to the
      Payment Date in March 2012 83.750% and (ii) on or after the Payment Date in
      March 2012 87.000% and (b) the amount, if any, by which (i) the aggregate Stated
      Principal Balance of the Group I Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Prepayment
      Period) exceeds (ii) 0.50% of the Group I Cut-off Date Balance and any related
      Additional Negative Amortization Principal Amount.

     

    Class
      I-M Notes:
      The
      Class I-M-1, Class I-M-2, Class I-M-3, Class I-M-4, Class I-M-5 and Class I-M-6
      Notes.

     

    Class
      I-M-1 Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the excess (if any) of (x) the sum of (i) the aggregate Note
      Principal Balance of the Class I-A Notes (after taking into account the
      distribution of the Class I-A Principal Distribution Amount on such Payment
      Date) and (ii) the Note Principal Balance of the Class I-M-1 Notes immediately
      prior to such Payment Date over (y) the lesser of (a) the aggregate Stated
      Principal Balance of the Group I Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Prepayment
      Period) multiplied by (i) prior to the Payment Date in March 2012 86.500% and
      (ii) on or after the Payment Date in March 2012 89.200% and (b) the amount,
      if
      any, by which (i) the aggregate Stated Principal Balance of the Group I Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period, and after reduction for Realized Losses incurred
      during the related Prepayment Period) exceeds (ii) 0.50% of the Group I Cut-off
      Date Balance and any related Additional Negative Amortization Principal
      Amount.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Class
      I-M-2 Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the excess (if any) of (x) the sum of (i) the aggregate Note
      Principal Balance of the Class I-A Notes and Class I-M-1 Notes (after taking
      into account the distribution of the Class I-A Principal Distribution Amount
      and
      Class I-M-1 Principal Distribution Amount on such Payment Date) and (ii) the
      Note Principal Balance of the Class I-M-2 Notes immediately prior to such
      Payment Date over (y) the lesser of (a) the aggregate Stated Principal Balance
      of the Group I Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period, and after reduction for Realized
      Losses incurred during the related Prepayment Period) multiplied by (i) prior
      to
      the Payment Date in March 2012 90.625% and (ii) on or after the Payment Date
      in
      March 2012 92.500% and (b) the amount, if any, by which (i) the aggregate Stated
      Principal Balance of the Group I Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Prepayment
      Period) exceeds (ii) 0.50% of the Group I Cut-off Date Balance and any related
      Additional Negative Amortization Principal Amount.

     

    Class
      I-M-3 Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the excess (if any) of (x) the sum of (i) the aggregate Note
      Principal Balance of the Class I-A, Class I-M-1 and Class I-M-2 Notes (after
      taking into account the distribution of Class I-A, Class I-M-1 and Class I-M-2
      Principal Distribution Amounts on such Payment Date) and (ii) the Note Principal
      Balance of the Class I-M-3 Notes immediately prior to such Payment Date over
      (y)
      the lesser of (a) the aggregate Stated Principal Balance of the Group I Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period, and after reduction for Realized Losses incurred
      during the related Prepayment Period) multiplied by (i) prior to the Payment
      Date in March 2012 93.375% and (ii) on or after the Payment Date in March 2012
      94.700% and (b) the amount, if any, by which (i) the aggregate Stated Principal
      Balance of the Group I Loans as of the last day of the related Due Period (after
      giving effect to scheduled payments of principal due during the related Due
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Prepayment Period) exceeds (ii)
      0.50% of the Group I Cut-off Date Balance and any related Additional Negative
      Amortization Principal Amount.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Class
      I-M-4 Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the excess (if any) of (x) the sum of (i) the aggregate Note
      Principal Balance of the Class I-A, Class I-M-1, Class I-M-2 and Class I-M-3
      Notes (after taking into account the distribution of the Class I-A, Class I-M-1,
      Class I-M-2 and Class I-M-3 Principal Distribution Amounts on such Payment
      Date)
      and (ii) the Note Principal Balance of the Class I-M-4 Notes immediately prior
      to such Payment Date over (y) the lesser of (a) the aggregate Stated Principal
      Balance of the Group I Loans as of the last day of the related Due Period (after
      giving effect to scheduled payments of principal due during the related Due
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Prepayment Period) multiplied by
      (i)
      prior to the Payment Date in March 2012 96.750% and (ii) on or after the Payment
      Date in March 2012 97.400% and (b) the amount, if any, by which (i) the
      aggregate Stated Principal Balance of the Group I Loans as of the last day
      of
      the related Due Period (after giving effect to scheduled payments of principal
      due during the related Due Period, to the extent received or advanced, and
      unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Prepayment Period) exceeds (ii) 0.50% of the Group I Cut-off Date Balance and
      any related Additional Negative Amortization Principal Amount.

     

    Class
      I-M-5 Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the excess (if any) of (x) the sum of (i) the aggregate Note
      Principal Balance of the Class I-A, Class I-M-1, Class I-M-2, Class I-M-3 and
      Class I-M-4 Notes (after taking into account the distribution of the Class
      I-A,
      Class I-M-1, Class I-M-2, Class I-M-3 and Class I-M-4 Principal Distribution
      Amounts on such Payment Date) and (ii) the Note Principal Balance of the Class
      I-M-5 Notes immediately prior to such Payment Date over (y) the lesser of (a)
      the aggregate Stated Principal Balance of the Group I Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Prepayment Period) multiplied by (i) prior to the Payment Date in March 2012
      98.125% and (ii) on or after the Payment Date in March 2012 98.500% and (b)
      the
      amount, if any, by which (i) the aggregate Stated Principal Balance of the
      Group
      I Loans as of the last day of the related Due Period (after giving effect to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the related Prepayment Period) exceeds (ii) 0.50% of the Group I Cut-off
      Date Balance and any related Additional Negative Amortization Principal
      Amount.

     

    
      
         

      

      
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    Class
      I-M-6 Principal Distribution Amount:
      For any
      applicable Payment Date on or after the related Stepdown Date as long as a
      related Trigger Event has not occurred with respect to such Payment Date, an
      amount equal to the excess (if any) of (x) the sum of (i) the aggregate Note
      Principal Balance of the Class I-A, Class I-M-1, Class I-M-2, Class I-M-3,
      Class
      I-M-4 Notes and Class I-M-5 Notes (after taking into account the distribution
      of
      the Class I-A, Class I-M-1, Class I-M-2, Class I-M-3, Class I-M-4 and Class
      I-M-5 Principal Distribution Amounts on such Payment Date) and (ii) the Note
      Principal Balance of the Class I-M-6 Notes immediately prior to such Payment
      Date over (y) the lesser of (a) the aggregate Stated Principal Balance of the
      Group I Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the related Prepayment Period) multiplied by (i) prior to the
      Payment Date in March 2012 98.750% and (ii) on or after the Payment Date in
      March 2012 99.000% and (b) the amount, if any, by which (i) the aggregate Stated
      Principal Balance of the Group I Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Prepayment
      Period) exceeds (ii) 0.50% of the Group I Cut-off Date Balance and any related
      Additional Negative Amortization Principal Amount.

     

    Class
      II-A Notes:
      The
      Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Notes.

     

    Class
      II-B Notes:
      The
      Class II-B Notes, in the form attached as Exhibit A-3 to the Indenture.

     

    Class
      II-M Notes:
      The
      Class II-M-1, Class II-M-2, Class II-M-3, Class II-M-4 and Class II-M-5
      Notes.

     

    Class
      M Notes:
      The
      Class I-M Notes and Class II-M Notes, in the form attached as Exhibit A-2 to
      the
      Indenture.

     

    Class
      Prepayment Distribution Trigger:
      For a
      Class of Group II Subordinate Notes and for any Payment Date, a fraction
      (expressed as a percentage), the numerator of which is the aggregate Note
      Principal Balance of such Class and each Class of Group II Subordinate Notes
      subordinate thereto, if any, and the denominator of which is the Scheduled
      Principal Balance of all of the Group II Loans as of the related Due
      Date, equals or exceeds such percentage calculated as of the Closing
      Date.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Securities and Exchange Act of 1934, as amended, which initially shall be the
      Depository.

     

    Closing
      Date:
      March
      29, 2006.

     

    Code:
      The
      Internal Revenue Code of 1986, as amended, and the rules and regulations
      promulgated thereunder.

     

    
      
         

      

      
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    Collateral:
      The
      meaning specified in the Granting Clause of the Indenture.

     

    Commission:
      The
      Securities and Exchange Commission.

     

    Compensating
      Interest:
      With
      respect to any Payment Date as determined separately for each Loan Group, the
      amount of any Prepayment Interest Shortfalls resulting from prepayments in
      full
      or in part during the preceding calendar month on the related Mortgage Loans
      required to be paid by the Servicer pursuant to Servicing Agreement and, in
      case
      the Servicer fails to do so, by the Master Servicer, pursuant to Section 4.05
      of
      the Master Servicer Agreement, but only to the extent such Prepayment Interest
      Shortfalls do not exceed the Servicing Fee for such Payment Date for such Loan
      Group or amounts paid or required to be paid by the Servicer or, in the case
      of
      the Master Servicer is required to make such payment, do not exceed the Master
      Servicer Compensation for such Payment Date. 

     

    Corporate
      Trust Office:
      With
      respect to the Indenture Trustee, the principal corporate trust office of the
      Indenture Trustee at which at any particular time its corporate trust business
      shall be administered, which office at the date of the execution of this
      instrument is located at 1791 East St. Andrew Place, Santa Ana, California
      92705, Attention: Trust Administration - AH0601. The Indenture Trustee shall
      notify all Noteholders of any change in the location of the Corporate Trust
      Office. With respect to the Owner Trustee, the principal corporate trust office
      of the Owner Trustee at which at any particular time its corporate trust
      business shall be administered, which office at the date of the execution of
      this Trust Agreement is located at Wilmington Trust Company, Rodney Square
      North, 1100 North Market Street, Wilmington, Delaware 19801, Attention: American
      Home Mortgage Investment Trust 2006-1.

     

    Corridor
      Contract:
      The
      interest rate corridor contract between the Owner Trustee (or assigned to the
      Owner Trustee) on behalf of the Trust and the Corridor Provider primarily for
      the benefit of the Class II-M-2, Class II-M-3, Class II-M-4 and Class II-M-5
      Notes.

     

    Corridor
      Provider:
      Coöperatieve
      Centrale Raiffeisen-Boerenleenbank B.A.

     

    CPR:
      A
      constant rate of prepayment on the Mortgage Loans.

     

    Credit
      Enhancement Percentage:
      With
      respect to the Class I-A Notes and any Payment Date, the percentage equivalent
      of a fraction, the numerator of which is (a) the sum of the aggregate Note
      Principal Balance of the Class I-M Notes and the related Overcollateralized
      Amount and the denominator of which is (b) the aggregate Stated Principal
      Balance of the related Mortgage Loans at the end of the related Due Period.
      With
      respect to the Class II-A Notes and any Payment Date, the percentage equivalent
      of a fraction, the numerator of which is (a) the sum of the aggregate Note
      Principal Balance of the Class II-M Notes and Class II-B Notes and the
      denominator of which is (b) the aggregate Stated Principal Balance of the
      related Mortgage Loans at the end of the related Due Period.

     

    Cross-Over
      Date:
      The
      Payment Date on which the aggregate Note Principal Balance of the Class II-M
      Notes and Class II-B Notes has been reduced to zero.

     

    
      
         

      

      
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    Cumulative
      Losses:
      As to
      any Payment Date and the Mortgage Loans, the cumulative aggregate amount of
      Realized Losses on the Mortgage Loans from the Cut-off Date through the end
      of
      the calendar month immediately preceding such Payment Date.

     

    Cut-off
      Date:
      March
      1, 2006.

     

    Cut-off
      Date Balance:
      The
      aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date.

     

    Cut-off
      Date Principal Balance:
      With
      respect to any Mortgage Loan, the unpaid principal balance thereof as of the
      Cut-off Date after applying the principal portion of Monthly Payments due on
      or
      before such date, whether or not received, and without regard to any payments
      due after such date. 

     

    Debt
      Service Reduction:
      With
      respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment
      for
      such Mortgage Loan by a court of competent jurisdiction in a proceeding under
      the Bankruptcy Code, except such a reduction constituting a Deficient Valuation
      or any reduction that results in a permanent forgiveness of
      principal.

     

    Default:
      Any
      occurrence which with notice or the lapse of time or both would become an Event
      of Default.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
      of the Mortgaged Property in an amount less than the then outstanding
      indebtedness under the Mortgage Loan, or any reduction in the amount of
      principal to be paid in connection with any scheduled Monthly Payment that
      constitutes a permanent forgiveness of principal, which valuation or reduction
      results from a proceeding under the Bankruptcy Code.

     

    Definitive
      Notes:
      The
      meaning specified in Section 4.08 of the Indenture.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan replaced or to be replaced with an Eligible Substitute Mortgage
      Loan.

     

    Delinquency
      Rate:
      For any
      month, the fraction, expressed as a percentage, the numerator of which is the
      aggregate outstanding principal balance of all Mortgage Loans 60 or more days
      delinquent (including all foreclosures, Mortgage Loans subject to bankruptcy
      proceedings and REO Properties) as
      of the
      close of business on the last day of such month,
      as
      reported by the Servicer to the Securities Administrator, and the denominator
      of
      which is the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      close of business on the last day of such month.

     

    Depositor:
      American Home Mortgage Securities LLC, a Delaware limited liability company,
      or
      its successor in interest.

     

    Depository
      or Depository Agency:
      The
      Depository Trust Company or a successor appointed by the Indenture Trustee.
      Any
      successor to the Depository shall be an organization registered as a “clearing
      agency” pursuant to Section 17A of the Exchange Act and the regulations of the
      Securities and Exchange Commission thereunder.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Depository
      Agreement:
      With
      respect to the Class of Book-Entry Notes, the agreement among the Issuing
      Entity, the Indenture Trustee and the initial Depository, dated as of the
      Closing Date.

     

    Depository
      Participant:
      A
      Person for whom, from time to time, the Depository effects book-entry transfers
      and pledges of securities deposited with the Depository.

     

    Derivative
      Contract:
      Each of
      the Cap Contracts or the Corridor Contract, as applicable.

     

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

     

    Due
      Date:
      With
      respect to each Mortgage Loan, the date in each month on which its Monthly
      Payment is due, exclusive of any days of grace.

     

    Due
      Period:
      With
      respect to any Payment Date and the Mortgage Loans, the period commencing on
      the
      second day of the 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. 

     

    Eligible
      Account:
      An
      account that is any of the following: (i) a segregated account maintained with
      a
      federal or state chartered depository institution (A) the short-term obligations
      of which are rated F-1 by Fitch, A-1+ or better by Standard & Poor’s and P-1
      by Moody’s at the time of any deposit therein or (B) fully insured to the limits
      established by the FDIC, provided
      that any
      deposits not so insured shall, to the extent acceptable to the Rating Agencies,
      as evidenced in writing, be maintained such that (as evidenced by an Opinion
      of
      Counsel delivered to the Indenture Trustee and the Rating Agencies) the
      Indenture Trustee has a claim with respect to the funds in such account or
      a
      perfected first security interest against any collateral (which shall be limited
      to Eligible Investments) securing such funds that is superior to claims of
      any
      other depositors or creditors of the depository institution with which such
      account is maintained, (ii) a segregated trust account or accounts maintained
      with a federal or state chartered depository institution or trust company
      subject to regulations regarding fiduciary funds on deposit similar to Title
      12
      of the Code of Federal Regulations Section 9.10(b), which, in either case,
      has
      corporate trust powers, acting in its fiduciary capacity, or (iii) in the case
      of the Servicing Account, either (A) a trust account or accounts maintained
      at
      the corporate trust department of the Indenture Trustee or the Securities
      Administrator or (B) an account or accounts maintained at the corporate trust
      department of the Master Servicer (or an affiliate thereof), as long as its
      short term debt obligations are rated F-1 by Fitch, P-1 by Moody’s and A-1 by
      Standard & Poor’s or better and their long term debt obligations are rated A
      by Fitch, A2 by Moody’s and A by Standard & Poor’s or better, or (iv) an
      account or accounts of a depository institution acceptable to the Rating
      Agencies as evidenced in writing by the Rating Agencies that use of any such
      account as the Protected Account or the Payment Account will not reduce the
      rating assigned to any of the Securities by such Rating Agency below investment
      grade.

     

    Eligible
      Investments:
      One or
      more of the following:

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (i) obligations
      of or guaranteed as to principal and interest by the United States or any agency
      or instrumentality thereof when such obligations are backed by the full faith
      and credit of the United States;

     

    (ii) repurchase
      agreements on obligations specified in clause (i) maturing not more than one
      month from the date of acquisition thereof, provided that the unsecured
      obligations of the party agreeing to repurchase such obligations are at the
      time
      rated by the Rating Agencies in their respective highest short-term rating
      available;

     

    (iii) federal
      funds, certificates of deposit, demand deposits, time deposits and bankers’
acceptances (which shall each have an original maturity of not more than 90
      days
      and, in the case of bankers’ acceptances, shall in no event have an original
      maturity of more than 365 days or a remaining maturity of more than 30 days)
      denominated in United States dollars of any U.S. depository institution or
      trust
      company incorporated under the laws of the United States or any state thereof
      or
      of any domestic branch of a foreign depository institution or trust company;
      provided that the debt obligations of such depository institution or trust
      company (or, if the only Rating Agency is Standard & Poor’s, in the case of
      the principal depository institution in a depository institution holding
      company, debt obligations of the depository institution holding company) at
      the
      date of acquisition thereof have been rated by the Rating Agencies in their
      respective highest short-term rating available; and provided further that,
      if
      the only Rating Agency is Standard & Poor’s and if the depository or trust
      company is a principal subsidiary of a bank holding company and the debt
      obligations of such subsidiary are not separately rated, the applicable rating
      shall be that of the bank holding company; and, provided further that, if the
      original maturity of such short-term obligations of a domestic branch of a
      foreign depository institution or trust company shall exceed 30 days, the
      short-term rating of such institution shall be A-1+ in the case of Standard
      & Poor’s if Standard & Poor’s is the Rating Agency;

     

    (iv) commercial
      paper (having original maturities of not more than 365 days) of any corporation
      incorporated under the laws of the United States or any state thereof which
      on
      the date of acquisition has been rated by Moody’s, Standard & Poor’s and
      Fitch in their highest short-term ratings available; provided that such
      commercial paper shall have a remaining maturity of not more than 30
      days;

     

    (v) a
      money
      market fund or a qualified investment fund rated by Moody’s and Fitch in its
      highest long-term ratings available, if so rated, and rated AAAm or AAAm-G
      by
      Standard & Poor’s, including any such funds for which Deutsche Bank National
      Trust Company (or any successor Indenture Trustee) or the Securities
      Administrator or any affiliate thereof serves as an investment advisor, manager,
      administrator, shareholder, servicing agent, and/or custodian or sub-custodian;
      and

     

    (vi) other
      obligations or securities that are acceptable to each Rating Agency as a
      Permitted Investment hereunder and will not reduce the rating assigned to any
      Class of Notes by such Rating Agency below the lower of the then-current rating
      or the rating assigned to such Notes as of the Closing Date by such Rating
      Agency, as evidenced in writing; and

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (vii) any
      investment approved in writing by each of the Rating Agencies.

     

    Each
      of
      the Indenture Trustee and the Securities Administrator may purchase from or
      sell
      to itself or an affiliate, as principal or agent, the Eligible Investments
      listed above.

     

    provided,
      however,
      that no
      instrument shall be an Eligible Investment if it represents, either (1) the
      right to receive only interest payments with respect to the underlying debt
      instrument or (2) the right to receive 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
      greater than 120% of the yield to maturity at par of such underlying
      obligations.

     

    Eligible
      Substitute Mortgage Loan:
      A
      Mortgage Loan substituted by the Sponsor for a Deleted Mortgage Loan which
      must,
      on the date of such substitution, as confirmed in an Officer’s Certificate
      delivered to the Indenture Trustee, (i) have an outstanding principal balance,
      after deduction of the principal portion of the monthly payment due in the
      month
      of substitution (or in the case of a substitution of more than one Mortgage
      Loan
      for a Deleted Mortgage Loan, an aggregate outstanding principal balance, after
      such deduction), not in excess of the outstanding principal balance of the
      Deleted Mortgage Loan (the amount of any shortfall to be deposited by the
      Sponsor in the Protected Account in the month of substitution); (ii) comply
      with
      each non-statistical representation and warranty set forth in Section 3.1(b)
      of
      the Mortgage Loan Purchase Agreement as of the date of substitution; (iii)
      have
      a Mortgage Rate no lower than and not more than 1% per annum higher than the
      Mortgage Rate of the Deleted Mortgage Loan as of the date of substitution;
      (iv)
      have a Loan-to-Value Ratio at the time of substitution no higher than that
      of
      the Deleted Mortgage Loan at the time of substitution; (v) have a remaining
      term
      to stated maturity not greater than (and not more than one year less than)
      that
      of the Deleted Mortgage Loan; (vi) not be 30 days or more delinquent; (vii)
      be
      an adjustable-rate first lien Mortgage Loan, if being substituted for an ARM
      Loan; and (viii) be a fixed-rate first lien Mortgage Loan, if being substituted
      for a Fixed Rate Loan.

     

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

     

    Event
      of Default:
      Any one
      of the following: (a) the failure by the Issuing Entity to pay the full amount
      of the Accrued Note Interest on any Class of Notes (other than as a result
      of an
      Unpaid Interest Shortfall or Realized Losses), with respect to a Payment Date
      on
      such Payment Date; (b) a default by the Issuing Entity in the observance of
      certain negative covenants in the Indenture; (c) a default by the Issuing Entity
      in the observance of any other covenant of the Indenture, and the continuation
      of any such default for a period of thirty days after notice to the Issuing
      Entity by the Indenture Trustee; (d) any representation or warranty made by
      the
      Issuing Entity in the Indenture or in any Note or other writing delivered
      pursuant thereto having been incorrect in a material respect as of the time
      made, and the circumstance in respect of which such representation or warranty
      is incorrect not having been cured within thirty days after notice thereof
      is
      given to the Issuing Entity by the Indenture Trustee or by the Holders of at
      least 25% of the aggregate Note Principal Balance of the Notes, as applicable;
      (e) certain events of bankruptcy, insolvency, receivership or reorganization
      of
      the Issuing Entity; or (f) the failure by the Issuing Entity on the Final
      Scheduled Payment Date to
      pay
      all Accrued Note Interest, all remaining Basis Risk Shortfall Carry-Forward
      Amounts or Net WAC Carry-Forward Shortfall Amounts, as applicable, and to reduce
      the Note Principal Balances of all of the Notes to zero.

     

    
      
         

      

      
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    Event
      of Master Servicer Termination:
      With
      respect to the Master Servicing Agreement, a Servicing Default as defined in
      Section 6.01 of the Master Servicing Agreement.

     

    Excess
      Derivative Payment Amount:
      For any
      Payment Date, the excess of amounts payable from the Corridor Contract on that
      Payment Date over the amount of Basis Risk Shortfall Carry-Forward Amounts
      payable to the Class II-M-2, Class II-M-3, Class II-M-4 and Class II-M-5 Notes
      on that Payment Date.

     

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

     

    Expenses:
      The
      meaning specified in Section 7.02 of the Trust Agreement.

     

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

     

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

     

    Final
      Certification:
      The
      final certification delivered by the Custodian pursuant to Section 2.03(a)(i)
      of
      the Indenture and in the form attached as Exhibit Two thereto.

     

    Final
      Scheduled Payment Date:
      With
      respect to each Class of Group I Notes, the Payment Date in March 2046, and
      with respect to each Class of Group II Notes, the Payment Date in December
      2035.

     

    Fitch:
      Fitch,
      Inc.

     

    Fixed
      Rate Loans:
      At any
      time, collectively, all the Mortgage Loans which have fixed Mortgage
      Rates.

     

    Foreclosure
      Profit:
      With
      respect to a Liquidated Mortgage Loan the amount, if any, by which (i) the
      aggregate of its Net Liquidation Proceeds exceeds (ii) the related Stated
      Principal Balance (plus accrued and unpaid interest thereon at the applicable
      Mortgage Rate from the date interest was last paid through the date of receipt
      of the final Liquidation Proceeds) of such Liquidated Mortgage Loan immediately
      prior to the final recovery of its Liquidation Proceeds.

     

    Form
      8-K Disclosure Information:
      Has the
      meaning set forth in Section 4.06 of the Master Servicing
      Agreement.

     

    Freddie
      Mac:
      Freddie
      Mac (also known as the Federal Home Loan Mortgage Corporation), or any successor
      thereto.

     

    Grant:
      Pledge,
      bargain, sell, warrant, alienate, remise, release, convey, assign, transfer,
      create, and grant a lien upon and a security interest in and right of set-off
      against, deposit, set over and confirm pursuant to the 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
      such
      collateral or other agreement or instrument 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.

     

    
      
         

      

      
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    Gross
      Margin:
      With
      respect to any ARM Loan, the percentage set forth as the “Gross Margin” for such
      Mortgage Loan on the Mortgage Loan Schedule, as adjusted from time to time
      in
      accordance with the terms of the Servicing Agreement.

     

    Group
      I Available Funds: For
      any
      Payment Date, an amount equal to the amount received by the Indenture Trustee
      and available in the Payment Account on that Payment Date in respect of the
      Group I Loans. The Group I Available Funds generally includes: (1) all
      previously undistributed payments on account of principal (including the
      principal portion of Monthly Payments, Principal Prepayments and the principal
      amount of Net Liquidation Proceeds) and all previously undistributed payments
      on
      account of interest received after the Cut-Off Date and on or prior to the
      related Determination Date from the Group I Loans; (2) any Monthly Advances
      and
      Compensating Interest Payments on the Group I Loans made by the Servicer or
      the
      Master Servicer for such Payment Date; (3) any Prepayment Penalties on the
      Group
      I Loans collected by the Servicer for such Payment Date and (4) any amounts
      reimbursed by the Servicer, the Indenture Trustee or the Securities
      Administrator in connection with losses on certain eligible investments in
      the
      Protected Accounts, Securities Administrator Collection Account or Payment
      Account, as applicable, and is net of the Uncapped Floater Fee and fees and
      premiums payable to, and other amounts reimbursable to, the Indenture Trustee,
      Master Servicer, the Servicer, the LPMI Insurer, the Securities Administrator
      and the Owner Trustee and other amounts allocable to the Group I
      Loans.

     

    Group
      I Available Funds Rate:
      On any
      Payment Date and any class of Class I-A Notes and Class I-M Notes, the per
      annum
      rate equal to the product of (a) the weighted average of the Net Mortgage Rates
      of the Group I Loans included in the trust as of the end of the prior Due
      Period, (b) a fraction equal to (x) 30 divided by (y) the number of days in
      the
      related Accrual Period and (c) the related Adjustment Fraction. In addition,
      the
      Available Funds Rate with respect to the Class I-A Notes and Class I-M Notes
      will be reduced by (i) the Additional Negative Amortization Principal Amount,
      expressed as a percentage of the aggregate Note Principal Balance of the
      respective class of Notes and (ii) the related Uncapped Floater Fee for such
      Payment Date. The weighted average described above shall be weighted on the
      basis of the aggregate Stated Principal Balance of the related Mortgage Loans
      as
      of the beginning of the related Due Period.

     

    Group
      I Cut-off Date Balance: The
      aggregate Stated Principal Balance of the Group I Loans as of the Cut-off
      Date.

     

    Group
      I Loan:
      A
      Mortgage Loan in Loan Group I.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Group
      I Notes:
      the
      Class I-A Notes and Class I-M Notes.

     

    Group
      II Loan:
      A
      Mortgage Loan in Loan Group II-C or Loan Group II-NC.

     

    Group
      II Senior Notes:
      The
      Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Notes.

     

    Group
      II Subordinate Available Funds Rate:
      On
      any
      Payment Date and any Class of Class II-M-1, Class II-M-2, Class II-M-3, Class
      II-M-4, Class II-M-5 and Class II-B Notes, the per annum rate equal to the
      weighted average of the Net Mortgage Rates on the Group II-C Loans and Group
      II-NC Loans included in the trust as of the end of the prior Due Period,
      weighted on the basis of the Note Principal Balances thereof as of the end
      of
      the prior Due period, weighted in proportion to the results of subtracting
      from
      the aggregate principal balance of the Group II-C Loans and Group II-NC Loans,
      the aggregate Note Principal Balance of the related Group II Senior Notes,
      adjusted, in the case of the Class II-M-2, Class II-M-3, Class II-M-4, Class
      II-M-5 and Class II-B Notes only, to an effective rate reflecting the
      calculation of interest on the basis of the actual number of days elapsed during
      the related Accrual Period and a 360-day year.

     

    Group
      II Subordinate Notes:
      The
      Class
      II-M-1, Class II-M-2, Class II-M-3, Class II-M-4, Class II-M-5 and Class II-B
      Notes.

     

    Group
      II-C Available Funds:
      For
      any
      Payment Date, an amount equal to the amount received by the Indenture Trustee
      and available in the Payment Account on that Payment Date in respect of the
      Group II-C Loans. The Group II-C Available Funds generally includes: (1) all
      previously undistributed payments on account of principal (including the
      principal portion of Monthly Payments, Principal Prepayments and the principal
      amount of Net Liquidation Proceeds) and all previously undistributed payments
      on
      account of interest received after the Cut-Off Date and on or prior to the
      related Determination Date from the Group II-C Loans and (2) any Monthly
      Advances and Compensating Interest Payments on the Group II-C Loans made by
      the
      Servicer or the Master Servicer for such Payment Date; (3) any Prepayment
      Penalties on the Group II-C Loans collected by the Servicer for such Payment
      Date; and (4) any amounts reimbursed by the Servicer, the Indenture Trustee
      or
      the Securities Administrator in connection with losses on certain eligible
      investments in the Protected Accounts, Securities Administrator Collection
      Account or Payment Account, as applicable, and is net of fees payable to, and
      other amounts reimbursable to, the Indenture Trustee, Master Servicer, the
      Servicer, the Securities Administrator, the Owner Trustee, the LPMI Insurer
      and
      other amounts allocable to the Group II-C Loans.

     

    Group
      II-C Available Funds Rate:
      On any
      Payment Date and any Class of Class II-A-1 Notes or Class II-A-2 Notes, the
      per
      annum rate equal to the weighted average of the Net Mortgage Rates on the Group
      II-C Loans included in the trust as of the end of the prior Due Period, weighted
      on the basis of the aggregate Stated Principal Balance of the Group II-C Loans
      as of the end of the prior Due Period. 

     

    Group
      II-C Cut-off Date Balance:
      The sum
      of the aggregate Stated Principal Balance of the Group II-C Loans as of the
      Cut-off Date.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Group
      II-C Loan:
      A
      Mortgage Loan in Loan Group II-C.

     

    Group
      II-C Senior Notes:
      The
      Class
      II-A-1 Notes and Class II-A-2 Notes.

     

    Group
      II-NC Available Funds:
      For
      any
      Payment Date, an amount equal to the amount received by the Indenture Trustee
      and available in the Payment Account on that Payment Date in respect of the
      Group II-NC Loans. The Group II-NC Available Funds generally include: (1) all
      previously undistributed payments on account of principal (including the
      principal portion of Monthly Payments, Principal Prepayments and the principal
      amount of Net Liquidation Proceeds) and all previously undistributed payments
      on
      account of interest received after the Cut-Off Date and on or prior to the
      related Determination Date from the Group II-NC Loans and (2) any Monthly
      Advances and Compensating Interest Payments on the Group II-NC Loans made by
      the
      Servicer or the Master Servicer for such Payment Date; (3) any Prepayment
      Penalties on the Group II-NC Loans collected by the Servicer for such Payment
      Date; and (4) any amounts reimbursed by the Servicer, the Indenture Trustee
      or
      the Securities Administrator in connection with losses on certain eligible
      investments in the Protected Accounts, Securities Administrator Collection
      Account or Payment Account, as applicable, and is net of fees payable to, and
      other amounts reimbursable to, the Indenture Trustee, Master Servicer, the
      Servicer, the Securities Administrator, the Owner Trustee, the LPMI Insurer
      and
      other amounts allocable to the Group II-NC Loans.

     

    Group
      II-NC Available Funds Rate:
      On
      any
      Payment Date and any Class of Class II-A-3 or Class II-A-4 Notes, the per annum
      rate equal to the weighted average of the Net Mortgage Rates on the Group II-NC
      Loans included in the trust as of the end of the prior Due Period, weighted
      on
      the basis of the aggregate Stated Principal Balance of the Group II-NC Loans
      as
      of the end of the prior Due period. 

     

    Group
      II-NC Cut-off Date Balance:
      The
      sum
      of the aggregate Stated Principal Balance of the Group II-NC Loans as of the
      Cut-off Date.

     

    Group
      II-NC Loan:
      A
      Mortgage Loan in Loan Group II-NC.

     

    Group
      II-NC Senior Notes:
      The
      Class II-A-3 and Class II-A-4 Notes.

     

    Hazardous
      Materials:
      Any
      dangerous, toxic or hazardous pollutants, chemicals, wastes, or substances,
      including, without limitation, those so identified pursuant to the Comprehensive
      Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601
      et seq., or any other environmental laws now existing, and specifically
      including, without limitation, asbestos and asbestos-containing materials,
      polychlorinated biphenyls, radon gas, petroleum and petroleum products, urea
      formaldehyde and any substances classified as being “in inventory”, “usable work
      in progress” or similar classification which would, if classified unusable, be
      included in the foregoing definition.

     

    Indemnified
      Party:
      The
      meaning specified in Section 7.02 of the Trust Agreement.

     

    Indenture:
      The
      indenture dated as of March 29, 2006, between the Issuing Entity, the Securities
      Administrator and the Indenture Trustee, relating to the American Home Mortgage
      Investment Trust 2006-1 Notes.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    Indenture
      Trustee:
      Deutsche Bank National Trust Company, and its successors and assigns or any
      successor indenture trustee appointed pursuant to the terms of the Indenture.
      Upon the REMIC Conversion, the indenture trustee shall be the indenture trustee
      specified in the indenture governing the terms of the REMIC Notes.

     

    Indenture
      Trustee Fee:
      All
      earnings on the funds from time to time in the Payment Account.

     

    Independent:
      When
      used with respect to any specified Person, the Person (i) is in fact independent
      of the Issuing Entity, any other obligor on the Notes, the Sponsor, the Master
      Servicer, the Depositor, American Home Mortgage Investment Corp. and any
      Affiliate of any of the foregoing Persons, (ii) does not have any direct
      financial interest or any material indirect financial interest in the Issuing
      Entity, any such other obligor, the Sponsor, the Master Servicer, the Depositor,
      American Home Mortgage Investment Corp. or any Affiliate of any of the foregoing
      Persons and (iii) is not connected with the Issuing Entity, any such other
      obligor, the Sponsor, the Master Servicer, the Depositor, American Home Mortgage
      Investment Corp. or any Affiliate of any of the foregoing Persons as an officer,
      employee, promoter, underwriter, trustee, partner, director or person performing
      similar functions.

     

    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 10.01 of the Indenture, made by an independent appraiser
      or other expert appointed by an Issuing Entity Request 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.

     

    Index:
      With
      respect to any Mortgage Loan, the index for the adjustment of the Mortgage
      Rate
      set forth as such in the related Mortgage Note. 

     

    Initial
      Certification:
      The
      initial certification delivered by the Custodian pursuant to Section 2.03(a)
      of
      the Indenture and in the form attached thereto as Exhibit One
      thereto.

     

    Initial
      Note Principal Balance:
      The
      Notes shall have the following Initial Note Principal Balances:

     

     

    
      	
              Class

            	 	
              Initial
                Note 
Principal Balance

            	 
	
              I-1A-1

            	 	
              $

            	
              600,000,000

            	 
	
              I-2A-1

            	 	
              $

            	
              378,750,000

            	 
	
              I-A-2

            	 	
              $

            	
              489,375,000

            	 
	
              I-A-3

            	 	
              $

            	
              163,125,000

            	 
	
              II-A-1

            	 	
              $

            	
              142,315,000

            	 
	
              II-A-2

            	 	
              $

            	
              10,165,000

            	 
	
              II-A-3

            	 	
              $

            	
              101,360,000

            	 
	
              II-A-4

            	 	
              $

            	
              7,240,000

            	 
	
              I-M-1

            	 	
              $

            	
              19,192,000

            	 
	
              I-M-2

            	 	
              $

            	
              28,787,000

            	 
	
              I-M-3

            	 	
              $

            	
              19,192,000

            	 
	
              I-M-4

            	 	
              $

            	
              23,553,000

            	 
	
              I-M-5

            	 	
              $

            	
              9,596,000

            	 
	
              I-M-6

            	 	
              $

            	
              4,362,000

            	 
	
              II-M-1

            	 	
              $

            	
              7,936,000

            	 
	
              II-M-2

            	 	
              $

            	
              3,341,000

            	 
	
              II-M-3

            	 	
              $

            	
              1,949,000

            	 
	
              II-M-4

            	 	
              $

            	
              1,810,000

            	 
	
              II-M-5

            	 	
              $

            	
              1,253,000

            	 
	
              II-B

            	 	
              $

            	
              1,117,043

            	 

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    Insurance
      Proceeds:
      Proceeds paid by any insurer pursuant to any insurance policy covering a
      Mortgage Loan which are required to be remitted to the Servicer, net of any
      component thereof, released to the Mortgagor in accordance with the Servicer’s
      normal servicing procedures.

     

    Interest
      Determination Date:
      With
      respect each Class of LIBOR Notes and (i) the first Accrual Period, the second
      LIBOR Business Day preceding the Closing Date, and (ii) with respect to each
      Accrual Period thereafter, the second LIBOR Business Day preceding the related
      Payment Date on which such Accrual Period commences; it being understood,
      however, that interest accrued and payable to the Classes of Notes subject
      to
      Six-Month LIBOR shall be calculated semi-annually. 

     

    Interest
      Rate Adjustment Date:
      With
      respect to each Mortgage Loan, the date or dates on which the Mortgage Rate
      is
      adjusted in accordance with the related Mortgage Note.

     

    Interested
      Person:
      As of
      any date of determination, the Depositor, the Master Servicer, the Servicer,
      the
      Indenture Trustee, American Home Mortgage Investment Corp., any Mortgagor,
      or
      any Person actually known to a Responsible Officer of the Trustee to be an
      Affiliate of any of them.

     

    Investment
      Company Act:
      The
      Investment Company Act of 1940, as amended, and any amendments
      thereto.

     

    IRS:
      The
      Internal Revenue Service.

     

    Issuing
      Entity:
      American Home Mortgage Investment Trust 2006-1, a Delaware statutory trust,
      or
      its successor in interest.

     

    Issuing
      Entity Request:
      A
      written order or request signed in the name of the Issuing Entity by any one
      of
      its Authorized Officers and delivered to the Indenture Trustee.

     

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

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    LIBOR
      Note:
      The
      Class I-A, Class I-M, Class II-M-2, Class II-M-3, Class II-M-4, Class II-M-5
      and
      Class II-B Notes.

     

    Lien:
      Any
      mortgage, deed of trust, pledge, conveyance, hypothecation, assignment,
      participation, deposit arrangement, encumbrance, lien (statutory or other),
      preference, priority right or interest or other security agreement or
      preferential arrangement of any kind or nature whatsoever, including, without
      limitation, any conditional sale or other title retention agreement, any
      financing lease having substantially the same economic effect as any of the
      foregoing and the filing of any financing statement under the UCC (other than
      any such financing statement filed for informational purposes only) or
      comparable law of any jurisdiction to evidence any of the foregoing;
provided,
      however,
      that
      any assignment pursuant to Section 6.02 of the Servicing Agreement or Master
      Servicing Agreement, as applicable, shall not be deemed to constitute a
      Lien.

     

    Lifetime
      Rate Cap:
      With
      respect to each Mortgage Loan with respect to which the related Mortgage Note
      provides for a lifetime rate cap, the maximum Mortgage Rate permitted over
      the
      life of such Mortgage Loan under the terms of such Mortgage Note, as set forth
      in the Mortgage Loan Schedule.

     

    Liquidated
      Mortgage Loan:
      With
      respect to any Payment Date, any Mortgage Loan in respect of which the Servicer
      has determined, in accordance with the servicing procedures specified in the
      Servicing Agreement as of the end of the related Due Period that substantially
      all Liquidation Proceeds which it reasonably expects to recover with respect
      to
      the disposition of the related Mortgaged Property or REO Property have been
      recovered.

     

    Liquidation
      Expenses:
      Out-of-pocket expenses (exclusive of overhead) which are incurred by or on
      behalf of the Servicer in connection with the liquidation of any Mortgage Loan
      and not recovered under any insurance policy, such expenses including, without
      limitation, legal fees and expenses, any unreimbursed amount expended respecting
      the related Mortgage Loan and any related and unreimbursed expenditures for
      real
      estate property taxes or for property restoration, preservation or insurance
      against casualty loss or damage.

     

    Liquidation
      Proceeds:
      Proceeds (including Insurance Proceeds) received in connection with the
      liquidation of any Mortgage Loan or related REO Property, whether through
      trustee’s sale, foreclosure sale or otherwise.

     

    Loan
      Group:
      Any of
      Loan Group I, Loan Group II-C or Loan Group II-NC, as applicable.

     

    Loan
      Group I:
      The
      Group I Loans.

     

    Loan
      Group II-C:
      The
      Group II-C Loans.

     

    Loan
      Group II-NC:
      The
      Group II-NC Loans.

     

    Loan-to-Value
      Ratio:
      With
      respect to any Mortgage Loan, as of any date of determination, a fraction
      expressed as a percentage, the numerator of which is the then current principal
      amount of the Mortgage Loan, and the denominator of which is the Appraised
      Value
      of the related Mortgaged Property.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    Loan
      Year:
      With
      respect to any Mortgage Loan, the one-year period commencing on the day
      succeeding the origination of such Mortgage Loan and ending on the anniversary
      date of such Mortgage Loan, and each annual period thereafter.

     

    Lost
      Note Affidavit:
      With
      respect to any Mortgage Loan as to which the original Mortgage Note has been
      lost or destroyed and has not been replaced, an affidavit from the Sponsor
      certifying that the original Mortgage Note has been lost, misplaced or destroyed
      (together with a copy of the related Mortgage Note).

     

    LPMI
      Insurer:
       Triad
      Guaranty Insurance Corporation.

     

    LPMI
      Insurer Fee:
      With
      respect to any payment date and each Mortgage Loan covered by a lender-paid
      primary mortgage insurance policy, the fee payable to the related insurer at
      a
      rate equal to 1/12th of the LPMI Insurer Fee Rate multiplied by the Stated
      Principal Balance of such Mortgage Loan as of the beginning of the related
      Due
      Period.

     

    LPMI
      Insurer Fee Rate:
      With
      respect to each Mortgage Loan covered by a lender-paid primary mortgage
      insurance policy, the per annum rate payable to the related insurer under the
      related policy.

     

    Majority
      Certificateholder:
      A
      Holder of a 50.01% or greater Certificate Percentage Interest of the
      Certificates.

     

    Master
      Servicer:
      Wells
      Fargo Bank, N.A., a national banking association, and its successors and
      assigns.

     

    Master
      Servicing Agreement:
      The
      Master Servicing Agreement dated as of March 29, 2006, among the Master
      Servicer, Securities Administrator, Indenture Trustee and Issuing
      Entity.

     

    Maximum
      Note Interest Rate:
      With
      respect to any Payment Date and Class II-A-1 Notes and Class II-A-2 Notes,
      10.600% per annum. With respect to any Payment Date and Class II-A-3 Notes
      and
      Class II-A-4 Notes, 10.200% per annum. With respect to any Payment Date and
      Class II-M Notes and Class II-B Notes, 10.450% per annum.

     

    Maximum
      Mortgage Rate:
      With
      respect to each ARM Loan, the maximum Mortgage Rate.

     

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

     

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

     

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

     

    Minimum
      Mortgage Rate:
      With
      respect to each ARM Loan, the minimum Mortgage Rate.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

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

     

    Monthly
      Advance:
      The
      aggregate of all payments of principal and interest, net of the Servicing Fee,
      that were due during the related Due Period on the Mortgage Loans and that
      were
      delinquent on the related Due Date (other than shortfalls in interest due to
      the
      application of the Relief Act or similar state law).

     

    Monthly
      Payment:
      With
      respect to any Mortgage Loan (including any REO Property) and any Due Date,
      the
      payment of principal and interest due thereon in accordance with the
      amortization schedule at the time applicable thereto (after adjustment, if
      any,
      for partial Principal Prepayments and for Deficient Valuations occurring prior
      to such Due Date but before any adjustment to such amortization schedule by
      reason of any bankruptcy, other than a Deficient Valuation, or similar
      proceeding or any moratorium or similar waiver or grace period, and after any
      adjustment required by the Relief Act). 

     

    Moody’s:
      Moody’
Investors Service, Inc. or its successor in interest.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument creating a first, second or third
      lien on an estate in fee simple interest in real property securing a Mortgage
      Loan.

     

    Mortgage
      File:
      The
      file containing the Related Documents pertaining to a particular Mortgage Loan
      and any additional documents required to be added to the Mortgage File pursuant
      to the Mortgage Loan Purchase Agreement, Servicing Agreement, as
      applicable.

     

    Mortgage
      Loans:
      The
      Mortgage Loans that will be transferred and assigned to the Trust pursuant
      to
      Section 2.03(a) of the Indenture, each Mortgage Loan so held being identified
      in
      the Mortgage Loan Schedule. The Mortgage Loans have been divided into three
      groups, Loan Group I, Loan Group II-C and Loan Group II-NC.

     

    Mortgage
      Loan Purchase Agreement:
      The
      Mortgage Loan Purchase Agreement, dated as of the Closing Date, between the
      Sponsor, as seller, and the Purchaser, as purchaser, relating to the sale,
      transfer and assignment of the Mortgage Loans.

     

    Mortgage
      Loan Schedule:
      With
      respect to any date, the schedule of Mortgage Loans held by the Issuing Entity
      on such date. The schedule of Mortgage Loans as of the Cut-off Date is the
      schedule set forth in Exhibit B of the Indenture, which schedule sets forth
      as
      to each Mortgage Loan:

     

    
      	 	
              (i)

            	
              the
                loan number and name of the Mortgagor;

            
	 	 	 
	 	
              (ii)

            	
              the
                street address, city, state and zip code of the Mortgaged
                Property;

            
	 	 	 
	 	
              (iii)

            	
              the
                original Mortgage Rate;

            
	 	 	 
	 	
              (iv)

            	
              the
                maturity date;

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    
      	 	
              (v)

            	
              the
                original principal balance;

            
	 	 	 
	 	
              (vi)

            	
              the
                first Payment Date;

            
	 	 	 
	 	
              (vii)

            	
              the
                type of Mortgaged Property;

            
	 	 	 
	 	
              (viii)

            	
              the
                Monthly Payment in effect as of the Cut-off Date;

            
	 	 	 
	 	
              (ix)

            	
              the
                Cut-off Date Principal Balance;

            
	 	 	 
	 	
              (x)

            	
              the
                Index and the Gross Margin, if applicable;

            
	 	 	 
	 	
              (xi)

            	
              the
                Adjustment Date frequency and Payment Date frequency, if
                applicable;

            
	 	 	 
	 	
              (xii)

            	
              the
                occupancy status;

            
	 	 	 
	 	
              (xiii)

            	
              the
                purpose of the Mortgage Loan;

            
	 	 	 
	 	
              (xiv)

            	
              the
                Appraised Value of the Mortgaged Property;

            
	 	 	 
	 	
              (xv)

            	
              the
                original term to maturity;

            
	 	 	 
	 	
              (xvi)

            	
              the
                paid-through date of the Mortgage Loan;

            
	 	 	 
	 	
              (xvii)

            	
              the
                Loan-to-Value Ratio;

            
	 	 	 
	 	
              (xviii)

            	
              whether
                or not the Mortgage Loan was underwritten pursuant to a limited
                documentation program;

            
	 	 	 
	 	
              (xix)

            	
              the
                Loan Group; and

            
	 	 	 
	 	
              (xx)

            	
              whether
                the Mortgage Loan has a fixed interest rate or an adjustable interest
                rate.

            

    

    

    The
      Mortgage Loan Schedule shall also set forth the total of the amounts described
      under (ix) above for all of the Mortgage Loans.

     

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

     

    Mortgage
      Rate:
      With
      respect to any Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan. 

     

    Mortgaged
      Property:
      The
      underlying property, including real property and improvements thereon, securing
      a Mortgage Loan.

     

    Mortgagor:
      The
      obligor or obligors under a Mortgage Note. 

     

    Negative
      Amortization Amount:
      With
      respect to any Payment Date, the aggregate amount of negative amortization
      with
      respect to the Group I Loans for the related Due Period.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    Net
      Liquidation Proceeds:
      With
      respect to any Liquidated Mortgage Loan, Liquidation Proceeds and Subsequent
      Recoveries net of unreimbursed Servicing Advances by the Servicer, Monthly
      Advances and Liquidation Expenses. 

     

    Net
      Monthly Excess Cashflow:
      With
      respect to Loan Group I, for any Payment Date, the excess of (i) the Group
      I
      Available Funds for such Payment Date over (ii) the sum for such Payment Date
      of
      (X) the aggregate amount of Accrued Note Interest minus any payments from the
      Cap Contracts for the related Notes and (Y) the aggregate Principal Remittance
      Amount used to make payments in respect of principal to these
      Notes.

     

    Net
      Mortgage Rate:
      For any
      Mortgage Loan, the then applicable Mortgage Rate thereon less the Servicing
      Fee,
      expressed as a per annum rate, and the LPMI Insurer Fee Rate.

     

    Net
      WAC Shortfall:
      With
      respect to the Class II-A, Class II-M and Class II-B Notes, on any Payment
      Date,
      as determined separately for each such Class of Notes, the excess, if any,
      of
      (x) the related Accrued Note Interest thereon for such Payment Date calculated
      pursuant to clause (i)(a) of the related definition of Note Interest Rate over
      (y) Accrued Note Interest thereon for such Payment Date calculated at the
      related Available Funds Rate.

     

    Net
      WAC Shortfall Carry-Forward Amount:
      With
      respect to the Class II-A, Class II-M and Class II-B Notes on any Payment Date,
      an amount equal to the excess of (i) the amount of interest accrued thereon
      at
      the related Note Interest Rate without regards to the related Available Funds
      Rate over (ii) the interest calculated at the related Available Funds Rate
      for
      such Payment Date, plus any such amounts remaining unpaid from prior payment
      dates with interest thereon at the Note Interest Rate for such Payment Date
      to
      the extent previously unreimbursed by the Net Monthly Excess Cashflow and in
      the
      case of the Class II-M-2, Class II-M-3, Class II-M-4 and Class II-M-5, by the
      Corridor Contract.

     

    Net
      Worth:
      With
      respect to any Person at any date, the excess of total assets over total
      liabilities of such Person, and its consolidated subsidiaries, on such date,
      each to be determined in accordance with generally accepted accounting
      principles (GAAP) as in effect in the United States from time to
      time.

     

    Non-Offered
      Notes:
      The
      Class II-M-2, Class II-M-3, Class II-M-4, Class II-M-5 and Class II-B
      Notes.

     

    Nonrecoverable
      Advance:
      Any
      Monthly Advance or any Servicing Advance (i) which was previously made or is
      proposed to be made by the Servicer or Master Servicer, as applicable; and
      (ii)
      which, in the good faith judgment of the Servicer or Master Servicer, will
      not
      or, in the case of a proposed advance, would not, be ultimately recoverable
      by
      the Servicer or Master Servicer, as applicable, from Liquidation Proceeds or
      future payments on any Mortgage Loan. The Indenture Trustee may conclusively
      rely on any determination of nonrecoverability made by the Servicer or Master
      Servicer, as applicable. 

     

    Note:
      Any
      Class
      I-1A-1, Class I-2A-1, Class I-A-2, Class I-A-3, Class I-M-1, Class I-M-2, Class
      I-M-3, Class I-M-4, Class I-M-5, Class I-M-6, Class II-A-1, Class II-A-2, Class
      II-A-3, Class II-A-4, Class II-M-1, Class II-M-2, Class II-M-3, Class II-M-4,
      Class II-M-5 or Class II-B Note. Upon REMIC Conversion, the REMIC Notes shall
      constitute the Notes unless otherwise specified.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    Note
      Interest Rate:
      With
      respect to the Uncapped Notes, (a)
      with
      respect to each Payment Date on which a Cap Counterparty Termination Event
      is
      not in effect, a floating rate per annum equal to One-Month LIBOR plus the
      related Note Margin and (b) with respect to each Payment Date on which a Cap
      Counterparty Termination Event is in effect, a floating rate per annum equal
      to
      the lesser of (i) One-Month LIBOR plus the related Note Margin and (ii) the
      related Available Funds Rate with respect to such Payment Date. With respect
      to
      each Payment Date and the Class I-2A-1, Class I-M-4, Class I-M-5 and Class
      I-M-6
      Notes, a floating rate equal to the lesser of (i) One-Month LIBOR plus the
      related Note Margin and (ii) the Group I Available Funds Rate. With respect
      to
      each Payment Date and the Class II-A-1 Notes and Class II-A-2 Notes, (i) prior
      to the related Note Rate Change Date, the lesser of (a) 5.50% per annum and
      (b)
      the Group II-C Available Funds Rate and (ii) on or after the related Note Rate
      Change Date, the least of (a) Six-Month LIBOR plus 1.75%, (b) the related
      Maximum Note Interest Rate and (c) the Group II-C Available Funds Rate. With
      respect to each Payment Date and the Class II-A-3 Notes and Class II-A-4 Notes,
      (i) prior to the related Note Rate Change Date, the lesser of (a) 5.10% per
      annum and (b) the Group II-NC Available Funds Rate and (ii) on or after the
      related Note Rate Change Date, the least of (a) Six-Month LIBOR plus 1.75%,
      (b)
      the related Maximum Note Interest Rate and (c) the Group II-NC Available Funds
      Rate. With respect to each Payment Date and the Class II-M-1 Notes, (i) prior
      to
      the related Note Rate Change Date, the lesser of (a) 5.30% per annum and (b)
      the
      Group II Subordinate Available Funds Rate and (ii) on or after the related
      Note
      Rate Change Date, the least of (a) Six-Month LIBOR plus 2.25%, (b) the related
      Maximum Note Interest Rate and (c) the Group II Subordinate Available Funds
      Rate. With respect to each Payment Date and the Class II-M-2, Class II-M-3,
      Class II-M-4, Class II-M-5 and Class II-B Notes, a floating rate equal to the
      least of (i) One-Month LIBOR plus the related Note Margin, (ii) the related
      Maximum Note Interest Rate and (iii) the Group II Subordinate Available Funds
      Rate with respect to such Payment Date.

     

    Note
      Margin:
      With
      respect to the Class I-1A-1 Notes, on any Payment Date on or prior to the
      Step-Up Date, 0.140% per annum, and on any Payment Date after the Step-Up Date,
      0.280% per annum. With respect to the Class I-2A-1 Notes, on any Payment Date
      on
      or prior to the Step-Up Date, 0.200% per annum, and on any Payment Date after
      the Step-Up Date, 0.400% per annum. With respect to the Class I-A-2 Notes,
      on
      any Payment Date on or prior to the Step-Up Date, 0.190% per annum, and on
      any
      Payment Date after the Step-Up Date, 0.380% per annum. With respect to the
      Class
      I-A-3 Notes, on any Payment Date on or prior to the Step-Up Date, 0.300% per
      annum, and on any Payment Date after the Step-Up Date, 0.600% per annum. With
      respect to the Class I-M-1 Notes, on any Payment Date on or prior to the Step-Up
      Date, 0.380% per annum, and on any Payment Date after the Step-Up Date, 0.570%
      per annum. With
      respect to the Class I-M-2 Notes, on any Payment Date on or prior to the Step-Up
      Date, 0.420% per annum, and on any Payment Date after the Step-Up Date, 0.630%
      per annum.
      With
      respect to the Class I-M-3 Notes, on any Payment Date on or prior to the Step-Up
      Date, 0.680% per annum, and on any Payment Date after the Step-Up Date, 1.020%
      per annum. With respect to the Class I-M-4 Notes, on any Payment Date on or
      prior to the Step-Up Date, 1.200% per annum, and on any Payment Date after
      the
      Step-Up Date, 1.800% per annum. With respect to the Class I-M-5 Notes, on any
      Payment Date on or prior to the Step-Up Date, 2.250% per annum, and on any
      Payment Date after the Step-Up Date, 3.375% per annum. With respect to the
      Class
      I-M-6 Notes, on any Payment Date on or prior to the Step-Up Date, 2.900% per
      annum, and on any Payment Date after the Step-Up Date, 4.350% per
      annum.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    Note
      Owner:
      The
      Beneficial Owner of a Note.

     

    Note
      Principal Balance:
      With
      respect to any Note, as of any date of determination, the initial Note Principal
      Balance as stated on the face thereof, minus all amounts distributed in respect
      of principal with respect to such Note and (a) plus, in the case of the Class
      I-1A-1, Class I-2A-1, Class I-A-2, Class I-A-3, Class I-M-1, Class I-M-2, Class
      I-M-3, Class I-M-4, Class I-M-5, Class I-M-6, Class II-A-1, Class II-A-2, Class
      II-A-3, Class II-A-4, Class II-M-1, Class II-M-3, Class II-M-3, Class II-M-4,
      Class II-M-5 and Class II-B Notes, any Subsequent Recoveries allocated thereto
      and (b) minus, in the case of the Class I-A-2, Class I-A-3, Class I-M-1, Class
      I-M-2, Class I-M-3, Class I-M-4, Class I-M-5, Class I-M-6, Class II-A-2, Class
      II-A-4, Class II-M-1, Class II-M-3, Class II-M-3, Class II-M-4, Class II-M-5
      and
      Class II-B Notes, the aggregate amount of any reductions in the Note Principal
      Balance thereof deemed to have occurred in connection with allocations of
      Realized Losses on all prior Payment Dates in accordance with Section 3.38
      of
      the Indenture.

     

    Note
      Rate Change Date:
      With
      respect to the Class II-A-1 Notes and Class II-A-2 Notes, the Payment Date
      in
      December 2010. With respect to the Class II-A-3 Notes and Class II-A-4 Notes,
      the Payment Date in December 2010. With respect to the Class II-M-1, Class
      II-M-2, Class II-M-3, Class II-M-4, Class II-M-5 and Class II-B Notes, the
      Payment Date in December 2010.

     

    Note
      Register:
      The
      register maintained by the Note Registrar in which the Note Registrar shall
      provide for the registration of Notes and of transfers and exchanges of
      Notes.

     

    Note
      Registrar:
      The
      Indenture Trustee, in its capacity as Note Registrar, or any successor to the
      Indenture Trustee in such capacity.

     

    Noteholder
      or Holder:
      The
      Person in whose name a Note is registered in the Note Register, except that,
      any
      Note registered in the name of the Depositor, the Issuing Entity, American
      Home
      Mortgage Investment Corp., the Indenture Trustee, the Securities Administrator,
      the Sponsor, the Servicer or the Master Servicer or any Affiliate of any of
      them
      shall be deemed not to be a holder or holders, nor shall any so owned be
      considered outstanding, for purposes of giving any request, demand,
      authorization, direction, notice, consent or waiver under the Indenture or
      the
      Trust Agreement; provided that, in determining whether the Securities
      Administrator and the Indenture Trustee shall be protected in relying upon
      any
      such request, demand, authorization, direction, notice, consent or waiver,
      only
      Notes that a Responsible Officer of the Securities Administrator, the Indenture
      Trustee or the Owner Trustee actually knows to be so owned shall be so
      disregarded. Owners of Notes that have been pledged in good faith may be
      regarded as Holders if the pledgee establishes to the satisfaction of the
      Securities Administrator, the Indenture Trustee or the Owner Trustee the
      pledgee’s right so to act with respect to such Notes and that the pledgee is not
      the Issuing Entity, any other obligor upon the Notes or any Affiliate of any
      of
      the foregoing Persons. 

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    Offered
      Notes:
      The
      Class I-1A-1, Class I-2A-1, Class I-A-2, Class I-A-3, Class I-M-1, Class I-M-2,
      Class I-M-3, Class I-M-4, Class I-M-5, Class I-M-6, Class II-A-1, Class II-A-2,
      Class II-A-3, Class II-A-4 and Class II-M-1 Notes.

     

    Officer’s
      Certificate:
      With
      respect to the Servicer or the Master Servicer, as applicable, a certificate
      signed by the President, Managing Director, a Director, a Vice President or
      an
      Assistant Vice President, of the Servicer or the Master Servicer, as applicable,
      and delivered to the Indenture Trustee or Master Servicer, as applicable. With
      respect to the Issuing Entity, a certificate signed by any Authorized Officer
      of
      the Issuing Entity, under the circumstances described in, and otherwise
      complying with, the applicable requirements of Section 10.01 of the Indenture,
      and delivered to the Securities Administrator. Unless otherwise specified,
      any
      reference in the Indenture to an Officer’s Certificate shall be to an Officer’s
      Certificate of any Authorized Officer of the Issuing Entity.

     

    One-Month
      LIBOR:
      With
      respect to any Accrual Period, the rate determined by the Securities
      Administrator on the related Interest Determination Date on the basis of the
      London interbank offered rate for one-month United States dollar deposits,
      as
      such rates appear on the Telerate Screen Page 3750, as of 11:00 a.m. (London
      time) on such Interest Determination Date.

     

    In
      the
      event that on any Interest Determination Date, Telerate Screen Page 3750 fails
      to indicate the London interbank offered rate for one-month United States dollar
      deposits, then One-Month LIBOR for the related Accrual Period will be
      established by the Securities Administrator as follows:

     

    (i) If
      on
      such Interest Determination Date two or more Reference Banks provide such
      offered quotations, One-Month LIBOR for the related Accrual Period shall be
      the
      arithmetic mean of such offered quotations (rounded upwards if necessary to
      the
      nearest whole multiple of 1/16%).

     

    (ii) If
      on
      such Interest Determination Date fewer than two Reference Banks provide such
      offered quotations, One-Month LIBOR for the related Accrual Period shall be
      the
      higher of (i) One-Month LIBOR as determined on the previous Interest
      Determination Date and (ii) the Reserve Interest Rate.

     

    (iii) If
      no
      such quotations can be obtained and no Reference Bank rate is available,
      One-Month LIBOR will be the One-Month LIBOR rate applicable to the preceding
      Accrual Period.

     

    The
      establishment of One-Month LIBOR on each Interest Determination Date by the
      Securities Administrator and the Securities Administrator’s calculation of the
      applicable Note Interest Rate applicable for the related Accrual Period shall
      (in the absence of manifest error) be final and binding.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel acceptable to the Indenture Trustee or the Master
      Servicer, as applicable, in its reasonable discretion which counsel may be
      in-house counsel for the Servicer or Master Servicer, as applicable, if
      acceptable to the Indenture Trustee, the Master Servicer and the Rating Agencies
      or counsel for the Depositor, as the case may be.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    Original
      Subordinate Principal Balance:
      The
      aggregate Note Principal Balance of the Group II Subordinate Notes as of the
      Closing Date.

     

    Original
      Value:
      Except
      in the case of a refinanced Mortgage Loan, the lesser of the Appraised Value
      or
      sales price of Mortgaged Property at the time a Mortgage Loan is closed, and
      for
      a refinanced Mortgage Loan, the Original Value is the value of such property
      set
      forth in an appraisal acceptable to the Servicer or the Master Servicer, as
      applicable.

     

    OTS:
      Office
      of Thrift Supervision or any successor.

     

    Outstanding:
      With
      respect to the Notes, as of the date of determination, all Notes theretofore
      executed, authenticated and delivered under this Indenture except:

     

    (i) Notes
      theretofore canceled by the Note Registrar or delivered to the Indenture Trustee
      for cancellation; and

     

    (ii) Notes
      in
      exchange for or in lieu of which other Notes have been executed, authenticated
      and delivered pursuant to the Indenture unless proof satisfactory to the
      Indenture Trustee is presented that any such Notes are held by a holder in
      due
      course.

     

    Outstanding
      Mortgage Loan:
      As to
      any Due Date, a Mortgage Loan (including an REO Property) which was not the
      subject of a Principal Prepayment in Full, Cash Liquidation or REO Disposition
      and which was not purchased, deleted or substituted for prior to such Due Date
      pursuant to the Servicing Agreement or Mortgage Loan Purchase Agreement, as
      applicable.

     

    Overcollateralization
      Increase Amount:
      With
      respect to the Group I Loans, as to any Payment Date, the lesser of (i) the
      related Net Monthly Excess Cashflow for such Payment Date and (ii) the excess,
      if any, of (a) the related Overcollateralization Target Amount over (b) the
      related Overcollateralized Amount on such Payment Date (after taking into
      account payments to the related Notes of the related Basic Principal
      Distribution Amount on such Payment Date).

     

    Overcollateralization
      Target Amount:
      With
      respect to Loan Group I, the sum of (x) the aggregate Additional Negative
      Amortization Amount on the Group I Loans since the Cut-off Date and (y) (1)
      prior to the Step-Down Date, the
      initial Overcollateralization Amount (0.50% of the Group I Cut-off Date Balance)
      or
      (2) on
      or after the related Step-Down Date, an amount equal to the greater of (a)
      on
      any Payment Date (i) prior to the Payment Date in March 2012, 1.25% of the
      aggregate Stated Principal Balance of the Group I Loans and (ii) on and
      thereafter, 1.00% of the aggregate Stated Principal Balance of the Group I
      Loans and
      (b)
      0.50% of the Group I Cut-off Date Balance; provided, however, that on or after
      the related Step-down Date, if a related Trigger Event is in effect, the
      Overcollateralization Target Amount with respect to the Group I Loans will
      be
      the same as on the prior Payment Date. 

     

    Overcollateralization
      Release Amount:
      For any
      Payment Date and Loan Group I, an amount equal to the lesser of (x) the
      Principal Remittance Amount with respect to the Group I Loans for such Payment
      Date and (y) the excess, if any, of (i) the Overcollateralized Amount (after
      giving effect to distributions in respect of the Principal Remittance Amount
      with respect to the Group I Loans to be made on such Payment Date) for such
      Payment Date over (ii) the Overcollateralization Target Amount for such Payment
      Date.

     

    
      
         

      

      
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    Overcollateralized
      Amount:
      For any
      Payment Date and Loan Group I, the amount, if any, by which (i) the aggregate
      Stated Principal Balance of the Group I Loans (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period, including Realized Losses on the Group I Loans
      incurred during the related Prepayment Period) exceeds (ii) the aggregate Note
      Principal Balance, as applicable, of the Class I-A Notes and Class I-M Notes
      as
      of such Payment Date (assuming that 100% of the Principal Remittance Amount
      is
      applied as a principal payment on these Notes on such Payment
      Date).

     

    Owner
      Trust Estate:
      The
      corpus of the Issuing Entity created by the Trust Agreement which consists
      of
      items referred to in Section 3.01 of the Trust Agreement.

     

    Owner
      Trustee:
      Wilmington Trust Company and its successors and assigns or any successor owner
      trustee appointed pursuant to the terms of the Trust Agreement.

     

    Owner
      Trustee’s Fee:
      A fee
      of $2,500 per annum payable to the Owner Trustee in advance on the Closing
      Date
      and a fee of $4,000 payable on each anniversary thereof by American Home
      Mortgage Servicing, Inc.; provided, however, that in the event of any removal
      or
      resignation of the Owner Trustee, the Owner Trustee will promptly remit to
      American Home Mortgage Servicing, Inc. the portion of the Owner Trustee Fee
      that
      would have been earned by the Owner Trustee during the remainder of such year
      had it not been removed or resigned or the Notes redeemed.

     

    Paying
      Agent:
      Any
      paying agent or co-paying agent appointed pursuant to Section 3.03 of the
      Indenture, which initially shall be the Indenture Trustee.

     

    Payment
      Account:
      The
      account established by the Indenture Trustee pursuant to Section 3.01 of the
      Indenture. The Payment Account shall be an Eligible Account. 

     

    Payment
      Date:
      The
      25th day of each month, or if such day is not a Business Day, then the next
      Business Day, commencing in April 2006.

     

    Payment
      Date Statement:
      The
      statement delivered to the Noteholders pursuant to Section 7.05 of the
      Indenture.

     

    PCAOB:
      Shall
      mean the Public Company Accounting Oversight Board.

     

    Percentage
      Interest:
      With
      respect to any Note, the percentage obtained by dividing the Note Principal
      Balance of such Note by the aggregate Note Principal Balances of all Notes
      of
      that Class. With respect to any Certificate, the percentage as stated on the
      face thereof.

     

    Periodic
      Rate Cap:
      With
      respect to any ARM Loan, the maximum rate, if any, by which the Mortgage Rate
      on
      such Mortgage Loan can adjust on any Adjustment Date, as stated in the related
      Mortgage Note or Mortgage.

     

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

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    Plan:
      Any
      employee benefit plan or certain other retirement plans and arrangements,
      including individual retirement accounts and annuities, Keogh plans and bank
      collective investment funds and insurance company general or separate accounts
      in which such plans, accounts or arrangements are invested, that are subject
      to
      ERISA or Section 4975 of the Code.

     

    Plan
      Assets:
      Assets
      of a Plan within the meaning of Department of Labor regulation 29 C.F.R. §
2510.3-101.

     

    Pool
      Balance:
      With
      respect to any date of determination, the aggregate of the Stated Principal
      Balances of all Mortgage Loans as of such date.

     

    Prepayment
      Interest Shortfall:
      As to
      any Payment Date and any Mortgage Loan (other than a Mortgage Loan relating
      to
      an REO Property) that was the subject of (a) a Principal Prepayment in Full
      during the related Prepayment Period, an amount equal to the excess of interest
      accrued during the related Prepayment Period at the Net Mortgage Rate on the
      Stated Principal Balance of such Mortgage Loan over the sum of the amount of
      interest paid by the Mortgagor for such Prepayment Period to the date of such
      Principal Prepayment in Full or (b) a partial Principal Prepayment during the
      related Prepayment Period, an amount equal to the interest at the Mortgage
      Rate
      (less the Servicing Fee Rate) during the related Prepayment Period on the amount
      of such partial Principal Prepayment.

     

    Prepayment
      Period:
      With
      respect to each Mortgage Loan and any Payment Date, the calendar month
      immediately preceding the month in which such Payment Date occurs.

     

    Primary
      Insurance Policy:
      Each
      primary policy of mortgage guaranty insurance issued by a Qualified Insurer
      or
      any replacement policy therefor.

     

    Principal
      Distribution Amount:
      For any
      Payment Date and the Group I Loans, the sum of (a) the related Basic Principal
      Distribution Amount, and (b) the related Overcollateralization Increase Amount,
      less (c) the Overcollateralization Release Amount.

     

    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.

     

    Principal
      Prepayment in Full:
      Any
      Principal Prepayment made by a Mortgagor of the entire principal balance of
      a
      Mortgage Loan.

     

    Principal
      Remittance Amount:
      For any
      Payment Date and each Loan Group, or the Mortgage Loans in the aggregate, as
      applicable, 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;

            

    

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    
      	 	
              2.

            	
              the
                principal portion of all proceeds of the repurchase of a Mortgage
                Loan in
                the related Loan Group (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;
                and

            
	 	
              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 repurchase
                of
                such Mortgage Loans by the Sponsor or holder of the Trust Certificates,
                Liquidation Proceeds and Insurance Proceeds, in each case to the
                extent
                applied as recoveries of principal.

            

    

     

    Proceeding:
      Any
      suit in equity, action at law or other judicial or administrative
      proceeding.

     

    Protected
      Account:
      An
      account established and maintained for the benefit of Noteholders by the
      Servicer with respect to the related Mortgage Loans and with respect to REO
      Property pursuant to the Servicing Agreement.

     

    Purchase
      Price:
      The
      meaning specified in Section 2.2(a) of the Mortgage Loan Purchase
      Agreement.

     

    Purchaser:
      American Home Mortgage Securities LLC, a Delaware limited liability company,
      and
      its successors and assigns.

     

    Qualified
      Insurer:
      A
      mortgage guaranty insurance company duly qualified as such under the laws of
      the
      state of its principal place of business and each state having jurisdiction
      over
      such insurer in connection with the insurance policy issued by such insurer,
      duly authorized and licensed in such states to transact a mortgage guaranty
      insurance business in such states and to write the insurance provided by the
      insurance policy issued by it, approved as an insurer by the Servicer or the
      Master Servicer, as applicable, and as a Fannie Mae-approved mortgage
      insurer.

     

    Rating
      Agency:
      Any
      nationally recognized statistical rating organization, or its successor, that
      rated the Notes at the request of the Depositor at the time of the initial
      issuance of the Notes. Initially, Standard & Poor’s, Fitch and Moody’s.
      References herein to the highest short term unsecured rating category of a
      Rating Agency shall mean A-1 or better in the case of Standard & Poor’s or
      Fitch and P-1 or better in the case of Moody’s and in the case of any other
      Rating Agency shall mean such equivalent ratings. References herein to the
      highest long-term rating category of a Rating Agency shall mean “AAA” in the
      case of Standard & Poor’s or Fitch and “Aaa” in the case of Moody’s and in
      the case of any other Rating Agency, such equivalent rating.

     

    Realized
      Loss:
      With
      respect to a Mortgage Loan, and as reported by the Servicer or to the Master
      Servicer, is (i) a Deficient Valuation, or (ii) as to any Liquidated Mortgage
      Loan, the unpaid principal balance thereof plus accrued and unpaid interest
      thereon at the Mortgage Rate through the last day of the month of liquidation
      less the Net Liquidation Proceeds with respect to such Mortgage Loan and the
      related Mortgaged Property.

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    Record
      Date:
      For
      each class of LIBOR Notes, and each Payment Date, will be the close of business
      on the Business Day immediately preceding such Payment Date; provided, however,
      if any such Note is no longer a Book-Entry Note, the “Record Date” for such
      class of Notes shall be the close of business on the last Business Day of the
      calendar month preceding such Payment Date. For each of the Class II-A Notes
      and
      Class II-M-1 Notes and each Payment Date, the close of business on the last
      Business Day of the calendar month preceding such Payment Date.

     

    Reference
      Banks:
      Any
      leading banks selected by the Securities Administrator and engaged in
      transactions in Eurodollar deposits in the international Eurocurrency market
      (i)
      with an established place of business in London, (ii) whose quotations appear
      on
      the Telerate Screen Page 3750 on the Interest Determination Date in question,
      (iii) which have been designated as such by the Securities Administrator, and
      (iv) which are not Affiliates of the Depositor, the Sponsor, the Master Servicer
      or the Servicer.

     

    Registered
      Holder:
      The
      Person in whose name a Note is registered in the Note Register on the applicable
      Record Date.

     

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

     

    Related
      Documents:
      With
      respect to each Mortgage Loan, the documents specified in Section 2.1(b) of
      the
      Mortgage Loan Purchase Agreement, and any documents required to be added to
      such
      documents pursuant to the Mortgage Loan Purchase Agreement, the Trust Agreement,
      Indenture or the Servicing Agreement.

     

    Relevant
      Servicing Criteria:
      Means
      with respect to any Servicing Function Participant, the Servicing Criteria
      applicable to such party, as set forth on Exhibit E to the Master Servicing
      Agreement. For clarification purposes, multiple parties can have responsibility
      for the same Relevant Servicing Criteria. With respect to a Servicing Function
      Participant engaged by the Master Servicer, the Securities Administrator, the
      Trustee or the Servicer, the term “Relevant Servicing Criteria” may refer to a
      portion of the Relevant Servicing Criteria applicable to such
      parties.

     

    Relief
      Act:
      The
      Servicemember’s Civil Relief Act, as amended.

     

    Relief
      Act Shortfall:
      As to
      any Payment Date and any Mortgage Loan (other than a Mortgage Loan relating
      to
      an REO Property), any shortfalls relating to the Relief Act or similar
      legislation or regulations.

     

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

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    REMIC
      Certificates:
      Any of
      the certificates issued pursuant to the Underlying REMIC Trust Pooling and
      Servicing Agreement upon the REMIC Conversion, as described in the Trust
      Agreement.

     

    REMIC
      Conversion:
      The
      deposit by the Issuing Entity of the Mortgage Loans (but not any REO Properties)
      pursuant to a pooling and servicing agreement into a New York common law trust
      with respect to whose assets one or more REMIC elections shall be made,
      following the occurrence of a TMP Trigger Event and the other preconditions
      to
      such conversion set forth in the Indenture and the Trust Agreement. No REMIC
      Conversion shall occur unless (i) American Home Mortgage Investment Corp. shall
      have purchased all of the REO properties in the Trust Estate at their fair
      market value, (ii) the party who caused the TMP Trigger Event shall have
      contributed to the Trust Estate an amount equal to any allocation of Realized
      Losses on the Offered Notes, if any, resulting from the sale of the REO
      properties described in clause (i) above, and (iii) the entity seeking to
      separately transfer or hold any Class of Notes shall have made provision for
      payment satisfactory to the Owner Trustee, the Indenture Trustee, the Securities
      Administrator, the Master Servicer, the Paying Agent and the Note Registrar
      and
      others for any initial or ongoing additional administrative expenses associated
      with the REMIC elections made in connection with a REMIC
      Conversion.

     

    REMIC
      Notes:
      Each
      Class of Notes issued in connection with a REMIC Conversion in exchange for
      a
      Classes of Offered Notes then outstanding and bearing the same alpha numeric
      designation.

     

    REMIC
      Privately Offered Certificates:
      Certificates representing regular interests in one or more REMICs issued in
      exchange for Non-Offered Notes in connection with a REMIC
      Conversion.

     

    Remittance
      Report:
      The
      report prepared by the Servicer pursuant to Section 4.01 of the Servicing
      Agreement.

     

    REO
      Acquisition:
      The
      acquisition by the Servicer, on behalf of the Issuing Entity for the benefit
      of
      the Noteholders of any REO Property pursuant to Section 3.13 of the Servicing
      Agreement.

     

    REO
      Disposition:
      As to
      any REO Property, a determination by the Servicer that it has received
      substantially all Insurance Proceeds, Liquidation Proceeds, REO Proceeds and
      other payments and recoveries (including proceeds of a final sale) which the
      Servicer expects to be finally recoverable from the sale or other disposition
      of
      the REO Property.

     

    REO
      Imputed Interest:
      As to
      any REO Property, for any period, an amount equivalent to interest (at the
      Net
      Mortgage Rate that would have been applicable to the related Mortgage Loan
      had
      it been Outstanding) on the unpaid principal balance of the Mortgage Loan as
      of
      the date of acquisition thereof for such period as such balance is reduced
      pursuant to Section 3.13 of the Servicing Agreement by any income from the
      REO
      Property treated as a recovery of principal.

     

    REO
      Proceeds:
      Proceeds, net of expenses, received in respect of any REO Property (including,
      without limitation, proceeds from the rental of the related Mortgaged Property)
      which proceeds are required to be deposited into the Protected Account only
      upon
      the related REO Disposition.

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    REO
      Property:
      A
      Mortgaged Property that is acquired by the Trust by foreclosure or by deed
      in
      lieu of foreclosure.

     

    Reportable
      Event:
      Has the
      meaning set forth in Section 4.06 of the Master Servicing
      Agreement.

     

    Repurchase
      Price:
      With
      respect to any Mortgage Loan required to be repurchased by the Sponsor on any
      date pursuant to the Mortgage Loan Purchase Agreement or purchased by the
      Servicer pursuant to the Servicing Agreement an amount equal to the sum, without
      duplication, of (i) 100% of the Stated Principal Balance thereof (without
      reduction for any amounts charged off) and (ii) unpaid accrued interest at
      the
      Mortgage Rate on the outstanding principal balance thereof from the Due Date
      to
      which interest was last paid by the Mortgagor to the first day of the month
      following the month of purchase plus (iii) the amount of unreimbursed Monthly
      Advances or unreimbursed Servicing Advances made with respect to such Mortgage
      Loan plus (iv) any other amounts owed to the Master Servicer or the Servicer
      as
      applicable, pursuant to the Master Servicing Agreement or Servicing Agreement
      and not included in clause (iii) of this definition plus (v) any costs and
      damages incurred by the trust in connection with any violation by such loan
      of
      any predatory lending law.

     

    Repurchase
      Proceeds:
      The
      Repurchase Price in connection with any repurchase of a Mortgage Loan by the
      Sponsor and any cash deposit in connection with the substitution of a Mortgage
      Loan.

     

    Reserve
      Interest Rate:
      With
      respect to any Interest Determination Date, the rate per annum that the
      Securities Administrator determines to be either (i) the arithmetic mean
      (rounded upwards if necessary to the nearest whole multiple of 0.0625%) of
      the
      one-month, six-month or one-year (as applicable) United States dollar lending
      rates which New York City banks selected by the Securities Administrator are
      quoting on the relevant Interest Determination Date to the principal London
      offices of leading banks in the London interbank market or (ii) in the event
      that the Securities Administrator can determine no such arithmetic mean, the
      lowest one-month, six-month or one-year (as applicable) United States dollar
      lending rate which New York City banks selected by the Securities Administrator
      are quoting on such Interest Determination Date to leading European
      banks.

     

    Responsible
      Officer:
      With
      respect to the Indenture Trustee or the Securities Administrator, (a) any
      officer within the corporate trust department of the Indenture Trustee including
      any vice president, assistant vice president, treasurer, assistant treasurer,
      trust officer or any other officer of the Indenture Trustee who customarily
      performs functions similar to those performed by the persons who at the time
      shall be such officers, respectively, or to whom any corporate trust matter
      is
      referred because of such person’s knowledge of and familiarity with the
      particular subject and (b) who shall have direct responsibility for the
      administration of the applicable Agreement. 

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    Restricted
      Notes:
      The
      Class II-M-2, Class II-M-3, Class II-M-4, Class II-M-5 and Class II-B
      Notes.

    

    Retained
      Notes:
      Any
      Class or portion of any such other class of Notes that is not a class of
      Restricted Notes and that is acquired by the Sponsor or one of its wholly owned
      “disregarded entities” at closing.

     

    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 months.

     

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

     

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

     

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

     

    Securities
      Administrator:
      Wells
      Fargo Bank, N.A., a national banking association, and its successors and
      assigns.

     

    Securities
      Administrator Collection Account:
      The
      account established by the Securities Administrator pursuant to Section 3.06
      of
      the Master Servicing Agreement.

     

    Securities
      Intermediary:
      Deutsche Bank National Trust Company, or its successors and
      assigns.

     

    Security:
      Any of
      the Certificates or Notes.

     

    Securityholder
      or
Holder:
      Any
      Noteholder or a Certificateholder.

     

    Security
      Instrument:
      A
      written instrument creating a valid first lien on a Mortgaged Property securing
      a Mortgage Note, which may be any applicable form of mortgage, deed of trust,
      deed to secure debt or security deed, including any riders or addenda
      thereto.

     

    
      
         

      

      
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    Senior
      Optimal Principal Amount:
      With
      respect to each of the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Notes, and each Payment Date will be an amount equal to the sum of the following
      (but in no event greater than the aggregate Note Principal Balances of each
      of
      the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Notes, as
      applicable, immediately prior to such Payment Date):

     

    (1) the
      applicable Senior Percentage of the principal portion of all Monthly Payments
      due on the Mortgage Loans in the related Loan Group on the related Due Date,
      as
      specified in the amortization schedule at the time applicable thereto (after
      adjustment for previous principal prepayments but before any adjustment to
      such
      amortization schedule by reason of any bankruptcy or similar proceeding or
      any
      moratorium or similar waiver or grace period);

     

    (2) the
      applicable Senior Prepayment Percentage of the Stated Principal Balance of
      each
      Mortgage Loan in the related Loan Group which was the subject of a prepayment
      in
      full received by the Servicer during the applicable Prepayment
      Period;

     

    (3) the
      applicable Senior Prepayment Percentage of all partial prepayments allocated
      to
      principal received during the applicable Prepayment Period;

     

    (4) the
      lesser of (a) the applicable Senior Prepayment Percentage of the sum of (i)
      all
      Net Liquidation Proceeds allocable to principal received in respect of each
      Mortgage Loan in the related Loan Group which became a Liquidated Mortgage
      Loan
      during the related Prepayment Period (other than Mortgage Loans described in
      the
      immediately following clause (ii)) and all Subsequent Recoveries received in
      respect of each Liquidated Mortgage Loan in the related Loan Group during the
      related Due Period and (ii) the Stated Principal Balance of each such Mortgage
      Loan in the related Loan Group purchased by an insurer from the Indenture
      Trustee during the related Prepayment Period pursuant to the related primary
      mortgage insurance policy, if any, or otherwise; and (b) the applicable Senior
      Percentage of the sum of (i) the Stated Principal Balance of each Mortgage
      Loan
      in the related Loan Group which became a Liquidated Mortgage Loan during the
      related Prepayment Period (other than the Mortgage Loans described in the
      immediately following clause (ii) and (ii) the Stated Principal Balance of
      each
      such Mortgage Loan in the related Loan Group that was purchased by an insurer
      from the Indenture Trustee during the related Prepayment Period pursuant to
      the
      related primary mortgage insurance policy, if any or otherwise; and

     

    (5) the
      applicable Senior Prepayment Percentage of the sum of (a) the Stated Principal
      Balance of each Mortgage Loan in the related Loan Group which was repurchased
      by
      the Sponsor in connection with such Payment Date and (b) the excess, if any,
      of
      the Stated Principal Balance of each Mortgage Loan in the related Loan Group
      that has been replaced by the Sponsor with a substitute Mortgage Loan pursuant
      to the Mortgage Loan Purchase Agreement in connection with such Payment Date
      over the Stated Principal Balance of each such substitute Mortgage
      Loan.

     

    Senior
      Percentage:
      With
      respect to Loan Group II-C, the lesser of (a) 100% and (b) the percentage
      (carried to six places rounded up) obtained by dividing the aggregate Note
      Principal Balance of the Class II-A-1 Notes and Class II-A-2 Notes, immediately
      prior to such Payment Date, by the aggregate Stated Principal Balance of the
      Group II-C Loans as of the beginning of the related Due Period. With respect
      to
      Loan Group II-NC, the lesser of (a) 100% and (b) the percentage (carried to
      six
      places rounded up) obtained by dividing the aggregate Note Principal Balance
      of
      the Class II-A-3 Notes and Class II-A-4 Notes, immediately prior to such Payment
      Date, by the aggregate Stated Principal Balance of the Group II-NC Loans as
      of
      the beginning of the related Due Period.

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    Senior
      Prepayment Percentage:
      The
      Senior Prepayment Percentage for the Class II-A-1, Class II-A-2, Class II-A-3
      and Class II-A-4 Notes, on any Payment Date occurring during the periods set
      forth below will be as follows:

     

    
      	
              Period
                (dates inclusive)

            	 	
              Senior
                Prepayment Percentage

            
	 	 	 
	
              April
                25, 2006 - March 25, 2013

            	 	
              100%
                

            
	 	 	 
	
              April
                25, 2013 - March 25, 2014

            	 	
              Senior
                Percentage for the related Senior Notes plus 70% of the related
                Subordinate Percentage.

            
	 	 	 
	
              April
                25, 2014 - March 25, 2015

            	 	
              Senior
                Percentage for the related Senior Notes plus 60% of the related
                Subordinate Percentage.

            
	 	 	 
	
              April
                25, 2015 - March 25, 2016

            	 	
              Senior
                Percentage for the related Senior Notes plus 40% of the related
                Subordinate Percentage.

            
	 	 	 
	
              April
                25, 2016 - March 25, 2017

            	 	
              Senior
                Percentage for the related Senior Notes plus 20% of the related
                Subordinate Percentage.

            
	 	 	 
	
              April
                25, 2017 and thereafter 

            	 	
              Senior
                Percentage for the related Senior
                Notes.

            

    

     

    Any
      scheduled reduction to the related Senior Prepayment Percentage for the Class
      II-A Notes shall not be made as of any Payment Date unless, as of the last
      day
      of the month preceding such Payment Date (1) the aggregate Stated Principal
      Balance of the Mortgage Loans delinquent 60 days or more (including for this
      purpose any such Mortgage Loans in foreclosure and bankruptcy and such Mortgage
      Loans with respect to which the related mortgaged property has been acquired
      by
      the trust) averaged over the last six months, as a percentage of the aggregate
      Note Principal Balance of the Group II Subordinate Notes does not exceed 50%
      and
      (2) cumulative Realized Losses on the Mortgage Loans do not exceed (a) 30%
      of
      the aggregate Note Principal Balance of the Original Subordinate Principal
      Balance if such Payment Date occurs between and including April 2013 and March
      2014, (b) 35% of the Original Subordinate Principal Balance if such Payment
      Date
      occurs between and including April 2014 and March 2015, (c) 40% of the Original
      Subordinate Principal Balance if such Payment Date occurs between and including
      April 2015 and March 2016, (d) 45% of the Original Subordinate Principal Balance
      if such Payment Date occurs between and including April 2016 and March 2017
      and
      (e) 50% of the Original Subordinate Principal Balance if such Payment Date
      occurs during or after April 2017.

     

    
      
         

      

      
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    In
      addition, if on or before the Payment Date in March 2009, the aggregate
      Subordinate Percentage for such Payment Date is equal to or greater than two
      times the initial aggregate Subordinate Percentage, and the aggregate Stated
      Principal Balance of the Mortgage Loans delinquent 60 days or more (including
      for this purpose any such Mortgage Loans in foreclosure and bankruptcy and
      such
      Mortgage Loans with respect to which the related mortgaged property has been
      acquired by the trust), averaged over the last six months, as a percentage
      of
      the aggregate Note Principal Balance of the Group II Subordinate Notes does
      not
      exceed 50% and cumulative Realized Losses on the Mortgage Loans as of the end
      of
      the related Prepayment Period do not exceed 20% of the Original Subordinate
      Principal Balance, then, in each case, the Senior Prepayment Percentages for
      the
      Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Notes for such Payment
      Date will equal the Senior Percentage for the Class II-A-1, Class II-A-2, Class
      II-A-3 and Class II-A-4 Notes, respectively, plus 50% of the related Subordinate
      Percentage on such Payment Date. If after the Payment Date in March 2009,
      the aggregate Subordinate Percentage is equal to or greater than two times
      the
      initial aggregate Subordinate Percentage, and the aggregate Stated Principal
      Balance of the Mortgage Loans delinquent 60 days or more (including for this
      purpose any such Mortgage Loans in foreclosure and bankruptcy and such Mortgage
      Loans with respect to which the related mortgaged property has been acquired
      by
      the trust), averaged over the last six months, as a percentage of the aggregate
      Note Principal Balance of the Group II Subordinate Notes does not exceed 50%
      and
      the cumulative Realized Losses do not exceed 30% of the Original Subordinate
      Principal Balance, then the Senior Prepayment Percentages for the Class II-A-1,
      Class II-A-2, Class II-A-3 and Class II-A-4 Notes for such Payment Date, will
      equal the Senior Percentage for the Class II-A-1, Class II-A-2, Class II-A-3
      and
      Class II-A-4 Notes, respectively.

     

    Notwithstanding
      the foregoing, if on any Payment Date, the percentage, the numerator of which
      is
      the aggregate Note Principal Balance of the Class II-A Notes immediately
      preceding such Payment Date, and the denominator of which is the aggregate
      Stated Principal Balance of the Mortgage Loans in Loan Group II-C and Loan
      Group
      II-NC as of the beginning of the related Due Period, exceeds such percentage
      as
      of the Cut-off Date, then the Senior Prepayment Percentage with respect to
      the
      Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Notes for such Payment
      Date will equal 100%.

     

    Servicer:
      American Home Mortgage Servicing, Inc., a Maryland corporation, and its
      successors and assigns.

     

    Servicer
      Remittance Date:
      The
      fourth Business Day prior to the each Payment Date.

     

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

     

    Servicing
      Account:
      The
      separate trust account created and maintained by the Servicer with respect
      to
      the Mortgage Loans or REO Property, which shall be an Eligible Account, for
      collection of taxes, assessments, insurance premiums and comparable items as
      described in Section 3.08 of the Servicing Agreement.

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses incurred
      in connection with a default, delinquency or other unanticipated event in the
      performance by the Servicer or any Subservicer of its servicing obligations,
      including, without duplication, but not limited to, the cost of (i) the
      preservation, restoration and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including foreclosures and any expenses
      incurred in relation to any such proceedings that result from the Mortgage
      Loan
      being registered on the MERS® System, (iii) the management and liquidation of
      any REO Property, (iv) compliance with the obligations under Sections 3.10,
      3.11, 3.13 of the Servicing Agreement, (v) covering any expenses incurred by
      or
      on behalf of the Servicer in connection with obtaining Insurance Proceeds and
      (vi) that is applied to the restoration or repair of the related Mortgaged
      Property.

     

    Servicing
      Agreement:
      The
      Servicing Agreement dated as of March 29, 2006, among the Sponsor, Servicer,
      the
      Master Servicer, Issuing Entity and Indenture Trustee.

     

    Servicing
      Certificate:
      A
      certificate completed and executed by a Servicing Officer on behalf of the
      Servicer in accordance with Section 4.01 of the Servicing
      Agreement.

     

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

     

    Servicing
      Default:
      The
      meaning assigned in Section 6.01 of the Servicing Agreement.

     

    Servicing
      Fee:
      With
      respect to each Mortgage Loan and any Payment Date, the fee payable monthly
      to
      the Servicer in respect of servicing compensation that accrues at an annual
      rate
      equal to the Servicing Fee Rate multiplied by the Stated Principal Balance
      of
      such Mortgage Loan as of the first day of the related Due Period.

     

    Servicing
      Fee Rate:
      With
      respect to any adjustable rate Mortgage Loan with an original principal balance
      of less than or equal to $417,000,
      0.375% per annum, and with respect to any adjustable rate Mortgage Loan with
      an
      original principal balance of greater than $417,000, 0.25% per
      annum.

     

    Servicing
      Function Participant:
      Means
      the Servicer, the Indenture Trustee, the Master Servicer and the Securities
      Administrator, any Subservicer, Subcontractor or affiliates of any of the
      foregoing, or any other Person, that is participating in the servicing function
      within the meaning of Item 1122 of Regulation AB performing activities addressed
      by the Servicing Criteria, unless such Person’s activities relate only to five
      percent (5%) or less of the Mortgage Loans.

     

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

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    Servicing
      Rights Pledgee:
      One or
      more lenders, selected by the Servicer, to which the Servicer may pledge and
      assign all of its right, title and interest in, to and under the Servicing
      Agreement, including Bank of America, N.A., as the representative of certain
      lenders.

     

    Servicing
      Trigger Event:
      A
      Servicing Trigger Event is in effect with respect to any Payment Date if
      either:

     

    the
      Rolling Three Month Delinquency Rate for the Mortgage Loans is greater than
      6%;
      or

    the
      cumulative amount of Realized Losses incurred on the Group I Mortgage Loans
      from
      the Cut-off Date through the end of the calendar month immediately preceding
      such Payment Date exceeds the applicable percentage set forth below of the
      aggregate Group I Cut-off Date Balance:

    

    
      	 	
              0.20%
                with respect to each month up to April 2007

            
	 	
              0.20%
                with respect to May 2007, plus an additional 1/12th of 0.25% for
                each
                month thereafter until April 2008

            
	 	
              0.45%
                with respect to May 2008, plus an additional 1/12th of 0.80% for
                each
                month thereafter until April 2009

            
	 	
              1.25%
                with respect to May 2009, plus an additional 1/12th of 1.05% for
                each
                month thereafter until April 2010

            
	 	
              2.30%
                with respect to May 2010, plus an additional 1/12th of 0.85% for
                each
                month thereafter until April 2011

            
	 	
              3.15%
                with respect to May 2011, plus an additional 1/12th of 0.70% for
                each
                month thereafter until April 2012

            
	 	
              3.85%
                with respect to May 2012, plus an additional 1/12th
                of
                0.15% for each month thereafter until April 2013

            
	 	
              4.00%
                with respect to May 2013, and each month
                thereafter

            

    

    

    provided,
      however, that if the Servicer is rated “SQ2-” or better by Moody’s on any date,
      the Servicing Trigger Event will no longer be in effect with respect to any
      Payment Date thereafter.

     

    Six-Month
      LIBOR:
      With
      respect to any Accrual Period, the rate determined by the Securities
      Administrator on the related Interest Determination Date on the basis of the
      London interbank offered rate for six-month United States dollar deposits,
      as
      such rates appear on the Telerate Screen Page 3750, as of 11:00 a.m. (London
      time) on such Interest Determination Date.

     

    In
      the
      event that on any Interest Determination Date, Telerate Screen Page 3750 fails
      to indicate the London interbank offered rate for six-month United States dollar
      deposits, then Six-Month LIBOR for the related Accrual Period will be
      established by the Securities Administrator as follows:

     

    (i) If
      on
      such Interest Determination Date two or more Reference Banks provide such
      offered quotations, Six-Month LIBOR for the related Accrual Period shall be
      the
      arithmetic mean of such offered quotations (rounded upwards if necessary to
      the
      nearest whole multiple of 1/16%).

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    (ii) If
      on
      such Interest Determination Date fewer than two Reference Banks provide such
      offered quotations, Six-Month LIBOR for the related Accrual Period shall be
      the
      higher of (i) Six-Month LIBOR as determined on the previous Interest
      Determination Date and (ii) the Reserve Interest Rate.

     

    (iii) If
      no
      such quotations can be obtained and no Reference Bank rate is available,
      Six-Month LIBOR will be the Six-Month LIBOR rate applicable to the preceding
      Accrual Period.

     

    The
      establishment of Six-Month LIBOR on each Interest Determination Date by the
      Securities Administrator and the Securities Administrator’s calculation of the
      applicable Note Interest Rate applicable for the related Accrual Period shall
      (in the absence of manifest error) be final and binding.

     

    Sponsor:
      American Home Mortgage Acceptance, Inc., a Maryland corporation, and its
      successors and assigns.

     

    Standard
      & Poor’s:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., or its
      successor in interest.

     

    Stated
      Principal Balance:
      With
      respect to any Mortgage Loan or related REO Property as of any date of
      determination, (i) the principal balance of the Mortgage Loan outstanding as
      of
      the Cut-off Date, after application of all scheduled Monthly Payments due on
      or
      before such date, whether or not received, minus (ii) the sum of (a) the
      principal portion of the Monthly Payments due with respect to such Mortgage
      Loan
      or REO Property during each Due Period ending prior to the most recent Payment
      Date which were received or with respect to which an Monthly Advance was made,
      (b) all Principal Prepayments with respect to such Mortgage Loan or REO
      Property, and all Insurance Proceeds, Liquidation Proceeds and REO Proceeds
      to
      the extent applied by the Servicer as recoveries of principal in accordance
      with
      Section 3.13 of the Servicing Agreement, with respect to such Mortgage Loan
      or
      REO Property, which were distributed pursuant to Section 3.05 of the Indenture
      on any previous Payment Date, and (c) the principal portion of any Realized
      Loss
      with respect thereto allocated pursuant to Section 3.38 of the Indenture for
      any
      previous Payment Date; provided that the Stated Principal Balance of any
      Liquidated Mortgage Loan is zero. 

     

    Statutory
      Trust Statute:
      Chapter
      38 of Title 12 of the Delaware Code, 12 Del.
      Code
§§3801 et seq.,
      as the
      same may be amended from time to time.

     

    Stepdown
      Date:
      With
      respect to the Group I Loans, the later to occur of (x) the Payment Date
      occurring in April 2009 and (y) the first Payment Date for which the Credit
      Enhancement Percentage for the Class I-A Notes (calculated for this purposes
      only after taking into account distributions of principal on the Group I Loans,
      but prior to any payment of the related Principal Distribution Amount for those
      Notes then entitled to payments of principal on that Payment Date) is greater
      than or equal to (i) prior to the Payment Date in March 2012, approximately
      16.25% and (ii) on or after the Payment Date in March 2012, approximately
      13.00%.

     

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    Step-Up
      Date:
      With
      respect to the Class I-A Notes and Class I-M Notes, the Payment Date occurring
      after the first Payment Date for which the aggregate Stated Principal Balance
      of
      the Group I Loans as of the end of the related Due Period has been reduced
      to
      20% or less of the Group I Cut-off Date Balance.

     

    Subordinate
      Optimal Principal Amount:
      With
      respect to the Group II Subordinate Notes and each Payment Date will be an
      amount equal to the sum of the following from Loan Group II-C and Loan Group
      II-NC (but in no event greater than the aggregate Note Principal Balances of
      the
      Group II Subordinate Notes immediately prior to such Payment Date):

     

    
      	
            	(1)	
              the
                applicable Subordinate Percentage of the principal portion of all
                Monthly
                Payments due on each Mortgage Loan in the related Loan Group on the
                related Due Date, as specified in the amortization schedule at the
                time
                applicable thereto (after adjustment for previous principal prepayments
                but before any adjustment to such amortization schedule by reason
                of any
                bankruptcy or similar proceeding or any moratorium or similar waiver
                or
                grace period);

            

    

     

    
      	
            	(2)	
              the
                applicable Subordinate Prepayment Percentage of the Stated Principal
                Balance of each Mortgage Loan in the related Loan Group which was
                the
                subject of a prepayment in full received by the Servicer during the
                applicable Prepayment Period;

            

    

     

    
      	
            	(3)	
              the
                applicable Subordinate Prepayment Percentage of all partial prepayments
                of
                principal received during the applicable Prepayment Period for each
                Mortgage Loan in the related Loan
                Group;

            

    

     

    
      	
            	(4)	
              the
                excess, if any, of (a) the Net Liquidation Proceeds allocable to
                principal
                received during the related Prepayment Period in respect of each
                Liquidated Mortgage Loan in the related Loan Group and all Subsequent
                Recoveries received in respect of each Liquidated Mortgage Loan in
                the
                related Loan Group during the related Due Period over (b) the sum
                of the
                amounts distributable to the Holders of the related Senior Notes
                pursuant
                to clause (4) of the definition of “Senior Optimal Principal Amount” on
                such Payment Date;

            

    

     

    
      	
            	(5)	
              the
                applicable Subordinate Prepayment Percentage of the sum of (a) the
                Stated
                Principal Balance of each Mortgage Loan in the related Loan Group
                which
                was repurchased by the Sponsor in connection with such Payment Date
                and
                (b) the difference, if any, between the Stated Principal Balance
                of each
                Mortgage Loan in the related Loan Group that has been replaced by
                the
                Sponsor with a substitute Mortgage Loan pursuant to the Mortgage
                Loan
                Purchase Agreement in connection with such Payment Date and the Stated
                Principal Balance of each such substitute mortgage loan;
                and

            

    

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

     

    
      	
            	(6)	
              on
                the Payment Date on which the Note Principal Balances of the related
                Group
                II Senior Notes have all been reduced to zero, 100% of any applicable
                Senior Optimal Principal Amount. 

            

    

     

    Subordinate
      Percentage:
      As of
      any Payment Date and with respect to Loan Group II-C and Loan Group II-NC,
      100%
      minus the related Senior Percentage for the Class II-A-1, Class II-A-2, Class
      II-A-3 and Class II-A-4 Notes related to such Loan Group. The initial
      Subordinate Percentage for each of Loan Group II-C and Loan Group II-NC will
      be
      approximately 6.25%.

     

    Subordinate
      Prepayment Percentage:
      As of
      any Payment Date and with respect to Loan Group II-C and Loan Group II-NC,
      100%
      minus the related Senior Prepayment Percentage for such Loan Group, except
      that
      on any Payment Date after the Note Principal Balance of each class of Group
      II
      Senior Notes of the related Note Group have each been reduced to zero, if (A)
      the weighted average of the Subordinate Percentages on such Payment Date equals
      or exceeds two times the initial weighted average of the Subordinate Percentages
      and (B) the aggregate Stated Principal Balance of the Mortgage Loans delinquent
      60 days or more (including for this purpose any such Mortgage Loans in
      foreclosure and bankruptcy and Mortgage Loans with respect to which the related
      mortgaged property has been acquired by the trust), averaged over the last
      six
      months, as a percentage of the sum of the aggregate Note Principal Balance
      of
      the Group II Subordinate Notes does not exceed 50%, the Subordinate Prepayment
      Percentage for the Group II Subordinate Notes with respect to such Loan Group
      will equal 100%. If the above test is not satisfied on any Payment Date after
      the Note Principal Balance of each class of Senior Notes of the related Note
      Group have each been reduced to zero, then the Subordinate Prepayment Percentage
      with respect to such Loan Group shall equal zero for such Payment
      Date.

     

    Subsequent
      Recoveries:
      Unexpected recoveries, net of reimbursable expenses, with respect to a
      Liquidated Mortgage Loan that resulted in a Realized Loss in a month prior
      to
      the receipt of such recoveries.

     

    Subservicing
      Account:
      An
      Eligible Account established or maintained by a Subservicer as provided for
      in
      Section 3.06(e) of the Servicing Agreement.

     

    Substitution
      Adjustment Amount:
      With
      respect to any Eligible Substitute Mortgage Loan, the amount as defined in
      Section 2.03 of the Servicing Agreement.

     

    Telerate
      Screen Page 3750:
      The
      display designated as page 3750 on the Telerate Service (or such other page
      as
      may replace page 3750 on that service for the purpose of displaying London
      interbank offered rates of major banks).

     

    TMP
      Trigger Event:
      Delivery of written notification to the Master Servicer, the Securities
      Administrator, and the Indenture Trustee that the Equity Securities are no
      longer owned by a REIT directly or indirectly through one or by a “disregarded
      entity”.

     

    Transferor:
      The
      Holder of the Certificates as shown on the Certificate Register.

     

    Treasury
      Regulations:
      Regulations, including proposed or temporary Regulations, promulgated under
      the
      Code. References herein to specific provisions of proposed or temporary
      regulations shall include analogous provisions of final Treasury Regulations
      or
      other successor Treasury Regulations.

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

     

    Trigger
      Event:
      With
      respect to Loan Group I, a Trigger Event is in effect with respect to any
      Payment Date on and after the related Stepdown Date if either:

    
      	 	
              1.

            	
              the
                Rolling Three Month Delinquency Rate for the Group I Loans as of
                the close
                of business on the last day of the preceding calendar month exceeds
                approximately 37.00% of the aggregate Note Principal Balance of the
                Class
                I-M Notes plus the aggregate Overcollateralized Amount for Loan Group
                I,
                divided by the aggregate Stated Principal Balance of the Group I
                Loans;
                or

            

    

     

    
      	 	
              2.

            	
              the
                cumulative amount of Realized Losses incurred on the Group I Loans
                from
                the Cut-off Date through the end of the calendar month immediately
                preceding such Payment Date exceeds the applicable percentage set
                forth
                below of the aggregate Stated Principal Balance of the Group I Loans
                as of
                the Cut-off Date:

            

    

     

    
      	
              April
                2009 to March 2010

            	
              0.75%

            
	
              April
                2010 to March 2012

            	
              1.00%

            
	
              April
                2012 and thereafter

            	
              1.25%

            

    

    

     

    Trust:
      The
      American Home Mortgage Investment Trust 2006-1 to be created pursuant to the
      Trust Agreement.

     

    Trust
      Agreement:
      The
      Amended and Restated Trust Agreement dated as of March 29, 2006, among the
      Owner
      Trustee, the Depositor and Deutsche Bank National Trust Company, as Certificate
      Registrar and Certificate Paying Agent, relating to the Trust.

     

    Trust
      Estate:
      The
      meaning specified in the Granting Clause of the Indenture.

     

    Trust
      Indenture Act or TIA:
      The
      Trust Indenture Act of 1939, as amended from time to time, as in effect on
      any
      relevant date.

     

    UCC:
      The
      Uniform Commercial Code, as amended from time to time, as in effect in any
      specified jurisdiction.

     

    Uncapped
      Floater Fee:
      With
      respect to each Cap Contract and each Payment Date, an amount equal to the
      product of (i) the related Uncapped Floater Fee Rate, (ii) 30 divided by 360
      and
      (iii) the Note Principal Balance of the related class of Uncapped Notes
      immediately prior to such Payment Date.

     

    Uncapped
      Floater Fee Rate:
      With
      respect to each Cap Contract, the uncapped floater fee rate as set forth in
      such
      Cap Contracts.

     

    Uncapped
      Notes:
      The
      Class I-1A-1, Class I-A-2, Class I-A-3, Class I-M-1, Class I-M-2 and Class
      I-M-3
      Notes.

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

     

    Underlying
      REMIC Trust:
      The new
      trust to be created pursuant to the Underlying REMIC Trust Pooling and Servicing
      Agreement upon the REMIC Conversion.

     

    Underlying
      REMIC Trust Pooling and Servicing Agreement:
      The new
      pooling and servicing agreement to be entered into by the parties identified
      therein upon the REMIC Conversion, pursuant to which, among other events
      contemplated by the REMIC Conversion, the Underlying REMIC Trust will be formed
      and the REMIC Certificates will be issued.

    Underwriters:
      With
      respect to the Class I-1A-1, Class I-2A-1, Class I-A-2, Class I-A-3, Class
      I-M-1, Class I-M-2 and Class I-M-3 Notes, Barclays Capital Inc., Bear, Stearns
      & Co. Inc., ABN AMRO Incorporated and Greenwich Capital Markets, Inc., and
      with respect to Class II-A-1, Class II-A-3 and Class II-M-1 Notes, Lehman
      Brothers Inc., ABN AMRO Incorporated and Greenwich Capital Markets,
      Inc.

     

    Uninsured
      Cause:
      Any
      cause of damage to property subject to a Mortgage that the complete restoration
      of such property is not fully reimbursable by the hazard insurance
      policies.

     

    Unpaid
      Interest Shortfall:
      For
      each Class of Notes and any Payment Date, such Notes’ pro rata share, based on
      the amount of Accrued Note Interest otherwise payable on such Note on such
      Payment Date, of (a) any Prepayment Interest Shortfalls, to the extent not
      covered by Compensating Interest, and (b) any Relief Act Shortfalls, in each
      case to the extent incurred with respect to the related Mortgage
      Loans.

     

    
      
         

      

      
        45MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC

EXECUTION COPY

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.,

Depositor

UBS REAL ESTATE SECURITIES INC.,

Transferor

WELLS FARGO BANK, N.A.,

Master Servicer, Trust Administrator and Custodian

U.S. BANK NATIONAL ASSOCIATION,

Trustee

POOLING AND SERVICING AGREEMENT

Dated as of March 1, 2006

MASTR ASSET SECURITIZATION TRUST 2006-1

MORTGAGE PASS-THROUGH CERTIFICATES, Series 2006-1

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

Section 1.01

Definitions.

10

Section 1.02

Certain Calculations.

55

Section 1.03

Calculation of Applicable Fractions.

55

ARTICLE II

CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

Section 2.01

Conveyance of Mortgage Loans.

56

Section 2.02

Acceptance by Trustee of the Mortgage Loans.

60

Section 2.03

Remedies for Breaches of Representations and Warranties.

62

Section 2.04

Representations and Warranties of the Depositor as to the Mortgage 

Loans.

64

Section 2.05

[Reserved].

65

Section 2.06

Execution and Delivery of Certificates.

65

Section 2.07

REMIC Matters.

65

Section 2.08

Covenants of the Master Servicer.

65

Section 2.09

Representations and Warranties of the Master Servicer.

66

Section 2.10

Representations and Warranties of the Custodian.

67

ARTICLE III

ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS

Section 3.01

Master Servicing of Mortgage Loans.

68

Section 3.02

Monitoring of Servicers.

69

Section 3.03

[Reserved].

71

Section 3.04

Rights of the Depositor and the Trustee in Respect of the Master 

Servicer.

71

Section 3.05

Trustee to Act as Master Servicer.

71

Section 3.06

Protected Accounts.

72

Section 3.07

Collection of Mortgage Loan Payments; Collection Account; 

Distribution Account.

73

Section 3.08

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

76

Section 3.09

Access to Certain Documentation and Information Regarding the 

Mortgage Loans.

76

Section 3.10

Permitted Withdrawals from the Collection Account and Distribution 

Account.

77

Section 3.11

Maintenance of Hazard Insurance; Maintenance of Primary Insurance 

Policies.

79

Section 3.12

Presentment of Claims and Collection of Proceeds.

79

Section 3.13

Maintenance of the Primary Insurance Policies.

79

Section 3.14

Realization upon Defaulted Mortgage Loans.

80

Section 3.15

REO Property.

80

Section 3.16

Due-on-Sale Clauses; Assumption Agreements.

81

Section 3.17

Trustee to Cooperate; Release of Mortgage Files.

82

Section 3.18

Documents, Records and Funds in Possession of Master Servicer and 

Custodian to Be Held for the Trustee.

82

Section 3.19

Master Servicing Compensation.

83

Section 3.20

Access to Certain Documentation.

83

Section 3.21

Annual Statement as to Compliance.

84

Section 3.22

Report on Assessment of Compliance and Attestation.

84

Section 3.23

Errors and Omissions Insurance; Fidelity Bonds.

87

Section 3.24

Master Servicer to Remit Prepayment Penalties to the Transferor.

87

ARTICLE IV

DISTRIBUTIONS AND SERVICING ADVANCES

Section 4.01

Advances.

88

Section 4.02

Priorities of Distribution.

88

Section 4.03

Allocation of Realized Losses.

98

Section 4.04

Distribution Date Statements to Certificateholders.

101

Section 4.05

Determination of LIBOR.

103

ARTICLE V

THE CERTIFICATES

Section 5.01

The Certificates.

105

Section 5.02

Certificate Register; Registration of Transfer and Exchange of 

Certificates.

105

Section 5.03

Mutilated, Destroyed, Lost or Stolen Certificates.

110

Section 5.04

Persons Deemed Owners.

111

Section 5.05

Access to List of Certificateholders’ Names and Addresses.

111

Section 5.06

Maintenance of Office or Agency.

111

ARTICLE VI

THE DEPOSITOR, THE MASTER SERVICER AND THE CUSTODIAN

Section 6.01

Respective Liabilities of the Depositor, the Master Servicer and the 

Custodian.

112

Section 6.02

Merger or Consolidation of the Depositor, the Master Servicer and the 

Custodian.

112

Section 6.03

Limitation on Liability of the Depositor, the Transferor, the Master 

Servicer, the Custodian and Others.

112

Section 6.04

Limitation on Resignation of Master Servicer.

113

Section 6.05

Sale and Assignment of Master Servicing Rights.

113

Section 6.06

Fees of the Custodian.

114

ARTICLE VII

DEFAULT

Section 7.01

Events of Default.

114

Section 7.02

Trustee to Act; Appointment of Successor.

116

Section 7.03

Notification to Certificateholders.

118

ARTICLE VIII

CONCERNING THE TRUSTEE

Section 8.01

Duties of Trustee.

118

Section 8.02

Certain Matters Affecting the Trustee.

119

Section 8.03

Trustee Not Liable for Certificates or Mortgage Loans.

121

Section 8.04

Trustee May Own Certificates.

121

Section 8.05

Trustee’s Fees and Expenses.

121

Section 8.06

Eligibility Requirements for Trustee.

122

Section 8.07

Resignation and Removal of Trustee.

122

Section 8.08

Successor Trustee.

123

Section 8.09

Merger or Consolidation of Trustee.

124

Section 8.10

Appointment of Co-Trustee or Separate Trustee.

124

ARTICLE IX

CONCERNING THE TRUST ADMINISTRATOR AND THE MASTER SERVICER

Section 9.01

Duties of Trust Administrator.

125

Section 9.02

Certain Matters Affecting the Trust Administrator.

127

Section 9.03

Trust Administrator Not Liable for Certificates or Mortgage Loans.

128

Section 9.04

Trust Administrator May Own Certificates.

129

Section 9.05

Trust Administrator’s Fees and Expenses.

129

Section 9.06

Eligibility Requirements for Trust Administrator.

129

Section 9.07

Resignation and Removal of Trust Administrator.

130

Section 9.08

Successor Trust Administrator.

132

Section 9.09

Merger or Consolidation of Trust Administrator.

132

Section 9.10

[Reserved].

133

Section 9.11

Tax Matters.

133

Section 9.12

Periodic Filings.

136

ARTICLE X

TERMINATION

Section 10.01

Termination upon Liquidation or Purchase of All Mortgage Loans.

143

Section 10.02

Final Distribution on the Certificates.

144

Section 10.03

Additional Termination Requirements.

145

ARTICLE XI

MISCELLANEOUS PROVISIONS

Section 11.01

Amendment.

146

Section 11.02

Recordation of Agreement; Counterparts.

148

Section 11.03

Governing Law.

148

Section 11.04

Intention of Parties.

149

Section 11.05

Notices.

149

Section 11.06

Severability of Provisions.

150

Section 11.07

Assignment.

150

Section 11.08

Limitation on Rights of Certificateholders.

151

Section 11.09

Inspection and Audit Rights.

151

Section 11.10

Certificates Nonassessable and Fully Paid.

152

Section 11.11

Compliance With Regulation AB.

152

SCHEDULES

Schedule I

Mortgage Loan Schedule

Schedule II

Representations and Warranties as to the Mortgage Loans

Schedule III

Class P Prepayment Charges Mortgage Loan Schedule

Schedule IV

Aggregate Scheduled Class Balances – PACs

Schedule V

Aggregate Scheduled Class Balances - TACs

EXHIBITS

Exhibit A:

Form of Class A Certificate

Exhibit B:

Form of Class PO Certificate

Exhibit C:

Form of Class 30-A-X Certificate

Exhibit D-1:

Form of Class A-R Certificate

Exhibit D-2:

Form of Class P Certificate

Exhibit D-3:

[Reserved]

Exhibit E-1:

Form of Class B Certificate

Exhibit E-2:

[Reserved]

Exhibit F:

Form of Reverse of Certificates

Exhibit G:

Form of Initial Certification of Custodian

Exhibit H:

Form of Final Certification of Custodian

Exhibit I:

Transfer Affidavit

Exhibit J:

Form of Transferor Certificate

Exhibit K:

Form of Investment Letter (Non Rule 144A)

Exhibit L:

Form of Rule 144A Letter

Exhibit M:

Form of Request for Release

Exhibit N:

Form of Certification to be Provided with Form 10-K

Exhibit O:

Form of Cap Contract

Exhibit P:

[Reserved]

Exhibit Q:

Form of Assessment of Compliance

Exhibit R:

Form of Custodian’s Assessment of Compliance

Exhibit S:

Additional Disclosure Notification

Exhibit T:

Additional Form 10-D Disclosure

Exhibit U:

Additional Form 10-K Disclosure 

Exhibit V:

Form 8-K Disclosure Information

Exhibit W:

Form of Annual Certification

Exhibit X:

Assessments of Compliance and Attestation Reports Servicing Criteria

THIS POOLING AND SERVICING AGREEMENT, dated as of March 1, 2006, among MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., a Delaware corporation, as depositor (the “Depositor”), UBS REAL ESTATE SECURITIES INC., a Delaware corporation, as transferor (the “Transferor”), WELLS FARGO BANK, N.A., a national banking association (“Wells Fargo”), as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”) and as custodian (in such capacity, the “Custodian”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the “Trustee”).

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

In consideration of the mutual agreements herein contained, the parties hereto agree as follows:

PRELIMINARY STATEMENT

The Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee in return for the Certificates. The Trust Fund is being conveyed to the Trustee to create a trust for the benefit of the Certificateholders.  The Trust Fund for federal income tax purposes shall consist of three REMICs (the “Subsidiary REMIC”, the “Middle REMIC” and the “Master REMIC”).  The “latest possible maturity date” for federal income tax purposes of all interests created hereby shall be the Latest Possible Maturity Date.  

The Subsidiary REMIC shall consist of all of the assets constituting the Trust Fund corresponding to Collateral Group 1, Collateral Group 2, Collateral Group 3, and Collateral Group 4 (exclusive of the Class P Prepayment Charges) and shall be evidenced by the uncertificated interests set forth below that shall be designated as REMIC regular interests (the “Subsidiary REMIC Regular Interests”).  In addition, the Subsidiary REMIC shall issue the Class A-LR Certificate and shall designate such interest as its sole class of residual interest.

The Middle REMIC shall hold as its assets the uncertificated REMIC regular interests issued by the Subsidiary REMIC.  The Middle REMIC shall issue the Class R-2 interest and shall designate such interest as its sole class of residual interest.  In addition, the Middle REMIC shall issue the uncertificated REMIC regular interests set forth below for the Middle REMIC (the “Middle REMIC Regular Interests”).

The Master REMIC shall consist of the Middle REMIC Regular Interests and shall be evidenced by the Classes of Certificates set forth below for the Master REMIC (which, except for the Class P, Class A-LR and Class A-UR Certificates, shall represent the “regular interests” in the Master REMIC) and the Class R-3 Interest as the single “residual interest” in the Master REMIC.   The Class A-UR Certificate shall not be considered a Certificate issued by the Master REMIC, but instead shall represent beneficial ownership of the Class R-2 and Class R-3 interests.

Subsidiary REMIC:

The Subsidiary REMIC Regular Interests, each of which is hereby designated a REMIC regular interest for federal income tax purposes, shall have the following principal balances, pass-through rates and corresponding Collateral Groups in the manner set forth in the following table:

	REMIC

Interests

	Initial

Balance

	

Pass-

Through Rate

	

Corresponding Collateral Group 

	LT1-1

	(1)

	5.750%

	1

	LT2-1

	(1)

	5.750%

	1

	LT3-1

	(1)

	5.750%

	1

	LT1-2

	(1)

	7.000%

	2

	LT2-2

	(1)

	7.000%

	2

	LT3-2

	(1)

	7.000%

	2

	LT1-3

	(1)

	6.250%

	3

	LT2-3

	(1)

	6.250%

	3

	LT3-3

	(1)

	6.250%

	3

	LT1-4

	(1)

	5.750%

	4

	LT2-4

	(1)

	5.750%

	4

	LT3-4

	(1)

	5.750%

	4

	LT-15-A-X

	(2)

	(3)

	4

	LT-30-A-X

	(2)

	(4)

	2,3

	LT-15-PO

	(5)

	0.000%

	4

	LT-30-PO

	(6)

	0.000%

	1, 3

____________________

(1)

Each LT1 Interest shall have a principal balance initially equal to 0.9% of the Group Subordinate Amount of its corresponding Collateral Group or Groups.  Each LT2 Interest shall have a principal balance initially equal to 0.1% of the Group Subordinate Amount of its corresponding Collateral Group.   The initial principal balance of each LT3 Interest shall equal the excess of the Group Balance of its corresponding Collateral Group or Groups over the sum of (i) the initial principal balances of the LT1 and LT2 Interests corresponding to such Collateral Group or Groups, (ii) the portion of the LT-15-PO or LT-30-PO Interest attributable to the Discount Loans in the Collateral Group or Groups corresponding to such LT3 Interest, and (iii) in the case of Collateral Group 1 the principal balance of the Class A-LR Certificate.

(2)

This Subsidiary REMIC interest shall not have any principal balance.

(3)

The LT-15-A-X Interest shall be entitled to receive all interest accrued at the related Stripped Interest Rate on each Non-Discount Mortgage Loan in Collateral Group 4.

(4)

The LT-30-A-X Interest shall be entitled to receive all interest accrued at the related Stripped Interest Rate on each Non-Discount Mortgage Loan in Collateral Groups 2 and 3.

(5)

The LT-15-PO Interest shall have an initial principal balance equal to the initial principal balance of the Class 15-PO Certificate.

(4)

The LT-30-PO Interest shall have an initial principal balance equal to the initial principal balance of the Class 30-PO Certificate.

Unless a Cross-over Situation (as defined below) exists, principal and Realized Losses arising with respect to each Collateral Group shall be allocated first to cause the LT1 and LT2 interests corresponding to such Collateral Group or Groups to equal 0.9% and 0.1% of the Group Subordinate Amount of such Collateral Group or Groups as of such Distribution Date and all excess principal and Realized Losses shall be allocated to the LT3 interest corresponding to such Collateral Group or Groups.  A LT1, LT2 or LT3 interest that is allocated principal on any Distribution Date shall receive such principal, and have its principal balance reduced by the amount of such principal, on such Distribution Date.  Similarly, a LT1, LT2 or LT3 interest that is allocated a Realized Loss on any Distribution Date shall have its principal balance reduced by the amount of such Realized Loss on such Distribution Date.  

A “Cross-over Situation” exists if on any Distribution Date (after taking into account distributions of principal and allocations of Realized Losses on such Distribution Date) the LT1 and LT2 interests corresponding to any Collateral Group or Groups are in the aggregate less than 1% of the Group Subordinate Amount of the Collateral Group or Groups to which they correspond.  In the event that a Cross-Over Situation exists on any Distribution Date, and the weighted average rate of the outstanding LT1 and LT2 interests related to a Class of Subordinate Certificates is less than the Pass-Through Rate for such class of Subordinate Certificates, a Principal Relocation Payment (as defined below) shall be made proportionately to such outstanding LT1 interests prior to any other distributions of principal from each such Collateral Group or Groups.  In the event that a Cross-Over Situation exists on any Distribution Date, and the weighted average rate of the outstanding LT1 and LT2 interests related to a Class of Subordinate Certificates is greater than the Pass-Through Rate for such class of Subordinate Certificates, a Principal Relocation Payment shall be made proportionately to such outstanding LT2 interests prior to any other distributions of principal from each such Collateral Group.  A “Principal Relocation Payment” is a distribution of principal that causes the Calculation Rate (as defined below) on the outstanding LT1 and LT2 interests related to a Class of Subordinate Certificates to equal the Pass-Through Rate for such class of Subordinate Certificates.  The “Calculation Rate” shall equal the product of (i) 10 and (ii) the weighted average rate of the outstanding Class LT1 and Class LT2 interests related to a Class of Subordinate Certificates, treating each Class LT1 interest as capped at zero or reduced by a fixed percentage of 100% of the interest accruing on such class.  Principal Relocation Payments shall be made from principal received on the Mortgage Loans from the related Collateral Group or Groups and shall also consist of a proportionate allocation of Realized Losses from the Mortgage Loans of the related Collateral Group or Groups.  For purposes of making Principal Relocation Payments, to the extent that the principal received during the Collection Period from the related Collateral Group and Realized Losses are insufficient to make the necessary reduction of principal, then interest shall accrue on the LT3 interest related to a Collateral Group or Groups (and be added to their principal balances) that are not receiving a Principal Relocation Payment to allow the necessary Principal Relocation Payment to be made.

If a Cross-Over Situation exists, the outstanding aggregate principal balance of the related LT1 and LT2 interests shall not be reduced below one percent of the aggregate Group Balance of the related Collateral Group or Groups as of the end of any Collection Period in excess of the Senior Certificates related to such Collateral Group as of the related Distribution Date (after taking into account distributions of principal and allocations of Realized Losses on such Distribution Date).  To the extent this limitation prevents the distribution of principal to the LT1 and LT2 interests of a Collateral Group and the related LT3 interest has already been reduced to zero, such excess principal from the other Collateral Group or Collateral Groups shall be paid proportionately to the LT3 interests of the Collateral Group or Groups whose aggregate LT1 and LT2 interests are less than one percent of the Group Subordinate Amount.  Any such shortfall as a result of the Collateral Group or Groups receiving the extra payment having a Ratio-strip Rate (as defined below) lower than the weighted average Ratio-strip Rate of the Collateral Group from which the payment was relocated shall be treated as a Realized Loss and if excess arises as result of the Collateral Group receiving the extra payment having a Ratio-strip Rate higher than the Collateral Group from which the payment was relocated it shall reimburse the Middle REMIC for prior Realized Losses.  The “Ratio-strip Rate” for each Collateral Group shall be equal to 5.750% for Collateral Group 1, 7.000% for Collateral Group 2, 6.250% for Collateral Group 3, and 5.750% for Collateral Group 4.  

The Class 15-PO Interest shall be entitled to receive the PO Principal Distribution Amount for Collateral Group 4 and the Class 30-PO Interest shall be entitled to receive the PO Principal Distribution Amount for Collateral Groups 1 and 3.

Middle REMIC:

The Middle REMIC Regular Interests, each of which is hereby designated a REMIC regular interest for federal income tax purposes, shall have the following principal balances and pass-through rates in the manner set forth in the following table:

	Middle REMIC

 Interests

	Initial

Balance

	Pass- 

Through Rate

	Corresponding Class in the Master REMIC 

	MT-1-A-1

	(3)

	5.750%

	1-A-1

	MT-1-A-2

	(3)

	5.750%

	1-A-2

	MT-1-A-3

	(3)

	5.750%

	1-A-3

	MT-1-A-4

	(3)

	5.750%

	1-A-4

	MT-1-A-5

	(3)

	5.750%

	1-A-5

	MT-1-A-6

	(3)

	5.750%

	1-A-6

	MT-1-A-7

	(3)

	5.750%

	1-A-7

	MT-1-A-8

	(3)

	 	1-A-8

	MT-1-A-9

	(3)

	 	1-A-9

	MT-1-A-10

	(3)

	5.750%

	1-A-10

	MT-1-A-11

	(3)

	5.750%

	1-A-11

	MT-1-A-12

	(3)

	5.750%

	1-A-12

	MT-1-A-13

	(3)

	5.750%

	1-A-13

	MT-1-A-14

	(3)

	5.750%

	1-A-14

	MT-2-A-1

	(5)

	7.000%

	2-A-1, 2-A-2

	MT-3-A-1

	(3)

	6.250%

	3-A-1

	MT-3-A-2

	(3)

	6.250%

	3-A-2

	MT-4-A-1

	(3)

	5.750%

	4-A-1

	MT-15-PO

	(3)

	0.000%

	15-PO

	MT-30-PO

	   (3)

	0.000%

	30-PO

	MT-15A-X

	   (1)

	(1)

	15-A-X

	MT-30-A-X

	(4)

	(4)

	30-A-X

	MT-A-UR

	(3)

	5.750%

	A-UR

	MT-B-1

	(3)

	(2)

	B-1

	MT-B-2

	(3)

	(2)

	B-2

	MT-B-3

	(3)

	(2)

	B-2

	MT-B-4

	(3)

	(2)

	B-4

	MT-B-5

	(3)

	(2)

	B-5

	MT-B-6

	(3)

	(2)

	B-6

_______________

(1)

The Class MT-15-A-X shall not have a principal balance.  The Class MT-15-A-X shall be entitled to the excess interest on the Non-Discount Mortgage Loans in Collateral Group 4, which excess corresponds to 100% of the distributions on the LT-15-A-X interest issued by the Subsidiary REMIC.

(2)

The Calculation Rate, which rate equals the product of (i) 10 and (ii) the weighted average rate of the outstanding Class LT1 and Class LT2 interests corresponding to each Collateral Group, treating each such Class LT1 interest as capped at zero or reduced by a fixed percentage of 100% of the interest accruing on such Class.  The Calculation Rate is designed to always equal the Pass-Through Rate of each class of the Subordinate Certificates.

(3)

The initial principal balance of each of these Middle REMIC Regular Interests shall equal the initial Class Principal Balance of its Corresponding Class of Certificates.

(4)

The Class MT-30-A-X shall not have a principal balance.  The Class MT-30-A-X shall be entitled to the excess interest on the Non-Discount Mortgage Loans in Collateral Groups 2 and 3, which excess corresponds to 100% of the distributions on the LT-30-15-A-X interest issued by the Subsidiary REMIC.

(5)

The initial principal balance of this Middle REMIC Regular Interest shall equal the initial Class Principal Balance of the Class 2-A-1 Certificate.

Each Middle REMIC Regular Interest shall receive principal distributions and allocations of Realized Losses equal to those for its corresponding class in the Master REMIC.

Master REMIC:

The following table sets forth characteristics of the Certificates, together with the minimum denominations and integral multiples in excess thereof in which such Classes shall be issuable (except that one Certificate of each Class of Certificates may be issued in a different amount): 

	 	Initial Class Principal Balance or Notional Amount

	Initial Pass-Through Rate

	Minimum Denomination

	Integral Multiples

in Excess of Minimum

	Class 1-A-1

	$79,936,000

	5.750%

	$25,000

	$1

	Class 1-A-2

	$22,000,000

	5.750%

	$25,000

	$1

	Class 1-A-3

	$19,000,000

	5.750%

	$25,000

	$1

	Class 1-A-4

	$11,552,000

	5.750%

	$25,000

	$1

	Class 1-A-5(1)

	$3,496,000

	5.750%

	$25,000

	$1

	Class 1-A-6

	$52,311,000

	5.750%

	$25,000

	$1

	Class 1-A-7

	$1,702,304

	5.750%

	$25,000

	$1

	Class 1-A-8

	$10,000,000

	(2)

	$25,000

	$1

	Class 1-A-9

	$2,608,696

	(3)

	$25,000

	$1

	Class 1-A-10

	$4,030,000

	5.750%

	$25,000

	$1

	Class 1-A-11

	$10,000,000

	5.750%

	$25,000

	$1

	Class 1-A-12

	$531,000

	5.750%

	$25,000

	$1

	Class 1-A-13

	$24,375,000

	(4)

	$25,000

	$1

	Class 1-A-14

	$75,000

	5.750%

	$25,000

	$1

	Class 2-A-1

	$78,816,000

	(5)

	$25,000

	$1

	Class 2-A-2

	(6)

	(7)

	$100,000

	$1

	Class 3-A-1

	$54,493,000

	6.250%

	$25,000

	$1

	Class 3-A-2

	$1,773,000

	6.250%

	$25,000

	$1

	Class 4-A-1

	$30,197,000

	5.750%

	$25,000

	$1

	Class A-LR

	$50

	5.750%

	100%

	N/A

	Class A-UR

	$50

	5.750%

	100%

	N/A

	Class 15-A-X

	(8)

	5.750%

	$100,000

	$1

	Class 30-A-X

	(9)

	6.000%

	$100,000

	$1

	Class 15-PO

	$395,526

	(10)

	$25,000

	$1

	Class 30-PO

	$3,060,317

	(10)

	$25,000

	$1

	Class B-1

	$7,338,000

	(11)

	$25,000

	$1

	Class B-2

	$2,096,000

	(11)

	$25,000

	$1

	Class B-3

	$1,257,000

	(11)

	$25,000

	$1

	Class B-4

	$1,048,000

	(11)

	$25,000

	$1

	Class B-5

	$838,000

	(11)

	$25,000

	$1

	Class B-6

	$631,179

	(11)

	$25,000

	$1

	Class P

	(12)

	N/A

	N/A

	N/A

	Components

	 	 	 	 
	Class 1-A-5-1

	$2,502,000

	5.750%

	N/A

	N/A

	Class 1-A-5-2

	$618,000

	5.750%

	N/A

	N/A

	Class 1-A-5-3

	$376,000

	5.750%

	N/A

	N/A

___________ 

(1)

The Class 1-A-5 Certificates will be deemed for purposes of the distribution of interest and principal to consist of three Components as described in the table.  The Components are not severable.

(2)

For any Distribution Date on which LIBOR is equal to or less than 7.000%, interest will accrue on the Class 1-A-8 Certificates at a per annum rate equal to 7.250%.  For any Distribution Date on which LIBOR is greater than 7.000%, interest will accrue on the Class 1-A-8 Certificates at a per annum rate equal to 0.000%.  The per annum Pass-Through Rate on the Class 1-A-8 Certificates for the first interest accrual period is 7.250%.

(3)

For any Distribution Date on which LIBOR is equal to or less than 7.000%, interest will accrue on the Class 1-A-9 Certificates at a per annum rate equal to 0.000%.  For any Distribution Date on which LIBOR is greater than 7.000%, interest will accrue on the Class 1-A-9 Certificates at a per annum rate equal to 27.79166577%.  The per annum Pass-Through Rate on the Class 1-A-9 Certificates for the first interest accrual period is 0.000%.

(4)

For any Distribution Date on or prior to the Distribution Date in March 2009, interest will accrue on the Class 1-A-13 certificates at a per annum rate equal to (i) LIBOR plus (ii) 0.950%, subject to minimum rate of 5.750% per annum.  For any Distribution Date after the Distribution Date in March 2009, interest will accrue on the Class 1-A-13 certificates at a per annum rate equal to 5.750% per annum.  The per annum Pass-Through Rate on the Class 1-A-13 certificates for the first interest accrual period is 5.750%.

(5)

Interest will accrue on the Class 2-A-1 Certificates at a per annum rate equal to (i) LIBOR plus (ii) 0.450%, subject to a maximum rate of 7.000% per annum and a minimum rate of 0.450% per annum.  The per annum Pass-Through Rate on the Class 2-A-1 Certificates for the first Interest Accrual Period is 5.250%.

(6)

The Class 2-A-2 Certificates are Interest Only Certificates, will not be entitled to distributions in respect of principal and will bear interest on the related Notional Amount (initially $69,808,000).

(7)

Interest will accrue on the Class 2-A-2 Certificates at a per annum rate equal to (i) 6.550% minus (ii) LIBOR, subject to a maximum rate of 6.550% per annum and a minimum rate of 0.000% per annum.  The per annum Pass-Through Rate on the Class 2-A-2 Certificates for the first Interest Accrual Period is 1.750%.

(8)

The Class 15-A-X Certificates are Interest Only Certificates, will not be entitled to distributions in respect of principal and will bear interest on the related Notional Amount (initially $1,625,545).

(9)

The Class 30-A-X Certificates are Interest Only Certificates, will not be entitled to distributions in respect of principal and will bear interest on the related Notional Amount (initially $2,140,326).

(10)

The Class 15-PO and Class 30-PO Certificates are Principal Only Certificates and will not be entitled to distributions in respect of interest.

(11)

Interest will accrue on the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates at a per annum rate equal to the weighted average of (i) 5.750% for Collateral Group 1, (ii) 7.000% for Collateral Group 2, (iii) 6.250% for Collateral Group 3 and (iv) 5.750% for Collateral Group 4, weighted on the basis of the portion of the aggregate Class Principal Balance of the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates attributable to each such Collateral Group.  The per annum Pass-Through Rate on the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates for the first Interest Accrual Period is 6.0562%.

(12)

The Class P Certificates do not have an aggregate principal balance and shall not be entitled to distributions in respect of principal or interest.  The Class P Certificates shall be entitled to Class P Prepayment Charges collected.  The Class P Certificates do not represent an interest in any REMIC created hereby.

The foregoing REMIC structure is intended to cause all of the cash from the Mortgage Loans (exclusive of the Class P Prepayment Charges) to flow through to the Master REMIC as cash flow on a REMIC regular interest, without creating any shortfall—actual or potential (other than for credit losses) to any REMIC regular interest.  To the extent that the structure is believed to diverge from such intention the party identifying any ambiguity or drafting error shall notify each of the parties hereto, and shall, in accordance with Section 10.01 of this Agreement, attempt to resolve any ambiguities or correct any drafting errors to accomplish such intention.

Set forth below are designations of Classes of Certificates to the categories used herein:

Accretion Directed Certificates

Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates.

Accrual Certificates

Class 1-A-10 Certificates.

Book-Entry Certificates

All Classes of Offered Certificates other than the Physical Certificates.

Class PO Certificates

The Class 15-PO and Class 30-PO Certificates.

ERISA-Restricted Certificates

The Residual Certificates and the Private Certificates, and any Certificates that do not satisfy the applicable ratings requirement under the Underwriter’s Exemption.

Floating Rate Certificates

The Class 1-A-13 and Class 2-A-1 Certificates.

Group 1 Certificates

The Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4, Class 1-A-5, Class 1-A-6, Class 1-A-7, Class 1-A-8, Class 1-A-9, Class 1-A-10, Class 1-A-11, Class 1-A-12, Class 1-A-13, Class 1-A-14, Class A-LR and Class A-UR Certificates.

Group 2 Certificates

The Class 2-A-1 and Class 2-A-2 Certificates.

Group 3 Certificates

The Class 3-A-1 and Class 3-A-2 Certificates.

Group 4 Certificates

The Class 4-A-1 Certificates.

Interest Only Certificates

The Class 2-A-2, Class 15-A-X and Class 30-A-X Certificates.

Inverse Floating Rate Certificates

The Class 2-A-1 Certificates.

LIBOR Certificates

The Floating Rate, Inverse Floating Rate and Toggle Certificates.

Lockout Certificates

The Class 1-A-13 and Class 1-A-14 Certificates.

Offered Certificates

All Classes of Certificates other than the Private Certificates.

PACs

The Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4 and Class 1-A-5 Certificates.

Physical Certificates

The Private Certificates and the Residual Certificates.

Principal Only Certificates

The Class 15-PO and Class 30-PO Certificates.

Private Certificates

The Class B-4, Class B-5, Class B-6 and Class P Certificates.

Rating Agencies

S&P and Moody’s.

Regular Certificates

All Classes of Certificates, other than the Residual Certificates and the Class P Certificates.

Residual Certificates

The Class A-LR and Class A-UR Certificates.

Senior Certificates

The Group 1, Group 2, Group 3, Group 4, Interest Only and Principal Only Certificates.

Subordinate Certificates

The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates.

TACs

The Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates.

Toggle Certificates

The Class 1-A-8 and Class 1-A-9 Certificates.

Defined terms and provisions herein relating to statistical rating agencies not designated above as Rating Agencies shall be of no force or effect.

ARTICLE I

DEFINITIONS

Section 1.01

Definitions.  

Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

10-K Filing Deadline:  As defined in Section 9.12.

Accountant’s Attestation:  As defined in Section 3.22(b)(i).

Accrued Certificate Interest:  With respect to any Distribution Date and any interest bearing Class of Certificates, the sum of (i) one month’s interest accrued during the related Interest Accrual Period at the Pass-Through Rate for such Class on the related Class Principal Balance or Notional Amount, as applicable, subject to reduction as provided in Section 4.02(b) plus (ii) any Class Unpaid Interest Amounts for such Class.

Additional Form 10-D Disclosure:  As defined in Section 3.22.

Additional Form 10-K Disclosure:  As defined in Section 3.22.

Additional Servicer:  Each Affiliate of any Servicer that services any of the Mortgage Loans and each person that is not an Affiliate of any Servicer that services 10% or more of the Mortgage Loans.

Adjustment Amount:  With respect to the Special Hazard Loss Coverage Amount and, with respect to each anniversary of March 1, 2006, the amount, if any, by which the Special Hazard Loss Coverage Amount (without giving effect to the deduction of the Adjustment Amount for such anniversary) exceeds the greatest of (x) the product of 1% and the outstanding principal balance of all the Mortgage Loans on the Distribution Date immediately preceding such anniversary, (y) the outstanding principal balance of Mortgage Loans secured by Mortgaged Properties in the highest California zip code concentration on the Distribution Date immediately preceding such anniversary, and (z) twice the outstanding principal balance of the Mortgage Loan which has the largest outstanding principal balance on the Distribution Date immediately preceding such anniversary.

Advance:  An advance of principal or interest required to be made by the applicable Servicer pursuant to the related Servicing Agreement or required to be made by the Master Servicer with respect to any Distribution Date pursuant to Section 4.01.

Affiliate:  When used with reference to a specified Person, another Person that (i) directly or indirectly controls or is controlled by or is under common control with the specified Person, (ii) is an officer of, partner in or trustee of, or serves in a similar capacity with respect to, the specified Person or of which the specified Person is an officer, partner or trustee, or with respect to which the specified Person serves in a similar capacity, or (iii) directly or indirectly is the beneficial owner of 10% or more of any class of equity securities of the specified Person or of which the specified Person is directly or indirectly the owner of 10% or more of any class of equity securities.

Aggregate Pool Principal Balance:  As to any Distribution Date, the aggregate of the Scheduled Principal Balances of the Mortgage Loans which were Outstanding Mortgage Loans on the Due Date in the month preceding the month of such Distribution Date.

Aggregate Subordinate Optimal Principal Amount:  For any Distribution Date, the sum of the Subordinate Optimal Principal Amounts for each Collateral Group.

Aggregate Subordinate Percentage:  With respect to the Subordinate Certificates and as of any Distribution Date, the aggregate Class Principal Balance for the Subordinate Certificates divided by the Aggregate Pool Principal Balance (net of the PO Percentage of the Scheduled Principal Balance of each Discount Mortgage Loan).

Agreement:  This Pooling and Servicing Agreement and all amendments or supplements hereto.

Allocable Share:  For any Distribution Date and with respect to each Class of Subordinate Certificates, the portion of the Aggregate Subordinate Optimal Principal Amount allocable to such Class, equal to the product of the Aggregate Subordinate Optimal Principal Amount on such Distribution Date and a fraction, the numerator of which is the related Class Principal Balance thereof and the denominator of which is the aggregate of the Class Principal Balances of the Subordinate Certificates.

Amount Available for Group 1 Principal:  As to any Distribution Date, Group 1 Available Funds for such Distribution Date reduced by the aggregate amount distributable on such Distribution Date in respect of interest on the Group 1 Certificates pursuant to Section 4.02(a)(i) priority first sub-clause (A).

Amount Available for Group 2 Principal:  As to any Distribution Date, Group 2 Available Funds for such Distribution Date reduced by the aggregate amount distributable on such Distribution Date in respect of interest on the Group 2 Certificates and Class 30-A-X Certificates pursuant to Section 4.02(a)(i) priority first sub-clause (B).

Amount Available for Group 3 Principal:  As to any Distribution Date, Group 3 Available Funds for such Distribution Date reduced by the aggregate amount distributable on such Distribution Date in respect of interest on the Group 3 Certificates and Class 30-A-X Certificates pursuant to Section 4.02(a)(i) priority first sub-clause (C).

Amount Available for Group 4 Principal:  As to any Distribution Date, Group 3 Available Funds for such Distribution Date reduced by the aggregate amount distributable on such Distribution Date in respect of interest on the Group 4 Certificates and Class 15-A-X Certificates pursuant to Section 4.02(a)(i) priority first sub-clause (D).

Amount Available for PO Recoveries: With respect to Collateral Group 1, Collateral Group 3 and Collateral Group 4 and any Distribution Date, the aggregate of the PO Percentage of Recoveries on each Discount Mortgage Loan in such Collateral Group for such Distribution Date (and with respect to Collateral Group 1, further multiplied by the Applicable Fraction of each such Discount Mortgage Loan). 

Amount Held for Future Distribution:  As to any related Distribution Date and any Mortgage Loan or Collateral Group, the aggregate amount held in the Collection Account at the close of business on the related Servicer Remittance Date with respect to such Mortgage Loan or Collateral Group at the close of business on the related Servicer Remittance Date on account of (i) Principal Prepayments received after the related Prepayment Period, and Liquidation Proceeds and Insurance Proceeds received in the month of such Distribution Date (and with respect to any Mortgage Loan in Collateral Group 1 or Collateral Group 2, further multiplied by the Applicable Fraction thereof) and (ii) all Scheduled Payments due after the related Due Date (and with respect to any Mortgage Loan in Collateral Group 1 or Collateral Group 2, further multiplied by the Applicable Fraction thereof).

Annual Statement of Compliance:  As defined in Section 3.21(a).

Applicable Fraction:  With respect to each Pool 1 Mortgage Loan and either of Collateral Group 1 or Collateral Group 2, the fraction set forth in Section 1.03, or such fraction multiplied by the Principal Balance of such Mortgage Loan, as the context requires.

Apportioned Subordinate Principal Distribution Amount:  For any Distribution Date and the Subordinate Certificates, the product of (i) the Subordinate Principal Distribution Amount for the Subordinate Certificates net of any portion thereof applied to pay any related PO Deferred Amount and (ii) the Apportionment Fraction.

Apportionment Fraction:  With respect to the Subordinate Certificates and for any Distribution Date, in the event that the Class Principal Balances of the Senior Certificates of any Certificate Group have been reduced to zero, a fraction, the numerator of which is equal to the Subordinate Optimal Principal Amount of the Collateral Group related to such Certificate Group, and the denominator of which is equal to the Aggregate Subordinate Optimal Principal Amount.

Appraised Value:  With respect to any Mortgage Loan, the Appraised Value of the related Mortgaged Property shall be:  (i) with respect to a Mortgage Loan other than a Refinancing Mortgage Loan, the lesser of (a) the value of the Mortgaged Property based upon the appraisal made at the time of the origination of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the time of the origination of such Mortgage Loan; and (ii) with respect to a Refinancing Mortgage Loan, the value of the Mortgaged Property based upon the appraisal made at the time of the origination of such Refinancing Mortgage Loan as modified by an updated appraisal.

Assessment of Compliance:  As defined in Section 3.22(i)(a).

Assignment:  An individual assignment of a Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect of record the sale or transfer of the Mortgage Loan.

Assignment Agreements:  The following Assignment, Assumption and Recognition Agreements, each dated as of March 29, 2006, whereby certain Servicing Agreements solely with respect to the related Mortgage Loans were assigned to the Depositor for the benefit of the Certificateholders:

(a)

The Assignment, Assumption and Recognition Agreement among Downey, as company, the Transferor and the Depositor;

(b)

The Assignment, Assumption and Recognition Agreement among EverBank, as company, the Transferor and the Depositor;

(c)

The Assignment, Assumption and Recognition Agreement among GMAC, as company, the Transferor and the Depositor;

(d)

The Assignment, Assumption and Recognition Agreement among HSBC, as company, the Transferor and the Depositor;

(e)

The Assignment, Assumption and Recognition Agreement among IndyMac, as company, the Transferor and the Depositor;

(f)

The Assignment, Assumption and Recognition Agreement among National City, as company, the Transferor and the Depositor; 

(g)

The Assignment, Assumption and Recognition Agreement among PHH, as company, the Transferor and the Depositor;

(h)

The Assignment, Assumption and Recognition Agreement among SunTrust, as company, the Transferor and the Depositor;

(i)

The Assignment, Assumption and Recognition Agreement among Wells Fargo, as company, the Transferor and the Depositor. 

Assignment of Proprietary Lease:  With respect to a Cooperative Loan, the assignment or mortgage of the related Proprietary Lease from the Mortgagor to the originator of the Cooperative Loan.

Back-Up Certification:  As defined in Section 9.12.

Bankruptcy Code:  The United States Bankruptcy Reform Act of 1978, as amended.

Bankruptcy Coverage Termination Date:  With respect to any Collateral Group, the point in time at which the Bankruptcy Loss Coverage Amount is reduced to zero.

Bankruptcy Loss:  With respect to any Mortgage Loan, a Deficient Valuation or Debt Service Reduction as reported by the applicable Servicer to the Master Servicer; provided, however, that a Bankruptcy Loss shall not be deemed a Bankruptcy Loss hereunder so long as the Master Servicer has notified the Trustee in writing that either the Master Servicer or the applicable Servicer is diligently pursuing any remedies that may exist in connection with the related Mortgage Loan and either (A) the related Mortgage Loan is not in default with regard to payments due thereunder or (B) delinquent payments of principal and interest under the related Mortgage Loan and any related escrow payments in respect of such Mortgage Loan are being advanced on a current basis by either the Master Servicer or the applicable Servicer, in either case without giving effect to any Debt Service Reduction or Deficient Valuation.

Bankruptcy Loss Coverage Amount:  With respect to any Distribution Date, the Bankruptcy Loss Coverage Amount shall equal the related Initial Bankruptcy Coverage Amount as reduced by (i) the aggregate amount of Bankruptcy Losses relating to the Mortgage Loans since March 1, 2006 and (ii) any permissible reductions in the Bankruptcy Loss Coverage Amount as evidenced by a letter of each Rating Agency to the Trust Administrator to the effect that any such reduction or modification will not adversely affect the then current ratings assigned to the Senior Certificates rated by it.

Book-Entry Certificates:  As specified in the Preliminary Statement.

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

Cap Contract: The cap contract between the Trust Administrator on behalf of the Trust and the counterparty thereunder relating to the Class 1-A-13 Certificates in the form attached hereto as Exhibit O.

Cenlar:  Cenlar, FSB, and its successors and assigns, in its capacity as Servicer of the Cenlar Mortgage Loans.

Cenlar Serviced Mortgage Loans:  The Mortgage Loans for which Cenlar is listed as “Servicer” on the Mortgage Loan Schedule.

Cenlar Servicing Agreement:  Solely with respect to the Cenlar Serviced Mortgage Loans, the Servicing Agreement, dated as of January 1, 2006 by and among the Master Servicer, UBS Real Estate Securities Inc., as seller, and Cenlar, as servicer, as the same may be amended from time to time.

Certificate:  Any one of the Certificates executed by the Trust Administrator on behalf of the Trust and authenticated by the Trust Administrator in substantially the forms attached hereto as Exhibits A through F.

Certificate Group:  Any of the Group 1, Group 2, Group 3 or Group 4 Certificates, as applicable.

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

Certificate Principal Balance:  With respect to any Certificate or Component (other than the Interest Only Certificates, the Class P Certificates and the Class 1-A-5 Certificates) at any date, the maximum dollar amount of principal to which the Holder thereof is then entitled hereunder, such amount being equal to the Denomination thereof minus the sum of (i) all distributions of principal previously made with respect thereto and (ii) all Realized Losses allocated thereto and, in the case of any Subordinate Certificates, all other reductions in Certificate Principal Balance previously allocated thereto pursuant to Section 4.03; provided, however, that pursuant to Section 4.03(d), (a) the Class Principal Balance of a Class of Certificates (other than the Class 1-A-5 Certificates) may be increased up to the amount of Realized Losses previously allocated to such Class in the event that there is a Recovery on a related Mortgage Loan, and the Certificate Principal Balance of any individual Certificate of such Class will be increased by its pro rata share of the increase to such Class and (b) the aggregate Certificate Principal Balance of a Component may be increased up to the amount of Realized Losses previously allocated to such Component, in the event that there is a Recovery on a related Mortgage Loan, and the Certificate Principal Balance of any individual Component will be increased by its pro rata share of the increase to the aggregate Certificate Principal Balance; provided, further, that, with respect to the Class 1-A-10 Certificates and any Distribution Date prior to the Class 1-A-10 Accretion Termination Date, the Class Principal Balance of the Class 1-A-10 Certificates will be increased by the Class 1-A-10 Accrual Amount for such Distribution Date and the Certificate Principal Balance of any individual Class 1-A-10 Certificate will be increased by its pro rata share of such Class 1-A-10 Accrual Amount.

With respect to the Class 1-A-5 Certificates at any date, the sum of the Certificate Principal Balances of Component 1-A-5-1, Component 1-A-5-2 and Component 1-A-5-3 on such date.

Certificate Register:  The register maintained pursuant to Section 5.02 hereof.

Certificateholder or Holder:  The person in whose name a Certificate is registered in the Certificate Register, except that, solely for the purpose of giving any consent pursuant to this Agreement, any Certificate registered in the name of the Master Servicer or the Depositor or any affiliate of the Master Servicer or the Depositor, as applicable, shall be deemed not to be Outstanding and the Percentage Interest evidenced thereby shall not be taken into account in determining whether the requisite amount of Percentage Interests necessary to effect such consent has been obtained; provided, however, that if any such Person (including the Master Servicer or the Depositor) owns 100% of the Percentage Interests evidenced by a Class of Certificates, such Certificates shall be deemed to be Outstanding for purposes of any provision hereof that requires the consent of the Holders of Certificates of a particular Class as a condition to the taking of any action hereunder.  The Trust Administrator is entitled to rely conclusively on a certification of the Master Servicer or the Depositor or any affiliate of the Master Servicer or the Depositor, as applicable, in determining which Certificates are registered in the name of an affiliate of the Master Servicer or the Depositor.  

Certification Parties:  As defined in Section 9.12.

Certification Person:  As defined in Section 9.12.

Class:  All Certificates bearing the same class designation as set forth in the Preliminary Statement.

Class 1-A-10 Accretion Termination Date:  The earlier to occur of: (i) the Distribution Date following the Distribution Date on which the aggregate principal balance of the Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates is reduced to zero and (ii) the Distribution Date following the related Cross-Over Date.

Class 1-A-10 Accrual Amount:  As specified in Section 4.02(a)(i)(B).

Class Interest Shortfall:  As to any Distribution Date and any interest-bearing Class of Certificates, the amount by which the amount described in clause (i) of the definition of “Accrued Certificate Interest” for such Class exceeds the amount of interest actually distributed on such Class on such Distribution Date pursuant to such clause (i).

Class P Certificates:  All Certificates bearing the class designation of “Class P.”

Class P Prepayment Charges:  Any prepayment premium, penalty or charge to which the Trust is entitled with respect to Mortgage Loans identified on Schedule III attached hereto.

Class Prepayment Distribution Trigger:  This trigger is satisfied with respect to any Class of Subordinate Certificates and any Distribution Date, if either (i) the fraction, the numerator of which is the aggregate Class Principal Balance of such Class and each Class of Subordinate Certificates subordinate thereto, immediately prior to such Distribution Date, and the denominator of which is the Aggregate Pool Principal Balance with respect to that Distribution Date, equals or exceeds such percentage calculated as of the Closing Date or (ii) such Class of Subordinate Certificates is the only Class of Subordinate Certificates then outstanding, then the Class Prepayment Distribution Trigger shall be satisfied for such Class and Distribution Date.

Class Principal Balance:  With respect to any Class of Certificates (other than a Class of Interest Only Certificates and the Class P Certificates) and as to any date of determination, the aggregate of the Certificate Principal Balances of all Certificates of such Class as of such date.

Class Unpaid Interest Amounts:  As to any Distribution Date and any interest-bearing Class of Certificates, the amount by which the aggregate Class Interest Shortfalls for such Class on prior Distribution Dates exceeds the amount distributed on such Class on prior Distribution Dates pursuant to clause (ii) of the definition of “Accrued Certificate Interest” for such Class.

Clean-up Call Mortgage Loan Price:  With respect to each Mortgage Loan (not including REO Properties) to be purchased pursuant to Section 10.01(a), the greater of (x) the Par Call Price for such Mortgage Loan and (y) the Fair Market Value Call Price for such Mortgage Loan.

Clean-up Call REO Property Price:  With respect to each REO Property to be purchased pursuant to Section 10.01(a), the lesser of (x) the appraised value of such REO Property as determined by the higher of two appraisals completed by two independent appraisers selected by the Master Servicer at the expense of the Master Servicer and (y) the unpaid principal balance of each Mortgage Loan related to such REO Property plus accrued and unpaid interest thereon at the applicable Net Mortgage Rate.

Closing Date:  March 29, 2006.

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

Collateral Group:  Any of Collateral Group 1, Collateral Group 2, Collateral Group 3 or Collateral Group 4, as applicable.

Collateral Group 1:  For purposes of allocating principal collections, Advances of principal and otherwise as specified herein, a group consisting of (a) the aggregate Scheduled Principal Balance of each of the Pool 1 Mortgage Loans having Net Mortgage Rates equal to or less than 5.750%, as of the Cut-off Date and (b) the aggregate of the Applicable Fraction for Collateral Group 1 of the Scheduled Principal Balance of each of the Pool 1 Mortgage Loans having Net Mortgage Rates greater than 5.750% and less than 7.000%, as of the Cut-off Date.

Collateral Group 2:  For purposes of allocating principal collections, Advances of principal and otherwise as specified herein, a group consisting of (a) the aggregate of the Applicable Fraction for Collateral Group 2 of the Scheduled Principal Balance of each of the Pool 1 Mortgage Loans having Net Mortgage Rates greater than 5.750% and less than 7.000%, as of the Cut-off Date and (b) the aggregate Scheduled Principal Balance of each of the Pool 1 Mortgage Loans having Net Mortgage Rates equal to or greater than 7.000%, as of the Cut-off Date.

Collateral Group 3: The Pool 2 Mortgage Loans, collectively.

Collateral Group 4: The Pool 3 Mortgage Loans, collectively.

Collection Account:  The separate Eligible Account or Accounts created and maintained by the Master Servicer pursuant to Section 3.07 with a depository institution in the name of the Master Servicer for the benefit of the Trustee on behalf of Certificateholders and designated “Wells Fargo Bank, N.A., for the benefit of U.S. Bank National Association, in trust for the registered Holders of MASTR Asset Securitization Trust 2006-1, Mortgage Pass-Through Certificates Series 2006-1”.  The Collection Account may be deemed to be a sub-account of the Distribution Account.

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

Compensating Interest:  With respect to any Distribution Date and any Servicer, the amount required to be paid by such Servicer under the related Servicing Agreement in connection with Prepayment Interest Shortfalls that occur on Mortgage Loans serviced by such Servicer for the related Distribution Date.  If a Servicer fails to make its required payment of Compensating Interest on any Distribution Date, the Master Servicer will be required to make such payment of Compensating Interest to the same extent that such Servicer was required to make such payment of Compensating Interest.

Component:  Component 1-A-5-1, Component 1-A-5-2 and Component 1-A-5-3, as applicable. 

Cooperative Corporation: With respect to any Cooperative Loan, the cooperative apartment corporation that holds legal title to the related Cooperative Property and grants occupancy rights to units therein to stockholders through Proprietary Leases or similar arrangements.

Cooperative Lien Search:  A search for (a) federal tax liens, mechanics’ liens, lis pendens, judgments of record or otherwise against (i) the Cooperative Corporation and (ii) the seller of the Cooperative Unit, (b) filings of Financing Statements and (c) the deed of the Cooperative Property into the Cooperative Corporation.

Cooperative Loan:  A Mortgage Loan that is secured by a first lien on and a perfected security interest in Cooperative Shares and the related Proprietary Lease granting exclusive rights to occupy the related Cooperative Unit in the building owned by the related Cooperative Corporation.

Cooperative Property:  With respect to any Cooperative Loan, all real property and improvements thereto and rights therein and thereto owned by a Cooperative Corporation including without limitation the land, separate dwelling units and all common elements.

Cooperative Shares:  With respect to any Cooperative Loan, the shares of stock issued by a Cooperative Corporation and allocated to a Cooperative Unit and represented by stock certificates.

Cooperative Unit:  With respect to any Cooperative Loan, a specific unit in a Cooperative Property.

Corporate Trust Office:  With respect to the Trustee, the designated office of the Trustee at which at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this Agreement is located at EP-MN-WS3D, 60 Livingston Avenue, St. Paul, Minnesota 55107, Attention: Structured Finance—MASTR Asset Securitization Trust 2006-1, which is the address to which appropriate notices to and correspondence with the Trustee should be directed.

With respect to the Trust Administrator, the designated office of the Trust Administrator at which at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this Agreement is located for certificate transfer purposes at Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust Services—MASTR 2006-1, and for all other purposes at 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Corporate Trust Services—MASTR 2006-1.

Covered Loan:  A Mortgage Loan categorized as Covered pursuant to Appendix E of Standard & Poor’s Glossary.

Cross-Over Date:  The Distribution Date on which the aggregate Class Principal Balance of the Subordinate Certificates has been reduced to zero.

Custodian:  Wells Fargo, and any successor thereto appointed hereunder.  

Cut-off Date:  March 1, 2006.

Cut-off Date Pool Balance:  $419,235,123.

Cut-off Date Principal Balance:  As to any Mortgage Loan, the Scheduled Principal Balance thereof as of the close of business on the Cut-off Date.

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

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

Definitive Certificates:  Any Certificate evidenced by a Physical Certificate and any Certificate issued in lieu of a Book-Entry Certificate pursuant to Section 5.02(e).

Deleted Mortgage Loan:  Any Mortgage Loan that is required to be repurchased pursuant to Section 2.02 or 2.03. 

Denomination:  With respect to each Certificate, the amount set forth on the face thereof as the “Initial Certificate Principal Balance of this Certificate” or the “Initial Notional Amount of this Certificate” or, if neither of the foregoing, the Percentage Interest appearing on the face thereof.

With respect to any Component, the principal balance of that Component on the date of the initial issuance of the Certificates.

Depositor:  Mortgage Asset Securitization Transactions, Inc., a Delaware corporation, or its successor in interest.

Depository:  The initial Depository shall be The Depository Trust Company, the nominee of which is CEDE & Co., as the registered Holder of the Book-Entry Certificates.  The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of New York.

Depository Participant:  A broker, dealer, bank or other financial institution or other Person for whom from time to time a Depository effects Book-Entry transfers and pledges of securities deposited with the Depository.

Determination Date:  The date on which a Servicer is required to determine the amount it is required to advance pursuant to the applicable Servicing Agreement.

Discount Mortgage Loan:  With regard to any Collateral Group, any Mortgage Loan in such Collateral Group with a Net Mortgage Rate that is less than the related Required Coupon as of the Cut-off Date.  There are no Discount Mortgage Loans in Collateral Group 2.

Distribution Account:  The separate Eligible Account created and maintained by the Trust Administrator pursuant to Section 3.07 in the name of the Trust Administrator for the benefit of the Certificateholders and designated “Wells Fargo Bank, N.A., in trust for registered Holders of MASTR Asset Securitization Trust 2006-1, Mortgage Pass-Through Certificates, Series 2006-1.”  Funds in the Distribution Account shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement. 

Distribution Account Deposit Date:  As to any Distribution Date, one Business Day prior to such Distribution Date.

Distribution Date:  The 25th day of each calendar month after the initial issuance of the Certificates, or if such 25th day is not a Business Day, the next succeeding Business Day, commencing in April 2006.

Distribution Date Statement:  The statement delivered to the Certificateholders pursuant to Section 4.04.

Downey:  Downey Savings and Loan Association, F.A., and its successors and assigns, in its capacity as Servicer of the Downey Mortgage Loans.

Downey Mortgage Loans:  The Mortgage Loans for which Downey is listed as “Servicer” on the Mortgage Loan Schedule.

Downey Servicing Agreement:  Solely with respect to the Downey Mortgage Loans, the Master Loan Purchase and Servicing Agreement, dated as of August 1, 2002, between the Transferor, as purchaser, and Downey, as seller and as servicer, and as the same may be amended from time to time, and any assignments and conveyances related to the Downey Mortgage Loans.

Due Date:  With respect to any Distribution Date, the first day of the month in which the related Distribution Date occurs.

Eligible Account:  Any of (i) an account or accounts maintained with a federal or state chartered depository institution or trust company the short-term unsecured debt obligations of which (or, in the case of a depository institution or trust company that is the principal subsidiary of a holding company, the debt obligations of such holding company) have the highest short term ratings of each Rating Agency at the time any amounts are held on deposit therein, or (ii) an account or accounts in a depository institution or trust company in which such accounts are insured by the FDIC (to the limits established by the FDIC) and the uninsured deposits in which accounts are otherwise secured such that, as evidenced by an Opinion of Counsel delivered to the Trust Administrator and to each Rating Agency, the Certificateholders have a claim with respect to the funds in such account or a perfected first priority security interest against any collateral (which shall be limited to Permitted Investments) securing such funds that is superior to claims of any other depositors or creditors of the depository institution or trust company in which such account is maintained, or (iii) a non-interest bearing segregated trust account or accounts maintained with (a) the trust department of a federal or state chartered depository institution or (b) a trust company, acting in its fiduciary capacity or (iv) any other account acceptable to each Rating Agency, as stated by each such Rating Agency in writing.  Eligible Accounts may bear interest, and may include, if otherwise qualified under this definition, accounts maintained with the Trust Administrator.

Eligible Substitute Mortgage Loan:  With respect to a Mortgage Loan substituted by the Transferor for a Deleted Mortgage Loan, a Mortgage Loan which must, on the date of such substitution, (i) have a Scheduled Principal Balance, after deduction of the principal portion of the Scheduled Payment due in the month of substitution (or, in the case of a substitution of more than one mortgage loan for a Deleted Mortgage Loan, an aggregate principal balance), not in excess of, and not more than 10% less than the Scheduled Principal Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a rate no lower than and not more than 1% per annum higher than, that of the Deleted Mortgage Loan; (iii) have a Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (iv) have a remaining term to maturity no greater than (and not more than one year less than that of) the Deleted Mortgage Loan; (v) comply with each representation and warranty set forth in Section 2.03 hereof; (vi) be the same credit grade category as the Deleted Mortgage Loan; (vii) have the same prepayment penalty term; and (viii) not be a Cooperative Loan unless the Deleted Mortgage Loan was a Cooperative Loan.  Any Mortgage Loan substituted for a Discount Mortgage Loan shall for all purposes of this Agreement be treated as having the same interest rate as the Mortgage Loan it replaced, except that any excess interest shall be paid to the Class 30-A-X Certificates.

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

ERISA Qualifying Underwriting:  A best efforts or firm commitment underwriting or private placement that meets the requirements (without regard to the ratings requirements) of an Underwriter’s Exemption.

ERISA-Restricted Certificate:  As specified in the Preliminary Statement.

Escrow Account:  The Eligible Account or Accounts established and maintained pursuant to Section 3.08 hereof.

EverBank:  EverBank, and its successors and assigns, in its capacity as Servicer of the EverBank Mortgage Loans.

EverBank Mortgage Loans:  The Mortgage Loans for which EverBank is listed as “Servicer” on the Mortgage Loan Schedule.

EverBank Servicing Agreement:  Solely with respect to the EverBank Mortgage Loans, the Servicing Agreement, dated as of April 1, 2005, between the Transferor, as purchaser, and EverBank, as servicer, and as the same may be amended from time to time, and any assignments and conveyances related to the EverBank Mortgage Loans.

Excess Loss:  With respect to any Mortgage Loan, the amount of any (i) Fraud Loss realized after the Fraud Loss Coverage Termination Date, (ii) Special Hazard Loss realized after the Special Hazard Coverage Termination Date or (iii) Deficient Valuation realized after the Bankruptcy Coverage Termination Date.

Excess Proceeds:  With respect to any Liquidated Loan, the amount, if any, by which the sum of any Liquidation Proceeds of such Mortgage Loan received in the calendar month in which such Mortgage Loan became a Liquidated Loan, exceeds (i) the Scheduled Principal Balance of such Liquidated Loan as of the Due Date in the month in which such Mortgage Loan became a Liquidated Loan plus (ii) accrued interest at the Mortgage Rate from the Due Date as to which interest was last paid or advanced (and not reimbursed) to Certificateholders up to the Due Date applicable to the Distribution Date immediately following the calendar month during which such liquidation occurred.

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

Fair Market Value Call Price:  With respect to each Mortgage Loan (not including REO Properties) to be purchased pursuant to Section 10.01(a) hereof, the fair market value of such Mortgage Loan (to be determined pursuant to a bid procedure set forth in Section 10.01(b) hereof) plus accrued and unpaid interest thereon at the applicable Net Mortgage Rate. 

Fair Market Value Excess:  With respect to each Mortgage Loan to be purchased pursuant to Section 10.01(a) hereof, the excess, if any, of the Fair Market Value Call Price for such Mortgage Loan, over the Par Call Price for such Mortgage Loan. Any Fair Market Value Excess will not become part of the related Group Available Funds, but shall instead be distributed directly to the Holders of the Class A-LR Certificates pursuant to Section 4.02(i) hereof.

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.

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

Final Certification:  The certification required to be delivered by the Custodian not later than 90 days after the Closing Date to the Depositor, the Trustee and the Transferor in the form annexed hereto as Exhibit H pursuant to Section 2.02 of this Agreement.

Final Scheduled Distribution Date:  With respect to the Group 4, Class 15-PO and Class 15-A-X Certificates, the Distribution Date in February 2021.  With respect to the Certificates, other than the Group 4, Class 15-A-X and Class 15-PO Certificates, the Distribution Date in May 2036.

Financing Statement:  A financing statement in the form of a UCC-1 or UCC-3, as applicable, filed pursuant to the Uniform Commercial Code to perfect a security interest in the Cooperative Shares and Pledge Instruments.

Fitch:  Fitch, Inc., or any successor thereto.  If Fitch is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to Fitch shall be One State Street Plaza, New York, NY 10004, Attention:  MBS Monitoring MASTR Asset Securitization Trust 2006-1, or such other address as Fitch may hereafter furnish to each party to this Agreement.

Form 8-K Disclosure Information:  As defined in Section 3.22.

Fraud Loan:  A Liquidated Loan as to which a Fraud Loss has occurred.

Fraud Loss Coverage Amount:  As of the Closing Date, $12,577,053.68 subject to reduction from time to time by the aggregate amount of Fraud Losses that would have been previously allocated to the Subordinate Certificates in the absence of the Loss Allocation Limitation since the Cut-off Date.  In addition, such Fraud Loss Coverage Amount will be reduced as follows:  (a) on April 1, 2007, to an amount equal to $8,384,702.45 less the aggregate amount of Fraud Losses that would have been previously allocated to the Subordinate Certificates in the absence of the Loss Allocation Limitation since the Cut-off Date, (b) on April 1, 2008, to an amount equal to $8,384,702.45 less the aggregate amount of Fraud Losses that would have been previously allocated to the Subordinate Certificates in the absence of the Loss Allocation Limitation since the Cut-off Date and (c) after the earlier to occur of the Cross-Over Date and April 1, 2011, to zero.

Fraud Loss Coverage Termination Date:  The point in time at which the Fraud Loss Coverage Amount is reduced to zero.

Fraud Losses:  Realized Losses on Mortgage Loans as to which a loss is sustained by reason of a default arising from fraud, dishonesty or misrepresentation in connection with the related Mortgage Loan, including a loss by reason of the denial of coverage under any related Primary Insurance Policy because of such fraud, dishonesty or misrepresentation as reported by the applicable Servicer to the Master Servicer.

Freddie Mac:  Freddie Mac, 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.

GMAC:  GMAC Mortgage Corporation, a Pennsylvania corporation, and its successors and assigns, in its capacity as Servicer of the GMAC Mortgage Loans.

GMAC Mortgage Loans:  The Mortgage Loans for which GMAC is listed as “Servicer” on the Mortgage Loan Schedule.

GMAC Servicing Agreement:  Solely with respect to the GMAC Mortgage Loans, the Servicing Agreement, dated as of November 1, 2001, between the Transferor and GMAC, as the same may be amended from time to time, and any assignments and conveyances related to the GMAC Mortgage Loans.

Grantor Trust:  That portion of the Trust, exclusive of any REMIC, that holds the rights of the Class P Certificateholders to receive Class P Prepayment Charges.

Group 1 Available Funds:  As to any Distribution Date, the sum of (a) the aggregate amount held in the Collection Account at the close of business on the related Servicer Remittance Date and, without duplication, on deposit in the Distribution Account at the close of business of the related Distribution Account Deposit Date, attributable to the Applicable Fraction of each of the Group 1 Mortgage Loans net of (i) the Amount Held for Future Distribution related to the Group 1 Mortgage Loans, (ii) amounts related to the Applicable Fraction of each of the Group 1 Mortgage Loans permitted to be withdrawn from the Collection Account pursuant to clauses (i)-(viii) inclusive and clauses (ix)(a)(ii) and (iii), (ix)(b), (x) and (xi) of Section 3.10(a), (iii) after giving effect to all amounts deposited to the Distribution Account from the Collection Account, amounts related to the Applicable Fraction of each of the Group 1 Mortgage Loans permitted to be withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive of Section 3.10(b) each as it relates to the Applicable Fraction of each of the Group 1 Mortgage Loans, and (iv) any amounts representing Fair Market Value Excess with respect to the Applicable Fraction of each Group 1 Mortgage Loan received in connection with the termination of the Trust Fund pursuant to Section 10.01 hereof, (b) the amount of the related Advances related to the Applicable Fraction of each of the Group 1 Mortgage Loans and (c) in connection with each Deleted Mortgage Loan in Collateral Group 1, the Purchase Price and Substitution Adjustment Amount of each such Mortgage Loan multiplied by the related Applicable Fraction of such Mortgage Loan required to be deposited on the related Distribution Account Deposit Date.

Group 1 Certificates:  As specified in the Preliminary Statement.

Group 1 Mortgage Loans:  The Pool 1 Mortgage Loans contributing to Collateral Group 1.

Group 1 PO Deferred Amount:  As to any Distribution Date and Collateral Group 1, on or prior to the Cross-Over Date, the sum of (i) the sum for all of the Discount Mortgage Loans of such Collateral Group of the applicable PO Percentage for each such Mortgage Loan of the principal portion of each Realized Loss, other than an Excess Loss, on such Discount Mortgage Loan, multiplied by the related Applicable Fraction, to be allocated to the Class 30-PO Certificates on such Distribution Date and (ii) all amounts previously allocated to the Class 30-PO Certificates in respect of such losses and not distributed to the Class 30-PO Certificates on prior Distribution Dates.  After the Cross-Over Date, the Group 1 PO Deferred Amount shall be zero.

Group 1 Principal Balance:  As to any Distribution Date, the aggregate for each Group 1 Mortgage Loan which was an Outstanding Mortgage Loan on the Due Date in the month preceding the month of such Distribution Date, of the product of (i) the Scheduled Principal Balance of such Mortgage Loan multiplied by (ii) the Applicable Fraction thereof.

Group 1 Priority Percentage:  With respect to any Distribution Date, a fraction, expressed as a percentage (a) the numerator of which is equal to the aggregate Class Principal Balances of the Class 1-A-13 and Class 1-A-14 Certificates immediately prior to such Distribution Date and (b) the denominator of which is equal to the aggregate Class Principal Balance of the Group 1 Certificates immediately prior to such Distribution Date.

Group 1 Priority Prepayment Distribution Percentage:  For any Distribution Date, the Group 1 Priority Percentage multiplied by the Stepdown Percentage for such Distribution Date.

Group 1 Priority Principal Distribution Amount:  For any Distribution Date, the lesser of (a) 98% of the Senior Optimal Principal Amount for Collateral Group 1 and (b) the sum of (A) the aggregate of the Group 1 Priority Scheduled Distribution Percentage multiplied by each of the amounts referred to in clauses (i) and (ii) of the definition “Senior Optimal Principal Amount” related to the Group 1 Certificates; and (B) the aggregate of the Group 1 Priority Prepayment Distribution Percentage multiplied by each of the amounts referred to in clauses (iii) and (iv) of the definition “Senior Optimal Principal Amount” related to the Group 1 Certificates; provided, however, that if a Bankruptcy Loss that is an Excess Loss is sustained with respect to a Group 1 Mortgage Loan that is not a Liquidated Loan, the Group 1 Priority Principal Distribution Amount will be reduced on the related Distribution Date by the Group 1 Priority Scheduled Distribution Percentage multiplied by the Senior Percentage related to the Group 1 Certificates multiplied by the applicable Non-PO Percentage relating to the Group 1 Mortgage Loans of the principal portion of such Bankruptcy Loss multiplied by the Applicable Fraction of such Mortgage Loan.

Group 1 Priority Scheduled Distribution Percentage:  With respect to (i) any Distribution Date prior to the Distribution Date in April 2011, 0%; and (ii) any Distribution Date on or after the Distribution Date in April 2011, the Group 1 Priority Percentage for such Distribution Date.

Group 1 Subordinate Amount:  As to any Distribution Date, the excess of (i) the sum of the related Applicable Fraction of the Scheduled Principal Balance of each of the Group 1 Mortgage Loans (net of the PO Percentage of each Group 1 Mortgage Loan) over (ii) the sum of the Class Principal Balances of the Group 1 Certificates (other than the related Interest Only Certificates).

Group 2 Available Funds:  As to any Distribution Date, the sum of (a) the aggregate amount held in the Collection Account at the close of business on the related Servicer Remittance Date and, without duplication, on deposit in the Distribution Account at the close of business of the related Distribution Account Deposit Date, attributable to the Applicable Fraction of each of the Group 2 Mortgage Loans net of (i) the Amount Held for Future Distribution related to the Group 2 Mortgage Loans, (ii) amounts related to the Applicable Fractions of the Group 2 Mortgage Loans permitted to be withdrawn from the Collection Account pursuant to clauses (i)-(viii) inclusive and clauses (ix)(a)(ii) and (iii), (ix)(b), (x) and (xi) of Section 3.10(a), (iii) after giving effect to all amounts deposited to the Distribution Account from the Collection Account, amounts related to the Applicable Fraction of each of the Group 2 Mortgage Loans permitted to be withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive of Section 3.10(b) each as it relates to the Applicable Fraction of each of the Group 2 Mortgage Loans, and (iv) any amounts representing Fair Market Value Excess with respect to the Applicable Fraction of each Group 2 Mortgage Loan received in connection with the termination of the Trust Fund pursuant to Section 10.01 hereof, (b) the amount of the related Advances related to the Applicable Fraction of each of the Group 2 Mortgage Loans and (c) in connection with each Deleted Mortgage Loan in Collateral Group 2, the Purchase Price and Substitution Adjustment Amount of each such Mortgage Loan multiplied by the related Applicable Fraction of such Mortgage Loan required to be deposited on the related Distribution Account Deposit Date.

Group 2 Certificates:  As specified in the Preliminary Statement.

Group 2 Mortgage Loans:  The Pool 1 Mortgage Loans contributing to Collateral Group 2.

Group 2 Principal Balance:  As to any Distribution Date, the aggregate for each Pool 2 Mortgage Loan contributing to Collateral Group 2 which was an Outstanding Mortgage Loan on the Due Date in the month preceding the month of such Distribution Date, of the product of (i) the Scheduled Principal Balance of such Mortgage Loans multiplied by (ii) the Applicable Fraction thereof.

Group 2 Subordinate Amount:  As to any Distribution Date, the excess of (i) the sum of the Applicable Fraction of the Scheduled Principal Balance of each Group 2 Mortgage Loan over (ii) the sum of the Class Principal Balances of the Group 2 Certificates (other than the related Interest Only Certificates).

Group 3 Available Funds:  As to any Distribution Date, the sum of (a) the aggregate amount held in the Collection Account at the close of business on the related Servicer Remittance Date and, without duplication, on deposit in the Distribution Account at the close of business of the related Distribution Account Deposit Date, attributable to the Group 3 Mortgage Loans net of (i) the Amount Held for Future Distribution related to the Group 3 Mortgage Loans, (ii) amounts related to the Group 3 Mortgage Loans permitted to be withdrawn from the Collection Account pursuant to clauses (i)-(viii) inclusive and clauses (ix)(a)(ii) and (iii), (ix)(b), (x) and (xi) of Section 3.10(a), (iii) after giving effect to all amounts deposited to the Distribution Account from the Collection Account, amounts related to the Group 3 Mortgage Loans permitted to be withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive of Section 3.10(b) each as it relates to the Group 3 Mortgage Loans, and (iv) any amounts representing Fair Market Value Excess with respect to a Group 3 Mortgage Loan received in connection with the termination of the Trust Fund pursuant to Section 10.01 hereof, (b) the amount of the related Advances related to the Group 3 Mortgage Loans and (c) in connection with any Deleted Mortgage Loan in Collateral Group 3, the aggregate of the Purchase Price and Substitution Adjustment Amount of each such Mortgage Loan required to be deposited on the related Distribution Account Deposit Date.

Group 3 Certificates:  As specified in the Preliminary Statement.

Group 3 Mortgage Loans:  The Pool 2 Mortgage Loans.

Group 3 PO Deferred Amount:  As to any Distribution Date and Collateral Group 3, on or prior to the Cross-Over Date, the sum of (i) the sum for all of the Discount Mortgage Loans of such Collateral Group of the applicable PO Percentage for each such Mortgage Loan of the principal portion of each Realized Loss, other than an Excess Loss, on such Discount Mortgage Loan to be allocated to the Class 30-PO Certificates on such Distribution Date and (ii) all amounts previously allocated to the Class 30-PO Certificates in respect of such losses and not distributed to the Class 30-PO Certificates on prior Distribution Dates.  After the Cross-Over Date, the Group 3 PO Deferred Amount shall be zero.

Group 3 Principal Balance:  As to any Distribution Date, the aggregate of the Scheduled Principal Balances of each Group 3 Mortgage Loan which were Outstanding Mortgage Loans on the Due Date in the month preceding the month of such Distribution Date.

Group 3 Subordinate Amount:  As to any Distribution Date, the excess of (i) the aggregate Scheduled Principal Balance of each Group 3 Mortgage Loan over (ii) the sum of the Class Principal Balances of the Group 3 Certificates.

Group 4 Available Funds:  As to any Distribution Date, the sum of (a) the aggregate amount held in the Collection Account at the close of business on the related Servicer Remittance Date and, without duplication, on deposit in the Distribution Account at the close of business of the related Distribution Account Deposit Date, attributable to the Group 4 Mortgage Loans net of (i) the Amount Held for Future Distribution related to the Group 4 Mortgage Loans, (ii) amounts related to the Group 4 Mortgage Loans permitted to be withdrawn from the Collection Account pursuant to clauses (i)-(viii) inclusive and clauses (ix)(a)(ii) and (iii), (ix)(b), (x) and (xi) of Section 3.10(a), (iii) after giving effect to all amounts deposited to the Distribution Account from the Collection Account, amounts related to the Group 4 Mortgage Loans permitted to be withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive of Section 4.10(b) each as it relates to the Group 4 Mortgage Loans, and (iv) any amounts representing Fair Market Value Excess with respect to a Group 4 Mortgage Loan received in connection with the termination of the Trust Fund pursuant to Section 10.01 hereof, (b) the amount of the related Advances related to the Group 4 Mortgage Loans and (c) in connection with any Deleted Mortgage Loan in Collateral Group 4, the aggregate of the Purchase Price and Substitution Adjustment Amount of each such Mortgage Loan required to be deposited on the related Distribution Account Deposit Date.

Group 4 Certificates:  As specified in the Preliminary Statement.

Group 4 Mortgage Loans:  The Pool 3 Mortgage Loans.

Group 4 PO Deferred Amount:  As to any Distribution Date and Collateral Group 4, on or prior to the Cross-Over Date, the sum of (i) the sum for all of the Discount Mortgage Loans of such Collateral Group of the applicable PO Percentage for each such Mortgage Loan of the principal portion of each Realized Loss, other than an Excess Loss, on such Discount Mortgage Loan to be allocated to the Class 15-PO Certificates on such Distribution Date and (ii) all amounts previously allocated to the Class 15-PO Certificates in respect of such losses and not distributed to the Class 15-PO Certificates on prior Distribution Dates.  After the Cross-Over Date, the Group 4 PO Deferred Amount shall be zero.

Group 4 Principal Balance:  As to any Distribution Date, the aggregate of the Scheduled Principal Balances of each Group 4 Mortgage Loan which were Outstanding Mortgage Loans on the Due Date in the month preceding the month of such Distribution Date.

Group 4 Subordinate Amount:  As to any Distribution Date, the excess of (i) the aggregate Scheduled Principal Balance of each Group 4 Mortgage Loan over (ii) the sum of the Class Principal Balances of the Group 4 Certificates.

Group Available Funds:  Any of the Group 1 Available Funds, Group 2 Available Funds, Group 3 Available Funds or Group 4 Available Funds, as applicable.

Group Balance:  Any of the Group 1 Principal Balance, Group 2 Principal Balance, Group 3 Principal Balance or Group 4 Principal Balance, as applicable.

Group Subordinate Amount:  Any of the Group 1 Subordinate Amount, Group 2 Subordinate Amount, Group 3 Subordinate Amount, or Group 4 Subordinate Amount, as applicable.

High Cost Loan:  A Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity Protection Act of 1994, (b) a “high cost home,” “threshold,” “covered,” (excluding New Jersey “Covered Home Loans” as that term is defined in clause (1) of the definition of that term in the New Jersey Home Ownership Security Act of 2002), “high risk home,” “predatory” or similar loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees) or (c) a Mortgage Loan categorized as High Cost pursuant to Appendix E of Standard and Poor’s Glossary.  

Home Loan:  A Mortgage Loan categorized as Home Loan pursuant to Appendix E of Standard & Poor’s Glossary.

HSBC:  HSBC Mortgage Corporation (USA) and its successors and assigns, in its capacity as Servicer of the HSBC Mortgage Loans.

HSBC Mortgage Loans:  The Mortgage Loans for which HSBC is listed as “Servicer” on the Mortgage Loan Schedule.

HSBC Servicing Agreement:  Solely with respect to the HSBC Mortgage Loans, the Master Loan Purchase and Servicing Agreement, dated as of June 1, 2002, between the Transferor, as purchaser, and HSBC, as seller and as servicer, as the same may be amended from time to time, and any assignments and conveyances related to the HSBC Mortgage Loans.

Independent:  When used with respect to any accountants, a Person who is “independent” within the meaning of Rule 2-01(B) of the Commission’s Regulation S-X.  Independent means 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 or indirect financial interest in such other Person or any affiliate of such other Person, (c) is not connected with such other Person or any affiliate of such other Person as an officer, employee, promoter, underwriter, trust administrator, trustee, partner, director or Person performing similar functions and (d) is not a member of the immediate family of a Person defined clause (b) or (c) above.

Indirect Participant:  A broker, dealer, bank or other financial institution or other Person that clears through or maintains a custodial relationship with a Depository Participant.

IndyMac:  IndyMac Bank, F.S.B., and its successors and assigns, in its capacity as Servicer of the IndyMac Mortgage Loans.

IndyMac Mortgage Loans:  The Mortgage Loans for which IndyMac is listed as “Servicer” on the Mortgage Loan.

IndyMac Servicing Agreement:  Solely with respect to the IndyMac Mortgage Loans, the Master Loan Purchase and Servicing Agreement, dated as of March 1, 2005, as amended by Amendment No. One, dated as of May 1, 2005, between the Transferor, as purchaser, and IndyMac, as seller and servicer, as the same may be amended from time to time.

Initial Bankruptcy Coverage Amount:  $100,000.  

Initial Certification:  The certification required to be executed by the Custodian and delivered on the Closing Date to the Depositor and the Trustee in the form annexed hereto as Exhibit G pursuant to Section 2.02 of this Agreement.

Initial LIBOR Rate:  4.80% per annum.  

Insolvency Proceeding:  With respect to any Person:  (i) any case, action, or proceeding with respect to such Person before any court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding up, or relief of debtors; or (ii) any general assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect of the creditors generally of such Person or any substantial portion of such Person’s creditors, in any case undertaken under federal, state or foreign law, including the Bankruptcy Code.

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

Insurance Proceeds:  Proceeds paid by an insurer pursuant to any Insurance Policy, in each case other than any amount included in such Insurance Proceeds in respect of Insured Expenses, to the extent such proceeds are not applied to the restoration of the related Mortgaged Property or released to the borrower in accordance with the applicable Servicer’s normal servicing procedures. 

Interest Accrual Period:  (i) With respect to each Class of Certificates (other than the LIBOR Certificates), the Subsidiary REMIC Regular Interests, the Middle REMIC Regular Interests and any Distribution Date, the period from and including the first day of the month immediately preceding the month in which such Distribution Date occurs, commencing March 1, 2006, to and including the last day of such immediately preceding month, on the basis of a 360-day year consisting of twelve 30-day months and (ii) with respect to the LIBOR Certificates and any Distribution Date, the period from and including the Distribution Date of the month immediately preceding the month in which such Distribution Date occurs (and in the case of the first Distribution Date, the 25th day of the preceding calendar month) to and including the day preceding such Distribution Date, provided that each Interest Accrual Period for the LIBOR Certificates will be treated as being a 30-day period.

Interest Only Certificates:  As specified in the Preliminary Statement.

Issuing Entity:  As defined in Section 2.01(c).

Latest Possible Maturity Date:  The Distribution Date following the third anniversary of the scheduled maturity date of the Mortgage Loan having the latest scheduled maturity date as of the Cut-off Date.

Lender-Paid Mortgage Insurance Loan:  Each of the Mortgage Loans identified on the Mortgage Loan Schedule as having a Lender-Paid Mortgage Insurance Rate.

Lender-Paid Mortgage Insurance Rate:  With respect to any Lender-Paid Mortgage Insurance Loan, a per annum rate equal to the percentage indicated on the Mortgage Loan Schedule under the heading “Lender-Paid Mortgage Insurance Rate.”

LIBOR:  As to any Distribution Date, the arithmetic mean of the London Interbank offered rate quotations for one month U.S. Dollar deposits, as determined by the Trust Administrator in accordance with Section 4.05.

LIBOR Business Day:  Any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the State of New York or in the City of London, England are required or authorized by law to be closed.

LIBOR Certificates:  As specified in the Preliminary Statement.

LIBOR Determination Date:  As to any Distribution Date, other than the first Distribution Date, and any Class of LIBOR Certificates, the second LIBOR Business Day prior to the beginning of the applicable Interest Accrual Period for such Class and such Distribution Date.

Liquidated Loan:  With respect to any Distribution Date, a defaulted Mortgage Loan (including any REO Property) which was liquidated in the calendar month preceding the month of such Distribution Date and as to which the applicable Servicer or the Master Servicer, as the case may be, has determined (in accordance with the applicable Servicing Agreement and this Agreement) that it has received all amounts it expects to receive in connection with the liquidation of such Mortgage Loan, including the final disposition of an REO Property.

Liquidation Proceeds:  Amounts, including Insurance Proceeds, received in connection with the partial or complete liquidation of defaulted Mortgage Loans, whether through trustee’s sale, foreclosure sale or otherwise or amounts received in connection with any condemnation or partial release of a Mortgaged Property and any other proceeds received in connection with an REO Property, less the sum of related unreimbursed Servicing Fees, Servicing Advances and Advances.

Loan-to-Value Ratio:  With respect to any Mortgage Loan and as to any date of determination, the fraction (expressed as a percentage) the numerator of which is the principal balance of the related Mortgage Loan at such date of determination and the denominator of which is the Appraised Value of the related Mortgaged Property.  For purposes of representation (xxxi) of Schedule II, the Loan-to-Value Ratio will be the loan-to-value ratio calculated in accordance with applicable state laws regarding primary mortgage insurance.

Loan Pool 1:  The Pool 1 Mortgage Loans, collectively.

Loan Pool 2:  The Pool 2 Mortgage Loans, collectively.

Loan Pool 3:  The Pool 3 Mortgage Loans, collectively.

Loan Seller:  With respect to any Mortgage Loan, the entity that sold such Mortgage Loan to the Transferor.

Loss Allocation Limitation:  As defined in Section 4.03(c) hereof.

Lost Mortgage Note:  Any Mortgage Note the original of which was permanently lost or destroyed and has not been replaced.

Majority in Interest:  As to any Class of Regular Certificates, the Holders of Certificates of such Class evidencing, in the aggregate, at least 51% of the Percentage Interests evidenced by all Certificates of such Class.

Master REMIC:  As specified in the Preliminary Statement.

Master Servicer:  Wells Fargo Bank, N.A., a national banking association, and its successors and assigns, in its capacity as Master Servicer hereunder.

Master Servicer Event of Termination:  As defined in Section 7.01 hereof.

Master Servicing Compensation:  All investment earnings on amounts on deposit in the Collection Account.

Master Servicing Officer:  Any officer of the Master Servicer involved in, or responsible for, the administration and master servicing of the Mortgage Loans.

MERS:  As defined in Section 2.01.

Middle REMIC:  As specified in the Preliminary Statement.

Middle REMIC Regular Interest:  As specified in the Preliminary Statement.

Moody’s:  Moody’s Investors Service, Inc., or any successor thereto.  If Moody’s is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to Moody’s shall be Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:  Residential Mortgage Monitoring Group, or such other address as Moody’s may hereafter furnish to each other party to this Agreement.

Mortgage:  The mortgage, deed of trust or other instrument creating a first lien on an estate in fee simple or leasehold interest in real property securing a Mortgage Note.

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

Mortgage Loan Purchase Agreement:  The Mortgage Loan Purchase Agreement, dated as of March 1, 2006, between the Transferor and the Depositor.

Mortgage Loan Schedule:  The list of Mortgage Loans (as from time to time amended by the Custodian to reflect the addition of Eligible Substitute Mortgage Loans and the deletion of Deleted Mortgage Loans pursuant to the provisions of this Agreement) transferred to the Trustee as part of the Trust Fund and from time to time subject to this Agreement, attached hereto as Schedule I, setting forth the following information with respect to each Mortgage Loan:  (1) the Mortgage Loan identifying number; (2) the Mortgagor’s first and last name; (3) the street address of the Mortgaged Property including the city, state and zip code; (4) the original principal balance of the Mortgage Loan; (5) the Scheduled Principal Balance of the Mortgage Loan as of the close of business on the Cut-off Date; (6) the unpaid principal balance of the Mortgage Loan as of the close of business on the Cut-off Date; (7) the last scheduled Due Date on which a Scheduled Payment was applied to the Scheduled Principal Balance; (8) the last Due Date on which a Scheduled Payment was actually applied to the unpaid principal balance; (9) the Mortgage Rate in effect immediately following origination; (10) the Mortgage Rate in effect immediately following the Cut-off Date (if different from (9)); (11) the amount of the Scheduled Payment at origination; (12) the amount of the Scheduled Payment as of the Cut-off Date (if different from (11)); (13) a code indicating whether the Mortgaged Property is owner occupied, a second home or an investor property; (14) a code indicating whether the Mortgaged Property is a single family residence, a two-family residence, a three-family residence, a four-family residence, a planned unit development, a condominium or a Cooperative Unit; (15) a code indicating the loan purpose (i.e., purchase, rate/term refinance, cash out refinance); (16) the stated maturity date; (17) the original months to maturity; (18) the remaining months to maturity from the Cut-off Date based on the original amortization schedule and, if different, the remaining months to maturity expressed in the same manner but based on the actual amortization schedule; (19) the origination date of the Mortgage Loan; (20) the Loan-to-Value Ratio at origination; (21) the date on which the first Scheduled Payment was due on the Mortgage Loan after the origination date; (22) a code indicating the documentation style of the Mortgage Loan; (23) a code indicating if the Mortgage Loan is subject to a Primary Insurance Policy and, if so, the name of the Qualified Mortgage Insurer, the certificate number and the coverage amount of the Primary Insurance Policy; (24) the Servicing Fee Rate; (25) a code indicating whether the Mortgage Loan is subject to a prepayment penalty and, if so, the term of such prepayment penalty and whether the same shall be a Class P Prepayment Charge; (26) the credit score (or mortgage score) of the Mortgagor; (27) the debt-to-income ratio of the Mortgage Loan; (28) a code indicating the originator of the Mortgage Loan; (29) a code indicating which Loan Pool such Mortgage Loan is included in; (30) the date on which the Loan was transferred to the Transferor; (31) the initial Servicer; (32) a code indicating whether the Mortgage Loan is a Cooperative Loan, and (33) a code indicating if the Mortgage Loan is subject to a “lender-paid” Primary Insurance Policy, and if so, the name of the Qualified Mortgage Insurer, the certificate number and the coverage amount of the Primary Insurance Policy, and the Lender-Paid Mortgage Insurance Rate.

Mortgage Loans:  Such of the mortgage loans and cooperative loans transferred and assigned to the Trustee pursuant to the provisions hereof as from time to time are held as a part of the Trust Fund (including any REO Property), the mortgage loans so held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or other acquisition of title of the related Mortgaged Property.  With respect to each Mortgage Loan that is a Cooperative Loan, if any, “Mortgage Loan” shall include, but not be limited to, the related Mortgage Note, Security Agreement, Assignment of Proprietary Lease, Recognition Agreement, Cooperative Shares and Proprietary Lease and, with respect to each Mortgage Loan other than a Cooperative Loan, “Mortgage Loan” shall include, but not be limited to the related Mortgage and the related Mortgage Note.

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

Mortgage Rate:  The annual rate of interest borne by a Mortgage Note from time to time.

Mortgaged Property:  The underlying real property securing a Mortgage Loan or, with respect to a Cooperative Loan, the related Cooperative Shares and Proprietary Lease.

Mortgagor:  The obligor(s) on a Mortgage Note.

National City:  National City, and its successors and assigns, in its capacity as Servicer of the National City Mortgage Loans to the Transferor.

National City Mortgage Loans:  The Mortgage Loans for which National City is listed as “Servicer” on the Mortgage Loan Schedule.

National City Servicing Agreement:  Solely with respect to the National City Mortgage Loans, the Second Amended and Restated Master Seller’s Warranties and Servicing Agreement dated as of October 1, 2001 as amended and restated through and including May 1, 2004, between the Transferor and National City, as the same may be amended from time to time, and any assignments and conveyances related to the National City Mortgage Loans.

Net Mortgage Rate:  As to each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage Rate less (i) the related Servicing Fee Rate and (ii) the Lender-Paid Mortgage Insurance Fee Rate, if applicable.  For purposes of determining whether any Eligible Substitute Mortgage Loan is a Discount Mortgage Loan or a Non-Discount Mortgage Loan and for purposes of calculating the applicable PO Percentage and applicable Non-PO Percentage, each Eligible Substitute Mortgage Loan shall be deemed to have a Net Mortgage Rate equal to the Net Mortgage Rate of the Deleted Mortgage Loan for which it is substituted.

Net Prepayment Interest Shortfalls:  As to any Distribution Date and Collateral Group, the amount by which the aggregate of Prepayment Interest Shortfalls for that Collateral Group during the related Prepayment Period exceeds the amount of Compensating Interest available to such Collateral Group for such Distribution Date.

Non-Discount Mortgage Loan:  With respect to any Collateral Group, any Mortgage Loan with a Net Mortgage Rate that is greater than or equal to the related Required Coupon as of the Cut-off Date.  

Non-PO Percentage:  As to any Mortgage Loan (a) that is a Discount Mortgage Loan, a fraction (expressed as a percentage) the numerator of which is the Net Mortgage Rate of such Discount Mortgage Loan and the denominator of which is the related Required Coupon and (b) that is a Non-Discount Mortgage Loan, 100%.

Non-PO Recoveries:  With respect to any Collateral Group and any Distribution Date, an amount that is equal to the excess, if any, of  (A) the amount of Recoveries on the Mortgage Loans of such Collateral Group for such Distribution Date, over (B) the amount of PO Recoveries for such Collateral Group for such Distribution Date.

Nonrecoverable Advance:  Any portion of an Advance previously made or proposed to be made by the applicable Servicer or the Master Servicer, as the case may be, that, in the good faith judgment of the applicable Servicer or the Master Servicer, will not be ultimately recoverable by the applicable Servicer or the Master Servicer from the related Mortgagor, related Liquidation Proceeds or otherwise.

Notice of Final Distribution:  The notice to be provided pursuant to Section 10.02 to the effect that final distribution on any of the Certificates shall be made only upon presentation and surrender thereof.

Notional Amount:  With respect to any Distribution Date and the Class 15-A-X Certificates, an amount equal to the product of (x) the aggregate Scheduled Principal Balance of the Non-Discount Mortgage Loans in Collateral Group 4 and (y) a fraction, (a) the numerator of which is the weighted average of the Stripped Interest Rates for the Non-Discount Mortgage Loans in Collateral Group 4 and (b) the denominator of which is 5.750% per annum.

With respect to any Distribution Date and the Class 30-A-X Certificates, an amount equal to the product of (x) the aggregate Scheduled Principal Balance of the Non-Discount Mortgage Loans in Collateral Group 2 and Collateral Group 3 and (y) a fraction, (a) the numerator of which is the weighted average of the Stripped Interest Rates for the Non-Discount Mortgage Loans in Collateral Group 2 and Collateral Group 3 and (b) the denominator of which is 6.000% per annum.

With respect to any Distribution Date and the Class 2-A-2 Certificates, the Class Principal Balance of the Class 2-A-1 Certificate immediately prior to such Distribution Amount.

Offered Certificates:  As specified in the Preliminary Statement.

Officer’s Certificate:  A certificate (i) signed by the Chairman of the Board, the Vice Chairman of the Board, the President, a Managing Director, a Vice President (however denominated), an Assistant Vice President, the Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant Secretaries of the Depositor or the Master Servicer, or (ii) if provided for in this Agreement, signed by a Master Servicing Officer, as the case may be, and delivered to the Depositor, the Trustee and the Trust Administrator, as the case may be, as required by this Agreement.

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

Optional Termination:  The termination of the Trust created hereunder in connection with the purchase of the Mortgage Loans pursuant to Section 10.01(a) hereof.

Order:  A final nonappealable order of a court or other body exercising jurisdiction in an Insolvency Proceeding by or against the Trust, to the effect that a Holder or the Trust Administrator is required to return or repay all or a portion of a Preference Amount.

Original Subordinate Principal Balance:  The aggregate of the Class Principal Balances of the Subordinate Certificates as of the Closing Date.

OTS:  The Office of Thrift Supervision.

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

(a)

Certificates theretofore canceled by the Trust Administrator or delivered to the Trust Administrator for cancellation; and

(b)

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

Outstanding Mortgage Loan:  As of any Due Date, a Mortgage Loan with a Scheduled Principal Balance greater than zero that was not the subject of a Principal Prepayment in Full prior to such Due Date and that did not become a Liquidated Loan prior to such Due Date.

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

PACs:  As specified in the Preliminary Statement.

Par Call Price:  With respect to each Mortgage Loan (not including REO Properties) to be purchased pursuant to Section 10.01(a) hereof, 100% of the unpaid principal balance of such Mortgage Loan, plus accrued and unpaid interest thereon at the applicable Net Mortgage Rate.

Pass-Through Rate:  For any interest bearing Class of Certificates, the per annum rate set forth or calculated in the manner described in the Preliminary Statement.

Percentage Interest:  As to any Certificate, the percentage interest evidenced thereby in distributions required to be made on the related Class, such percentage interest being set forth on the face thereof or equal to the percentage obtained by dividing the Denomination of such Certificate by the aggregate of the Denominations of all Certificates of the same Class.  

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

(a)

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

(b)

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

(c)

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

(d)

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

(e)

demand or time deposits or certificates of deposit issued by any bank or trust company or savings institution to the extent that such deposits are fully insured by the FDIC and are then rated in the highest long-term and the highest short-term ratings of each Rating Agency for such securities, or such lower ratings as will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by either Rating Agency;

(f)

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

(g)

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

(h)

securities (other than stripped bonds, stripped coupons or instruments sold at a purchase price in excess of 115% of the face amount thereof) bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any state thereof which, at the time of such investment, have the highest rating of each Rating Agency, or such lower rating as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by either Rating Agency, as evidenced by a signed writing delivered by each Rating Agency;

(i)

units of a taxable money market portfolio having the highest rating assigned by each Rating Agency and restricted to obligations issued or guaranteed by the United States of America or entities whose obligations are backed by the full faith and credit of the United States of America and repurchase agreements collateralized by such obligations;

(j)

any mutual fund, money market fund, common trust fund or other pooled investment vehicle, the assets of which are limited to instruments that otherwise would constitute Permitted Investments hereunder, including any such fund that is managed by the Trust Administrator or Master Servicer or any affiliate of the Trust Administrator or Master Servicer or for which the Trust Administrator or Master Servicer or any affiliate of the Trust Administrator or Master Servicer acts as an adviser as long as such fund is rated at least AAAm by each Rating Agency; and

(k)

such other investments bearing interest or sold at a discount acceptable to each Rating Agency as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by either Rating Agency, as evidenced by a signed writing delivered by each Rating Agency; 

provided that no such instrument shall be a Permitted Investment if such instrument evidences the right to receive interest only payments with respect to the obligations underlying such instrument.

Permitted Transferee:  Any Person other than (i) the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, international organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except certain farmers’ cooperatives described in section 521 of the Code) which is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by section 511 of the Code on unrelated business taxable income) on any excess inclusions (as defined in section 860E(c)(l) of the Code) with respect to any Residual Certificate, (iv) rural electric and telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a citizen or resident of the United States, a corporation, partnership (except as provided in applicable Treasury Regulations), or other entity created or organized in or under the laws of the United States, any state thereof or the District of Columbia, an estate whose income is subject to United States federal income tax regardless of its source or a trust if a court within the United States is able to exercise primary supervision over the administration of the Trust and one or more Persons described in this clause (v) have the authority to control all substantial decisions of the Trust (or, to the extent provided in applicable Treasury Regulations, certain trusts in existence on August 20, 1996 which are eligible to elect to be treated as United States persons) unless such Person has furnished the transferor and the Trust Administrator with a duly completed Internal Revenue Service Form W-8ECI or any applicable successor form, (vi) any Person with respect to whom income on any Residual Certificate is attributable to a foreign permanent establishment or fixed base, within the meaning of an applicable income tax treaty, of such Person or any other Person and (vii) any other Person so designated by the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership Interest in a Residual Certificate to such Person may cause any REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates are outstanding.  The terms “United States,” “State” and “international organization” shall have the meanings set forth in section 7701 of the Code or successor provisions.  A corporation will not be treated as an instrumentality of the United States or of any State or political subdivision thereof for these purposes if all of its activities are subject to tax and, with the exception of Freddie Mac, a majority of its board of directors is not selected by such government unit.

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

PHH:  PHH Mortgage Corporation (formerly known as Cendant Mortgage Corporation), a New Jersey corporation, and its successors and assigns, in its capacity as Servicer of the PHH Mortgage Loans to the Transferor.

PHH Mortgage Loans:  The Mortgage Loans for which PHH is listed as “Servicer” on the Mortgage Loan Schedule.

PHH Servicing Agreement:  Solely with respect to the PHH Mortgage Loans, the Amended and Restated Mortgage Loan Flow Purchase, Sale and Servicing Agreement, dated as of November 1, 2003, between the Transferor and PHH, as the same may be amended from time to time, and any assignments and conveyances related to the PHH Mortgage Loans.

Physical Certificate:  As specified in the Preliminary Statement.

Pledge Instruments:  With respect to each Cooperative Loan, the Stock Power, the Assignment of Proprietary Lease and the Security Agreement.

PO Deferred Amount:  The Group 1 PO Deferred Amount, the Group 3 PO Deferred Amount and the Group 4 PO Deferred Amount, as applicable.

PO Principal Distribution Amount:  As to any Distribution Date and each of Collateral Group 1, Collateral Group 3 and Collateral Group 4, the sum for all of the Discount Mortgage Loans of such Collateral Group, if any, of the applicable PO Percentage (with respect to Collateral Group 1, multiplied by the related Applicable Fraction) of (a) the principal portion of each Scheduled Payment (without giving effect, prior to the Bankruptcy Coverage Termination Date, to any reductions thereof caused by any Debt Service Reductions or Deficient Valuations) due on such Mortgage Loan on the related Due Date, (b) the Scheduled Principal Balance of such Mortgage Loan if it was repurchased by the Transferor pursuant to this Agreement as of such Distribution Date, (c) the Substitution Adjustment Amount in connection with any Deleted Mortgage Loan related to such Collateral Group received with respect to such Distribution Date, (d) any Insurance Proceeds or Liquidation Proceeds allocable to recoveries of principal of such Mortgage Loan, to the extent such Mortgage Loan is not yet a Liquidated Loan, received during the calendar month preceding the month of such Distribution Date, (e) to the extent such Mortgage Loan became a Liquidated Loan during the month preceding the calendar month of such Distribution Date, the lesser of (i) the Scheduled Principal Balance of such Mortgage Loan and (ii) the amount of Liquidation Proceeds allocable to principal received during the month preceding the month of such Distribution Date with respect to such Mortgage Loan and (f) the sum of (i) any Principal Prepayments in full with respect to such Mortgage Loan received during the related Prepayment Period and (ii) all partial Principal Prepayments with respect to such Mortgage Loan applied during the related Prepayment Period; provided, however, that if a Bankruptcy Loss that is an Excess Loss is sustained with respect to a Discount Mortgage Loan in such Collateral Group that is not a Liquidated Loan, the PO Principal Distribution Amount will be reduced on the related Distribution Date by the applicable PO Percentage (with respect to Collateral Group 1, multiplied by the related Applicable Fraction) of the principal portion of such Bankruptcy Loss.

PO Percentage:  As to any Discount Mortgage Loan, 100% minus the Non-PO Percentage for such Discount Mortgage Loan.  As to any Non-Discount Mortgage Loan, 0%.

PO Recoveries:  With respect to Collateral Group 1, Collateral Group 3 and Collateral Group 4 and any Distribution Date, an amount equal to the lesser of (a) the Amount Available for PO Recoveries for such Collateral Group and (b) the PO Deferred Amount for such Collateral Group.

PO Recovery Excess: With respect to Collateral Group 1, Collateral Group 3 or Collateral Group 4 and any Distribution Date, the excess, if any of (a) the Amount Available for PO Recoveries for such Collateral Group over (b) the PO Deferred Amount for such Collateral Group.

Pool 1 Mortgage Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Pool 1 Mortgage Loans.

Pool 2 Mortgage Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Pool 2 Mortgage Loans.

Pool 3 Mortgage Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Pool 3 Mortgage Loans.

Prepayment Interest Shortfall:  As to any Distribution Date, Mortgage Loan and Principal Prepayment received or, in the case of partial Principal Prepayments, applied, during the applicable Prepayment Period, the amount, if any, by which one month’s interest at the related Net Mortgage Rate on such Principal Prepayment exceeds the amount of interest at the Net Mortgage Rate paid in connection with such Principal Prepayment.

Prepayment Period:  As to any Distribution Date, and with respect to any voluntary Principal Prepayment of a Mortgage Loan  the calendar month preceding the month in which such Distribution Date occurs. 

Primary Insurance Policy:  Each policy of primary mortgage guaranty insurance or any replacement policy therefor with respect to any Mortgage Loan.

Principal Only Certificates:  As specified in the Preliminary Statement.

Principal Prepayment:  Any payment of principal by a Mortgagor on a Mortgage Loan that is received in advance of its scheduled Due Date, excluding any prepayment penalty or premium thereon and is not accompanied by an amount representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.  Partial Principal Prepayments will be applied by the applicable Servicers in accordance with the terms of the related Servicing Agreements and in accordance with the terms of the related Mortgage Note, and to the extent the Mortgage Note does not provide otherwise, shall be applied in the Prepayment Period preceding the receipt thereof.

Principal Prepayment in Full:  Any Principal Prepayment made by a Mortgagor of the entire principal balance of a Mortgage Loan.

Private Certificate:  As specified in the Preliminary Statement.

Proprietary Lease:  The lease on a Cooperative Unit evidencing the possessory interest of the owner of the Cooperative Shares in such Cooperative Unit.

Prospectus Supplement:  The Prospectus Supplement dated March 28, 2006 relating to the Offered Certificates.

Protected Account:  An account established and maintained for the benefit of Certificateholders by each Servicer with respect to the related Mortgage Loans and with respect to REO Property pursuant to the respective Servicing Agreements.  Each Protected Account is required to be an Eligible Account.  

PCAOB:  The Public Company Accounting Oversight Board.

Purchase Price:  With respect to any Mortgage Loan required to be purchased by the Transferor pursuant to Section 2.02 or 2.03 hereof, an amount equal to (a) the sum of (i) 100% of the unpaid principal balance of the Mortgage Loan on the date of such purchase, (ii) accrued and unpaid interest thereon at the applicable Mortgage Rate from the date through which interest was last paid by the Mortgagor or the applicable Servicer or the Master Servicer, as the case may be, made an Advance in respect thereof (which was not reimbursed) to the Due Date in the month in which the Purchase Price is to be distributed to Certificateholders and (iii) in the event that such Mortgage Loan is repurchased by the Transferor due to a breach of the Transferor's representations and warranties listed in clauses (xiii) or (xxxiv) of Schedule II to this Agreement relating to applicable anti-predatory and abusive lending laws, any costs and damages incurred by the Trust in connection with a violation of a predatory or abusive lending law with respect to such Mortgage Loan, less (b) any Amounts Held for Future Distribution related to such Mortgage Loan with respect to the Distribution Date in the month in which the Purchase Price is to be distributed to Certificateholders.

Qualified Insurer:  A mortgage guaranty insurance company duly qualified as such under the laws of the state of its principal place of business and each state having jurisdiction over such insurer in connection with the insurance policy issued by such insurer, duly authorized and licensed in such states to transact a mortgage guaranty insurance business in such states and to write the insurance provided by the insurance policy issued by it, approved as a Fannie Mae approved mortgage insurer and having a claims paying ability rating of at least “AA” or equivalent rating by a nationally recognized statistical rating organization.  Any replacement insurer with respect to a Mortgage Loan must have at least as high a claims paying ability rating as the insurer it replaces had on the Closing Date.

Qualified Mortgage Insurer:  Any mortgage insurer that is Fannie Mae and Freddie Mac approved.

Rating Agency:  Each of the Rating Agencies specified in the Preliminary Statement.  If any such organization or a successor is no longer in existence, “Rating Agency” shall be such nationally recognized statistical rating organization, or other comparable Person, as is designated by the Depositor, notice of which designation shall be given to the Trustee, the Trust Administrator.  References herein to a given rating category of a Rating Agency shall mean such rating category without giving effect to any modifiers.

Realized Loss:  With respect to each Mortgage Loan that is a Liquidated Loan, an amount (not less than zero or more than the Scheduled Principal Balance of the Mortgage Loan) as of the date of such liquidation, equal to (i) the unpaid principal balance of the Liquidated Loan as of the date of such liquidation, plus (ii) interest at the Net Mortgage Rate from the Due Date as to which interest was last paid or advanced (and not reimbursed) to Certificateholders up to the Due Date in the month in which Liquidation Proceeds are required to be distributed on the Scheduled Principal Balance of such Liquidated Loan from time to time, minus (iii) the Liquidation Proceeds, if any, received during the month in which such liquidation occurred, to the extent applied as recoveries of interest at the Net Mortgage Rate and to principal of the Liquidated Loan.  With respect to each Mortgage Loan which has become the subject of a Deficient Valuation, if the principal amount due under the related Mortgage Note has been reduced, the difference between the principal balance of the Mortgage Loan outstanding immediately prior to such Deficient Valuation and the principal balance of the Mortgage Loan as reduced by the Deficient Valuation.

Recognition Agreement:  An Agreement among a Cooperative Corporation, a lender and a Mortgagor with respect to a Cooperative Loan whereby such parties (i) acknowledge that such lender may make, or intends to make, such Cooperative Loan, (ii) make certain agreements with respect to such Cooperative Loan.

Record Date:  With respect to any Distribution Date and any Class of Certificates (other than the LIBOR Certificates), the close of business on the last Business Day of the month preceding the month in which such Distribution Date occurs and, with respect to the LIBOR Certificates, the close of business on the Business Day immediately preceding such Distribution Date.

Recovery:  With respect to any Distribution Date and any Mortgage Loan, an amount, net of any reimbursable expenses, received in respect of principal on such Mortgage Loan during the related Prepayment Period, which has previously been allocated as a Realized Loss to a Class of Certificates.

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

Regular Certificates:  As specified in the Preliminary Statement.

Regulation AB:  Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed Reg. 1,506, 1.531 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time.

Relevant Servicing Criteria:  The Servicing Criteria applicable to each party, as set forth on Exhibit X attached hereto.  Multiple parties can have responsibility for the same Relevant Servicing Criteria.  With respect to a Servicing Function Participant engaged by any of the Master Servicer, the Trust Administrator or any Servicer, the term Relevant Servicing Criteria may refer to a portion of the Relevant Servicing Criteria applicable to such parties.

Relief Act:  The Servicemembers Civil Relief Act, as amended or any comparable state or local statute (including the comparable provisions under the California Military and Veterans Code, as amended).

Relief Act Reduction:  With respect to any Distribution Date and any Mortgage Loan as to which there has been a reduction in the amount of interest collectible thereon for the most recently ended calendar month as a result of the application of the Relief Act, the amount, if any, by which (i) interest collectible on such Mortgage Loan for the most recently ended calendar month is less than (ii) interest accrued thereon for such month pursuant to the Mortgage Note.

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

REMIC Change of Law:  Any proposed, temporary or final regulation, revenue ruling, revenue procedure or other official announcement or interpretation relating to REMICs and the REMIC Provisions issued after the Closing Date.

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

REO Property:  A Mortgaged Property acquired by the Trust Fund through foreclosure, deed-in-lieu of foreclosure, repossession or otherwise in connection with a defaulted Mortgage Loan.

Reportable Event:  As defined in Section 9.12.

Reporting Servicer:  As defined in Section 9.12(b)(i).

Required Coupon:  With respect to (a) Collateral Group 1, 5.750% per annum, (b) Collateral Group 2, 7.000% per annum, (c) Collateral Group 3, 6.250% per annum and (d) Collateral Group 4, 5.750% per annum.

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

Residual Interests:  As specified in the Preliminary Statement.

Responsible Officer:  When used with respect to the Trustee or the Trust Administrator, any Director, any Managing Director, any Associate, any Vice President, any Assistant Vice President, the Secretary, any Assistant Secretary, any Trust Officer or any other officer of the Trustee or Trust Administrator, as applicable, customarily performing functions similar to those performed by any of the above designated officers having direct responsibility for the administration of this Agreement and also to whom, with respect to a particular matter, such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

Restricted Classes:  As defined in Section 4.02(d).

S&P:  Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor thereto.  If S&P is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to S&P shall be Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041, Attention:  Residential Mortgage Monitoring Group, or such other address as S&P may hereafter furnish to each other party to this Agreement.

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

Sarbanes-Oxley Certification:  As defined in Section 9.12.

Scheduled Class Balance:  With respect to the PACs and any Distribution Date, the aggregate Class Principal Balance for the PACs set forth in Schedule IV hereto with respect to such Distribution Date.

With respect to the TACs and any Distribution Date, the aggregate Class Principal Balance for the TACs set forth in Schedule V hereto with respect to such Distribution Date.

Scheduled Payment:  The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal and/or interest on such Mortgage Loan which, unless otherwise specified herein, shall give effect to any related Debt Service Reduction and any Deficient Valuation that affects the amount of the monthly payment due on such Mortgage Loan.

Scheduled Principal Balance:  As to any Mortgage Loan and any Distribution Date, the unpaid principal balance of such Mortgage Loan as of such Due Date in the month preceding the month in which such Distribution Date occurs, as specified in the amortization schedule at the time relating thereto (before any adjustment to such amortization schedule by reason of any moratorium or similar waiver or grace period) after giving effect to any previous partial Principal Prepayments and Liquidation Proceeds allocable to principal received during the Prepayment Period for the prior Distribution Date (other than with respect to any Liquidated Loan), and to the payment of principal due on such Due Date and irrespective of any delinquency in payment by the related Mortgagor.  The Scheduled Principal Balance of any Mortgage Loan that has been prepaid in full or has become a Liquidated Loan during the related Prepayment Period shall be zero.

Securities Act:  The Securities Act of 1933, as amended.

Security Agreement: With respect to a Cooperative Loan, the agreement or mortgage creating a security interest in favor of the originator of the Cooperative Loan in the related Cooperative Shares.

Senior Certificates:  As specified in the Preliminary Statement.

Senior Final Distribution Date:  With respect to any Group, the Distribution Date on which the respective Class Principal Balances of the Senior Certificates in each such Group have each been reduced to zero.

Senior Optimal Principal Amount:  For any Distribution Date and any Collateral Group, the sum for all Mortgage Loans in such Collateral Group of (i) the Senior Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of: (a) the principal portion of each Scheduled Payment (without giving effect, prior to the Bankruptcy Coverage Termination Date, to any reductions thereof caused by any Debt Service Reductions or Deficient Valuations) due on each such Mortgage Loan on the related Due Date, (b) the principal portion of the Purchase Price of each such Mortgage Loan that was repurchased by the Transferor pursuant to this Agreement as of such Distribution Date, (c) the Substitution Adjustment Amount in connection with any Deleted Mortgage Loan related to such Collateral Group received with respect to such Distribution Date and (d) any Liquidation Proceeds (including Insurance Proceeds) allocable to recoveries of principal of Mortgage Loans related to such Collateral Group that are not yet Liquidated Loans received during the calendar month preceding the month of such Distribution Date, (ii) with respect to each such Mortgage Loan that became a Liquidated Loan during the calendar month preceding the month of such Distribution Date, the lesser of (a) the Senior Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the Scheduled Principal Balance of such Mortgage Loan, or (b) either (A) the Senior Prepayment Percentage, or (B) if an Excess Loss was sustained with respect to such Liquidated Loan during such prior calendar month, the Senior Percentage, of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the amount of the Liquidation Proceeds allocable to principal received with respect to such Mortgage Loan, (iii) the Senior Prepayment Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the sum of (a) all Principal Prepayments in Full received on the Mortgage Loans of such Collateral Group during the related Prepayment Period and (b) all partial Principal Prepayments on the Mortgage Loans of such Collateral Group applied during the related Prepayment Period, and (iv) with respect to any Distribution Date prior to the Cross-Over Date only, the Senior Prepayment Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the Non-PO Recoveries for such Collateral Group received during the related Prepayment Period; provided, however, that if a Bankruptcy Loss that is an Excess Loss is sustained with respect to such Mortgage Loan that is not a Liquidated Loan, the Senior Optimal Principal Amount will be reduced on the related Distribution Date by the Senior Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of such Bankruptcy Loss.

Senior Percentage:  As to any Distribution Date and Certificate Group, the lesser of (a) 100% and (b) the percentage equivalent of a fraction the numerator of which is the aggregate of the Class Principal Balances of each Class of Senior Certificates in such Certificate Group (other than the Interest Only Certificates related to such Certificate Group and the related Class PO Certificates) immediately preceding such Distribution Date and the denominator of which is the aggregate of the applicable Non-PO Percentage multiplied by the Scheduled Principal Balance of each Mortgage Loan (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) in the related Collateral Group for such Distribution Date.

Senior Prepayment Percentage:  With respect to any Certificate Group, and for any Distribution Date during the five years beginning on the first Distribution Date, 100%.  The Senior Prepayment Percentage for any Certificate Group and any Distribution Date occurring on or after the fifth anniversary of the first Distribution Date will, except as provided herein, be as follows:  for any Distribution Date in the first year thereafter, the Senior Percentage for such Certificate Group plus 70% of the related Subordinate Percentage for such Certificate Group for such Distribution Date; for any Distribution Date in the second year thereafter, the Senior Percentage for such Certificate Group plus 60% of the related Subordinate Percentage for such Certificate Group for such Distribution Date; for any Distribution Date in the third year thereafter, the Senior Percentage for such Certificate Group plus 40% of the related Subordinate Percentage for such Certificate Group for such Distribution Date; for any Distribution Date in the fourth year thereafter, the Senior Percentage for such Certificate Group plus 20% of the related Subordinate Percentage for such Certificate Group for such Distribution Date; and for any Distribution Date thereafter, the Senior Percentage for such Certificate Group for such Distribution Date (unless on any Distribution Date the Senior Percentage for any Certificate Group exceeds the initial Senior Percentage for such Certificate Group, in which case the Senior Prepayment Percentage for each Certificate Group for such Distribution Date will once again equal 100%).  Notwithstanding the foregoing, no decrease in the Senior Prepayment Percentage for any Certificate Group will occur unless both of the related Senior Stepdown Conditions are satisfied; provided, however, that if on any Distribution Date the Senior Prepayment Percentage is not permitted to decrease because one or both of the related Senior Stepdown Conditions are not satisfied, such Senior Stepdown Conditions shall be tested on each succeeding Distribution Date and if both Senior Stepdown Conditions are satisfied the Senior Prepayment Percentage for that Certificate Group shall decrease; and provided, further, that upon the occurrence of a decrease in the Senior Prepayment Percentage for any Certificate Group during one of the periods described in the definition of “Senior Stepdown Conditions,” such decrease shall remain in effect for the remainder of such period.

Senior Stepdown Conditions:  With respect to any Certificate Group, as of the last day of the month preceding the applicable Distribution Date as to which any decrease in the Senior Prepayment Percentage for such Certificate Group applies, (i) the aggregate Scheduled Principal Balance of all of the Mortgage Loans delinquent 60 days or more (including delinquent Mortgage Loans in bankruptcy, and all Mortgage Loans in foreclosure and REO Properties), as a percentage of the aggregate Class Principal Balance of the Subordinate Certificates on such Distribution Date, does not equal or exceed 50% and (ii) cumulative Realized Losses with respect to all of the Mortgage Loans do not exceed (a) with respect to the Distribution Date on the fifth anniversary of the first Distribution Date, 30% of the Original Subordinate Principal Balance, (b) with respect to the Distribution Date on the sixth anniversary of the first Distribution Date, 35% of the related Original Subordinate Principal Balance, (c) with respect to the Distribution Date on the seventh anniversary of the first Distribution Date, 40% of the related Original Subordinate Principal Balance, (d) with respect to the Distribution Date on the eighth anniversary of the first Distribution Date, 45% of the related Original Subordinate Principal Balance and (e) with respect to the Distribution Date on the ninth anniversary of the first Distribution Date, 50% of the related Original Subordinate Principal Balance.

Servicer:  Each of Cenlar, Downey, GMAC, HSBC, IndyMac, Nexstar, SunTrust and Wells Fargo, as applicable.

Servicer Remittance Date:  With respect to any Servicer and any Distribution Date, the 18th day of each calendar month, or if such 18th day is not a Business Day, either the immediately preceding Business Day or the immediately succeeding Business Day, as specified in the related Servicing Agreement.  

Servicing Advances:  All customary, reasonable and necessary “out of pocket” costs and expenses incurred in the performance by the Master Servicer of its master servicing obligations or the applicable Servicer, as the case may be, of its servicing obligations, including, but not limited to, the cost of (i) the preservation, restoration and protection of a Mortgaged Property, (ii) any expenses reimbursable to the Master Servicer or the applicable Servicer, as the case may be, pursuant to Section 3.11 and any enforcement or judicial proceedings, including foreclosures, (iii) the management and liquidation of any REO Property and (iv) compliance with the obligations under Section 3.09.

Servicing Agreements:

(a)

the Cenlar Servicing Agreement;

(b)

the Downey Servicing Agreement;

(c)

the EverBank Servicing Agreement;

(d)

the GMAC Servicing Agreement;

(e)

the HSBC Servicing Agreement;

(f)

the IndyMac Servicing Agreement;

(g)

the National City Servicing Agreement;

(h)

the PHH Servicing Agreement;

(i)

the SunTrust Servicing Agreement;

(j)

the Wells Fargo Servicing Agreement; and

(k)

the Assignment Agreements.

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

Servicing Fee:  As to each Mortgage Loan and any Distribution Date, an amount payable out of each full payment of interest received on such Mortgage Loan and equal to one twelfth of the Servicing Fee Rate multiplied by the Scheduled Principal Balance of such Mortgage Loan as of the Due Date in the month immediately preceding the month in which such Distribution Date occurs (after giving effect to any Scheduled Payments due on such Mortgage Loan on such Due Date), subject to reduction for any Compensating Interest payments required to be made by the applicable Servicer.

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

Servicing Function Participant:  Any Subservicer, Subcontractor or any other Person, other than any Servicer, the Master Servicer and the Trust Administrator, that is participating in the servicing function within the meaning of Regulation AB, unless such Person’s activities relate only to 5% or less of the Mortgage Loans (calculated by Aggregate Pool Principal Balance).

Special Hazard Coverage Termination Date:  The point in time at which the Special Hazard Loss Coverage Amount is reduced to zero.

Special Hazard Loss:  Any Realized Loss as reported by the applicable Servicer to the Master Servicer suffered by a Mortgaged Property on account of direct physical loss but not including (i) any loss of a type covered by a hazard insurance policy or a flood insurance policy required to be maintained with respect to such Mortgaged Property pursuant to Section 3.11 to the extent of the amount of such loss covered thereby, or (ii) any loss caused by or resulting from:

(a)

normal wear and tear;

(b)

fraud, conversion or other dishonest act on the part of the Trustee, the Trust Administrator, any Servicer the Master Servicer or any of their agents or employees (without regard to any portion of the loss not covered by any errors and omissions policy);

(c)

errors in design, faulty workmanship or faulty materials, unless the collapse of the property or a part thereof ensues and then only for the ensuing loss;

(d)

nuclear or chemical reaction or nuclear radiation or radioactive or chemical contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote or be in whole or in part caused by, contributed to or aggravated by a peril covered by the definition of the term “Special Hazard Loss”;

(e)

hostile or warlike action in time of peace and war, including action in hindering, combating or defending against an actual, impending or expected attack:

(i)  

by any government or sovereign power, de jure or de facto, or by any authority maintaining or using military, naval or air forces; or

(ii)  

by military, naval or air forces; or

(iii)

by an agent of any such government, power, authority or forces;

(f)

any weapon of war employing nuclear fission, fusion or other radioactive force, whether in time of peace or war; or

(g)

insurrection, rebellion, revolution, civil war, usurped power or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority or risks of contraband or illegal transportation or trade.

Special Hazard Loss Coverage Amount:  With respect to each Group and any Distribution Date, $4,214,949.22 less (i) the aggregate amount of Special Hazard Losses that would have been previously allocated to the Subordinate Certificates in the absence of the Loss Allocation Limitation and (ii) the related Adjustment Amount as of the most recent anniversary of March 1, 2006.  As of any Distribution Date on or after the Cross-Over Date, the Special Hazard Loss Coverage Amount shall be zero.  

All principal balances for the purpose of this definition will be calculated as of the first day of the calendar month preceding the month of such Distribution Date after giving effect to Scheduled Payments on the Mortgage Loans then due, whether or not paid.

Special Hazard Mortgage Loan:  A Liquidated Loan as to which a Special Hazard Loss has occurred.

Standard & Poor’s Glossary:  The current Standard & Poor’s LEVELS® Glossary, as may be in effect from time to time.

Startup Day:  The Closing Date.

Stepdown Percentage: With respect to any Distribution Date, the percentage indicated below:

	Distribution Date Occurring

	%

	April 2006 through March 2011

	0%

	April 2011 through March 2012

	30%

	April 2012 through March 2013

	40%

	April 2013 through March 2014

	60%

	April 2014 through March 2015

	80%

	After March 2015

	100%

Stock Power:  With respect to a Cooperative Loan, an assignment of the stock certificate or an assignment of the Cooperative Shares issued by the Cooperative Corporation.

Stripped Interest Rate:  With respect to each Non-Discount Mortgage Loan, the excess of the Net Mortgage Rate for such Mortgage Loan over the Required Coupon for such Mortgage Loan.

Subcontractor:  Any outsourcer that performs one or more discrete functions identified in Item 1122(d) of Regulation AB with respect to more than 5% but less than 10% of the Mortgage Loans under the direction or authority of the Master Servicer, the Trust Administrator, the Custodian or any Servicer (measured by Aggregate Pool Principal Balance of the Mortgage Loans, annually at the commencement of the calendar year prior to the year in which an Assessment of Compliance is required to be delivered, multiplied by a fraction, the numerator of which is the number of months during which such Subcontractor performs such discrete functions and the denominator of which is 12, or, in the case of the year in which the Closing Date occurs, the number of months elapsed in such calendar year).

Subordinate Certificates:  As specified in the Preliminary Statement.

Subordinate Optimal Principal Amount:  For any Distribution Date and Collateral Group, the sum for each Mortgage Loan in such Collateral Group of (i) the Subordinate Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of: (a) the principal portion of each Scheduled Payment (without giving effect, prior to the Bankruptcy Coverage Termination Date, to any reductions thereof caused by any Debt Service Reductions or Deficient Valuations) due on each such Mortgage Loan on the related Due Date, (b) the principal portion of the Purchase Price of each such Mortgage Loan that was repurchased by the Transferor pursuant to this Agreement as of such Distribution Date, (c) the Substitution Adjustment Amount in connection with any Deleted Mortgage Loan related to such Collateral Group received with respect to such Distribution Date and (d) any Liquidation Proceeds (including Insurance Proceeds) allocable to recoveries of principal of Mortgage Loans related to such Collateral Group that are not yet Liquidated Loans received during the calendar month preceding the month of such Distribution Date, (ii) with respect to each such Mortgage Loan that became a Liquidated Loan during the calendar month preceding the month of such Distribution Date, the portion of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the amount of the Liquidation Proceeds allocable to principal received with respect to such Mortgage Loan that was not included in clause (ii) of the definition of “Senior Optimal Principal Amount” with respect to such Distribution Date, (iii) the Subordinate Prepayment Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the sum of (A) all Principal Prepayments in full received on the Mortgage Loans of such Collateral Group during the related Prepayment Period and (B) all partial Principal Prepayments on the Mortgage Loans of such Collateral Group applied during the related Prepayment Period, and (iv) with respect to any Distribution Date prior to the Cross-Over Date only, the Subordinate Prepayment Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the Non-PO Recoveries for such Collateral Group received during the related Prepayment Period; provided, however, that if a Bankruptcy Loss that is an Excess Loss is sustained with respect to a Mortgage Loan in such Collateral Group that is not a Liquidated Loan, the Subordinate Optimal Principal Amount will be reduced on the related Distribution Date by the Subordinate Percentage of the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of such Bankruptcy Loss.

Subordinate Percentage:  As to any Distribution Date and any Certificate Group, 100% minus the Senior Percentage for such Certificate Group for such Distribution Date.

Subordinate Prepayment Percentage:  As to any Distribution Date and any Certificate Group, 100% minus the Senior Prepayment Percentage for such Certificate Group for such Distribution Date, except that, on any Distribution Date after the Senior Final Distribution Date for any Certificate Group, the Subordinate Prepayment Percentage for each such Certificate Group will equal 100%.

Subordinate Principal Distribution Amount:  With respect to the Subordinate Certificates, the aggregate amount which would be payable as principal on the Subordinate Certificates from Group 1 Available Funds, Group 2 Available Funds, Group 3 Available Funds and Group 4 Available Funds in the aggregate, after application of Group 1 Available Funds, Group 2 Available Funds, Group 3 Available Funds and Group 4 Available Funds in the aggregate (i) to make payments on the Senior Certificates, in accordance with Section 4.02(a)(i) items first and second and Section 4.02(e) and (ii) to make payments of Accrued Certificate Interest to the Subordinate Certificates in accordance with Section 4.02(a)(i) priority fifth.

Subservicer:  Any Person that (a) services Mortgage Loans on behalf of any Servicer pursuant to a subservicing agreement and is responsible for the performance of the material servicing functions required to be performed by such Servicer under the related Servicing Agreement that are identified in Item 1122(d) of Regulation AB with respect to 10% or more of the Mortgage Loans under the direction or authority of such Servicer (measured by Aggregate Pool Principal Balance of the Mortgage Loans, annually at the commencement of the calendar year prior to the year in which an Assessment of Compliance is required to be delivered, multiplied by a fraction, the numerator of which is the number of months during which such Subservicer services the related Mortgage Loans and the denominator of which is 12, or, in the case of the year in which the Closing Date occurs, the number of months elapsed in such calendar year).

Subsidiary REMIC :  As specified in the Preliminary Statement.

Subsidiary REMIC Regular Interest:  As specified in the Preliminary Statement.

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

SunTrust:  SunTrust Mortgage, Inc., a Virginia corporation, and its successors and assigns, in its capacity as Servicer of the SunTrust Mortgage Loans.

SunTrust Mortgage Loans:  The Mortgage Loans for which SunTrust is listed as “Servicer” on the Mortgage Loan Schedule.

SunTrust Servicing Agreement:  Solely with respect to the SunTrust Mortgage Loans, the Amended and Restated Purchase, Warranties and Servicing Agreement dated as of December 1, 2004, between the Transferor, as purchaser and SunTrust, as seller and as servicer, as the same may be amended from time to time, and any assignments and conveyances related to the SunTrust Mortgage Loans.

TACs:  As specified in the Preliminary Statement.

Tax Matters Person:  In the case of each REMIC created by this Agreement, the person designated as “tax matters person” in the manner provided under Treasury Regulations Section 1.860F-4(d) and Treasury Regulations Section 301.6231(a)(7)-1 for such REMIC.

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

Transferor:  UBS Real Estate Securities Inc., a Delaware corporation, seller of the Mortgage Loans to the Depositor pursuant to the Mortgage Loan Purchase Agreement.

Trust:  As defined in Section 2.01(c).

Trust Administrator:  Wells Fargo Bank, N.A., a national banking association, and its successors and assigns, in its capacity as Trust Administrator hereunder.

Trust Administrator Compensation:  All investment earnings on amounts on deposit in the Distribution Account.

Trust Fund:  The corpus of the trust created hereunder consisting of:  (a) the Mortgage Loan Purchase Agreement and the Servicing Agreements solely as each such Servicing Agreement relates to the Mortgage Loans being serviced by the related Servicer (other than those rights under the Servicing Agreements that do not relate to servicing of the Mortgage Loans (including, without limitation, the representations and warranties made by the applicable  Servicer (with respect to the Mortgage Loans sold to the Transferor) and the document delivery requirements of such Servicer and the remedies (including indemnification) available for breaches thereto), which rights were retained by the Transferor pursuant to the Assignment Agreements); (b) the Mortgage Loans and all interest and principal received on or with respect thereto after the Cut-off Date to the extent not applied in computing the Cut-off Date Principal Balance thereof; (c) the Collection Account and the Distribution Account, and all amounts deposited therein pursuant to the applicable provisions of this Agreement (other than, in the case of the Collection Account, any prepayment penalties (exclusive of the Class P Prepayment Charges) deposited therein which shall be retained by the Transferor); (d) property that secured a Mortgage Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; and (e) all proceeds of the conversion, voluntary or involuntary, of any of the foregoing.

Trustee:  U.S. Bank, and, if a successor trustee is appointed hereunder, such successor.

Undercollateralized Group:  With respect to any Certificate Group, any of such Certificate Groups with respect to which, on any Distribution Date, the aggregate Class Principal Balance of the Senior Certificates (other than the related Class PO Certificates and related Interest Only Certificates) related to such Certificate Group (after giving effect to distributions to be made on such Distribution Date) is greater than the Group Balance of the related Collateral Group (net of the applicable PO Percentage of the Scheduled Principal Balance of each Discount Mortgage Loan in such Collateral Group) for the following Distribution Date.

Underwriter’s Exemption:  Prohibited Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any substantially similar administrative exemption granted by the U.S. Department of Labor.

U.S. Bank:  U.S. Bank National Association, a national banking association, and its successors and assigns.

Voting Rights:  The portion of the voting rights of all of the Certificates which is allocated to any Certificate.  As of any date of determination, (a) the Interest Only Certificates will be entitled to 1% in the aggregate of all Voting Rights (such Voting Rights to be allocated among the Holders of Certificates of each such Class in accordance with their respective Percentage Interests), (b) 1% of all Voting Rights shall be allocated to the Class P Certificates and (c) the remaining Voting Rights (and the Voting Rights allocated to the Interest Only Certificates if there are no Interest Only Certificates) shall be allocated among Holders of the remaining Classes of Certificates in proportion to the Certificate Principal Balances of their respective Certificates on such date.

Wells Fargo:  Wells Fargo Bank, N.A., and its successors and assigns in its capacity as Master Servicer, Trust Administrator or Custodian, or as Servicer of the Wells Fargo Serviced Mortgage Loans, as the case may be, hereunder.

Wells Fargo Serviced Mortgage Loans:  The Mortgage Loans for which Wells Fargo is listed as “Servicer” on the Mortgage Loan Schedule.

Wells Fargo Servicing Agreement:  Solely with respect to the Wells Fargo Serviced Mortgage Loans, the Amended and Restated Servicing Agreement, dated as of November 1, 2005, between the Transferor and Wells Fargo, and as the same may be further amended from time to time, and any assignments and conveyances relating to the Wells Fargo Serviced Mortgage Loans.

Section 1.02

Certain Calculations.  

Unless otherwise specified herein, for purposes of determining amounts with respect to the Certificates and the rights and obligations of the parties hereto, all calculations of interest (other than as provided in the Mortgage Loan documents) provided for herein shall be made on the basis of a 360-day year consisting of twelve 30 day months.

Section 1.03

Calculation of Applicable Fractions.

For purposes of determining Collateral Group 1 and Collateral Group 2, each Pool 1 Mortgage Loan shall be deemed to be allocated, based on the Net Mortgage Rate of such Mortgage Loan, as of the Cut off Date, either to Collateral Group 1 or Collateral Group 2 only, or between both Collateral Group 1 and Collateral Group 2, based on a fixed fraction that differs among Mortgage Loans (in each case, the “Applicable Fraction”), such that the principal of and interest on such Pool 1 Mortgage Loan is treated as if that Mortgage Loan were two loans bearing interest at two different effective Net Mortgage Rates, one higher than and one lower than the original Net Mortgage Rate of such Mortgage Loan.  The allocation of a Pool 1 Mortgage Loan to Collateral Group 1 or Collateral Group 2 shall not change based on a modification to the Net Mortgage Rate of such Mortgage Loan subsequent to the Cut-off Date.  The Applicable Fractions are calculated as follows:

(a)

Pool 1 Mortgage Loans with Net Mortgage Rates Less Than or Equal To 5.750%:  Each Pool 1 Mortgage Loan having a Net Mortgage Rate less than 5.750% shall be allocated to Collateral Group 1.

(b)

Pool 1 Loans with Net Mortgage Rates Greater Than 5.750% but less than 7.000%:  Each Pool 1 Mortgage Loan having a Net Mortgage Rate greater than 5.750%  but less than 7.000% shall be allocated between Collateral Group 1 and Collateral Group 2 by multiplying the Scheduled Principal Balance of such Pool 1 Mortgage Loan by its Applicable Fraction.  The Applicable Fraction for the portion of each such Pool 1 Mortgage Loan allocated to Collateral Group 1 is the quotient of (a)(i) 7.000% minus (ii) the related Net Mortgage Rate divided by (b) 1.250%.  The Applicable Fraction for the portion of each such Pool 1 Mortgage Loan allocated to Collateral Group 2 is (I) 1 minus (II) the quotient of (a)(i) 7.000% minus (ii) the related Net Mortgage Rate divided by (b) 1.250%.

(c)

Pool 1 Loans with Net Mortgage Rates Equal to or Greater Than 7.000%:  Each Pool 1 Mortgage Loan having a Net Mortgage Rate equal to or greater than 7.000% shall be allocated to Collateral Group 2.

ARTICLE II

CONVEYANCE OF MORTGAGE LOANS;

REPRESENTATIONS AND WARRANTIES

Section 2.01

Conveyance of Mortgage Loans.  

(a)

The Depositor, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee for the benefit of the Certificateholders, without recourse, all the right, title and interest of the Depositor in and to the Trust Fund.  In connection with the foregoing assignments, the Transferor has caused each Servicer to enter into the related Assignment Agreement.  

(b)

(i)  In connection with the transfer and assignment set forth in clause (a) above, the Depositor has delivered or caused to be delivered to the Custodian, on behalf of the Trustee, for the benefit of the Certificateholders the following documents or instruments with respect to each Mortgage Loan that is not a Cooperative Loan so assigned:

(A)

the original Mortgage Note endorsed by manual or facsimile signature in blank in the following form:  “Pay to the order of ___________ without recourse,” with all intervening endorsements showing a complete chain of endorsement from the originator to the Person endorsing the Mortgage Note (each such endorsement being sufficient to transfer all right, title and interest of the party so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note); or, with respect to any Lost Mortgage Note, a lost note affidavit from the related originator or the Transferor stating that the original Mortgage Note was lost or destroyed, together with a copy of such Mortgage Note;

(B)

except as provided below, the original recorded Mortgage or a copy of such Mortgage certified by the related originator as being a true and complete copy of the Mortgage;

(C)

a duly executed assignment of the Mortgage (which may be included in a blanket assignment or assignments), endorsed in the following form:  “U.S. Bank National Association, in trust for the MASTR Asset Securitization Trust 2006-1 for the benefit of the Holders of the Mortgage Pass-Through Certificates, Series 2006-1” together with, except as provided below, all interim recorded assignments of such mortgage (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of and transfer to the assignee thereof, under the Mortgage to which the assignment relates); provided that, if the related Mortgage has not been returned from the applicable public recording office, such assignment of the Mortgage may exclude the information to be provided by the recording office;

(D)

the original or copies of each assumption, modification, written assurance or substitution agreement, if any; and

(E)

except as provided below, the original or duplicate original lender’s title policy and all riders thereto.

(ii)

In connection with the transfer and assignment set forth in clause (a) above, the Depositor has delivered or caused to be delivered to the Custodian, on behalf of the Trustee, for the benefit of the Certificateholders the following documents or instruments with respect to each Cooperative Loan so assigned:

(A)

the Cooperative Shares, together with the Stock Power in blank;

(B)

the executed Security Agreement;

(C)

the executed Proprietary Lease and the Assignment of Proprietary Lease to the originator of the Cooperative Loan;

(D)

the executed Recognition Agreement;

(E)

copies of the original Financing Statement, and any continuation statements, filed by the originator of such Cooperative Loan as secured party, each with evidence of recording thereof, evidencing the interest of the originator under the Security Agreement and the Assignment of Proprietary Lease;

(F)

copies of the filed UCC assignments or amendments of the security interest referenced in clause (v) above showing an unbroken chain of title from the originator to the Trust, each with evidence of recording thereof, evidencing the interest of the assignee under the Security Agreement and the Assignment of Proprietary Lease;

(G)

an executed assignment of the interest of the originator in the Security Agreement, the Assignment of Proprietary Lease and the Recognition Agreement, showing an unbroken chain of title from the originator to the Trust; and

(H)

for any Cooperative Loan that has been modified or amended, the original instrument or instruments effecting such modification or amendment.

Notwithstanding the foregoing, if any Mortgage has been recorded in the name of Mortgage Electronic Registration System, Inc. (“MERS”) or its designee, no assignment of Mortgage in favor of the Trustee will be required to be prepared or delivered and instead, the Master Servicer shall enforce the obligations of the applicable Servicer under its related Servicing Agreement to cause the Trustee to be shown as the owner of the related Mortgage Loan on the records of MERS for the purpose of the system of recording transfers of beneficial ownership of mortgages maintained by MERS.

If in connection with any Mortgage Loan the Depositor cannot deliver (a) the original recorded Mortgage, (b) all interim recorded assignments or (c) the lender’s title policy (together with all riders thereto) satisfying the requirements of clause (b)(i)(B), (C) or (E) above, respectively, concurrently with the execution and delivery hereof because such document or documents have not been returned from the applicable public recording office in the case of clause (b)(i)(B) or (C) above, or because the title policy has not been delivered to either the Custodian or the Depositor by the applicable title insurer in the case of clause (b)(i)(E) above, the Depositor shall promptly deliver to the Custodian, in the case of clause (b)(i)(B) or (C) above, such original Mortgage or such interim assignment, as the case may be, with evidence of recording indicated thereon upon receipt thereof from the public recording office, or a copy thereof, certified, if appropriate, by the relevant recording office, but in no event shall any such delivery of the original Mortgage and each such interim assignment or a copy thereof, certified, if appropriate, by the relevant recording office, be made later than one year following the Closing Date, or, in the case of clause (b)(i)(E) above, no later than 120 days following the Closing Date; provided, however, in the event the Depositor is unable to deliver by such date each Mortgage and each such interim assignment by reason of the fact that any such documents have not been returned by the appropriate recording office, or, in the case of each such interim assignment, because the related Mortgage has not been returned by the appropriate recording office, the Depositor shall deliver such documents to the Custodian as promptly as possible upon receipt thereof and, in any event, within 720 days following the Closing Date.  The Depositor shall forward or cause to be forwarded to the Custodian (a) from time to time additional original documents evidencing an assumption or modification of a Mortgage Loan and (b) any other documents required to be delivered by the Depositor to the Custodian.  In the event that the original Mortgage is not delivered and in connection with the payment in full of the related Mortgage Loan and the public recording office requires the presentation of a “lost instruments affidavit and indemnity” or any equivalent document, because only a copy of the Mortgage can be delivered with the instrument of satisfaction or reconveyance, the Custodian shall execute and deliver or cause to be executed and delivered such a document to the public recording office.  In the case 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, the Transferor shall deliver to the Custodian a copy of such Mortgage certified by such public recording office to be a true and complete copy of the original recorded Mortgage.

As promptly as practicable subsequent to such transfer and assignment, set forth in clause (a) above and in any event, within ninety (90) days thereafter, the Custodian shall affix the Trustee’s name to each assignment of Mortgage, as the assignee thereof, and, subject to Section 2.02, the Master Servicer shall enforce the obligations of the related Servicer pursuant to the related Servicing Agreement to (i) cause such assignment to be in proper form for recording in the appropriate public office for real property records and (ii) cause to be delivered for recording in the appropriate public office for real property records the assignments of the Mortgages to the Trustee, except that, with respect to any assignments of Mortgage as to which the related Servicer has not received the information required to prepare such assignment in recordable form, the related Servicer’s obligation to do so and to deliver the same for such recording shall be as soon as practicable after receipt of such information and in any event within ninety (90) days after receipt thereof and except that the related Servicer need not cause to be recorded any assignment which relates to a Mortgage Loan (a) in any state where, in an Opinion of Counsel addressed to the Trustee, such recording is not required to protect the Trustee’s interests in the Mortgage Loan against the claim of any subsequent transferee or any successor to or creditor of the Depositor or the Transferor, (b) in any state where recordation is not required by either Rating Agency to obtain the initial ratings on the Certificates set forth in the Prospectus Supplement or (c) with respect to any Mortgage which has been recorded in the name of MERS, or its designee.  As of the date hereof, recordation is not required in any state by either Rating Agency to obtain the initial rating on the Certificates (upon which statement the Master Servicer, the Trustee and the Custodian may each conclusively rely).

In the case of Mortgage Loans that have been prepaid in full as of the Closing Date, the Depositor, in lieu of delivering the above documents to the Master Servicer on behalf of the Trustee, will deposit in the Collection Account the portion of such payment that is required to be deposited in the Collection Account pursuant to Section 3.07 hereof.

(c)

The Depositor does hereby establish, pursuant to the further provisions of this Agreement and the laws of the State of New York, an express trust (the “Issuing Entity”) to be known, for convenience, as “MASTR Asset Securitization Trust 2006-1” and U.S. Bank National Association is hereby appointed as Trustee in accordance with the provisions of this Agreement.

(d)

[Reserved].

(e)

Each of the Collection Account and Distribution Account shall at all times be an Eligible Account, provided that the Collection Account may be deemed to be a sub-account of the Distribution Account.  If at any time either the Collection Account or the Distribution Account ceases to be an Eligible Account, the Master Servicer or the Trust Administrator, as applicable, shall immediately establish and maintain a new Collection Account or Distribution Account, as applicable, that is an Eligible Account, and shall immediately transfer all funds on deposit in the former Collection Account or Distribution Account, as applicable, to the new Collection Account or Distribution Account, as applicable.

(f)

It is agreed and understood by the Trustee, the Trust Administrator, the Depositor and the Transferor that it is not intended that any mortgage loan be included in the Trust that is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, effective as of November 27, 2003, or The Home Loan Protection Act of New Mexico, effective as of January 1, 2004, or that is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home Loan Practices Act, effective as of November 7, 2004, or that is an “Indiana High Cost Home Mortgage Loan” as defined in the Indiana High Cost Home Loan Act, effective as of January 1, 2005.

(g)

The Depositor hereby directs the Trust Administrator to execute, deliver and perform its obligations under the Cap Contract.  The Transferor, the Depositor, the Master Servicer, the Trustee and the Holders of the Class 1-A-13 Certificates by their acceptance of such Certificates acknowledge and agree that the Trust Administrator shall execute, deliver and perform its obligations under the Cap Contract and shall do so solely in its capacity as Trust Administrator, and not in its individual capacity.  Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trust Administrator shall apply to the Trust Administrator’s execution of the Cap Contract, and the performance of its duties and satisfaction of its obligations thereunder.

Section 2.02

Acceptance by Trustee of the Mortgage Loans.  

The Custodian, on behalf of the Trustee, acknowledges receipt of the documents identified in the Initial Certification issued by it in the form annexed hereto as Exhibit G and declares that it holds and will hold such related documents and the other documents delivered to it constituting the Mortgage Files, and the Custodian and Trustee together declare that it holds or will hold such other assets as are included in the Trust Fund, in trust for the exclusive use and benefit of all present and future Certificateholders.  The Custodian acknowledges that it will maintain possession of the Mortgage Notes held by it in the State of Minnesota, unless otherwise permitted by the Rating Agencies and the Trustee.  

The Custodian agrees to execute and deliver on the Closing Date to the Depositor and the Trustee an Initial Certification in the form annexed hereto as Exhibit G.  Based on its review and examination, and only as to the documents identified in such Initial Certification, the Custodian acknowledges, subject to any applicable exceptions noted on Exhibit G, that such documents appear regular on their face and relate to such Mortgage Loan.  The Custodian shall not be under any duty or obligation to (i) inspect, review or examine said documents, instruments, certificates or other papers to determine that the same are genuine, enforceable or appropriate for the represented purpose or that they have actually been recorded in the real estate records or that they are other than what they purport to be on their face or (ii) determine whether the Mortgage File should include any of the documents specified in Section 2.01(b)(i)(D) with respect to each Mortgage Loan that is not a Cooperative Loan and Section 2.01(b)(ii)(H) with respect to each Cooperative Loan, unless the Mortgage Loan Schedule indicates that such documents are applicable.

Not later than 90 days after the Closing Date, the Custodian shall deliver to the Depositor, the Trustee and the Transferor a Final Certification in the form annexed hereto as Exhibit H, with any applicable exceptions noted thereon.  The Custodian shall make available, upon request of any Certificateholder, a copy of any exceptions noted on the Initial Certification or the Final Certification.  The Custodian shall make available, upon request of the Trustee, the identity of the originator for any Mortgage Loan with a material exception.

If, in the course of such review, the Custodian finds any document constituting a part of a related Mortgage File which does not meet the requirements of Section 2.01, the Custodian shall list such as an exception in the Final Certification; provided, however, that the Custodian shall not make any determination as to whether (i) any endorsement is sufficient to transfer all right, title and interest of the party so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note, (ii) any assignment is in recordable form or is sufficient to effect the assignment of and transfer to the assignee thereof under the mortgage to which the assignment relates or (iii) the Mortgage File should include any of the documents specified in Section 2.01(b)(i)(D) with respect to each Mortgage Loan that is not a Cooperative Loan and Section 2.01(b)(ii)(H) with respect to each Cooperative Loan, unless the Mortgage Loan Schedule indicates that such documents are applicable.  

Upon receiving each Final Certification from the Custodian, the Trustee shall notify the Transferor of any document defects listed as exceptions in each such Final Certification.  The Transferor shall promptly correct or cure such document defects, and if the Transferor fails to correct or cure the defect within ninety (90) days of the earlier of its discovery or its receipt of written notice from the Trustee, and such defect materially and adversely affects the interests of the Certificateholders in the related Mortgage Loan, the Transferor shall repurchase the affected Mortgage Loan from the Trustee at the Purchase Price.  Any such purchase of a Mortgage Loan shall not be effected prior to the delivery to the Custodian of a Request for Release substantially in the form of Exhibit M.  The Purchase Price for any such Mortgage Loan shall be paid by the Transferor to the Master Servicer for deposit in the Collection Account on or prior to the Distribution Account Deposit Date for the Distribution Date in the month following the month of repurchase and, upon receipt of such deposit, the Master Servicer shall instruct the Custodian to release, and the Custodian shall release, the related Mortgage File to the Transferor and the Trustee shall execute and deliver at the Transferor’s written request such instruments of transfer or assignment prepared by the Transferor, in each case without recourse, representation or warranty, as shall be necessary to vest in the Transferor, or a designee, the Trustee’s interest in any Mortgage Loan released pursuant hereto.  The Transferor shall promptly reimburse the Master Servicer and the Trustee for any expenses reasonably incurred by the Master Servicer or the Trustee in respect of enforcing such repurchase by the Transferor.

The Custodian shall retain possession and custody of each related Mortgage File in accordance with and subject to the terms and conditions set forth herein.  Pursuant to the terms of the related Servicing Agreement, the Master Servicer shall cause each of the related Servicers to promptly deliver to the Custodian who shall thereupon promptly deposit within each Mortgage File, upon the execution or receipt thereof, the originals of such other documents or instruments constituting the Mortgage File as come into the possession of the related Servicers from time to time.

It is understood and agreed that the obligations of the Transferor hereunder to purchase any Mortgage Loan which does not meet the requirements of Section 2.01 above or substitute for the related Mortgage Loan an Eligible Substitute Mortgage Loan shall constitute the sole remedies respecting such defect available to the Trustee, the Master Servicer, the Depositor and any Certificateholder.

Section 2.03

Remedies for Breaches of Representations and Warranties.  

The Transferor hereby makes the representations and warranties set forth in Schedule II hereto, and by this reference incorporated herein, to the Depositor and the Trustee, as of the Closing Date, or if so specified therein, as of the Cut-off Date.  With respect to any of the representations and warranties set forth on Schedule II hereto which are made to the best of the Transferor’s knowledge, if it is discovered by any of the Depositor, the Master Servicer, the Transferor, any Servicer or the Trust Administrator that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interests of the Certificateholders therein, notwithstanding the Transferor’s lack of knowledge with respect to the substance of such representation or warranty, such inaccuracy shall be deemed a breach of the applicable representation or warranty.

Upon discovery by any of the Depositor, the Transferor, the Master Servicer, the Trust Administrator or the Custodian of a breach of a representation or warranty made by the Transferor pursuant to this Section 2.03 that materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the party discovering such breach shall give prompt notice thereof to the other parties and the Trustee.  A breach which causes a Mortgage Loan not to constitute a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code, will be deemed automatically to materially and adversely affect the interests of the Certificateholders in such Mortgage Loan.  Upon receiving notice of a breach, the Trustee shall in turn notify the Transferor of such breach.  The Trustee shall enforce the obligations of the Transferor in accordance with this Section 2.03 to correct or cure any such breach of a representation or warranty made herein, and if the Transferor fails to correct or cure the defect within such period, and such defect materially and adversely affects the interests of the Certificateholders in the related Mortgage Loan, the Trustee shall enforce the Transferor’s obligations hereunder to (i) purchase such Mortgage Loan at the Purchase Price or (ii) substitute for the related Mortgage Loan an Eligible Substitute Mortgage Loan.  In each case, such Mortgage Loan (a “Deleted Mortgage Loan”) will be removed from the Trust Fund.

The Transferor hereby covenants that within ninety (90) days of the earlier of its discovery or its receipt of written notice from any party of a breach of any representation or warranty made pursuant to this Section 2.03 which materially and adversely affects the interest of the Certificateholders in any Mortgage Loan, it shall cure such breach in all material respects, and if such breach is not so cured, shall, (i) if such ninety (90) day period expires prior to the second anniversary of the Closing Date, remove such Deleted Mortgage Loan from the Trust Fund and substitute in its place an Eligible Substitute Mortgage Loan or Loans into the Trust Fund, in the manner and subject to the conditions set forth in this Section; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner set forth below.  The Transferor shall promptly reimburse the Master Servicer and the Trustee for any expenses reasonably incurred by the Master Servicer or the Trustee in respect of enforcing the remedies for such breach by the Transferor.

With respect to any Eligible Substitute Mortgage Loan or Loans, the Transferor shall deliver to the Custodian on behalf of the Trustee for the benefit of the Certificateholders the Mortgage Note, the Mortgage, the related assignment of the Mortgage, and such other documents and agreements as are required by Section 2.01, with the Mortgage Note endorsed and the Mortgage assigned as required by Section 2.01.  No substitution is permitted to be made on any day in any calendar month after the Determination Date for such month.

With respect to substitutions made by the Transferor, Scheduled Payments due with respect to Eligible Substitute Mortgage Loans in the month of substitution shall not be part of the Trust Fund and will be retained by the Transferor on the next succeeding Distribution Date.  For the month of substitution, distributions to Certificateholders will include the monthly payment due on any Deleted Mortgage Loan for such month and thereafter the Transferor shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan.  The Custodian shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders to reflect the removal of such Deleted Mortgage Loan and the substitution of the Eligible Substitute Mortgage Loan or Loans and the Custodian shall deliver the amended Mortgage Loan Schedule to the Trustee.  Upon such substitution, the Eligible Substitute Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects, and the Transferor shall be deemed to have made with respect to such Eligible Substitute Mortgage Loan or Loans, as of the date of substitution, the representations and warranties made pursuant to this Section 2.03 with respect to such Mortgage Loan.  Upon any such substitution and the deposit to the Collection Account of the amount required to be deposited therein in connection with such substitution as described in the following paragraph shall release the Mortgage File held for the benefit of the Certificateholders relating to such Deleted Mortgage Loan to the Transferor and shall execute and deliver or cause the Trustee to execute and deliver at the Transferor’s direction such instruments of transfer or assignment prepared by the Transferor, without recourse, representation or warranty, as shall be necessary to vest title in the Transferor, as applicable, or its designee, the Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.

For any month in which the Transferor substitutes one or more Eligible Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will determine the amount (if any) by which the aggregate principal balance of all such Eligible Substitute Mortgage Loans as of the date of substitution is less than the aggregate Scheduled Principal Balance of all such Deleted Mortgage Loans (after application of the scheduled principal portion of the monthly payments due in the month of substitution).  The amount of such shortage (the “Substitution Adjustment Amount”) plus an amount equal to the aggregate of any unreimbursed Advances with respect to such Deleted Mortgage Loans shall be remitted by the Transferor to the Master Servicer, and the Master Servicer shall deposit such amounts received from the Transferor into the Collection Account on or before the Distribution Account Deposit Date for the Distribution Date in the month succeeding the calendar month during which the related Mortgage Loan became required to be purchased or replaced hereunder.

In the event that the Transferor shall have repurchased a Mortgage Loan, the Purchase Price therefor shall be deposited in the Collection Account pursuant to Section 3.07 on or before the Distribution Account Deposit Date for the Distribution Date in the month following the month during which the Transferor became obligated hereunder to repurchase or replace such Mortgage Loan and upon such deposit of the Purchase Price and receipt of a Request for Release in the form of Exhibit M hereto, the Custodian shall release the related Mortgage File held for the benefit of the Certificateholders to the Transferor, and the Trustee shall execute and deliver at the Transferor’s direction such instruments of transfer or assignment prepared by the Transferor, in each case without recourse, representation or warranty, as shall be necessary to transfer title from the Trustee.  It is understood and agreed that the obligation under this Agreement of the Transferor to cure, repurchase or replace any Mortgage Loan as to which a breach has occurred and is continuing shall constitute the sole remedies against the Transferor respecting such matters available to Certificateholders, the Master Servicer, the Depositor, the Trust Administrator or the Trustee on their behalf.

The provisions of this Section 2.03 shall survive the conveyance and assignment of the Mortgage Files to the Trustee and the delivery of the respective Mortgage Files to the Custodian for the benefit of the Trustee and the Certificateholders.

Section 2.04

Representations and Warranties of the Depositor as to the Mortgage Loans.  

The Depositor hereby represents and warrants to the Trustee, the Trust Administrator and the Master Servicer with respect to each Mortgage Loan as of the date hereof or such other date set forth herein that as of the Closing Date, and following the transfer of the Mortgage Loans to it by the Transferor, the Depositor had good title to the Mortgage Loans and the Mortgage Notes were subject to no offsets, liens, defenses or counterclaims.

It is understood and agreed that the representations and warranties set forth in this Section 2.04 shall survive delivery of the Mortgage Files to the Custodian.  Upon discovery by the Depositor, the Transferor, the Master Servicer, the Trust Administrator or the Trustee of a breach of any of the foregoing representations and warranties set forth in this Section 2.04 (referred to herein as a “breach”), which breach materially and adversely affects the interest of the Certificateholders, the party discovering such breach shall give prompt written notice to the other parties hereto and to each Rating Agency.

Section 2.05

[Reserved].

Section 2.06

Execution and Delivery of Certificates.  

The Trustee acknowledges the transfer and assignment to it of the Trust Fund and acknowledges the issuance of the REMIC Interests as described in the Preliminary Statement in exchange therefor.  The Trustee further acknowledges the transfer and assignment to it of the uncertificated REMIC interests described in the Preliminary Statement and, concurrently with such transfer and assignment, the Trust Administrator, on its behalf, has executed, authenticated and delivered to or upon the order of the Depositor, the Certificates in authorized denominations evidencing directly or indirectly the entire ownership of the Trust Fund.  The Trustee agrees to hold the Trust Fund and the uncertificated REMIC interests described in the Preliminary Statement and to exercise the rights referred to above for the benefit of all present and future Holders of the Certificates and to perform the duties set forth in this Agreement to the best of its ability, to the end that the interests of the Holders of the Certificates may be adequately and effectively protected.

Section 2.07

REMIC Matters.  

The Preliminary Statement sets forth the designations as “regular interests” or “residual interests” and “latest possible maturity date” for federal income tax purposes of all interests created hereby.  The “Startup Day” for purposes of the REMIC Provisions shall be the Closing Date.  Each REMIC’s fiscal year shall be the calendar year.

Section 2.08

Covenants of the Master Servicer.  

The Master Servicer hereby covenants to the Depositor and the Trustee as follows:

(a)

subject to Section 3.01, the Master Servicer shall cause each Servicer to perform its obligations under the applicable Servicing Agreement; and

(b)

no written information, certificate of an officer, statement furnished in writing or written report delivered to the Depositor, any affiliate of the Depositor or the Trustee and prepared by the Master Servicer pursuant to this Agreement will contain any untrue statement of a material fact or omit to state a material fact necessary to make such information, certificate, statement or report not misleading at the time provided.

Section 2.09

Representations and Warranties of the Master Servicer.  

The Master Servicer hereby represents and warrants to the Depositor, the Trustee and the Custodian, as of the Closing Date, or if so specified herein, as of the Cut-off Date:

(a)

The Master Servicer is duly organized as a national banking association and is validly existing and in good standing under the laws of the United States of America and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Master Servicer in any state in which a Mortgaged Property is located or is otherwise not required under applicable law to effect such qualification and, in any event, is in compliance with the doing business laws of any such state, to master service the Mortgage Loans in accordance with the terms of this Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(b)

The Master Servicer has the full power and authority to master service each Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary action on the part of the Master Servicer the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of the Master Servicer, enforceable against the Master Servicer in accordance with its terms, except that (i) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(c)

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

(d)

The Master Servicer or an affiliate thereof is an approved servicer of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act.

(e)

No litigation is pending or, to the knowledge of the Master Servicer, threatened against the Master Servicer that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Master Servicer to master service the Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms thereof.

(f)

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

Section 2.10

Representations and Warranties of the Custodian.  

The Custodian hereby represents and warrants to the Depositor, the Master Servicer, the Trust Administrator and the Trustee, as of the Closing Date, or if so specified herein, as of the Cut-off Date:

(a)

The Custodian is duly organized as a national banking association and is validly existing and in good standing under the laws of the United States of America and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Custodian in any state in which a Mortgaged Property is located or is otherwise not required under applicable law to effect such qualification and, in any event, is in compliance with the doing business laws of any such state, to the extent necessary to perform any of its obligations under this Agreement in accordance with the terms thereof.

(b)

The Custodian has the full power and authority to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary action on the part of the Custodian the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery thereof by the other parties thereto, constitutes a legal, valid and binding obligation of the Custodian, enforceable against the Custodian in accordance with its terms, except that (i) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(c)

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

(d)

No litigation is pending or, to the knowledge of the Custodian, threatened against the Custodian that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Custodian to perform any of its obligations under this Agreement in accordance with the terms thereof.

(e)

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

ARTICLE III

ADMINISTRATION AND MASTER

SERVICING OF MORTGAGE LOANS

Section 3.01

Master Servicing of Mortgage Loans.  

For and on behalf of the Certificateholders, the Master Servicer shall supervise, monitor and oversee the obligation of the Servicers to service and administer their respective Mortgage Loans in accordance with the terms of the applicable Servicing Agreement and shall have full power and authority to do any and all things which it may deem necessary or desirable in connection with such master servicing and administration.  In performing its obligations hereunder, the Master Servicer shall act in a manner consistent with this Agreement, subject to the prior two sentences, and with customary and usual standards of practice of prudent mortgage loan master servicers.  Furthermore, the Master Servicer shall oversee and consult with each Servicer as necessary from time to time to carry out the Master Servicer’s obligations hereunder, shall receive, review and evaluate all reports, information and other data provided to the Master Servicer by each Servicer and shall cause each Servicer to perform and observe the covenants, obligations and conditions to be performed or observed by such Servicer under the applicable Servicing Agreement.  The Master Servicer shall independently and separately monitor each Servicer’s servicing activities with respect to each related Mortgage Loan, reconcile the results of such monitoring with such information provided in the previous sentence on a monthly basis and coordinate corrective adjustments to the Servicers’ and Master Servicer’s records, and based on such reconciled and corrected information, prepare the statements specified in Section 4.04 and any other information and statements required hereunder.  The Master Servicer shall reconcile the results of its Mortgage Loan monitoring with the actual remittances of the Servicers to the Collection Account pursuant to the applicable Servicing Agreements.

In accordance with the standards of the preceding paragraph and to the extent the related Servicer does not make such advance, the Master Servicer shall advance or cause to be advanced funds as necessary for the purpose of effecting the payment of taxes and assessments on the Mortgaged Properties, which advances shall be reimbursable in the first instance from related collections from the Mortgagors pursuant to Section 3.07, and further as provided in Section 3.08.  The costs incurred by the Master Servicer, if any, in effecting the timely payment of taxes and assessments on the Mortgaged Properties and related insurance premiums shall not, for the purpose of calculating monthly distributions to the Certificateholders, be added to the Scheduled Principal Balances of the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit.

Section 3.02

Monitoring of Servicers.  

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(f)

If a Servicer fails to make its required payment of Compensating Interest on any Distribution Date, the Master Servicer will be required to make such payment of Compensating Interest to the same extent that such Servicer was required to make such payment of Compensating Interest.

(g)

To the extent a Servicer is obligated under the related Servicing Agreement to procure the consent of the Master Servicer in connection with the Servicer’s engagement of a Subservicer to perform any servicing responsibilities under the related Servicing Agreement with respect to the related Mortgage Loans, the Master Servicer will only give such consent if that Subservicer first agrees in writing with such Servicer and the Master Servicer to deliver an Annual Statement of Compliance, an Assessment of Compliance and an Accountant’s Attestation in such manner and at such times that permit that Servicer and the Master Servicer to comply with Sections 3.21 and 3.22 of this Agreement.

(h)

The Master Servicer shall enforce any negative covenant in the related Servicing Agreement which prohibits a Servicer from outsourcing one or more separate servicing functions under the related Servicing Agreement with respect to the Mortgage Loans to any Subcontractor unless that Subcontractor first agrees in writing with such Servicer and the Master Servicer to deliver an Assessment of Compliance and an Accountant’s Attestation in such manner and at such times that permits that Servicer and the Master Servicer to comply with Section 3.22 of this Agreement.

Section 3.03

[Reserved].

Section 3.04

Rights of the Depositor and the Trustee in Respect of the Master Servicer.  

The Depositor may, but is not obligated to, enforce the obligations of the Master Servicer hereunder and may, but is not obligated to, perform, or cause a designee to perform, any defaulted obligation of the Master Servicer hereunder and in connection with any such defaulted obligation to exercise the related rights of the Master Servicer hereunder; provided that the Master Servicer shall not be relieved of any of its obligations hereunder by virtue of such performance by the Depositor or its designee.  Neither the Trustee nor the Depositor shall have any responsibility or liability for any action or failure to act by the Master Servicer or any Servicer nor shall the Trustee or the Depositor be obligated to supervise the performance of the Master Servicer hereunder or any Servicer under any Servicing Agreement or otherwise.

Section 3.05

Trustee to Act as Master Servicer.  

In the event that the Master Servicer shall for any reason no longer be the Master Servicer hereunder (including by reason of a Master Servicer Event of Termination), the Trustee or its successor shall in accordance with Section 7.02 thereupon assume all of the rights and obligations of the Master Servicer hereunder arising thereafter (except that the Trustee shall not be (i) liable for losses of the predecessor Master Servicer pursuant to Section 3.09 hereof or any acts or omissions of the predecessor Master Servicer hereunder), (ii) obligated to make Advances if it is prohibited from doing so by applicable law, (iii) obligated to effectuate repurchases or substitutions of Mortgage Loans hereunder including, but not limited to, repurchases or substitutions of Mortgage Loans pursuant to Section 2.02 or 2.03 hereof, (iv) responsible for expenses of the Master Servicer pursuant to Section 2.03 hereof, (v) deemed to have made any representations and warranties of the Master Servicer pursuant to Section 2.09 hereunder) or (vi) obligated to perform any obligation of the Master Servicer under Section 3.21, 3.22 or 9.12 with respect to any periods during which the Trustee was not the Master Servicer ).  Any such assumption shall be subject to Section 7.02 hereof.  If the Master Servicer shall for any reason no longer be the Master Servicer (including by reason of any Master Servicer Event of Termination), the Trustee or its successor may, but shall not be obligated to, succeed to any rights and obligations of the Master Servicer under each subservicing agreement.

The Master Servicer shall, upon request of the Trustee, but at the expense of the Master Servicer, deliver to the assuming party all documents and records relating to each subservicing agreement or substitute subservicing agreement and the Mortgage Loans then being serviced thereunder and an accounting of amounts collected or held by it and otherwise use its best efforts to effect the orderly and efficient transfer of each subservicing agreement or substitute subservicing agreement to the assuming party.

The Trustee or successor master servicer shall be entitled to be reimbursed from the Master Servicer for all costs associated with the transfer of master servicing from the Master Servicer, including, without limitation, any costs or expenses associated with the complete transfer of all master servicing data and the completion, correction or manipulation of such master servicing data as may be required by the Trustee or successor master servicer to correct any errors or insufficiencies in the master servicing data or otherwise to enable the Trustee or successor master servicer to master service the Mortgage Loans properly and effectively.

If the Master Servicer does not pay such reimbursement within thirty (30) days of its receipt of an invoice therefor, such reimbursement shall be an expense of the Trust and the Trustee shall be entitled to such reimbursement from amounts on deposit in the Distribution Account pursuant to Section 3.10(b)(iv); provided that the Master Servicer shall reimburse the Trust for any such expense incurred by the Trust.

Section 3.06

Protected Accounts.  

(a)

The Master Servicer shall enforce the obligation of each Servicer to establish and maintain a Protected Account in accordance with the applicable Servicing Agreement, with records to be kept with respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts shall be deposited within 48 hours (or as of such other time specified in the related Servicing Agreement) of receipt all collections of principal and interest on any Mortgage Loan or amounts received with respect to any REO Property, including Principal Prepayments, Insurance Proceeds, Liquidation Proceeds, and advances made from the Servicer’s own funds (less servicing compensation as permitted by the applicable Servicing Agreement in the case of any Servicer) and all other amounts to be deposited in the Protected Account.  The Master Servicer is hereby authorized to make withdrawals from and deposits to the related Protected Account for purposes required or permitted by this Agreement.  Permitted Investments of funds in Protected Accounts must mature at least one Business Day before the subsequent Distribution Date.

(b)

In accordance with the terms of the applicable Servicing Agreement, amounts on deposit in a Protected Account shall be invested by the applicable Servicer in Permitted Investments.  The income earned from investments made pursuant to this Section 3.06 shall be paid to the related Servicer under the applicable Servicing Agreement, and the risk of loss of moneys required to be distributed to the Certificateholders resulting from such investments shall be borne by and be the risk of the related Servicer.  The related Servicer (to the extent provided in the Servicing Agreement) shall deposit the amount of any such loss in the Protected Account within two Business Days of receipt of notification of such loss but not later than the second Business Day prior to the Distribution Date on which the moneys so invested are required to be distributed to the Certificateholders.

Section 3.07

Collection of Mortgage Loan Payments; Collection Account; Distribution Account.

(a)

The Master Servicer shall enforce the obligation of the Servicers to collect all payments called for under the terms and provisions of the Mortgage Loans to the extent such procedures shall be consistent with the applicable Servicing Agreement and the terms and provisions of any related Required Insurance Policy.

(b)

The Master Servicer shall establish and maintain a Collection Account, which account may be deemed to be a sub-account of the Distribution Account, into which the Master Servicer shall deposit or cause to be deposited within two Business Days of receipt, except as otherwise specifically provided herein, the following payments and collections remitted by the Servicers or received by it in respect of Mortgage Loans subsequent to the Cut-off Date (other than in respect of principal and interest due on the Mortgage Loans on or before the Cut-off Date) and the following amounts required to be deposited hereunder:

(i)

all payments on account of principal on the Mortgage Loans, including Principal Prepayments;

(ii)

all payments on account of interest on the Mortgage Loans, net of the related Servicing Fee;

(iii)

all Liquidation Proceeds (including Insurance Proceeds), other than proceeds to be applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with the applicable Servicer’s or Master Servicer’s normal servicing procedures, and all Recoveries;

(iv)

any amount required to be deposited by the Master Servicer pursuant to Section 3.07(e) in connection with any losses on Permitted Investments;

(v)

any amounts required to be deposited by the Master Servicer pursuant to Section 2.01(d), Section 3.15(b) and 3.15(d), and in respect of net monthly rental income from REO Property pursuant to Section 3.15 hereof;

(vi)

all Substitution Adjustment Amounts;

(vii)

all Advances made by the Master Servicer pursuant to Section 4.01;

(viii)

any prepayment penalties received from any Servicer;

(ix)

any Compensating Interest payments;

(x)

any amounts deposited by the Master Servicer in connection with a deductible clause in any blanket hazard insurance policy in respect of the Mortgage Loans;

(xi)

all proceeds of any primary mortgage guaranty insurance policy in respect of the Mortgage Loans;

(xii)

any Class P Prepayment Charges; and

(xiii)

any other amounts required to be deposited hereunder.

In the event that the Master Servicer shall deposit into the Collection Account any amount not required to be deposited, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding.  The Master Servicer shall maintain adequate records with respect to all withdrawals made pursuant to this Section.  All funds deposited in the Collection Account shall be held in trust for the Certificateholders until withdrawn in accordance with Section 3.10.

(c)

[Reserved].

(d)

The Trust Administrator shall establish and maintain, on behalf of the Certificateholders, the Distribution Account.  The Trust Administrator shall, promptly upon receipt but no later than on the Distribution Account Deposit Date, deposit in the Distribution Account and retain therein the following:

(i)

the aggregate amount remitted by the Master Servicer to the Trust Administrator pursuant to Section 3.10(a)(ix)(a);

(ii)

any amount deposited by the Master Servicer or the Trust Administrator pursuant to Section 3.07(e) in connection with any losses on Permitted Investments;

(iii)

[reserved];

(iv)

[reserved]; and

(v)

any other amounts described hereunder which are required to be deposited in the Distribution Account.

In the event that the Master Servicer shall remit any amount not required to be remitted, it may at any time direct the Trust Administrator in writing to withdraw such amount from the Distribution Account, any provision herein to the contrary notwithstanding.  Such direction may be accomplished by delivering an Officer’s Certificate to the Trust Administrator which describes the amounts deposited in error in the Distribution Account.  All funds deposited in the Distribution Account shall be held by the Trust Administrator in trust for the Certificateholders until disbursed in accordance with this Agreement or withdrawn in accordance with Section 3.10.  Funds deposited in the Distribution Account in respect of the Class P Prepayment Charges shall not be treated as assets of any REMIC, but shall be treated as assets of a separate sub-account of the Distribution Account which shall be an asset of the Grantor Trust for the benefit of the Class P Certificates.  In no event shall the Trust Administrator incur liability for withdrawals from the Distribution Account at the direction of the Master Servicer.

(e)

Each institution at which the Collection Account is maintained shall invest the funds on deposit in the Collection Account as directed in writing by the Master Servicer, in Permitted Investments.  Each institution at which the Distribution Account is maintained shall invest the funds on deposit in the Distribution Account as directed in writing by the Trust Administrator, in Permitted Investments.  Funds invested in the Collection Account shall mature not later than the Business Day next preceding the related Distribution Account Deposit Date (except that if such Permitted Investment is an obligation of or is managed by the institution that maintains such account, then such Permitted Investment shall mature not later than such Distribution Account Deposit Date).  The Trust Administrator shall without direction either (i) hold funds on deposit in the Distribution Account uninvested in a trust or deposit account of the Trust Administrator or (ii) invest funds on deposit in the Distribution Account in Permitted Investments, which Permitted Investments shall mature not later than the Business Day next preceding the Distribution Date (except that if such Permitted Investment is an obligation of or is managed by the institution that maintains such fund or account, then such Permitted Investment shall mature not later than such Distribution Date).  Permitted Investments in respect of the Collection Account or the Distribution Account shall not be sold or disposed of prior to their maturity.  All such Permitted Investments shall be made in the name of the Trustee, for the benefit of the Certificateholders.  All income and gain net of any losses realized from any such investment of funds on deposit in the Collection Account shall be for the benefit of the Master Servicer as master servicing compensation and shall be remitted to it monthly as provided herein.  The amount of any realized losses in the Collection Account incurred in any such account in respect of any such investments shall promptly be deposited by the Master Servicer (from its own funds without any right of reimbursement) in the Collection Account or paid to the Trust Administrator by wire transfer of immediately available funds for deposit into the Distribution Account.  All income and gain (net of any losses realized from any such investment of funds on deposit in the Distribution Account) shall be for the benefit of the Trust Administrator as compensation and shall be remitted to it monthly as provided herein.  The amount of any realized losses in the Distribution Account incurred in any such account in respect of any such investments shall promptly be deposited by the Trust Administrator in the Distribution Account.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Collection Account (except to the extent the Trust Administrator is the obligor and has defaulted thereon) and made in accordance with this Section 3.07.  In the absence of written instructions by the Trust Administrator, all funds on deposit in the Distribution Account shall remain uninvested.

(f)

The Master Servicer shall give notice to the Trustee, the Trust Administrator, each Rating Agency and the Depositor of any proposed change of the location of the Collection Account prior to any change thereof.  The Trust Administrator shall give notice to the Trustee, the Master Servicer, each Rating Agency and the Depositor of any proposed change of the location of the Distribution Account prior to any change thereof.

Section 3.08

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

To the extent required by the related Servicing Agreement and by the related Mortgage Note and not violative of current law, the Master Servicer shall require each Servicer to establish and maintain one or more accounts (each, an “Escrow Account”) and deposit and retain therein all collections from the Mortgagors (or advances by such Servicer) for the payment of taxes, assessments, hazard insurance premiums or comparable items for the account of the Mortgagors.  Nothing herein shall require the Master Servicer to compel a Servicer to establish an Escrow Account in violation of applicable law.

Section 3.09

Access to Certain Documentation and Information Regarding the Mortgage Loans.  

The Master Servicer and the Custodian shall afford and the Master Servicer shall require the Servicers to afford the Depositor, the Trustee and Trust Administrator and their respective agents or representatives reasonable access to all records and documentation regarding the Mortgage Loans and all accounts, insurance information and other matters relating to this Agreement or the Servicing Agreement, such access being afforded without charge, but only upon reasonable request and during normal business hours at the office designated by the Master Servicer, the applicable Servicer or the Custodian, to the extent set forth in the applicable Servicing Agreement.

Upon reasonable advance notice in writing, the Master Servicer and the Custodian will provide or the Master Servicer shall require the Servicers, to the extent set forth in the applicable Servicing Agreement, to provide to each Certificateholder which is a savings and loan association, bank or insurance company certain reports and reasonable access to information and documentation regarding the Mortgage Loans sufficient to permit such Certificateholder to comply with applicable regulations of the OTS or other regulatory authorities with respect to investment in the Certificates; provided that the Master Servicer, the applicable Servicer or the Custodian shall be entitled to be reimbursed by each such Certificateholder for actual expenses incurred by the Master Servicer, the applicable Servicer or the Custodian in providing such reports and access.

Section 3.10

Permitted Withdrawals from the Collection Account and Distribution Account.  

(a)

The Master Servicer may from time to time make withdrawals from the Collection Account for the following purposes:

(i)

to pay to the Servicers (to the extent not previously retained by them), the servicing compensation to which they are entitled pursuant to Section 3.19, and to pay to the Master Servicer, earnings on or investment income with respect to funds in or credited to the Collection Account;

(ii)

to reimburse each of the Servicers or the Master Servicer for unreimbursed Advances made by it, such right of reimbursement pursuant to this subclause (ii) being limited to amounts received on the Mortgage Loan(s) in respect of which any such Advance was made;

(iii)

to reimburse the Servicers or the Master Servicer for any Nonrecoverable Advance previously made;

(iv)

to reimburse the Servicers or the Master Servicer for Insured Expenses from the related Insurance Proceeds;

(v)

to reimburse the Servicers or the Master Servicer for (a) unreimbursed Servicing Advances, the Servicers’ or the Master Servicer’s right to reimbursement pursuant to this clause (a) with respect to any Mortgage Loan being limited to amounts received on such Mortgage Loan(s) which represent late recoveries of the payments for which such advances were made pursuant to Section 3.01 or Section 3.06 and (b) for unpaid Servicing Fees as provided in Section 3.15 hereof;

(vi)

to pay to the purchaser, with respect to each Mortgage Loan or property acquired in respect thereof that has been purchased pursuant to Section 2.02 or 2.03, all amounts received thereon after the date of such purchase;

(vii)

to reimburse the Transferor, the Master Servicer or the Depositor for expenses or indemnities incurred by any of them and reimbursable pursuant to Section 6.03 hereof;

(viii)

to withdraw any amount deposited in the Collection Account and not required to be deposited therein;

(ix)

on or prior to the Distribution Account Deposit Date, to (a) withdraw (i) an amount equal to the related Available Funds, for such Distribution Date, (ii) any PO Recoveries received during the calendar month prior to that Distribution Date and (iii) on or after the Cross-Over Date only, any Recoveries received during the calendar month prior to that Distribution Date, and remit by wire transfer of immediately available funds such amounts to the Trust Administrator for deposit in the Distribution Account and (b) withdraw any prepayment penalties (other than any Class P Prepayment Charges) received from any Servicer and remit by wire transfer of immediately available funds such amounts to the Transferor pursuant to Section 3.24;

(x)

to reimburse the Master Servicer for any costs or expenses incurred by it and reimbursable pursuant to Section 3.02; and

(xi)

to clear and terminate the Collection Account upon termination of this Agreement pursuant to Section 10.01 hereof.

The Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Collection Account pursuant to such subclauses (i), (ii), (iv), (v) and (vi).  Prior to making any withdrawal from the Collection Account pursuant to subclause (iii), the Master Servicer shall deliver to the Trust Administrator an Officer’s Certificate of a Master Servicing Officer indicating the amount of any previous Advance determined by the Master Servicer to be a Nonrecoverable Advance and identifying the related Mortgage Loans(s), and their respective portions of such Nonrecoverable Advance.

(b)

The Trust Administrator shall withdraw funds from the Distribution Account for distributions to Certificateholders, in the manner specified in this Agreement (and withhold from the amounts so withdrawn, the amount of any taxes that it is authorized to withhold pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Distribution Account for the following purposes:

(i)

to pay to the Trust Administrator the earnings on or investment income, if any, on funds in or credited to the Distribution Account;

(ii)

to withdraw and return to the Master Servicer, with respect to any other amount, any amount deposited in the Distribution Account and not required to be deposited therein in accordance with Section 3.07(d);

(iii)

to withdraw any indemnity, expense or other reimbursement owed to it, the Master Servicer or the Trustee pursuant to this Agreement, including, without limitation, Section 3.05, Section 7.02, Section 8.05 and Section 9.05; and

(iv)

to clear and terminate the Distribution Account upon termination of the Agreement pursuant to Section 10.01 hereof.

Section 3.11

Maintenance of Hazard Insurance; Maintenance of Primary Insurance Policies.  

(a)

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

(b)

Pursuant to Sections 3.07 and 3.08, any amounts collected by the Master Servicer, or by any Servicer, under any insurance policies (other than amounts to be applied to the restoration or repair of the property subject to the related Mortgage or released to the Mortgagor in accordance with the applicable Servicing Agreement) shall be deposited into the Collection Account, subject to withdrawal pursuant to Sections 3.07 and 3.08.  Any cost incurred by the Master Servicer or any Servicer in maintaining any such insurance if the Mortgagor defaults in its obligation to do so shall be added to the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so permit; provided, however, that the addition of any such cost shall not be taken into account for purposes of calculating the distributions to be made to Certificateholders and shall be recoverable by the Master Servicer or such Servicer pursuant to Sections 3.07 and 3.08.

Section 3.12

Presentment of Claims and Collection of Proceeds.  

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

Section 3.13

Maintenance of the Primary Insurance Policies.  

(a)

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

(b)

The Master Servicer agrees to present, or to cause each Servicer (to the extent required under the related Servicing Agreement) to present, on behalf of the Trustee and the Certificateholders, claims to the insurer under any Primary Insurance Policies and, in this regard, to take such reasonable action as shall be necessary to permit recovery under any Primary Insurance Policies respecting defaulted Mortgage Loans.  Pursuant to Sections 3.07 and 3.08, any amounts collected by the Master Servicer or any Servicer under any Primary Mortgage Insurance Policies shall be deposited in the Collection Account, subject to withdrawal pursuant to Sections 3.07 and 3.08.

Section 3.14

Realization upon Defaulted Mortgage Loans.  

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

Section 3.15

REO Property.  

(a)

In the event the Trust Fund acquires ownership of any REO Property in respect of any related Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee, or to its nominee, on behalf of the related Certificateholders.  The Master Servicer shall, to the extent provided in the applicable Servicing Agreement, cause the applicable Servicer to sell any REO Property as expeditiously as possible and in accordance with the provisions of this Agreement and the related Servicing Agreement, as applicable.  Pursuant to its efforts to sell such REO Property, the Master Servicer shall cause the applicable Servicer to protect and conserve such REO Property in the manner and to the extent required by the applicable Servicing Agreement, subject to the REMIC Provisions.

(b)

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

(c)

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

(d)

The Liquidation Proceeds from the final disposition of the REO Property, net of any payment to the Master Servicer and the applicable Servicer as provided above shall be deposited in the Protected Account on or prior to the Determination Date in the month following receipt thereof and be remitted by wire transfer in immediately available funds to the Master Servicer for deposit into the Collection Account.

In the event that the Trust Fund acquires any Mortgaged Property as aforesaid or otherwise in connection with a default or imminent default on a Mortgage Loan, the Master Servicer shall enforce the obligation of the related Servicer to dispose of such Mortgaged Property prior to the close of the third calendar year after the year in which the Trust Fund acquires such Mortgaged Property unless the Servicer shall have applied for and received an extension of such period from the Internal Revenue Service, in which case the Trust Fund may continue to hold such Mortgaged Property for the period of such extension.  Notwithstanding any other provision of this Agreement, no Mortgaged Property acquired by the Trust Fund shall be rented (or allowed to continue to be rented) or otherwise used for the production of income by or on behalf of the Trust Fund in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to the imposition of any federal, state or local income taxes on the income earned from such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless the Master Servicer or related Servicer, as applicable, has agreed to indemnify and hold harmless the Trust Fund with respect to the imposition of any such taxes.

In the event of a default on a Mortgage Loan one or more of whose obligor is not a United States Person, as that term is defined in Section 7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a deed in lieu of foreclosure (together, “foreclosure”) in respect of such Mortgage Loan, the Master Servicer will cause the applicable Servicer to comply with the provisions of Treasury Regulation Section 1.1445-2(d)(3) (or any successor thereto) necessary to assure that no withholding tax obligation arises with respect to the proceeds of such foreclosure except to the extent, if any, that proceeds of such foreclosure are required to be remitted to the obligors on such Mortgage Loan.

Section 3.16

Due-on-Sale Clauses; Assumption Agreements.  

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

Section 3.17

Trustee to Cooperate; Release of Mortgage Files.  

Upon (i) the payment in full of any Mortgage Loan, or the receipt by the Master Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes or (ii) otherwise in connection with the servicing of any Mortgage Loan, the Master Servicer shall, upon receipt of notification from the related Servicer pursuant to the applicable Servicing Agreement which notification shall state that such payment in full has been deposited in the Collection Account or has otherwise been escrowed in a manner customary for such purposes, instruct the Custodian to, and the Custodian shall, release the related Mortgage File to the related Servicer.  Upon notification, the Trustee shall at the Custodian’s direction execute and deliver to the Custodian the request for reconveyance, deed of reconveyance or release or satisfaction of mortgage or such instrument releasing the lien of the Mortgage in each case provided by the Custodian, together with the Mortgage Note with written evidence of cancellation thereon.  Expenses incurred in connection with any instrument of satisfaction or deed of reconveyance shall be chargeable to the related Mortgagor.

If the Master Servicer or any related Servicer at any time seeks to initiate a foreclosure proceeding in respect of any Mortgaged Property as authorized by this Agreement or the Servicing Agreement, the Master Servicer or any related Servicer shall deliver or cause to be delivered to the Trustee, for signature, as appropriate, any court pleadings, requests for trustee’s sale or other documents necessary to effectuate such foreclosure or any legal action brought to obtain judgment against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce any other remedies or rights provided by the Mortgage Note or the Mortgage or otherwise available at law or in equity.

Subject to this Section 3.17, the Trustee shall execute, at the written request of the Master Servicer, and furnish to the Master Servicer and any Servicer such documents as are necessary or appropriate to enable the Master Servicer or any Servicer to carry out their servicing and administrative duties hereunder.  The Trustee shall not be liable for the actions of the Master Servicer or any Servicers under such powers of attorney.

Section 3.18

Documents, Records and Funds in Possession of Master Servicer and Custodian to Be Held for the Trustee.  

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

Section 3.19

Master Servicing Compensation.  

As compensation for its activities hereunder, the Master Servicer shall be entitled to retain or withdraw from the Collection Account an amount equal to all investment income gained on amounts held in the Collection Account.    

Section 3.20

Access to Certain Documentation.  

The Master Servicer and the Custodian shall provide and the Master Servicer shall cause each Servicer to provide in accordance with the related Servicing Agreement to the OTS and the FDIC and to comparable regulatory authorities supervising Holders of Subordinate Certificates and the examiners and supervisory agents of the OTS, the FDIC and such other authorities, access to the documentation regarding the Mortgage Loans required by applicable regulations of the OTS and the FDIC.  Such access shall be afforded without charge, but only upon reasonable and prior written request and during normal business hours at the offices designated by the Master Servicer, the Custodian and the related Servicer.  Nothing in this Section shall limit the obligation of the Master Servicer, the Custodian and the related Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors and the failure of the Master Servicer, the Custodian or the related Servicer to provide access as provided in this Section as a result of such obligation shall not constitute a breach of this Agreement.  In fulfilling such requests, the Master Servicer and the Custodian shall not be responsible to determine the sufficiency of such information.

Section 3.21

Annual Statement as to Compliance.

(a)

The Master Servicer and the Trust Administrator shall deliver or otherwise make available to the Depositor and the Trust Administrator on or before March 10 (with a 5 calendar day cure period but in no event later than March 15) of each year, commencing in March 2007, an Officer’s Certificate stating, as to the signer thereof, that (A) a review of the such party’s activities during the preceding calendar year or portion thereof and of the Master such party’s performance under this Agreement, has been made under such officer’s supervision and (B) to the best of such officer’s knowledge, based on such review, such party has fulfilled all its obligations under this Agreement, in all material respects throughout such year or portion thereof, or, if there has been a failure to fulfill any such obligation in any material respect, specifying each such failure known to such officer and the nature and status thereof.  Promptly after receipt of each such Officer’s Certificate, the Depositor shall review such Officer’s Certificate and, if applicable, consult with each such party, as applicable, as to the nature of any failures by such party, in the fulfillment of any of such party’s obligations hereunder.

(b)

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer an annual statement of compliance (with respect to each Servicer and with respect to any Subservicer engaged by each Servicer) within the time frame set forth in, and in such form and substance as may be required pursuant to, the related Servicing Agreements.  The Master Servicer shall include all annual statements of compliance with its own annual statement of compliance to be submitted to the Trust Administrator pursuant to this Section.

Section 3.22

Report on Assessment of Compliance and Attestation.

(a)

(i)

By March 10 (with a 5 calendar day cure period but in no event later than March 15) of each year, commencing in March 2007, the Master Servicer, the Trust Administrator, any Additional Servicer, and the Custodian, each at its own expense, shall furnish or otherwise make available, and each such party shall cause any Servicing Function Participant engaged by it to furnish, each at its own expense, to the Trust Administrator and the Depositor, a report on an assessment of compliance with the Relevant Servicing Criteria in the form of Exhibit Q hereto, (an “Assessment of Compliance”) that contains (A) a statement by such party of its responsibility for assessing compliance with the Relevant Servicing Criteria, (B) a statement that such party used the Servicing Criteria to assess compliance with the Relevant Servicing Criteria, (C) such party’s assessment of compliance with the Relevant Servicing Criteria as of and for the fiscal year covered by the Form 10-K required to be filed pursuant to Section 3.22, including, if there has been any material instance of noncompliance with the Relevant Servicing Criteria, a discussion of each such failure and the nature and status thereof, and (D) a statement that a registered public accounting firm has issued an attestation report on such party’s assessment of compliance with the Relevant Servicing Criteria as of and for such period.

(ii)

No later than the end of each fiscal year for the Trust Fund for which a Form 10-K is required to be filed, the Master Servicer and the Custodian shall each forward to the Trust Administrator the name of each Servicing Function Participant engaged by it and what Relevant Servicing Criteria will be addressed in the Assessment of Compliance prepared by such Servicing Function Participant.  When the Master Servicer, the Custodian and the Trust Administrator (or any Servicing Function Participant engaged by either of them) submit their Assessments of Compliance to the Trust Administrator, such parties will also at such time include the Assessment of Compliance and Accountant’s Attestation pursuant to Section 3.22(b)(i) of each Servicing Function Participant engaged by it.

(iii)

Promptly after receipt of each Assessment of Compliance, (A) the Depositor shall review each such report and, if applicable, consult with the Master Servicer, the Trust Administrator, the Custodian, any Additional Servicer and any Servicing Function Participant engaged by any such party as to the nature of any material instance of noncompliance with the Relevant Servicing Criteria by each such party, and (B) the Trust Administrator shall confirm that the Assessments of Compliance, taken as a whole, address all of the Servicing Criteria and taken individually address the Relevant Servicing Criteria for each party as set forth on Exhibit X and on any similar exhibit set forth in each Servicing Agreement in respect of each Servicer and notify the Depositor of any exceptions.

(iv)

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer an annual Assessment of Compliance within the time frame set forth in, and in such form and substance as may be required pursuant to, the related Servicing Agreement.  The Master Servicer shall include all Assessments of Compliance received by it from the Servicers with its own Assessment of Compliance to be submitted to the Trust Administrator pursuant to this Section.

(b)

(i)

By March 10 (with a 5 calendar day cure period but in no event) of each year, commencing in March 2007, the Master Servicer, the Trust Administrator, each Additional Servicer, and the Custodian, each at its own expense, shall cause, and each such party shall cause any Servicing Function Participant engaged by it to cause, each at its own expense, a registered public accounting firm (which may also render other services to the Master Servicer, the Custodian, the Trust Administrator, or such other Servicing Function Participants, as the case may be) and that is a member of the American Institute of Certified Public Accountants to furnish a report to the Trust Administrator and the Depositor (an “Accountant’s Attestation”), to the effect that (A) it has obtained a representation regarding certain matters from the management of such party, which includes an assertion that such party has complied with the Relevant Servicing Criteria, and (B) on the basis of an examination conducted by such firm in accordance with standards for attestation engagements issued or adopted by the PCAOB, it is expressing an opinion as to whether such party’s compliance with the Relevant Servicing Criteria was fairly stated in all material respects, or it cannot express an overall opinion regarding such party’s assessment of compliance with the Relevant Servicing Criteria.  In the event that an overall opinion cannot be expressed, such registered public accounting firm shall state in such report why it was unable to express such an opinion.  Such report must be available for general use and not contain restricted use language.

(ii)

Promptly after receipt of such report from the Master Servicer, each Additional Servicer, the Custodian, the Trust Administrator or any Servicing Function Participant engaged by such parties, (A) the Depositor shall review the report and, if applicable, consult with such parties as to the nature of any defaults by such parties, in the fulfillment of any of each such party’s obligations hereunder or under any other applicable agreement, and (B) the Trust Administrator shall confirm that each assessment submitted pursuant to Section 3.22(a)(i) is coupled with an attestation that appears on its face to meet the requirements of this Section and notify the Depositor of any exceptions.

(iii)

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer an attestation within the time frame set forth in, and in such form and substance as may be required pursuant to, the related Servicing Agreement.  The Master Servicer shall include each such attestation with its own attestation to be submitted to the Trust Administrator pursuant to this Section.

(c)

(i)

The Master Servicer agrees to indemnify and hold harmless each of the Depositor and each Person, if any, who “controls” the Depositor within the meaning of the Securities Act and its respective officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses that such Person may sustain arising out of third party claims based on (A) the failure of the Master Servicer (or any Servicing Function Participant engaged by it) to deliver or cause to be delivered when required any Assessment of Compliance or Accountant’s Attestation required pursuant to Section 3.22(a)(i) or 3.22(b)(i), as applicable, or (B) any material misstatement or omission contained in any Assessment of Compliance provided pursuant to Section 3.22(a)(i).

(ii)

The Trust Administrator agrees to indemnify and hold harmless the Depositor and each Person, if any, who “controls” the Depositor within the meaning of the Securities Act and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses that such Person may sustain arising out of third party claims based on (i) the failure of the Trust Administrator (or any Servicing Function Participant engaged by it) to deliver when required any Assessment of Compliance or Accountant’s Attestation required pursuant to Section 3.22(a)(i) or 3.22(b)(i), or (ii) any material misstatement or omission contained in any Assessment of Compliance provided pursuant to Section 3.22(a)(i).

(iii)

The Custodian agrees to indemnify and hold harmless the Depositor and each Person, if any, who “controls” the Depositor within the meaning of the Securities Act and their respective officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses that such Person may sustain arising out of third party claims based on (i) the failure of the Custodian (or any Servicing Function Participant engaged by it) to deliver or cause to be delivered when required any Assessment of Compliance or Accountant’s Attestation required pursuant to Section 3.22(a)(i) or 3.22(b)(i) or (ii) any material misstatement or omission contained in any Assessment of Compliance provided pursuant to Section 3.22(a)(i).

(d)

Each of the parties hereto acknowledges and agrees that the purpose of this Section 3.22 is to facilitate compliance by the Transferor and the Depositor with the provisions of Regulation AB, as such may be amended or clarified from time to time.  Therefore, each of the parties agrees that the parties’ obligations hereunder will be supplemented and modified as necessary to be consistent with any such amendments, interpretive advice or guidance, convention or consensus among active participants in the asset-backed securities markets, advice of counsel, or otherwise in respect of the requirements of Regulation AB and the parties shall comply, to the extent practicable from a timing and information systems perspective (and to the extent the requesting party will pay any increased cost of the Trustee resulting from such request provided that such request results in extraordinary expenses), with requests made by the Transferor or the Depositor for delivery of additional or different information as the Transferor or the Depositor may determine in good faith is necessary to comply with the provisions of Regulation AB.

Section 3.23

Errors and Omissions Insurance; Fidelity Bonds.  

The Master Servicer shall for so long as it acts as Master Servicer under this Agreement, obtain and maintain in force (a) a policy or policies of insurance covering errors and omissions in the performance of its obligations as Master Servicer hereunder and (b) a fidelity bond in respect of its officers, employees and agents.  Each such policy or policies shall be in such form and such amount generally acceptable for entities serving as master servicer.  In the event that any such policy or bond ceases to be in effect, the Master Servicer shall obtain a comparable replacement policy or bond from an insurer or issuer, meeting the requirements set forth above as of the date of such replacement.

Section 3.24

Master Servicer to Remit Prepayment Penalties to the Transferor.

On or prior to each Distribution Account Deposit Date, the Master Servicer shall withdraw any amounts in the Collection Account attributable to prepayment penalties, other than the Class P Prepayment Charges, deposited therein by any Servicer, and remit by wire transfer of immediately available funds such amounts to the Transferor in accordance with the instructions of the Transferor.  Class P Prepayment Charges shall be distributed to the Class P Certificateholder pursuant to Section 4.02(g).

ARTICLE IV

DISTRIBUTIONS AND SERVICING ADVANCES

Section 4.01

Advances.  

The Master Servicer shall deposit in the Distribution Account not later than the Distribution Account Deposit Date immediately preceding the related Distribution Date an Advance in an amount equal to the difference between (x) with respect to each Scheduled Payment due on a Mortgage Loan that is delinquent (other than as a result of a Relief Act Reduction) and for which the related Servicer was required to make an Advance pursuant to the related Servicing Agreement and (y) amounts deposited in the Collection Account to be used for Advances with respect to such Mortgage Loan, except to the extent the Master Servicer determines any such Advance to be a Nonrecoverable Advance.  Subject to the foregoing, the Master Servicer shall continue to make such Advances for so long as the related Servicer is required to do so under the related Servicing Agreement.  If applicable, on the Distribution Account Deposit Date, the Master Servicer shall deliver an Officer’s Certificate to the Trust Administrator stating that the Master Servicer elects not to make an Advance in a stated amount and detailing the reason(s) it deems the Advance to be a Nonrecoverable Advance.  Any amounts deposited by the Master Servicer pursuant to this Section 4.01 shall be net of the Servicing Fee and the Master Servicing Compensation, if applicable, for the related Mortgage Loans.

Section 4.02

Priorities of Distribution.  

(a)

On each Distribution Date, the Trust Administrator shall withdraw the related Group Available Funds, (to the extent on deposit in the Distribution Account) from the Distribution Account and, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, apply such funds, first to distributions in respect of the Subsidiary and Middle REMIC Regular Interests, as provided in Section 4.02(h), and then to distributions on the Certificates in the following order and priority and, in each case, to the extent of such Group Available Funds, subject to adjustment in accordance with Sections 4.02(b), 4.02(d) and 4.02(e):

(i)

With respect to the Group 1 Certificates, from the Group 1 Available Funds; with respect to the Group 2 Certificates, from the Group 2 Available Funds; with respect to the Group 3 Certificates, from the Group 3 Available Funds; with respect to the Group 4 Certificates, from the Group 4 Available Funds; with respect to the Class 30-PO Certificates, from the Group 1 Available Funds and Group 3 Available Funds; with respect to the Class 30-A-X Certificates, from the Group 1 Available Funds and Group 2 Available Funds; with respect to the Class 15-PO and Class 15-A-X Certificates, from the Group 4 Available Funds; and with respect to the Subordinate Certificates, from the Group 1 Available Funds, Group 2 Available Funds, Group 3 Available Funds and Group 4 Available Funds, as follows:

first, concurrently,

(A)

concurrently, to each Class of Group 1 Certificates, pro rata based on the Accrued Certificate Interest of each such Class, an amount allocable to interest equal to the related Accrued Certificate Interest; provided, that prior to the Class 1-A-10 Accretion Termination Date, an amount equal to the amount that would otherwise be distributable in respect of Accrued Certificate Interest to the Class 1-A-10 Certificates pursuant to this provision (the “Class 1-A-10 Accrual Amount”) will instead be distributed as principal in accordance with Section 4.02(c); and 

(B)

to each Class of Group 2 Certificates and the Class 30-A-X Certificates, pro rata based on the Accrued Certificate Interest of each such Class, an amount allocable to interest equal to the related Accrued Certificate Interest; provided, however, that for purposes of the distributions pursuant to this clause (B), the Accrued Certificate Interest for the Class 30-A-X Certificates shall be calculated solely on the basis of that portion of the Class 30-A-X Notional Amount attributable to the Group 2 Mortgage Loans; 

(C)

to each Class of Group 3 Certificates and the Class 30-A-X Certificates, pro rata based on the Accrued Certificate Interest of each such Class, an amount allocable to interest equal to the related Accrued Certificate Interest; provided, however, that for purposes of the distributions pursuant to this clause (C), the Accrued Certificate Interest for the Class 30-A-X Certificates shall be calculated solely on the basis of that portion of the Class 30-A-X Notional Amount attributable to the Group 3 Mortgage Loans; and

(D)

to each Class of Group 4 Certificates and the Class 15-A-X Certificates, pro rata based on the Accrued Certificate Interest of each such Class, an amount allocable to interest equal to the related Accrued Certificate Interest; 

in each case ((A), (B), (C) and (D) of this paragraph), any shortfall shall be allocated among such Classes described in the related paragraph in proportion to the amount of the Accrued Certificate Interest that would have been distributed in the absence of such shortfall; and

second, concurrently,

(A)

to the extent of remaining Group 1 Available Funds, to the Group 1 Certificates and the Class 30-PO Certificates, concurrently, as follows:

(1)

to the Class 30-PO Certificates, an amount allocable to principal equal to the PO Principal Distribution Amount for Collateral Group 1, up to the outstanding Class Principal Balance of the Class 30-PO Certificates; and

(2)

up to the amount of the Senior Optimal Principal Amount for Collateral Group 1 for such Distribution Date, to the Group 1 Certificates, sequentially, as follows (provided, that, on each Distribution Date on or after the Cross-Over Date, up to the amount of the Senior Optimal Principal Amount for Collateral Group 1 for such Distribution Date, will be distributed to each Class of Group 1 Certificates, pro rata, according to Class Principal Balances, until their respective Class Principal Balances are reduced to zero; and provided further, that any principal distributed to the Class 1-A-5 Certificates on any Distribution Date pursuant to this clause (2) will be allocated to Component 1-A-5-1, Component 1-A-5-2 and Component 1-A-5-3, pro rata based on their respective Class Principal Balances immediately prior to such Distribution Date):

(a)

first, to the Class A-LR and Class A-UR Certificates, pro rata based on Class Principal Balances, until their respective Class Principal Balances are reduced to zero;

(b)

second, to the Class 1-A-13 and Class 1-A-5 Certificates, pro rata based on Class Principal Balances, the Group 1 Priority Principal Distribution Amount, until their respective Class Principal Balances are reduced to zero; 

(c)

third, to the Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4 and Class 1-A-5 Certificates, until their aggregate Class Principal Balance is reduced to their aggregate Scheduled Class Balance for such Distribution Date as set forth in Schedule IV, concurrently, as follows:

(i)

97.3711123143%, sequentially, as follows:

A.

first, to the Class 1-A-1 Certificates, until its Class Principal Balance is reduced to zero;

B.

second, to the Class 1-A-2 Certificates, until its Class Principal Balance is reduced to zero;

C.

third, to the Class 1-A-3 Certificates, until its Class Principal Balance is reduced to zero; and

D.

fourth, to the Class 1-A-4 Certificates, until its Class Principal Balance is reduced to zero; and

(ii)

2.6288876857%, to the Class 1-A-5 Certificates, until its Class Principal Balance is reduced to zero; 

(d)

fourth, concurrently, to the Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates, pro rata based on Class Principal Balances, until their aggregate Class Principal Balance is reduced to their aggregate Scheduled Class Balance for such Distribution Date as set forth in Schedule V;

(e)

fifth, to the Class 1-A-10 Certificates, until its Class Principal Balance is reduced to zero;

(f)

sixth, concurrently, to the Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates, pro rata based on Class Principal Balances, without regard to their aggregate Scheduled Class Balance for such Distribution Date;

(g)

seventh, to the Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4 and Class 1-A-5 Certificates, without regard to their aggregate Scheduled Class Balance for such Distribution Date, concurrently, as follows:

(i)

97.3711123143%, sequentially, as follows:

A.

first, to the Class 1-A-1 Certificates, until its Class Principal Balance is reduced to zero;

B.

second, to the Class 1-A-2 Certificates, until its Class Principal Balance is reduced to zero;

C.

third, to the Class 1-A-3 Certificates, until its Class Principal Balance is reduced to zero; and

D.

fourth, to the Class 1-A-4 Certificates, until its Class Principal Balance is reduced to zero; and

(ii)

2.6288876857%, to the Class 1-A-5 Certificates, until its Class Principal Balance is reduced to zero; 

(h)

eighth, to the Class 1-A-11 and Class 1-A-12 Certificates, pro rata based on Class Principal Balances, until their respective Class Principal Balances are reduced to zero; and

(i)

ninth, to the Class 1-A-13 and Class 1-A-14 Certificates, pro rata based on Class Principal Balances, until their respective Class Principal Balances are reduced to zero; 

(B)

to the extent of remaining Group 2 Available Funds, up to the amount of the Senior Optimal Principal Amount for Collateral Group 2 for such Distribution Date, to the Class 2-A-1 Certificates, until its Class Principal Balance is reduced to zero; 

(C)

to the extent of remaining Group 3 Available Funds, to the Group 3 Certificates and Class 30-PO Certificates, concurrently, as follows:

(1)

to the Class 30-PO Certificates, an amount allocable to principal equal to the PO Principal Distribution Amount for Collateral Group 3, up to the outstanding Class Principal Balance of the Class 30-PO Certificates; and

(2)

up to the amount of the Senior Optimal Principal Amount for Collateral Group 3 for such Distribution Date, to the Class 3-A-1 and Class 3-A-2 Certificates, pro rata based on Class Principal Balances, until their respective Class Principal Balances are reduced to zero;

(D)

to the extent of remaining Group 4 Available Funds, to the Group 4 Certificates and Class 15-PO Certificates, concurrently, as follows:

(1)

to the Class 15-PO Certificates, an amount allocable to principal equal to the PO Principal Distribution Amount for Collateral Group 4, up to the outstanding Class Principal Balance of the Class 15-PO Certificates; and

(2)

up to the amount of the Senior Optimal Principal Amount for Collateral Group 4 for such Distribution Date, to the Class 4-A-1 Certificates, until its Class Principal Balance is reduced to zero;

third, only on any Distribution Date on or prior to the Cross-Over Date,

(A)

to the Class 30-PO Certificates (i) first, any PO Recoveries for that Distribution Date for Collateral Group 1 and Collateral Group 3 will reduce the Group 1 PO Deferred Amount and Group 3 PO Deferred Amount, respectively, until the Group 1 PO Deferred Amount and Group 3 PO Deferred Amount, respectively, have been reduced to zero and (ii) second, from the remaining Group 1 Available Funds and Group 3 Available Funds, up to the remaining Group 1 PO Deferred Amount and Group 3 PO Deferred Amount, respectively, for that Distribution Date; and

(B)

to the Class 15-PO Certificates (i) first, any PO Recoveries for that Distribution Date for Collateral Group 4 will reduce the Group 4 PO Deferred Amount until the Group 4 PO Deferred Amount has been reduced to zero and (ii) second, from the remaining Group 4 Available Funds, up to the remaining Group 4 PO Deferred Amount for that Distribution Date;

provided, however, that (1) any payments in respect of the PO Deferred Amounts in excess of PO Recoveries shall not exceed the Aggregate Subordinate Optimal Principal Amount for such Distribution Date and shall be payable from the Aggregate Subordinate Optimal Principal Amount, first, from the amounts in clause (i) of the definition “Subordinate Optimal Principal Amount,” second, from amounts in clause (ii) of the definition thereof and third, from amounts in clause (iii) of the definition thereof and (2) any distribution to the Class 15-PO and Class 30-PO Certificates pursuant to this Section 4.02(a)(i) third shall not reduce the Class Principal Balance of such Class;

fourth, to the Subordinate Certificates from the remaining Available Funds for each Collateral Group in the aggregate, subject to Section 4.02(b) and 4.02(d), in the following order of priority:

(A)

to the Class B-1 Certificates, an amount allocable to interest equal to the Accrued Certificate Interest for such Class for such Distribution Date;

(B)

to the Class B-1 Certificates, an amount allocable to principal equal to its Allocable Share for such Distribution Date until the Class Principal Balance of such Class is reduced to zero;

(C)

to the Class B-2 Certificates, an amount allocable to interest equal to the Accrued Certificate Interest for such Class for such Distribution Date;

(D)

to the Class B-2 Certificates, an amount allocable to principal equal to its Allocable Share for such Distribution Date until the Class Principal Balance of such Class is reduced to zero;

(E)

to the Class B-3 Certificates, an amount allocable to interest equal to the Accrued Certificate Interest for such Class for such Distribution Date;

(F)

to the Class B-3 Certificates, an amount allocable to principal equal to its Allocable Share for such Distribution Date until the Class Principal Balance of such Class is reduced to zero;

(G)

to the Class B-4 Certificates, an amount allocable to interest equal to the Accrued Certificate Interest for such Class for such Distribution Date;

(H)

to the Class B-4 Certificates, an amount allocable to principal equal to its Allocable Share for such Distribution Date until the Class Principal Balance of such Class is reduced to zero;

(I)

to the Class B-5 Certificates, an amount allocable to interest equal to the Accrued Certificate Interest for such Class for such Distribution Date;

(J)

to the Class B-5 Certificates, an amount allocable to principal equal to its Allocable Share for such Distribution Date until the Class Principal Balance of such Class is reduced to zero;

(K)

to the Class B-6 Certificates, an amount allocable to interest equal to the Accrued Certificate Interest for such Class for such Distribution Date;

(L)

to the Class B-6 Certificates, an amount allocable to principal equal to its Allocable Share for such Distribution Date until the Class Principal Balance of such Class is reduced to zero; and

fifth, to the Class A-LR Certificate, any remaining funds in the Subsidiary REMIC, and to the Class A-UR Certificate, any remaining funds in each remaining REMIC.

On any Distribution Date, to the extent the Amount Available for Group 1 Principal is insufficient to make the full distribution required to be made pursuant to clause (i), priority second sub-clause (A) above, (x) the amount distributable on the Class 30-PO Certificates in respect of principal pursuant to such clause (i), priority second sub-clause (A) above shall be equal to the product of (1) the Amount Available for Group 1 Principal and (2) a fraction, the numerator of which is the PO Principal Distribution Amount for Collateral Group 1 and the denominator of which is the sum of the PO Principal Distribution Amount for Collateral Group 1 and the Senior Optimal Principal Amount for Collateral Group 1 and (y) the amount distributable on the Group 1 Certificates in respect of principal shall be equal to the product of (1) the Amount Available for Group 1 Principal and (2) a fraction, the numerator of which is the Senior Optimal Principal Amount for Collateral Group 1 and the denominator of which is the sum of the Senior Optimal Principal Amount for Collateral Group 1 and the PO Principal Distribution Amount for Collateral Group 1.

On any Distribution Date, to the extent the Amount Available for Group 3 Principal is insufficient to make the full distribution required to be made pursuant to clause (i), priority second sub-clause (C) above, (x) the amount distributable on the Class 30-PO Certificates in respect of principal pursuant to such clause (i), priority second sub-clause (C) above shall be equal to the product of (1) the Amount Available for Group 3 Principal and (2) a fraction, the numerator of which is the PO Principal Distribution Amount for Collateral Group 3 and the denominator of which is the sum of the PO Principal Distribution Amount for Collateral Group 3 and the Senior Optimal Principal Amount for Collateral Group 3 and (y) the amount distributable on the Group 3 Certificates in respect of principal shall be equal to the product of (1) the Amount Available for Group 3 Principal and (2) a fraction, the numerator of which is the Senior Optimal Principal Amount for Collateral Group 3 and the denominator of which is the sum of the Senior Optimal Principal Amount for Collateral Group 3 and the PO Principal Distribution Amount for Collateral Group 3.

On any Distribution Date, to the extent the Amount Available for Group 4 Principal is insufficient to make the full distribution required to be made pursuant to clause (i), priority second sub-clause (D) above, (x) the amount distributable on the Class 15-PO Certificates in respect of principal pursuant to such clause (i), priority second sub-clause (C) above shall be equal to the product of (1) the Amount Available for Group 4 Principal and (2) a fraction, the numerator of which is the PO Principal Distribution Amount for Collateral Group 4 and the denominator of which is the sum of the PO Principal Distribution Amount for Collateral Group 4 and the Senior Optimal Principal Amount for Collateral Group 4 and (y) the amount distributable on the Group 4 Certificates in respect of principal shall be equal to the product of (1) the Amount Available for Group 4 Principal and (2) a fraction, the numerator of which is the Senior Optimal Principal Amount for Collateral Group 4 and the denominator of which is the sum of the Senior Optimal Principal Amount for Collateral Group 4 and the PO Principal Distribution Amount for Collateral Group 4.

(b)

On each Distribution Date, the amount referred to in clause (i) of the definition of Accrued Certificate Interest for each Class of Certificates (other than the Class PO Certificates) shall be reduced by (i) the related Class’s pro rata share of Net Prepayment Interest Shortfalls with respect to the Mortgage Loans in the related Collateral Group or Collateral Groups, based on such Class’ Accrued Certificate Interest for such Distribution Date without taking into account such Net Prepayment Interest Shortfalls and (ii) the related Class’s pro rata share (based on such Class’ pro rata share without taking into account any such reduction) of (A) after the Special Hazard Coverage Termination Date with respect to each Mortgage Loan in the related Collateral Group or Collateral Groups, that became a Special Hazard Mortgage Loan during the calendar month preceding the month of such Distribution Date, the excess of one month’s interest at the related Net Mortgage Rate on the Scheduled Principal Balance of such Mortgage Loan as of the Due Date in such month over the amount of Liquidation Proceeds applied as interest on such Mortgage Loan with respect to such month, (B) after the Bankruptcy Coverage Termination Date with respect to each Mortgage Loan in the related Collateral Group or Collateral Groups that became subject to a Bankruptcy Loss during the calendar month preceding the month of such Distribution Date, the interest portion of the related Deficient Valuation, (C) each Relief Act Reduction incurred on a Mortgage Loan in the related Collateral Group or Collateral Groups, during the calendar month preceding the month of such Distribution Date and (D) after the Fraud Loss Coverage Termination Date with respect to each Mortgage Loan in the related Collateral Group or Collateral Groups that became a Fraud Loan during the calendar month preceding the month of such Distribution Date, the excess of one month’s interest at the related Net Mortgage Rate on the Scheduled Principal Balance of such Mortgage Loan as of the Due Date in such month over the amount of Liquidation Proceeds applied as interest on such Mortgage Loan with respect to such month.  For purposes of calculating the reduction in the amount referred to in clause (i) of the definition of Accrued Certificate Interest for each Class of Subordinate Certificates in respect of any Collateral Group (other than Collateral Group 2), such reduction shall be based upon the amount of interest accruing at the Required Coupon for such Collateral Group, and with respect to Collateral Group 2, shall be based upon the amount of interest accruing at a rate of 7.500% per annum, in each case, based on, on such Class’ proportionate share, based on Class Principal Balance, of the related Group Subordinate Amount for that Distribution Date.

(c)

On each Distribution Date occurring prior to the Class 1-A-10 Accretion Termination Date, the Class 1-A-10 Accrual Amount, if any, will be distributed as principal, as follows:

(i)  first, concurrently, to the Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates, pro rata based on Class Principal Balances, until their aggregate Class Principal Balance is reduced to their aggregate Scheduled Class Balance for such Distribution Date as set forth in Schedule V; and 

(ii) second, to the Class 1-A-10 Certificates, until its Class Principal Balance is reduced to zero.

(d)

Notwithstanding the priority and allocation contained in Section 4.02(a)(i) priority fourth, if with respect to any Class of Subordinate Certificates on any Distribution Date, such Class has not satisfied the related Class Prepayment Distribution Trigger, no distribution of amounts pursuant to clauses (ii) and (iii) of the definition of the Subordinate Optimal Principal Amount will be made to any such Classes (the “Restricted Classes”) and the amount of such amounts pursuant to clauses (ii) and (iii) of the definition of the applicable Subordinate Optimal Principal Amount otherwise distributable to the Restricted Classes shall be distributed to any Classes of Subordinate Certificates, which are not Restricted Classes, having lower numerical Class designations than such Class, pro rata based on their respective Class Principal Balances immediately prior to such Distribution Date.  The calculation of any amount to be distributed under this Section 4.02(d) shall be made by the Master Servicer.  

(e)

On each Distribution Date, after application of Group 1 Available Funds, Group 2 Available Funds, Group 3 Available Funds and Group 4 Available Funds in accordance with Section 4.02(a)(i) items first and second, the Trust Administrator shall effect cross-collateralization among each Certificate Group in the following priority:

(i)

Subject to Section 4.02(b), to the extent any Accrued Certificate Interest with respect to any Class of Senior Certificates (other than the related Class of Class PO Certificates) remains unpaid after application of Available Funds for the related Collateral Group in accordance with Section 4.02(a)(i) items first and second, Available Funds for each of such Collateral Groups remaining after payments on the related Senior Certificates (other than the related Class of Class PO Certificates) shall be applied to cover such unpaid Accrued Certificate Interest, and shall be applied pro rata based on the amounts of such unpaid Accrued Certificate Interest to the extent there are insufficient funds to pay such amounts in full.  

(ii)

Prior to the Cross-Over Date, to the extent any PO Deferred Amount has not been paid from Available Funds for any Collateral Group, the available Subordinate Principal Distribution Amount for the Subordinate Certificates shall be applied to pay any such PO Deferred Amount.  

(iii)

If on any Distribution Date, one or more of Certificate Groups is an Undercollateralized Group, the available Subordinate Principal Distribution Amount for the Subordinate Certificates shall be paid to such Undercollateralized Group or Groups as principal to the Senior Certificates of such Undercollateralized Group or Groups in accordance with the priorities set forth in Section 4.02(a)(i) until the aggregate Class Principal Balance of the Senior Certificates of each such Undercollateralized Group equals the related Group Balance of the related Collateral Group (net of the applicable PO Percentage of the Scheduled Principal Balance of each Discount Mortgage Loan in such Collateral Group, if any). If more than one of such Certificate Groups is an Undercollateralized Group, the available Subordinate Principal Distribution Amount for the Subordinate Certificates shall be distributed between such Undercollateralized Groups pro rata according to Group Balances.

(iv)

On or after the date on which the Class Principal Balances of all of the Senior Certificates in any Certificate Group have been reduced to zero, amounts otherwise distributable as principal on the Subordinate Certificates, up to the applicable Apportioned Subordinate Principal Distribution Amount, shall be paid pro rata as principal to the remaining Senior Certificates of such other Certificate Group or Groups in accordance with the priorities set forth in Section 4.02(a)(i), provided that on such Distribution Date (a) the Aggregate Subordinate Percentage for the Subordinate Certificates for such Distribution Date is less than twice the initial Aggregate Subordinate Percentage for the Subordinate Certificates or (b) the average outstanding principal balance of the Mortgage Loans delinquent 60 days or more over the last six months (including delinquent Mortgage Loans in bankruptcy, and all Mortgage Loans in foreclosure and REO Properties) as a percentage of the Group Subordinate Amount is greater than or equal to 50%.

(v)

Any application of the Subordinate Principal Distribution Amount for the Subordinate Certificates pursuant to the preceding paragraphs (ii), (iii) and (iv) will reduce distributions of such amount in reverse order of priority pursuant to the priorities set forth in Section 4.02(a)(i) priority fourth.

(f)

[Reserved].

(g)

On each Distribution Date, all Class P Prepayment Charges remitted to the Trust during the related Prepayment Period shall be distributed by the Trust Administrator to the Holders of the Class P Certificates.

(h)

On each Distribution Date, Group Available Funds for each Collateral Group shall be applied to distributions on the Subsidiary and Middle REMIC Regular Interests, as described in the Preliminary Statement, in each case in an amount sufficient to make the distributions to the Master REMIC.

(i)

In the event that the Mortgage Loans are purchased at the Master Servicer's election pursuant to Section 10.01(a), the Trust Administrator shall remit the amount of any Fair Market Value Excess by wire transfer of immediately available funds to the holders of the Class A-LR Certificates in accordance with the instructions of the holders of the Class A-LR Certificates.

Section 4.03

Allocation of Realized Losses.

(a)

On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below.  Realized Losses occurring on the Mortgage Loans shall be allocated as follows:

(i)

the applicable PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 1 or Collateral Group 3, or the Class 15-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 4, in each case, until the Class Principal Balance of such Class of Class PO Certificates is reduced to zero; and

(ii)

the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero, (D) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to the Class 1-A-14 Certificates until the Certificate Principal Balance of the Class 1-A-14 Certificates has been reduced to zero, (E) the losses allocable to the Class 1-A-6 Certificates, under this paragraph, will instead be allocated to the Class 1-A-7 Certificates until the Certificate Principal Balance of the Class 1-A-7 Certificates has been reduced to zero, (F) the losses allocable to the Class 1-A-11 Certificates, under this paragraph, will instead be allocated to the Class 1-A-12 Certificates until the Certificate Principal Balance of the Class 1-A-12 Certificates has been reduced to zero, and (G) the losses allocable to the Class 3-A-1 Certificates, under this paragraph, will instead be allocated to the Class 3-A-2 Certificates until the Certificate Principal Balance of the Class 3-A-2 Certificates has been reduced to zero; provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2 and Component 1-A-5-3, pro rata, based on their outstanding Certificate Principal Balances; and

(iii)

the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan, (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan, (3) the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan and (4) the Group 4 Certificates, in the case of an Excess Loss on a Group 4 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and

(b)

The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class 15-PO in respect of any PO Deferred Amounts for Collateral Group 4, and the amount of any payments on the Class 30-PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 and Collateral Group 3 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1, Group 2, Group 3 and Group 4 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and

(c)

Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”).

(d)

Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates (other than the Class 1-A-5 Certificates) and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows:

(i)

first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates and the Class 1-A-5 Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i); and

(ii)

second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)(A).

(e)

With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows:

(i)

(A) to the Class 15-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 4 and (B) to the Class 30-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1 and Collateral Group 3; and

(ii)

to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i);

provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Section 4.04

Distribution Date Statements to Certificateholders.  

(a)

Not later than two Business Days prior to each Distribution Date, the Master Servicer shall prepare and make available to the Trust Administrator and not later than each Distribution Date, the Trust Administrator shall make available to each Certificateholder, the Depositor, the Trustee and any other interested parties a statement based in part on information provided by each Servicer setting forth the following information with respect to the related distribution (in the case of information furnished pursuant to (i) and (ii) below, the amounts shall be expressed as a dollar amount per one thousand:

(i)

the amount thereof allocable to principal, separately identifying the aggregate amount of any Principal Prepayments, Class P Prepayment Charges collected on the Mortgage Loans identified on Schedule III hereto and Liquidation Proceeds included therein;

(ii)

the amount thereof allocable to interest, any unpaid Class Interest Shortfall included in such distribution and any remaining unpaid Class Interest Shortfall after giving effect to such distribution;

(iii)

if the distribution to the Holders of such Class of Certificates is less than the full amount that would be distributable to such Holders if there were sufficient funds available therefor, the amount of the shortfall and the allocation thereof as between principal and interest;

(iv)

the Certificate Principal Balance as a dollar amount per minimum denomination Certificate and the Class Principal Balance or Notional Amount of each Class of Certificates, after giving effect to the distribution of principal on such Distribution Date;

(v)

the Group Balance for each Collateral Group on such Distribution Date;

(vi)

the Senior Percentage and Subordinate Percentage for each Certificate Group for the following Distribution Date;

(vii)

the aggregate amount of the Servicing Fees and Master Servicing Compensation with respect to such Distribution Date;

(viii)

the Pass-Through Rate for each such Class of Certificates with respect to such Distribution Date;

(ix)

the amount of Advances included in the distribution on such Distribution Date and the aggregate amount of Advances outstanding as of the close of business on such Distribution Date;

(x)

the number and aggregate principal amounts of Mortgage Loans (A) delinquent (exclusive of Mortgage Loans in foreclosure) (1) 1 to 30 days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more days and (B) in foreclosure and delinquent (1) 1 to 30 days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more days, as of the close of business on the last day of the calendar month preceding such Distribution Date;

(xi)

with respect to any Mortgage Loan that became an REO Property during the preceding calendar month, the loan number and Scheduled Principal Balance of such Mortgage Loan as of the close of business on the last Business Day of the calendar month preceding such Distribution Date and the date of acquisition thereof;

(xii)

the total number and principal balance of any REO Properties (and market value, if available) as of the close of business on the last Business Day of the calendar month preceding such Distribution Date;

(xiii)

the Senior Prepayment Percentage for each Certificate Group;

(xiv)

the aggregate amount of Realized Losses, by Collateral Group on Mortgage Loans incurred during the preceding calendar month; and

(xv)

each Special Hazard Loss Coverage Amount, each Fraud Loss Coverage Amount and each Bankruptcy Loss Coverage Amount, in each case as of the related Determination Date.

(b)

The Trust Administrator’s responsibility for disbursing the above information to the Master Servicer, the Trustee, the Depositor, the Certificateholders and other interested parties is limited to the availability, timeliness and the accuracy of the information provided by each Servicer.  The Trust Administrator will make a copy of each statement provided pursuant to this Section 4.04 (and, at its option, any additional files containing the same information in an alternative format) available each month to the Certificateholders and other interested parties, and other parties to this Agreement via the Trust Administrator’s internet website located at “www.ctslink.com”.  Assistance in using the internet website can be obtained by calling the Trust Administrator’s customer service desk at (301) 815-6600.  Parties that are unable to use the above distribution method are entitled to have a paper copy mailed to them via first class mail by calling the customer service desk and indicating such.  The Trust Administrator shall have the right to change the way the Distribution Date Statement is distributed in order to make such distribution more convenient and/or more accessible and the Trust Administrator shall provide timely and adequate notification to the Certificateholders and the parties to this Agreement regarding any such changes.

The Trust Administrator shall also be entitled to rely on but shall not be responsible for the content or accuracy of any information provided by third parties (including the Servicers) for purposes of preparing the Distribution Date Statement and may affix thereto any disclaimer it deems appropriate in its reasonable discretion (without suggesting liability on the part of any other party hereto).

As a condition to access the Trust Administrator’s internet website, the Trust Administrator may require registration and the acceptance of a disclaimer.  The Trust Administrator will not be liable for the dissemination of information in accordance with this Agreement.

(c)

Within a reasonable period of time after the end of each calendar year, the Trust Administrator shall cause to be furnished upon request to each Person who at any time during the calendar year was a Certificateholder, a statement containing the information set forth in clauses (a)(i), (a)(ii) and (a)(vii) of this Section 4.04 aggregated for such calendar year or applicable portion thereof during which such Person was a Certificateholder.  Such obligation of the Trust Administrator shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Trust Administrator pursuant to any requirements of the Code as from time to time in effect.

Section 4.05

Determination of LIBOR.  

On each LIBOR Determination Date for a Class of LIBOR Certificates, the Trust Administrator shall determine LIBOR for the applicable Distribution Date on the basis of the British Bankers’ Association (“BBA”) “Interest Settlement Rate” for one month deposits in U.S. Dollars as found on Telerate page 3750 as of 11:00 a.m. London time on such LIBOR Determination Date.  As used herein, “Telerate page 3750” means the display designated as page 3750 on the Bridge Telerate Service.  The “Interest Settlement Rates” currently are based on rates quoted by 16 British Bankers’ Association designated banks as being in the view of such banks, the offered rate at which deposits are being quoted to prime banks in the London interbank market.  Such Interest Settlement Rates are calculated by eliminating the four highest rates and the four lowest rates, averaging the eight remaining rates, carrying the result (expressed as a percentage) out to six decimal places, and rounding to five decimal places.

If on any LIBOR Determination Date for a Class of LIBOR Certificates, the Trust Administrator is unable to determine LIBOR on the basis of the method set forth in the preceding paragraph, LIBOR for the next Interest Accrual Period will be the higher of (x) LIBOR as determined on the previous LIBOR Determination Date for such Class of LIBOR Certificates or (y) the Reserve Interest Rate.  The “Reserve Interest Rate” will be the rate per annum which the Trust Administrator determines to be either (A) the arithmetic mean (rounding such arithmetic mean upwards if necessary to the nearest whole multiple of 1/16%) of the one month U.S. Dollar lending rates that New York City banks selected by the Trust Administrator are quoting, on the relevant LIBOR Determination Date, to the principal London offices of at least two leading banks in the London interbank market or (B) in the event that the Trust Administrator can determine no such arithmetic mean, the lowest one month U.S. Dollar lending rate that the New York City banks selected by the Trust Administrator are quoting on such LIBOR Determination Date to leading European banks.

If on any LIBOR Determination Date for a Class of LIBOR Certificates, the Trust Administrator is required but is unable to determine the Reserve Interest Rate in the manner provided in the preceding paragraph, LIBOR for the next Interest Accrual Period will be LIBOR as determined on the previous LIBOR Determination Date for such Class of LIBOR Certificates, or, in the case of the first LIBOR Determination Date, the Initial LIBOR Rate.

The establishment of LIBOR on the LIBOR Determination Date by the Trust Administrator and the Trust Administrator’s calculation of the rates of interest applicable to each of the LIBOR Certificates for the related Interest Accrual Period shall, in the absence of manifest error, be final and binding.  After a LIBOR Determination Date, the Trust Administrator shall provide the Pass-Through Rates of the LIBOR Certificates for the related Interest Accrual Period to Certificate Owners or Holders of LIBOR Certificates who place a telephone call to the Trust Administrator at (301) 815-6600 and make a request therefor.

ARTICLE V

THE CERTIFICATES

Section 5.01

The Certificates.  

The Certificates shall be substantially in the forms attached hereto as Exhibit A through F.  The Certificates shall be issuable in registered form, in the minimum denominations, integral multiples in excess thereof (except that one Certificate in each Class may be issued in a different amount which must be in excess of the applicable minimum denomination) and aggregate denominations per Class set forth in the Preliminary Statement.

Subject to Section 10.02 hereof respecting the final distribution on the Certificates, on each Distribution Date the Trust Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either (x) by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Trust Administrator in writing at least five Business Days prior to the related Record Date or (y) by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register.  

The Certificates shall be executed by manual or facsimile signature on behalf of the Trust Administrator by an authorized officer.  Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures were affixed, authorized to sign on behalf of the Trust Administrator shall bind the Trust Administrator, notwithstanding that such individuals or any of them have ceased to be so authorized prior to the countersignature and delivery of such Certificates or did not hold such offices at the date of such Certificate.  No Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose, unless countersigned by the Trust Administrator by manual signature, and such countersignature upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly executed and delivered hereunder.  All Certificates shall be dated the date of their countersignature.  On the Closing Date, the Trust Administrator shall countersign the Certificates to be issued at the direction of the Depositor, or any affiliate thereof.

The Depositor shall provide, or cause to be provided, to the Trust Administrator on a continuous basis, an adequate inventory of Certificates to facilitate transfers.

Section 5.02

Certificate Register; Registration of Transfer and Exchange of Certificates.  

(a)

The Trust Administrator shall maintain, or cause to be maintained in accordance with the provisions of Section 5.06 hereof, a Certificate Register for the Trust Fund in which, subject to the provisions of subsections (b) and (c) below and to such reasonable regulations as it may prescribe, the Trust Administrator shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein provided.  Upon surrender for registration of transfer of any Certificate, the Trust Administrator shall execute and deliver, in the name of the designated transferee or transferees, one or more new Certificates of the same Class and aggregate Percentage Interest.

At the option of a Certificateholder, Certificates may be exchanged for other Certificates of the same Class in authorized denominations and evidencing the same aggregate Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency of the Trust Administrator.  Whenever any Certificates are so surrendered for exchange, the Trust Administrator shall execute, authenticate, and deliver the Certificates which the Certificateholder making the exchange is entitled to receive.  Every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Trust Administrator duly executed by the holder thereof or his attorney duly authorized in writing.

No service charge to the Certificateholders shall be made for any registration of transfer or exchange of Certificates, but payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Certificates may be required by the Trust Administrator.

All Certificates surrendered for registration of transfer or exchange shall be canceled and subsequently destroyed by the Trust Administrator in accordance with the Trust Administrator’s customary procedures.

(b)

No transfer of a Private Certificate shall be made unless such transfer is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is exempt from the registration requirements under said Act and such state securities laws.  In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such laws, in order to assure compliance with the Securities Act and such laws, the Certificateholder desiring to effect such transfer (other than the Depositor or an affiliate of the Depositor) shall certify to the Trust Administrator in writing the facts surrounding the transfer in substantially the forms set forth in Exhibit J (the “Transferor Certificate”).  Further, such Certificateholder’s prospective transferee will either (i) deliver a letter in substantially the form of either Exhibit K (the “Investment Letter”) or Exhibit L (the “Rule 144A Letter”) or (ii) deliver to the Trust Administrator at the expense of the transferor an Opinion of Counsel that such transfer may be made pursuant to an exemption from the Securities Act.  The Depositor shall provide to any Holder of a Private Certificate and any prospective transferee designated by any such Holder, information regarding the related Certificates and the Mortgage Loans and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate without registration thereof under the Securities Act pursuant to the registration exemption provided by Rule 144A.  The Trust Administrator and the Master Servicer shall cooperate with the Depositor, in accordance with the Depositor’s request, in providing the Rule 144A information referenced in the preceding sentence, including providing to the Depositor, to the extent in its possession, such information regarding the Certificates, the Mortgage Loans and other matters regarding the Trust Fund as the Depositor shall reasonably request to meet its obligation under the preceding sentence.  Each Holder of a Private Certificate desiring to effect such transfer shall, and does hereby agree to, indemnify the Trustee, the Trust Administrator, the Depositor, and the Master Servicer against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of an ERISA-Restricted Certificate shall be made (other than to the Depositor or an affiliate of the Depositor) unless the Trust Administrator shall have received in accordance with Exhibit K or Exhibit L (in the event such Certificate is a Private Certificate) or paragraph 13 of Exhibit I (in the event such Certificate is a Residual Certificate), in form and substance satisfactory to such Trust Administrator (i) a representation that such transferee is not an employee benefit plan or other retirement arrangement subject to Section 406 of ERISA and/or Section 4975 of the Code, or a person acting for, on behalf of or with the assets of, any such plan or arrangement, (ii) in the case of an ERISA-Restricted Certificate which is the subject of an ERISA-Qualifying Underwriting, if the purchaser is an insurance company, a representation that the purchaser is an insurance company which is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the purchase and holding of such Certificates are covered under Sections I and III of PTCE 95-60 or (iii) an Opinion of Counsel satisfactory to the Trust Administrator, which Opinion of Counsel shall not be an expense of the Trustee, the Trust Administrator, the Depositor, the Transferor, the Master Servicer or the Trust Fund, addressed to the Trust Administrator to the effect that the purchase or holding of such ERISA-Restricted Certificate will not result in non-exempt prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Trust Administrator, the Depositor, the Transferor or the Master Servicer to any obligation in addition to those expressly undertaken in this Agreement.  For purposes of the preceding sentence, with respect to an ERISA-Restricted Certificate that is not a Private Certificate or a Residual Certificate, in the event the representation letter referred to in the preceding sentence is not so furnished, such representation shall be deemed to have been made to the Trust Administrator by the transferee’s (including an initial acquirer’s) acceptance of the ERISA-Restricted Certificates.  Notwithstanding anything else to the contrary herein, any purported transfer of an ERISA-Restricted Certificate, to or on behalf of an employee benefit plan or other retirement arrangement subject to ERISA or the Code in violation of the above restrictions shall be void and of no effect.

To the extent permitted under applicable law (including, but not limited to, ERISA), the Trust Administrator shall be under no liability to any Person for any registration of transfer of any ERISA-Restricted Certificate that is in fact not permitted by this Section 5.02(b) or for making any payments due on such Certificate to the Holder thereof or taking any other action with respect to such Holder under the provisions of this Agreement so long as the transfer was registered by the Trust Administrator in accordance with the foregoing requirements.

(c)

Each Person who has or who acquires any Ownership Interest in a Residual Certificate shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions, and the rights of each Person acquiring any Ownership Interest in a Residual Certificate are expressly subject to the following provisions:

(i)

Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall be a Permitted Transferee and shall promptly notify the Trust Administrator of any change or impending change in its status as a Permitted Transferee.

(ii)

No Ownership Interest in a Residual Certificate may be registered on the Closing Date or thereafter transferred, and the Trust Administrator shall not register the Transfer of any Residual Certificate unless, in addition to the certificates required to be delivered to the Trust Administrator under subparagraph (b) above, the Trust Administrator shall have been furnished with an affidavit (a “Transfer Affidavit”) of the initial owner or the proposed transferee (other than the Depositor of an affiliate thereof) in the form attached hereto as Exhibit I.

(iii)

Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall agree (A) to obtain a Transfer Affidavit from any other Person to whom such Person attempts to Transfer its Ownership Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such Person is acting as nominee, trustee or agent in connection with any Transfer of a Residual Certificate and (C) not to Transfer its Ownership Interest in a Residual Certificate or to cause the Transfer of an Ownership Interest in a Residual Certificate to any other Person if it has actual knowledge that such Person is not a Permitted Transferee.

(iv)

Any attempted or purported Transfer of any Ownership Interest in a Residual Certificate in violation of the provisions of this Section 5.02(c) shall be absolutely null and void and shall vest no rights in the purported Transferee.  If any purported transferee shall become a Holder of a Residual Certificate in violation of the provisions of this Section 5.02(c), then the last preceding Permitted Transferee shall be restored to all rights as Holder thereof retroactive to the date of registration of Transfer of such Residual Certificate.  The Trust Administrator shall be under no liability to any Person for any registration of Transfer of a Residual Certificate that is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or for making any payments due on such Certificate to the Holder thereof or taking any other action with respect to such Holder under the provisions of this Agreement so long as the Transfer was registered after receipt of the related Transfer Affidavit, Transferor Certificate and either the Rule 144A Letter or the Investment Letter.  The Trust Administrator shall be entitled but not obligated to recover from any Holder of a Residual Certificate that was in fact not a Permitted Transferee at the time it became a Holder or, at such subsequent time as it became other than a Permitted Transferee, all payments made on such Residual Certificate at and after either such time.  Any such payments so recovered by the Trust Administrator shall be paid and delivered by the Trust Administrator to the last preceding Permitted Transferee of such Certificate.

(v)

The Depositor shall use its best efforts to make available, upon receipt of written request from the Trust Administrator, all information necessary to compute any tax imposed under Section 860E(e) of the Code as a result of a Transfer of an Ownership Interest in a Residual Certificate to any Holder who is not a Permitted Transferee.

The restrictions on Transfers of a Residual Certificate set forth in this Section 5.02(c) shall cease to apply (and the applicable portions of the legend on a Residual Certificate may be deleted) with respect to Transfers occurring after delivery to the Trust Administrator of an Opinion of Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee, the Trust Administrator, the Transferor or the Master Servicer, to the effect that the elimination of such restrictions will not cause any REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates are outstanding or result in the imposition of any tax on the Trust Fund, a Certificateholder or another Person.  Each Person holding or acquiring any Ownership Interest in a Residual Certificate hereby consents to any amendment of this Agreement which, based on an Opinion of Counsel furnished to the Trust Administrator, is reasonably necessary (a) to ensure that the record ownership of, or any beneficial interest in, a Residual Certificate is not transferred, directly or indirectly, to a Person that is not a Permitted Transferee and (b) to provide for a means to compel the Transfer of a Residual Certificate which is held by a Person that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

(d)

The preparation and delivery of all certificates and opinions referred to above in this Section 5.02 in connection with transfer shall be at the expense of the parties to such transfers.

(e)

Except as provided below, the Book-Entry Certificates shall at all times remain registered in the name of the Depository or its nominee and at all times:  (i) registration of the Certificates may not be transferred by the Trust Administrator except to another Depository; (ii) the Depository shall maintain Book-Entry records with respect to the Certificate Owners and with respect to ownership and transfers of such Book-Entry Certificates; (iii) ownership and transfers of registration of the Book-Entry Certificates on the books of the Depository shall be governed by applicable rules established by the Depository; (iv) the Depository may collect its usual and customary fees, charges and expenses from its Depository Participants; (v) the Trust Administrator shall deal with the Depository as representative of the Certificate Owners of the Book-Entry Certificates for purposes of exercising the rights of Holders under this Agreement, and requests and directions for and votes of such representative shall not be deemed to be inconsistent if they are made with respect to different Certificate Owners; and (vi) the Trust Administrator may conclusively rely and shall be fully protected in relying upon information furnished by the Depository with respect to its Depository Participants and furnished by the Depository Participants with respect to indirect participating firms and persons shown on the books of such indirect participating firms as direct or indirect Certificate Owners.

All transfers by Certificate Owners of Book-Entry Certificates shall be made in accordance with the procedures established by the Depository Participant or brokerage firm representing such Certificate Owner.  Each Depository Participant shall only transfer Book-Entry Certificates of Certificate Owners it represents or of brokerage firms for which it acts as agent in accordance with the Depository’s normal procedures.

If (x) (i) the Depository or the Depositor advises the Trust Administrator in writing that the Depository is no longer willing, qualified or able to properly discharge its responsibilities as Depository, and (ii) the Depositor is unable to locate a qualified successor, (y) the Depositor notifies the Trust Administrator in writing, with the consent of the applicable Depository Participants, that it elects to terminate the book-entry system through the Depository or (z) after the occurrence of a Master Servicer Event of Termination, Certificate Owners representing at least 51% of the Certificate Principal Balance of the Book-Entry Certificates together advise the Trust Administrator and the Depository through the Depository Participants in writing that the continuation of a Book-Entry system through the Depository is no longer in the best interests of the Certificate Owners and the Depository Participants consent to the termination, the Trust Administrator, upon receipt of notice of such event, shall notify all Certificate Owners, through the Depository, of the occurrence of any such event and of the availability of definitive, fully-registered Certificates (the “Definitive Certificates”) to Certificate Owners requesting the same.  Upon surrender to the Trust Administrator of the related Class of Certificates by the Depository, accompanied by the instructions from the Depository for registration, the Trust Administrator shall issue the Definitive Certificates.  None of the Master Servicer, the Depositor nor the Trust Administrator shall be liable for any delay in delivery of such instruction and each may conclusively rely on, and shall be protected in relying on, such instructions.  The Depositor shall provide the Trust Administrator with an adequate inventory of certificates to facilitate the issuance and transfer of Definitive Certificates.  Upon the issuance of Definitive Certificates all references herein to obligations imposed upon or to be performed by the Depository shall be deemed to be imposed upon and performed by the Trust Administrator, to the extent applicable with respect to such Definitive Certificates and the Trust Administrator shall recognize the Holders of the Definitive Certificates as Certificateholders hereunder; provided that the Trust Administrator shall not by virtue of its assumption of such obligations become liable to any party for any act or failure to act of the Depository.

Section 5.03

Mutilated, Destroyed, Lost or Stolen Certificates.  

If (a) any mutilated Certificate is surrendered to the Trust Administrator, or the Trust Administrator receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) there is delivered to the Master Servicer and the Trust Administrator such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Trust Administrator that such Certificate has been acquired by a bona fide purchaser, the Trust Administrator shall execute, countersign and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor and Percentage Interest.  In connection with the issuance of any new Certificate under this Section 5.03, the Trust Administrator may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trust Administrator and its counsel) connected therewith.  Any replacement Certificate issued pursuant to this Section 5.03 shall constitute complete and indefeasible evidence of ownership, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

Section 5.04

Persons Deemed Owners.  

The Master Servicer, the Trustee, the Trust Administrator and any agent of the Master Servicer, the Trust Administrator or the Trustee may treat the Person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions as provided in this Agreement and for all other purposes whatsoever, and none of the Master Servicer, the Trust Administrator or the Trustee nor any agent of the Master Servicer, the Trust Administrator or the Trustee shall be affected by any notice to the contrary.

Section 5.05

Access to List of Certificateholders’ Names and Addresses.  

If three or more Certificateholders (a) request such information in writing from the Trust Administrator, (b) state that such Certificateholders desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates, and (c) provide a copy of the communication which such Certificateholders propose to transmit, or if the Depositor or Master Servicer shall request such information in writing from the Trust Administrator, then the Trust Administrator shall, within ten Business Days after the receipt of such request, provide the Depositor, the Master Servicer or such Certificateholders at such recipients’ expense the most recent list of the Certificateholders of such Trust Fund held by the Trust Administrator, if any.  The Depositor and every Certificateholder, by receiving and holding a Certificate, agree that the Trust Administrator shall not be held accountable by reason of the disclosure of any such information as to the list of the Certificateholders hereunder, regardless of the source from which such information was derived.

Section 5.06

Maintenance of Office or Agency.  

Certificates may be surrendered for registration of transfer or exchange at Corporate Trust Office of the Trust Administrator.  The Trust Administrator will give prompt written notice to the Certificateholders of any change in such location of any such office or agency.

ARTICLE VI

THE DEPOSITOR, THE MASTER SERVICER AND THE CUSTODIAN

Section 6.01

Respective Liabilities of the Depositor, the Master Servicer and the Custodian.  

The Depositor, the Master Servicer and the Custodian shall each be liable in accordance herewith only to the extent of the obligations specifically and respectively imposed upon and undertaken by them herein.

Section 6.02

Merger or Consolidation of the Depositor, the Master Servicer and the Custodian.  

The Depositor, the Master Servicer and the Custodian will each keep in full effect its existence, rights and franchises as a corporation or limited partnership, as the case may be, under the laws of the United States or under the laws of one of the states thereof and will each obtain and preserve its qualification to do business as a foreign corporation or legal entity, as the case may be, 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 respective duties under this Agreement.

Any Person into which the Depositor, the Master Servicer or the Custodian may be merged or consolidated, or any Person resulting from any merger or consolidation to which the Depositor, the Master Servicer or the Custodian shall be a party, or any Person succeeding to the business of the Depositor, the Master Servicer or the Custodian, shall be the successor of the Depositor, the Master Servicer or the Custodian, as the case may be, 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 to the Master Servicer shall be qualified to service mortgage loans on behalf of Fannie Mae or Freddie Mac.

Section 6.03

Limitation on Liability of the Depositor, the Transferor, the Master Servicer, the Custodian and Others.  

None of the Depositor, the Transferor, the Master Servicer, the Custodian or any of the directors, officers, employees or agents of the Depositor, the Transferor, the Master Servicer or the Custodian shall be under any liability to the Trust 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 Depositor, the Transferor, the Master Servicer, the Custodian or any such Person against any breach of representations or warranties made by it herein or protect the Depositor, the Transferor, the Master Servicer, the Custodian or any such Person from any liability which would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder.  The Depositor, the Transferor, the Master Servicer, the Custodian and any director, officer, employee or agent of the Depositor, the Transferor, the Master Servicer or the Custodian may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.  The Depositor, the Transferor, the Master Servicer, the Custodian and any director, officer, employee or agent of the Depositor, the Transferor, the Master Servicer or the Custodian shall be indemnified by the Trust Fund and held harmless against any loss, liability or expense incurred in connection with (i) any audit, controversy or judicial proceeding relating to a governmental taxing authority, (ii) the performance of its duties and obligations and the exercise of its rights under this Agreement or the Certificates which constitute “unanticipated expenses incurred by the REMIC” within the meaning of the REMIC Provisions, or (iii) any legal action relating to this Agreement or the Certificates, other than any loss, liability or expense related to any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability or expense shall be otherwise reimbursable pursuant to this Agreement) and any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder.  None of the Depositor, the Transferor, the Master Servicer and the Custodian shall be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its respective duties hereunder and which in its opinion may involve it in any expense or liability; provided, however, that any of the Depositor, the Transferor, the Master Servicer or the Custodian may in its discretion undertake any such action that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto and interests of the Trustee, the Trust Administrator and the Certificateholders hereunder.  In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Fund, and the Depositor, the Transferor, the Custodian and the Master Servicer shall be entitled to be reimbursed therefor out of the Collection Account.

Section 6.04

Limitation on Resignation of Master Servicer.  

The Master Servicer shall not resign from the obligations and duties hereby imposed on it except (a) upon appointment of a successor master servicer and receipt by the Trustee of a letter from each Rating Agency that such a resignation and appointment will not result in a downgrading of the rating of any of the Certificates, or (b) upon determination that its duties hereunder are no longer permissible under applicable law, or (c) pursuant to Section 6.05.  Any such determination under clause (b) permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Trustee.  No such resignation shall become effective until the Trustee or a successor master servicer shall have assumed the Master Servicer’s responsibilities, duties, liabilities and obligations hereunder.

Section 6.05

Sale and Assignment of Master Servicing Rights.  

The Master Servicer may sell, assign or delegate its rights, duties and obligations as Master Servicer under this Agreement in their entirety; provided, however, that:  (i) the purchaser or transferee accepting such sale, assignment and delegation (a) shall be a Person qualified to service mortgage loans for Fannie Mae or Freddie Mac, (b) shall have a net worth of not less than $50,000,000 (unless otherwise approved by each Rating Agency pursuant to clause (ii) below) or (c) shall execute and deliver to the Trustee an agreement, in form and substance reasonably satisfactory to the Trustee, which contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by it as master servicer under this Agreement, from and after the effective date of such assumption agreement or delegation; (ii) each Rating Agency shall be given prior written notice of the identity of the proposed successor to the Master Servicer and shall confirm in writing to the Master Servicer and the Trustee that any such sale, assignment or delegation would not result in a withdrawal or a downgrading of the rating on any Class of Certificates in effect immediately prior to such sale, assignment; and (iii) the Master Servicer shall deliver to the Trustee an Officer’s Certificate and an Opinion of Independent Counsel, each stating that all conditions precedent to such action under this Agreement have been fulfilled and such action is permitted by and complies with the terms of this Agreement.  No such sale, assignment or delegation shall affect any liability of the Master Servicer arising prior to the effective date thereof.

Section 6.06

Fees of the Custodian.  

The Custodian shall be compensated as separately agreed in writing with the Master Servicer.   

ARTICLE VII

DEFAULT

Section 7.01

Events of Default.  

“Master Servicer Event of Termination,” wherever used herein, means any one of the following events:

(i)

The Master Servicer fails to cause to be deposited in the Distribution Account any amount so required to be deposited pursuant to this Agreement, and such failure continues unremedied for a period of one Business Day; or

(ii)

The Master Servicer fails to observe or perform in any material respect any other material covenants and agreements set forth in this Agreement to be performed by it, which covenants and agreements materially affect the rights of Certificateholders, and such failure continues unremedied for a period of 60 days after the date on which written notice of such failure, properly requiring the same to be remedied, shall have been given to the Master Servicer by the Trustee or to the Master Servicer and the Trustee or the Trust Administrator by the Holders of Certificates evidencing Voting Rights aggregating not less than 25% of the Certificates; or

(iii)

There is entered against the Master Servicer a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs, and the continuance of any such decree or order is unstayed and in effect for a period of 60 consecutive days, or an involuntary case is commenced against the Master Servicer under any applicable insolvency or reorganization statute and the petition is not dismissed within 60 days after the commencement of the case; or

(iv)

The Master Servicer consents to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to the Master Servicer or substantially all of its property; or the Master Servicer admits in writing its inability to pay its debts generally as they become due, files a petition to take advantage of any applicable insolvency or reorganization statute, makes an assignment for the benefit of its creditors, or voluntarily suspends payment of its obligations;

(v)

The Master Servicer assigns or delegates its duties or rights under this Agreement in contravention of the provisions permitting such assignment or delegation under Section 6.04; or

(vi)

any failure by the Master Servicer to comply with Sections 3.21 or 3.22.

In each and every such case, so long as such Master Servicer Event of Termination with respect to the Master Servicer shall not have been remedied, the Trustee may, and (i) at the direction of the Holders of Certificates evidencing Voting Rights aggregating not less than 25% of the Certificates or (ii) if such Master Servicer Event of Termination is related to a failure by the Master Servicer to make any Advance required to be made by it pursuant to the terms of this Agreement, the Trustee shall, in each case by notice in writing to the Master Servicer, with a copy to the Rating Agencies, terminate all of the rights and obligations (but not the liabilities accruing prior to the date of termination) of the Master Servicer under this Agreement and in and to the Mortgage Loans and/or the REO Property serviced by the Master Servicer and the proceeds thereof; provided, however, with respect to an Event of Default set forth in clause (vi), the Depositor, at its sole option, but with the consent of the Trustee, may permit a cure period for the Master Servicer to deliver such Assessment of Compliance or Accountant’s Attestation, but in no event later than March 25 of such year.  Upon the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer under this Agreement, whether with respect to the Certificates, the Mortgage Loans, the Servicing Agreements, REO Property or under any other related agreements (but only to the extent that such other agreements relate to the Mortgage Loans or related REO Property) shall, subject to Section 7.02, automatically and without further action pass to and be vested in the Trustee pursuant to this Section 7.01; and, without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the Master Servicer as attorney-in-fact or otherwise, any and all documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise.  The Master Servicer agrees to cooperate with the Trustee in effecting the termination of the Master Servicer’s rights and obligations hereunder, including, without limitation, the transfer to the Trustee of (i) the Mortgage Files and all other property and amounts which are then or should be part of the Trust or which thereafter become part of the Trust; and (ii) originals or copies of all documents of the Master Servicer reasonably requested by the Trustee to enable it to assume the Master Servicer’s duties thereunder.  In addition to any other amounts which are then, or, notwithstanding the termination of its activities under this Agreement, may become payable to the Master Servicer under this Agreement, the Master Servicer shall be entitled to receive, out of any amount received on account of a Mortgage Loan or related REO Property, that portion of such payments which it would have received as reimbursement under this Agreement if notice of termination had not been given.  The termination of the rights and obligations of the Master Servicer shall not affect any obligations incurred by the Master Servicer prior to such termination.

Notwithstanding any termination of the activities of the Master Servicer hereunder, the Master Servicer shall be entitled to receive, out of any late collection of a Scheduled Payment on a Mortgage Loan which was due prior to the notice terminating such Master Servicer’s rights and obligations as Master Servicer hereunder and received after such notice, that portion thereof to which such Master Servicer would have been entitled pursuant to Sections 3.10(a)(i) through (xi), and any other amounts payable to such Master Servicer hereunder the entitlement to which arose prior to the termination of its activities hereunder.

If the Master Servicer and the Trust Administrator are the same Person, then at any time the Master Servicer is terminated pursuant to Section 7.01 hereof, the Trust Administrator shall likewise be removed as trust administrator hereunder.

Section 7.02

Trustee to Act; Appointment of Successor.  

On and after the time the Master Servicer receives a notice of termination pursuant to Section 7.01 hereof, the Trustee shall, subject to and to the extent provided in Section 3.05, be the successor to the Master Servicer in its capacity as Master Servicer under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities, duties, liabilities and limitations on liabilities relating thereto placed on the Master Servicer by the terms and provisions hereof and applicable law including the obligation to make Advances pursuant to Section 4.01.  As compensation therefor, the Trustee shall be entitled to investment income on all funds to which the Master Servicer would have been entitled in the Collection Account or Distribution Account if the Master Servicer had continued to act hereunder.  Notwithstanding the foregoing, if the Trustee has become the successor to the Master Servicer in accordance with Section 7.01 hereof, the Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited by applicable law from making Advances pursuant to Section 4.01 hereof or if it is otherwise unable to so act, or if it has been requested in writing by Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates to do so, appoint, or petition a court of competent jurisdiction to appoint, any established mortgage loan servicing institution the appointment of which does not adversely affect the then current rating of the Certificates by each Rating Agency as the successor to the Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer hereunder.  Any successor to the Master Servicer shall be an institution which is a Fannie Mae and Freddie Mac approved seller/servicer in good standing, which has a net worth of at least $15,000,000, and which is willing to master service the Mortgage Loans and executes and delivers to the Depositor and the Trustee an agreement accepting such delegation and assignment, which contains an assumption by such Person of the rights, powers, duties, responsibilities, obligations and liabilities of the Master Servicer (other than liabilities of the Master Servicer under Section 6.03 hereof incurred prior to termination of the Master Servicer under Section 7.01), with like effect as if originally named as a party to this Agreement; and provided further that each Rating Agency acknowledges that its rating of the Certificates in effect immediately prior to such assignment and delegation will not be qualified or reduced as a result of such assignment and delegation.  Pending appointment of a successor to the Master Servicer hereunder, the Trustee, unless the Trustee is prohibited by law from so acting, shall, subject to Section 3.05 hereof, act in such capacity as hereinabove provided.  In connection with such appointment and assumption, the Trustee may make such arrangements for the compensation of such successor master servicer out of payments on Mortgage Loans as it and such successor master servicer shall agree; provided, however, that no such compensation shall be in excess of the compensation permitted the Master Servicer hereunder.  The Trustee and such successor master servicer shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession.  Neither the Trustee nor any other successor master servicer shall be deemed to be in default hereunder by reason of any failure to make, or any delay in making, any distribution hereunder or any portion thereof or any failure to perform, or any delay in performing, any duties or responsibilities hereunder, in either case caused by the failure of the Master Servicer to deliver or provide, or any delay in delivering or providing, any cash, information, documents or records to it.

Any successor master servicer as Master Servicer shall give notice to the Servicers of such change of master servicer and shall, during the term of its service as master servicer enforce the requirement of the Servicers to maintain in force the policy or policies pursuant to Section 3.11.

The Trustee or successor master servicer shall be entitled to be reimbursed from the Master Servicer for all costs associated with the transfer of master servicing from the predecessor master servicer, including, without limitation, any costs or expenses (including but not limited to personnel time) associated with the complete transfer of all master servicing data and the completion, correction or manipulation of such master servicing data as may be required by the Trustee or successor master servicer to correct any errors or insufficiencies in the master servicing data or otherwise to enable the Trustee or successor master servicer to master service the Mortgage Loans properly and effectively.  If the Master Servicer does not pay such reimbursement within thirty (30) days of its receipt of an invoice therefor, such reimbursement shall be an expense of the Trust and the Trustee shall be entitled to withdraw such reimbursement from amounts on deposit in the Distribution Account pursuant to Section 3.10(b)(iii); provided that the Master Servicer shall reimburse the Trust for any such expense incurred by the Trust.

Section 7.03

Notification to Certificateholders.  

(a)

Upon any termination of or appointment of a successor to the Master Servicer, the Trustee (or the Trust Administrator on its behalf) shall give prompt written notice thereof to Certificateholders and to each Rating Agency.

(b)

Within 60 days after the occurrence of any Master Servicer Event of Termination, the Trustee or the Trust Administrator shall transmit by mail to all Certificateholders notice of each such Master Servicer Event of Termination hereunder actually known to a Responsible Officer of the Trustee or the Trust Administrator, unless such Master Servicer Event of Termination shall have been cured or waived.

ARTICLE VIII

CONCERNING THE TRUSTEE

Section 8.01

Duties of Trustee.  

The Trustee, prior to the occurrence of a Master Servicer Event of Termination and after the curing or waiver of all Master Servicer Events of Termination that may have occurred, shall undertake to perform such duties and only such duties as are specifically set forth in this Agreement.  In case a Master Servicer Event of Termination has occurred and remains uncured or unwaived, the Trustee shall exercise such of the rights and powers vested in it by this Agreement, and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs, but only until such time as a successor Master Servicer shall have been appointed hereunder.

The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trustee that are specifically required to be furnished pursuant to any provision of this Agreement shall examine them to determine whether they are in the form required by this Agreement to the extent that forms of such documents have been provided to the Trustee; provided, however, that the Trustee shall not be responsible for the accuracy or content of any such resolution, certificate, statement, opinion, report, document, order or other instrument.  If any such instrument is found not to conform in any material respect to the requirements of this Agreement, the Trustee shall notify the Certificateholders of such non-conforming instrument in the event the Trustee, after so requesting, does not receive a satisfactorily corrected instrument.

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

(i)

unless a Master Servicer Event of Termination of which a Responsible Officer of the Trustee has actual knowledge shall have occurred and be continuing, the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement, the Trustee 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 Trustee and the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Agreement which it believed in good faith to be genuine and to have been duly executed by the proper authorities respecting any matters arising hereunder;

(ii)

the Trustee shall not be liable for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be conclusively determined by a court of competent jurisdiction, such determination no longer subject to appeal, that the Trustee was negligent in ascertaining the pertinent facts;

(iii)

the Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of Holders of Certificates evidencing not less than 25% of the Voting Rights of Certificates relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising or omitting to exercise any trust or power conferred upon the Trustee under this Agreement; and

(iv)

The Trustee shall not be accountable, shall have no liability and makes no representation as to any acts or omissions hereunder of the Master Servicer until such time as the Trustee may be required to act as Master Servicer pursuant to Section 7.02 and thereupon only for the acts or omissions of the Trustee as successor Master Servicer.

Section 8.02

Certain Matters Affecting the Trustee.  

Except as otherwise provided in Section 8.01:

(i)

the Trustee may request and conclusively rely upon and shall be fully protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties and the Trustee shall have no responsibility to ascertain or confirm the genuineness of any signature of any such party or parties;

(ii)

the Trustee may consult with counsel, financial advisers or accountants and the advice of any such counsel, financial advisers or accountants and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(iii)

the Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;

(iv)

prior to the occurrence of a Master Servicer Event of Termination and after the curing or waiver of all Master Servicer Events of Termination which may have occurred, the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing so to do by Holders of Certificates evidencing not less than 25% of the Voting Rights allocated to each Class of Certificates; provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Agreement, the Trustee may require reasonable indemnity against such expense or liability as a condition to so proceeding.  The reasonable expense of every such examination shall be paid by the Master Servicer or, if paid by the Trustee, shall be reimbursed by the Master Servicer upon demand.  Nothing in this clause (iv) shall derogate from the obligation of the Master Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors;

(v)

the 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 the Custodian and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent, attorney or custodian appointed by the Trustee with due care;

(vi)

the Trustee shall not be required to risk or expend its own funds or otherwise incur any financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not assured to it, and none of the provisions contained in this Agreement shall in any event require the Trustee to perform, or be responsible for the manner of performance of, any of the obligations of the Master Servicer under this Agreement, except during such time, if any, as the Trustee shall be the successor to, and be vested with the rights, duties, powers and privileges of, the Master Servicer in accordance with the terms of this Agreement;

(vii)

the Trustee shall not be liable for any loss on any investment of funds pursuant to this Agreement (other than as issuer of the investment security);

(viii)

the Trustee shall not be deemed to have knowledge of a Master Servicer Event of Termination until a Responsible Officer of the Trustee obtains actual knowledge of such failure or the Trustee receives written notice of such failure from the Master Servicer or the holders of Certificates evidencing not less than 25% of the Voting Rights of Certificates.  In the absence of such receipt of such notice, the Trustee may conclusively assume that there is no Master Servicer Event of Termination;

(ix)

the Trustee shall be under no obligation to exercise any of the trusts, rights or powers vested in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the Certificateholders, pursuant to the provisions of this Agreement, unless such Certificateholders shall have offered to the Trustee reasonable security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which may be incurred therein or thereby.

The Trustee shall have no duty (A) to see to any recording, filing, or depositing of this Agreement or any agreement referred to herein or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any rerecording, refiling or redepositing thereof, (B) to see to the provision of any insurance or (C) to see to the payment or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Fund other than from funds available in the Distribution Account.

Section 8.03

Trustee Not Liable for Certificates or Mortgage Loans.  

The recitals contained herein and in the Certificates shall be taken as the statements of the Depositor or the Transferor, as the case may be, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Agreement or of the Certificates or of any Mortgage Loan or related document.  The Trustee shall not be accountable for the use or application by the Depositor or the Master Servicer of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Collection Account or the Distribution Account by the Depositor, the Master Servicer or the Trust Administrator.

Section 8.04

Trustee May Own Certificates.  

The Trustee in its individual or any other capacity may become the owner or pledgee of Certificates and may transact business with the parties hereto and their Affiliates with the same rights as it would have if it were not the Trustee.

Section 8.05

Trustee’s Fees and Expenses.  

The Trustee shall be compensated as separately agreed with the Master Servicer.  The Trustee and any director, officer, employee, agent or “control person” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange of 1934, as amended (“Control Person”), of the Trustee shall be indemnified by the Trust and held harmless against any loss, liability or expense (including reasonable attorney’s fees) (i) incurred in connection with any claim or legal action relating to (a) this Agreement, (b) the Mortgage Loans or (c) the Certificates, (ii) incurred in connection with the performance of any of the Trustee’s duties hereunder, other than any loss, liability or expense (x) incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trustee’s duties hereunder or (y) which would not constitute an “unanticipated expense incurred by the REMIC” within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii) and (iii) incurred by reason of any action of the Trustee taken at the direction of the Certificateholders.  Such indemnity shall survive the termination of this Agreement or the resignation or removal of the Trustee hereunder.  Without limiting the foregoing, and except for any such expense, disbursement or advance as may arise from the Trustee’s negligence, bad faith or willful misconduct, or which would not be an “unanticipated expense” within the meaning of the second preceding sentence, the Trustee shall be reimbursed by the Trust for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Agreement with respect to:  (A) the reasonable compensation and the expenses and disbursements of its counsel not associated with the closing of the issuance of the Certificates, (B) the reasonable compensation, expenses and disbursements of any accountant, engineer, appraiser or other agent that is not regularly employed by the Trustee, to the extent that the Trustee must engage such Persons to perform acts or services hereunder and (C) printing and engraving expenses in connection with preparing any Definitive Certificates.  The Trust shall fulfill its obligations under this paragraph from amounts on deposit from time to time in the Distribution Account.

Section 8.06

Eligibility Requirements for Trustee.  

The Trustee hereunder shall at all times be a corporation or association organized and doing business under the laws the United States of America or any state thereof, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by federal or state authority and with a credit rating of at least investment grade.  If such corporation or association publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 8.06 the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 8.06, the Trustee shall resign immediately in the manner and with the effect specified in Section 8.07 hereof.  The entity serving as Trustee may have normal banking and trust relationships with the Depositor and its affiliates or the Master Servicer and its affiliates; provided, however, that such entity cannot be an affiliate of the Master Servicer other than the Trustee in its role as successor to the Master Servicer.

Section 8.07

Resignation and Removal of Trustee.  

The Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice of resignation to the Depositor, the Master Servicer and each Rating Agency not less than 60 days before the date specified in such notice when, subject to Section 8.08, such resignation is to take effect, and acceptance by a successor trustee in accordance with Section 8.08 meeting the qualifications set forth in Section 8.06.  If no successor trustee meeting such qualifications shall have been so appointed by the Depositor and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee.

If at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 8.06 hereof and shall fail to resign after written request thereto by the Depositor, or if at any time the Trustee shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or a tax is imposed with respect to the Trust Fund by any state in which the Trustee or the Trust Fund is located and the imposition of such tax would be avoided by the appointment of a different trustee, then the Depositor or the Master Servicer may remove the Trustee and appoint a successor trustee by written instrument, in triplicate, one copy of which instrument shall be delivered to the Trustee so removed, one copy of which shall be delivered to the Master Servicer and one copy to the successor trustee.  

The Holders of Certificates entitled to at least 51% of the Voting Rights may at any time remove the Trustee and appoint a successor trustee by written instrument or instruments, in triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered by the successor Trustee to the Master Servicer, one complete set to the Trustee so removed and one complete set to the successor so appointed.  Notice of any removal of the Trustee shall be given to each Rating Agency by the successor trustee.

Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 8.07 shall become effective upon acceptance by the successor trustee of appointment as provided in Section 8.08 hereof.

Section 8.08

Successor Trustee.  

Any successor trustee appointed as provided in Section 8.07 hereof shall execute, acknowledge and deliver to the Depositor and to its predecessor trustee and the Master Servicer an instrument accepting such appointment hereunder and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with the like effect as if originally named as trustee herein.  The Depositor, the Master Servicer and the predecessor trustee shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor trustee all such rights, powers, duties, and obligations.

No successor trustee shall accept appointment as provided in this Section 8.08 unless at the time of such acceptance such successor trustee shall be eligible under the provisions of Section 8.06 hereof and its appointment shall not adversely affect the then current rating of the Certificates, as confirmed in writing by each Rating Agency.

Upon acceptance by a successor trustee of appointment as provided in this Section 8.08, the Depositor shall mail notice of the succession of such trustee hereunder to all Holders of Certificates.  If the Depositor fails to mail such notice within 10 days after acceptance by the successor trustee of appointment, the successor trustee shall cause such notice to be mailed at the expense of the Depositor.

Section 8.09

Merger or Consolidation of Trustee.  

Any corporation or other entity into which the Trustee may be merged or converted or with which it may be consolidated or any corporation or other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation or other entity succeeding to the business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation or other entity shall be eligible under the provisions of Section 8.06 hereof, without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

Section 8.10

Appointment of Co-Trustee or Separate Trustee.  

Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Fund or property securing any Mortgage Note may at the time be located, the Master Servicer and the Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Trustee to act as co-trustee or co-trustees jointly with the Trustee, or separate trustee or separate trustees, of all or any part of the Trust Fund, and to vest in such Person or Persons, in such capacity and for the benefit of the Certificateholders, such title to the Trust Fund or any part thereof, whichever is applicable, and, subject to the other provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Master Servicer and the Trustee may consider necessary or desirable.  If the Master Servicer shall not have joined in such appointment within 15 days after the receipt by it of a request to do so, or in the case a Master Servicer Event of Termination shall have occurred and be continuing, the Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 8.06 and no notice to Certificateholders of the appointment of any co-trustee or separate trustee shall be required under Section 8.08.

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)

To the extent necessary to effectuate the purposes of this Section 8.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee, except for the obligation of the Trustee (as successor master servicer) under this Agreement to advance funds on behalf of the Master Servicer, shall be conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed (whether as Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the applicable Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Trustee;

(ii)

No trustee hereunder shall be held personally liable by reason of any act or omission of any other trustee hereunder and such appointment shall not, and shall not be deemed to, constitute any such separate trustee or co-trustee as agent of the Trustee; and

(iii)

The Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

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

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

ARTICLE IX

CONCERNING THE TRUST ADMINISTRATOR AND THE MASTER SERVICER

Section 9.01

Duties of Trust Administrator.  

The Trust Administrator shall undertake to perform such duties and only such duties as are specifically set forth in this Agreement.  

The Trust Administrator, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trust Administrator that are specifically required to be furnished pursuant to any provision of this Agreement shall examine them to determine whether they are in the form required by this Agreement; provided, however, that the Trust Administrator shall not be responsible for the accuracy or content of any such resolution, certificate, statement, opinion, report, document, order or other instrument.  If any such instrument is found not to conform in any material respect to the requirements of this Agreement, the Trust Administrator shall notify the Certificateholders of such non-conforming instrument in the event the Trust Administrator, after so requesting, does not receive a satisfactorily corrected instrument.

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

(i)

the duties and obligations of the Trust Administrator shall be determined solely by the express provisions of this Agreement, the Trust Administrator 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 Trust Administrator and the Trust Administrator may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trust Administrator and conforming to the requirements of this Agreement which it believed in good faith to be genuine and to have been duly executed by the proper authorities respecting any matters arising hereunder;

(ii)

the Trust Administrator shall not be liable for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trust Administrator, unless it shall be conclusively determined by a court of competent jurisdiction, such determination no longer subject to appeal, that the Trust Administrator was negligent in ascertaining the pertinent facts;

(iii)

the Trust Administrator shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of Holders of Certificates evidencing not less than 25% of the Voting Rights of Certificates relating to the time, method and place of conducting any proceeding for any remedy available to the Trust Administrator, or exercising or omitting to exercise any trust or power conferred upon the Trust Administrator under this Agreement; and

(iv)

The Trust Administrator shall not be accountable, shall have no liability and makes no representation as to any acts or omissions hereunder of the Master Servicer or the Trustee.

Section 9.02

Certain Matters Affecting the Trust Administrator.  

Except as otherwise provided in Section 9.01:

(i)

the Trust Administrator may request and conclusively rely upon and shall be fully protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties and the Trust Administrator shall have no responsibility to ascertain or confirm the genuineness of any signature of any such party or parties;

(ii)

the Trust Administrator may consult with counsel, financial advisers or accountants and the advice of any such counsel, financial advisers or accountants and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(iii)

the Trust Administrator shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;

(iv)

the Trust Administrator shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing so to do by Holders of Certificates evidencing not less than 25% of the Voting Rights allocated to each Class of Certificates; provided, however, that if the payment within a reasonable time to the Trust Administrator of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trust Administrator, not reasonably assured to the Trust Administrator by the security afforded to it by the terms of this Agreement, the Trust Administrator may require reasonable indemnity against such expense or liability as a condition to so proceeding.  Nothing in this clause (iv) shall derogate from the obligation of the Master Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors;

(v)

the Trust Administrator may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or the Custodian and the Trust Administrator shall not be responsible for any misconduct or negligence on the part of any such agent, attorney or custodian appointed by the Trust Administrator with due care;

(vi)

the Trust Administrator shall not be required to risk or expend its own funds or otherwise incur any financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not assured to it, and none of the provisions contained in this Agreement shall in any event require the Trust Administrator to perform, or be responsible for the manner of performance of, any of the obligations of the Master Servicer under this Agreement, except during such time, if any, as the Trust Administrator shall be the successor to, and be vested with the rights, duties, powers and privileges of, the Master Servicer in accordance with the terms of this Agreement;

(vii)

[reserved];

(viii)

[reserved];

(ix)

the Trust Administrator shall be under no obligation to exercise any of the trusts, rights or powers vested in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the Certificateholders, pursuant to the provisions of this Agreement, unless such Certificateholders shall have offered to the Trust Administrator reasonable security or indemnity satisfactory to the Trust Administrator against the costs, expenses and liabilities which may be incurred therein or thereby.

The Trust Administrator shall have no duty (A) to see to any recording, filing, or depositing of this Agreement or any agreement referred to herein or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any rerecording, refiling or redepositing thereof, (B) to see to the provision of any insurance or (C) to see to the payment or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Fund other than from funds available in the Distribution Account.

The Trust Administrator is hereby directed by the Depositor to execute and deliver the Cap Contract on behalf of the Trust Fund in the form presented to it by the Depositor.

Section 9.03

Trust Administrator Not Liable for Certificates or Mortgage Loans.

The recitals contained herein and in the Certificates shall be taken as the statements of the Depositor or the Transferor, as the case may be, and the Trust Administrator assumes no responsibility for their correctness.  The Trust Administrator makes no representations as to the validity or sufficiency of this Agreement or of the Certificates or of any Mortgage Loan or related document other than with respect to the Trust Administrator’s execution and authentication of the Certificates.  The Trust Administrator shall not be accountable for the use or application by the Depositor or the Master Servicer of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Collection Account by the Depositor or the Master Servicer.

Section 9.04

Trust Administrator May Own Certificates.  

The Trust Administrator in its individual or any other capacity may become the owner or pledgee of Certificates and may transact business with the parties hereto and their Affiliates with the same rights as it would have if it were not the Trust Administrator.

Section 9.05

Trust Administrator’s Fees and Expenses.  

As compensation for its activities hereunder, the Trust Administrator shall be entitled to retain or withdraw from the Distribution Account an amount equal to the Trust Administrator Compensation.  The Trust Administrator and any director, officer, employee, agent or “control person” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange of 1934, as amended (“Control Person”), of the Trust Administrator shall be indemnified by the Trust and held harmless against any loss, liability or expense (including reasonable attorney’s fees) (i) incurred in connection with any claim or legal action relating to (a) this Agreement, (b) the Mortgage Loans or (c) the Certificates, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trust Administrator’s duties hereunder, (ii) incurred in connection with the performance of any of the Trust Administrator’s duties hereunder, other than any loss, liability or expense (x) incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trust Administrator’s duties hereunder or (y) which would not constitute an “unanticipated expense incurred by the REMIC” within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii), or (iii) incurred by reason of any action of the Trust Administrator taken at the direction of the Certificateholders.  Such indemnity shall survive the termination of this Agreement or the resignation or removal of the Trust Administrator hereunder.  Without limiting the foregoing, and except for any such expense, disbursement or advance as may arise from the Trust Administrator’s negligence, bad faith or willful misconduct, or which would not be an “unanticipated expense” within the meaning of the second preceding sentence, the Trust Administrator shall be reimbursed by the Trust for all reasonable expenses, disbursements and advances incurred or made by the Trust Administrator in accordance with any of the provisions of this Agreement with respect to:  (A) the reasonable compensation and the expenses and disbursements of its counsel not associated with the closing of the issuance of the Certificates, (B) the reasonable compensation, expenses and disbursements of any accountant, engineer, appraiser or other agent that is not regularly employed by the Trust Administrator, to the extent that the Trust Administrator must engage such Persons to perform acts or services hereunder and (C) printing and engraving expenses in connection with preparing any Definitive Certificates.  The Trust shall fulfill its obligations under this paragraph from amounts on deposit from time to time in the Distribution Account.

Section 9.06

Eligibility Requirements for Trust Administrator.  

The Trust Administrator hereunder shall at all times be a corporation or association organized and doing business under the laws the United States of America or any state thereof, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by federal or state authority and with a credit rating of at least investment grade.  If such corporation or association publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 9.06 the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  In case at any time the Trust Administrator shall cease to be eligible in accordance with the provisions of this Section 9.06, the Trust Administrator shall resign immediately in the manner and with the effect specified in Section 9.07 hereof.  The entity serving as Trust Administrator may have normal banking and trust relationships with the Depositor and its affiliates or the Trustee and its affiliates.

Section 9.07

Resignation and Removal of Trust Administrator.  

The Trust Administrator may at any time resign by giving written notice of resignation to the Depositor and the Trustee and each Rating Agency not less than 60 days before the date specified in such notice when, subject to Section 9.08, such resignation is to take effect, and acceptance by a successor trust administrator in accordance with Section 9.08 meeting the qualifications set forth in Section 9.06.  If no successor trust administrator meeting such qualifications shall have been so appointed by the Depositor or the Trustee and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trust Administrator may petition any court of competent jurisdiction for the appointment of a successor trust administrator.

If at any time the Trust Administrator shall cease to be eligible in accordance with the provisions of Section 9.06 hereof and shall fail to resign after written request thereto by the Depositor, or if at any time the Trust Administrator shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a receiver of the Trust Administrator or of its property shall be appointed, or any public officer shall take charge or control of the Trust Administrator or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or a tax is imposed with respect to the Trust Fund by any state in which the Trust Administrator or the Trust Fund is located and the imposition of such tax would be avoided by the appointment of a different Trust Administrator, then the Depositor or the Trustee may remove the Trust Administrator and appoint a successor trust administrator by written instrument, in triplicate, one copy of which instrument shall be delivered to the Trust Administrator so removed, one copy of which shall be delivered to the Master Servicer and one copy to the successor trust administrator.  If the Master Servicer and the Trust Administrator are the same Person, then at any time the Master Servicer is terminated pursuant to Section 7.01 hereof, the Depositor shall also remove the Trust Administrator as trust administrator hereunder.

The Holders of Certificates entitled to at least 51% of the Voting Rights may at any time remove the Trust Administrator and appoint a successor trust administrator by written instrument or instruments, in triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered by the successor Trust Administrator to the Trustee, one complete set to the Trust Administrator so removed and one complete set to the successor so appointed.  Notice of any removal of the Trust Administrator shall be given to each Rating Agency by the successor trust administrator.

Any resignation or removal of the Trust Administrator and appointment of a successor trust administrator pursuant to any of the provisions of this Section 9.07 shall become effective upon acceptance by the successor trust administrator of appointment as provided in Section 9.08 hereof.  If the Trust Administrator and the Master Servicer are the same Person, then at any time the Trust Administrator is removed pursuant to this Section 9.07, the Master Servicer shall likewise be terminated as master servicer hereunder.

The Trust Administrator (i) may not be an Originator, Master Servicer, Servicer, the Depositor or an affiliate of the Depositor unless the Trust Administrator is in an institutional trust department, (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 (or such rating acceptable to Fitch pursuant to a rating confirmation).  If no successor trust administrator shall have been appointed and shall have accepted appointment within 60 days after Wells Fargo Bank, N.A., as Trust Administrator, ceases to be the trust administrator pursuant to this Section 9.07, then the Trustee shall perform the duties of the Trust Administrator pursuant to this Agreement. The Trustee shall notify the Rating Agencies of any change of Trust Administrator.  In such event, the Trustee shall assume all of the rights and obligations of the Trust Administrator hereunder arising thereafter except that the Trustee shall not be (i) liable for losses of the predecessor Trust Administrator or any acts or omissions of the predecessor Trust Administrator hereunder or (ii) deemed to have made any representations and warranties of the Trust Administrator made herein.  The Trustee shall not be accountable for, shall have no liability for and makes no representation as to any acts or omissions hereunder of the Trust Administrator until such time as the Trustee may be required to act as successor Trust Administrator pursuant to this Section 9.07 and thereupon only for the acts or omissions of the Trustee as successor Trust Administrator.

The Trustee or successor trust administrator shall be entitled to be reimbursed from the Master Servicer for all reasonable costs and expenses associated with the transfer of the duties of the Trust Administrator from the predecessor Trust Administrator, including, without limitation, any costs or expenses associated with the complete transfer of all trust administrator data and the completion, correction or manipulation of such trust administrator data as may be required by the Trustee or successor trust administrator to correct any errors or insufficiencies in such trust administrator data or otherwise to enable the Trustee or successor trust administrator to perform the duties of the Trust Administrator properly and effectively.

The Trustee, as successor Trust Administrator, as compensation for its activities hereunder, shall be entitled to retain or withdraw from the Distribution Account an amount equal to the Trust Administrator Compensation.  To the extent such Trust Administrator Compensation is less than the current market rate that the Trustee would charge for providing similar trust administrator services in a similarly structured transaction, as mutually determined by the Trustee and the successor Master Servicer at the time the Trustee becomes the successor Trust Administrator, the successor Master Servicer, out of its own funds, shall pay the Trustee, as successor Trust Administrator, additional compensation in an amount equal to the difference between the Trust Administrator Compensation and such current market rate for such trust administrator services, as separately negotiated by the successor Master Servicer and the Trustee at the time the Trustee becomes the successor Trust Administrator.

Section 9.08

Successor Trust Administrator.  

Any successor trust administrator appointed as provided in Section 9.07 hereof shall execute, acknowledge and deliver to the Depositor and to its predecessor trust administrator and the Trustee an instrument accepting such appointment hereunder and thereupon the resignation or removal of the predecessor trust administrator shall become effective and such successor trust administrator, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with the like effect as if originally named as trust administrator herein.  The Depositor, the Trustee, the Master Servicer and the predecessor trust administrator shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor trust administrator all such rights, powers, duties, and obligations.

No successor trust administrator shall accept appointment as provided in this Section 9.08 unless at the time of such acceptance such successor trust administrator shall be eligible under the provisions of Section 9.06 hereof and its appointment shall not adversely affect the then current rating of the Certificates, as confirmed in writing by each Rating Agency.

Upon acceptance by a successor trust administrator of appointment as provided in this Section 9.08, the Depositor shall mail notice of the succession of such trust administrator hereunder to all Holders of Certificates.  If the Depositor fails to mail such notice within 10 days after acceptance by the successor trust administrator of appointment, the successor trust administrator shall cause such notice to be mailed at the expense of the Depositor.

Section 9.09

Merger or Consolidation of Trust Administrator.  

Any corporation or other entity into which the Trust Administrator may be merged or converted or with which it may be consolidated or any corporation or other entity resulting from any merger, conversion or consolidation to which the Trust Administrator shall be a party, or any corporation or other entity succeeding to the business of the Trust Administrator, shall be the successor of the Trust Administrator hereunder, provided that such corporation or other entity shall be eligible under the provisions of Section 9.06 hereof, without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

Section 9.10

[Reserved].

Section 9.11

Tax Matters.  

It is intended that the assets with respect to which any REMIC election is to be made, as set forth in the Preliminary Statement, shall constitute, and that the conduct of matters relating to such assets shall be such as to qualify such assets as, a “real estate mortgage investment conduit” as defined in and in accordance with the REMIC Provisions.  In furtherance of such intention, the Master Servicer covenants and agrees that it shall act as agent (and the Master Servicer is hereby appointed to act as agent) on behalf of such REMIC and that in such capacity it shall:  

(a)

prepare, submit to the Trustee for execution, and file, or cause to be prepared and filed, in a timely manner, a U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return (Form 1066 or any successor form adopted by the Internal Revenue Service) and prepare and file or cause to be prepared and filed with the Internal Revenue Service and applicable state or local tax authorities income tax or information returns for each taxable year with respect to such REMIC, containing such information and at the times and in the manner as may be required by the Code or state or local tax laws, regulations, or rules, and furnish or cause to be furnished to Certificateholders the schedules, statements or information at such times and in such manner as may be required thereby, including without limitation, the calculation of any original issue discount using the Prepayment Assumption;

(b)

apply for an Employee Identification Number from the Internal Revenue Service via Form SS-4 or other acceptable method for such REMIC and within thirty days of the Closing Date, furnish or cause to be furnished to the Internal Revenue Service, on Form 8811 or as otherwise may be required by the Code, the name, title, address, and telephone number of the person that the holders of the Certificates may contact for tax information relating thereto, together with such additional information as may be required by such Form, and update such information at the time or times in the manner required by the Code;

(c)

make or cause to be made elections that such assets be treated as a REMIC on the federal tax return for its first taxable year (and, if necessary, under applicable state law);

(d)

provide information necessary for the computation of tax imposed on the transfer of a Residual Certificate to a Person that is not a Permitted Transferee described in clauses (i)-(iv) of the definition thereof, or an agent (including a broker, nominee or other middleman) of a non-Permitted Transferee (the reasonable cost of computing and furnishing such information may be charged to the Person liable for such tax);

(e)

to the extent that they are under its control, conduct matters relating to such assets at all times that any Certificates are outstanding so as to maintain the status as a REMIC under the REMIC Provisions;

(f)

not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status;

(g)

not permit the creation of any interests in such REMIC other than as set forth in the Preliminary Statement;

(h)

not receive any amount representing a fee or other compensation for services (except as otherwise permitted by this Agreement);

(i)

receive any income attributable to any asset which is neither a “qualified mortgage” nor a “permitted investment” within the meaning of the REMIC Provisions;

(j)

not receive any contributions to such REMIC after the Startup Day that would be subject to tax under Section 860G(d) of the Code;

(k)

not dispose of any assets of such REMIC at a gain if such disposition would be a “prohibited transaction” within the meaning of Section 860F(a)(2) of the Code;

(l)

pay, from the sources specified in the last paragraph of this Section 9.11, the amount of any federal or state tax, including prohibited transaction taxes as described below, imposed on such REMIC prior to its termination when and as the same shall be due and payable (but such obligation shall not prevent the Master Servicer or any other appropriate Person from contesting any such tax in appropriate proceedings and shall not prevent the Master Servicer from causing the withholding of payment of such tax, if permitted by law, pending the outcome of such proceedings);

(m)

ensure that federal, state or local income tax or information returns shall be signed by the Trustee or such other Person as may be required to sign such returns by the Code or state or local laws, regulations or rules; and

(n)

maintain records relating to such REMIC, including but not limited to the income, expenses, assets and liabilities thereof and the adjusted basis of the assets determined at such intervals as may be required by the Code, as may be necessary to prepare the foregoing returns, schedules, statements or information.  

The Holder of the largest Percentage Interest of the Class A-LR Certificates shall act as “tax matters person” within the meaning of Treasury Regulations Section 1.860F-4(d) for the Subsidiary REMIC and the Holder of the largest Percentage Interest of the Class A-UR Certificates shall act as “tax matters person” within the meaning of Treasury Regulations Section 1.860F-4(d) for each remaining REMIC created pursuant to this Agreement.  The Master Servicer is hereby designated as agent of such Class A-LR or Class A-UR Certificateholder for such purposes (or if the Master Servicer is not so permitted, such Holder shall be the tax matters person in accordance with the REMIC Provisions).  In such capacity, the Master Servicer shall, as and when necessary and appropriate, represent the related REMIC in any administrative or judicial proceedings relating to an examination or audit by any governmental taxing authority, request an administrative adjustment as to any taxable year of such REMIC, enter into settlement agreements with any governmental taxing agency, extend any statute of limitations relating to any tax item of such REMIC, and otherwise act on behalf of such REMIC in relation to any tax matter or controversy involving it.

In order to enable the Master Servicer to perform its duties as set forth herein, the Depositor shall provide, or cause to be provided, to the Master Servicer within ten (10) days after the Closing Date all information or data that the Master Servicer requests in writing and determines to be relevant for tax purposes to the valuations and offering prices of the Certificates, including, without limitation, the price, yield, prepayment assumption and projected cash flows of the Certificates and the Mortgage Loans.  Thereafter, the Depositor shall provide to the Master Servicer promptly upon written request therefor, any such additional information or data that the Master Servicer may, from time to time, reasonably request in order to enable the Master Servicer to perform its duties as set forth herein.  The Depositor hereby indemnifies the Master Servicer for any losses, liabilities, damages, claims or expenses of the Master Servicer arising from any errors or miscalculations of the Master Servicer that result from any failure of the Depositor to provide, or to cause to be provided, accurate information or data to the Master Servicer on a timely basis.

In the event that any tax is imposed on “prohibited transactions” of any REMIC hereunder as defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure property” of such REMIC as defined in Section 860G(c) of the Code, on any contribution to such REMIC after the Startup Day pursuant to Section 860G(d) of the Code, or any other tax is imposed, if not paid as otherwise provided for herein, such tax shall be paid by (i) the Master Servicer, the Trustee or the Trust Administrator, respectively, if any such other tax arises out of or results from a breach by the Master Servicer, the Trustee or the Trust Administrator, respectively, of any of its obligations under this Agreement, (ii) the Transferor, if any such tax arises out of or results from the Transferor’s obligation to repurchase a Mortgage Loan pursuant to Section 2.02 or 2.03 or (iii) in all other cases, or in the event that the Trustee, the Trust Administrator, the Master Servicer or the Transferor fails to honor its obligations under the preceding clause (i), (ii) or (iii), any such tax will be paid with amounts otherwise to be distributed to the Certificateholders, as provided in Section 3.10(b).

The parties intend that the portion of the Trust Fund constituting the Grantor Trust, consisting of the Class P Prepayment Charges, shall constitute, and that the affairs of the Grantor Trust shall be conducted so as to qualify such portion as, a "grantor trust" under subpart E, Part I of subchapter J of the Code, and the provisions hereof shall be interpreted consistently with this intention. In furtherance of such intention, the Master Servicer shall file or cause to be filed with the Internal Revenue Service together with Form 1041 or such other form as may be applicable and shall furnish or cause to be furnished the respective amounts described above to the Class P Certificateholders, in the time or times and in the manner required by the Code.

Section 9.12

Periodic Filings.

The Master Servicer shall reasonably cooperate with the Depositor to enable the Trust to satisfy its reporting requirements under the Exchange Act.

(a)

(i)

Within 15 days after each Distribution Date (subject to permitted extensions under the Exchange Act), the Trust Administrator shall prepare and file on behalf of the Issuing Entity any Form 10-D required by the Exchange Act, in form and substance as required by the Exchange Act.  The Trust Administrator shall file each Form 10-D with a copy of the related Monthly Statement attached thereto.  Any disclosure in addition to the Monthly Statement that is required to be included on Form 10-D (“Additional Form 10-D Disclosure”) shall, pursuant to the paragraph immediately below, be reported by the parties set forth on Exhibit T hereto and be determined and prepared by and at the direction of the Depositor and the Trust Administrator will have no duty or liability for any failure hereunder to determine or prepare any Additional Form 10-D Disclosure, absent such determination and direction by the Depositor.

(ii)

For so long as the Trust is subject to the Exchange Act reporting requirements, within 5 calendar days after the related Distribution Date, (i) certain parties to the MASTR Asset Securitization Trust 2006-1 transaction as set forth on Exhibit T shall be required to provide to the Trust Administrator (by e-mail at cts.sec.notifications@wellsfargo.com and by facsimile at 410-715-2380) and the Depositor, to the extent known, in EDGAR-compatible format, or in such other format as otherwise agreed upon by the Trust Administrator and such party, the form and substance of any Additional Form 10-D Disclosure as set forth on Exhibit T, if applicable, (ii) include with such Additional Form 10-D Disclosure, an Additional Disclosure Notification in the form attached hereto as Exhibit S and (iii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.  The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Trust Administrator in connection with including any Additional Form 10-D Disclosure on Form 10-D pursuant to this paragraph.

(iii)

After preparing the Form 10-D, the Trust Administrator shall forward electronically a draft copy of the Form 10-D to the Depositor and the Master Servicer for review; provided, the Trust Administrator shall only be required to forward such draft Form 10-D to the Depositor, where such draft Form 10-D contains Additional Form 10-D Disclosure.  No later than 2 Business Days prior to the 15th calendar day after the related Distribution Date, a duly authorized officer of the Master Servicer in charge of the master servicing function shall sign the Form 10-D and return an electronic or fax copy of such signed Form 10-D (with an original executed hard copy to follow by overnight mail) to the Trust Administrator.  If a Form 10-D cannot be filed on time or if a previously filed Form 10-D needs to be amended, the Trust Administrator will follow the procedures set forth in Section 9.12(d)(ii).  Promptly (but no later than 1 Business Day) after filing with the Commission, the Trust Administrator will make available on its internet website a final executed copy of each Form 10-D filed by the Trust Administrator.  The signing party at the Master Servicer can be contacted at (410) 884-2000.  Each party to this Agreement acknowledges that the performance by the Trust Administrator of its duties under this Section 9.12 related to the timely preparation, execution and filing of Form 10-D is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under this Section 9.12.  The Trust Administrator shall have no liability for any loss, expense, damage or claim arising out of or with respect to any failure to properly prepare, execute and/or timely file such Form 10-D, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto needed to prepare, arrange for execution or file such Form 10-D, not resulting from its own negligence, bad faith or willful misconduct.

(iv)

With respect to each Distribution Date, prior to the issuance of the related monthly statement to Certificateholders pursuant to Section 4.04 (each, a “Distribution Date Statement”) by the Trust Administrator, the Master Servicer shall confirm that it has received all distribution and/or servicing information required to be provided to the Master Servicer, pursuant and to the extent set forth in each Servicing Agreement, by the related Servicer for inclusion in such Distribution Date Statement.  In the event the Master Servicer determines that any such information has not been provided as required or is materially incorrect, the Master Servicer shall immediately notify the related Servicer and use its reasonable best efforts to cause such Servicer to provide or correct, as the case may be, such information promptly (but in any event in time to permit the Trust Administrator to make available the Distribution Date Statement at the time required in this Agreement).

(b)

(i)

On or before 90 days after the end of each fiscal year of the Trust or such earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”) (it being understood that the fiscal year for the Trust ends on December 31st of each year), commencing in March 2007, the Trust Administrator shall prepare and file on behalf of the Trust a Form 10-K, in form and substance as required by the Exchange Act.  Each such Form 10-K shall include the following items, in each case to the extent they have been delivered to the Trust Administrator within the applicable time frames set forth in this Agreement and each Servicing Agreement, (A) an annual compliance statement for each Servicer, each Additional Servicer and the Master Servicer as described under Section 3.21, (B)(I) each annual Assessment of Compliance with Servicing Criteria for the Master Servicer, the Trust Administrator, any Additional Servicer, the Custodian, and any Servicing Function Participant engaged by any of such parties (each, a “Reporting Servicer”), as described under Section 3.22(a), and (II) if each Reporting Servicer’s Assessment of Compliance with Servicing Criteria described under Section 3.22(a) identifies any material instance of noncompliance, disclosure identifying such instance of noncompliance, or if each Reporting Servicer’s Assessment of Compliance with Servicing Criteria described under Section 3.22(a) is not included as an exhibit to such Form 10-K, disclosure that such Assessment of Compliance is not included and an explanation why such Assessment of Compliance is not included, (C)(I) the Accountant’s Attestation for each such Reporting Servicer, as described under Section 3.22(b) of this Agreement, or the applicable section of any Servicing Agreement, and (II) if any Accountant’s Attestation described under Section 3.22(b) identifies any material instance of noncompliance, disclosure identifying such instance of noncompliance, or if any such Accountant’s Attestation is not included as an exhibit to such Form 10-K, disclosure that such Accountant’s Attestation is not included and an explanation why such Accountant’s Attestation is not included, and (D) a Sarbanes-Oxley Certification as described in Section 9.12(b)(iv). Any disclosure or information in addition to (A) through (D) above that is required to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall, pursuant to the paragraph immediately below, be reported by the parties set forth on Exhibit U hereto and be determined and prepared by and at the direction of the Depositor and the Trust Administrator will have no duty or liability for any failure hereunder to determine or prepare any Additional Form 10-K Disclosure, absent such determination and direction.

(ii)

For so long as the Trust is subject to the Exchange Act reporting requirements, no later than March 10 (with a 5 calendar day cure period) of each year that the Trust is subject to the Exchange Act reporting requirements, commencing in 2007, (A) certain parties to the MASTR Asset Securitization Trust 2006-1 transaction as set forth on Exhibit U shall be required to provide to the Trust Administrator (by email at cts.sec.notifications@wellsfargo.com and by facsimile at (410) 715-2380) and the Depositor, to the extent known, in EDGAR-compatible format, or in such other format as otherwise agreed upon by the Trust Administrator and such party, the form and substance of any Additional Form 10-K Disclosure as set forth on Exhibit U, if applicable, (B) include with such Additional Form 10-K Disclosure, an Additional Disclosure Notification in the form attached hereto as Exhibit S and (C) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K.  The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Trust Administrator in connection with including any Additional Form 10-K Disclosure on Form 10-K pursuant to this paragraph.  In order to allow the parties to comply with the requirements of this section, on or before March 1 of each year that the Trust is subject to the Exchange Act reporting requirements, commencing in 2007, the Depositor will provide all parties to the Pooling and Servicing Agreement with a list of (i) each Servicer contemplated under §1108 of Regulation AB, (ii) the Trustee, (iii) each originator contemplated by §1110 of Regulation AB, (iv) significant obligor contemplated by §1112 of Regulation AB, (v) enhancement or support provider contemplated under §§1114 or 1115 or Regulation AB and (vi) any other material parties related to the Trust contemplated by §1101(d)(1) of Regulation AB.

(iii)

After preparing the Form 10-K, the Trust Administrator shall forward electronically a draft copy of the Form 10-K to the Depositor and the Master Servicer for review.  No later than noon New York City time on the 4th Business Day prior to the 10-K Filing Deadline, a duly authorized officer of the Master Servicer in charge of the master servicing function shall sign the Form 10-K and return an electronic or fax copy of such signed Form 10-K (with an original executed hard copy to follow by overnight mail) to the Trust Administrator.  If a Form 10-K cannot be filed on time or if a previously filed Form 10-K needs to be amended, the Trust Administrator will follow the procedures set forth in Section 9.12(d)(ii).  Promptly (but no later than 1 Business Day) after filing with the Commission, the Trust Administrator will make available on its internet website a final executed copy of each Form 10-K filed by the Trust Administrator.  The signing party at the Master Servicer can be contacted at (410) 884-2000.  The parties to this Agreement acknowledge that the performance by the Trust Administrator of its duties under this Section 9.12(b) related to the timely preparation, execution and filing of Form 10-K is contingent upon such parties (and any Additional Servicer or Servicing Function Participant) strictly observing all applicable deadlines in the performance of their duties under this Section 9.12(b), Section 3.21, Section 3.22(a) and Section 3.22(b).  The Trust Administrator shall have no liability for any loss, expense, damage or claim arising out of or with respect to any failure to properly prepare, execute and/or timely file such Form 10-K, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto needed to prepare, arrange for execution or file such Form 10-K, not resulting from its own negligence, bad faith or willful misconduct.

(iv)

Each Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”), exactly as set forth in Exhibit N attached hereto, required to be included therewith pursuant to the Sarbanes-Oxley Act.  The Depositor, the Master Service and the Trust Administrator  shall provide, and each such party shall cause any Servicing Function Participant engaged by it to provide, to the Person who signs the Sarbanes-Oxley Certification (the “Certifying Person”), by March 10 (with a 5 calendar day cure period) of each year in which the Trust is subject to the reporting requirements of the Exchange Act and otherwise within a reasonable period of time upon request, a certification (each, a “Back-Up Certification”), in the form attached hereto as Exhibit U, upon which the Certifying Person, the entity for which the Certifying Person acts as an officer, and such entity’s officers, directors and Affiliates (collectively with the Certifying Person, “Certification Parties”) can reasonably rely.  The senior officer of the Master Servicer in charge of the master servicing function shall serve as the Certifying Person on behalf of the Trust.  In the event the Depositor, the Trust Administrator, the Master Servicer, any Additional Servicer or any Servicing Function Participant engaged by the parties is terminated or resigns pursuant to the terms of this Agreement, or any other applicable agreement, as the case may be, such party shall provide a Back-Up Certification to the Certifying Person pursuant to this Section 9.12(b)(iv) with respect to the period of time it was subject to this Agreement or any applicable sub-servicing agreement, as the case may be.

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer a certification similar to the Back-Up Certification within the time frame set forth in, and in such form and substance as may be required pursuant, to the related Servicing Agreement.

(c)

(i)

Within four (4) Business Days after the occurrence of an event requiring disclosure on Form 8-K (each such event, a “Reportable Event”), if requested by the Depositor, and to the extent it receives the Form 8-K Disclosure Information described below, the Trust Administrator shall prepare and file on behalf of the Trust any Form 8-K, as required by the Exchange Act, provided that the Depositor shall file the initial Form 8-Ks in connection with the issuance of the Certificates.  Any disclosure or information related to a Reportable Event or that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure Information”) shall, pursuant to the paragraph immediately below, be reported by the parties set forth on Exhibit S hereto and be determined and prepared by and at the direction of the Depositor pursuant to the following paragraph and the Trust Administrator will have no duty or liability for any failure hereunder to determine or prepare any Form 8-K Disclosure Information or any Form 8-K, absent such determination and direction by the Depositor.

(ii)

For so long as the Trust is subject to the Exchange Act reporting requirements, no later than Noon (New York time) on the 2nd Business Day after the occurrence of a Reportable Event (i) certain parties to the MASTR Asset Securitization Trust 2006-1 transaction as set forth on Exhibit V shall be required to provide to the Trust Administrator (by email at cts.sec.notifications@wellsfargo.com and by facsimile at (410) 715-2380) and the Depositor, to the extent known, in EDGAR-compatible format, or in such other format as otherwise agreed upon by the Trust Administrator and such party, the form and substance of any Form 8-K Disclosure Information, if applicable, as set forth on Exhibit V, (ii) include with such Additional Form 8-K Disclosure, an Additional Disclosure Notification in the from attached hereto as Exhibit S and (iii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Form 8-K Disclosure Information on the Form 8-K.  The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Trust Administrator in connection with including any Form 8-K Disclosure Information on Form 8-K pursuant to this paragraph.

(iii)

After preparing the Form 8-K, the Trust Administrator shall forward electronically a draft copy of the Form 8-K to the Depositor and the Master Servicer for review.  No later than Noon New York City time on the 4th Business Day after the Reportable Event, a duly authorized officer of the Master Servicer in charge of the master servicing function shall sign the Form 8-K and return an electronic or fax copy of such signed Form 8-K (with an original executed hard copy to follow by overnight mail) to the Trust Administrator.  If a Form 8-K cannot be filed on time or if a previously filed Form 8-K needs to be amended, the Trust Administrator will follow the procedures set forth in Section 9.12(d)(ii).  Promptly (but no later than 1 Business Day) after filing with the Commission, the Trust Administrator will, make available on its internet website a final executed copy of each Form 8-K filed by it.  The signing party at the Master Servicer can be contacted at (410) 884-2000.  The parties to this Agreement acknowledge that the performance by the Trust Administrator of its duties under this Section 9.12 related to the timely preparation, execution and filing of Form 8-K is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under this Section 9.12.  The Trust Administrator shall have no liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare, execute and/or timely file such Form 8-K, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto or any Servicer, Custodian or Servicing Function Participant needed to prepare, arrange for execution or file such Form 8-K, not resulting from its own negligence, bad faith or willful misconduct.

(d)

(i)

On or prior to January 30 of the first year in which the Trust Administrator is able to do so under applicable law, the Trust Administrator shall prepare and file a Form 15 Suspension Notification relating to the automatic suspension of reporting in respect of the Issuing Entity under the Exchange Act.

(e)

In the event that the Trust Administrator is unable to timely file with the Commission all or any required portion of any Form 8-K, Form 10-D or Form 10-K required to be filed by this Agreement because required disclosure information was either not delivered to it or delivered to it after the delivery deadlines set forth in this Agreement or for any other reason, the Trust Administrator will promptly notify the Depositor, such other parties to the transaction as are affected by such amendment and the Master Servicer, which notice may be by e-mail, facsimile or telephone.  In the case of Form 10-D and Form 10-K, the parties to this Agreement will cooperate to prepare and file a Form 12b-25 and a Form 10-D/A and Form 10-K/A as applicable, pursuant to Rule 12b-25 of the Exchange Act.  In the case of Form 8-K, the Trust Administrator will, upon receipt of all required Form 8-K Disclosure Information and upon the approval and direction of the Depositor, include such disclosure information on the next Form 10-D.  In the event that any previously filed Form 8-K, Form 10-D or Form 10-K needs to be amended, the Trust Administrator will notify the Depositor and the Servicer and such parties will cooperate to prepare any necessary 8-K/A, Form 10-D/A or Form 10-K/A; provided, the Trust Administrator will only be required to notify the Depositor of an amendment to any Form 10-D where such amendment contains Additional Form 10-D Disclosure.  Any Form 15, Form 12b-25 or any amendment to Form 8-K, Form 10-D or Form 10-K shall be signed by a duly authorized officer (or in the case of a Form 10-K a senior officer) of the Master Servicer in charge of the master servicing function.  The parties to this Agreement acknowledge that the performance by the Trust Administrator of its duties under this Section 9.12(d) related to the timely preparation, execution and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K, Form 10-D or Form 10-K is contingent upon each such party performing its duties under this Section.  The Trust Administrator shall have no liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare, execute  and/or timely file any such Form 15, Form 12b-25 or any amendments to Forms 8-K, Form 10-D or Form 10-K, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto or any servicer, the Custodian, or any Servicing Function Participant needed to prepare, arrange for execution or file such Form 15, Form 12b-25 or any amendments to Forms 8-K, Form 10-D or Form 10-K, not resulting from its own negligence, bad faith or willful misconduct.

ARTICLE X

TERMINATION

Section 10.01

Termination upon Liquidation or Purchase of All Mortgage Loans.  

(a)

 The obligations and responsibilities of the Depositor, the Transferor, the Master Servicer, the Trust Administrator and the Trustee created hereby with respect to the Trust Fund shall terminate upon the earlier of (i) the purchase, in accordance with this Section 10.01, of all Mortgage Loans (and REO Properties) remaining in the Trust Fund at the price equal to the sum of (x) the aggregate Clean-up Call Mortgage Loan Price for all the Mortgage Loans and (y) the aggregate Clean-up Call REO Property Price for all the REO Properties, and (ii) the later of (x) the maturity or other liquidation (or any Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the disposition of all REO Property and (y) the distribution to the Holders of the Certificates of all amounts required to be distributed to them pursuant to this Agreement.  In no event shall the trusts created hereby continue beyond the earlier of (i) the expiration of 21 years from the death of the survivor of the descendants of Joseph P. Kennedy, the late Ambassador of the United States to the Court of St. James’s, living on the date hereof and (ii) the Latest Possible Maturity Date.  The right of the Master Servicer to elect to exercise its termination rights pursuant to this clause (a) shall be conditioned upon the Aggregate Pool Principal Balance, at the time of any such repurchase, aggregating less than ten percent (10%) of the aggregate Cut-off Date Principal Balance of the Mortgage Loans.

(b)

Within two (2) Business Days after the Master Servicer has elected to exercise its termination rights pursuant to Section 10.01(a), the Master Servicer shall deliver a bid notice for the Mortgage Loans and the REO Properties to UBS Securities LLC and at least two other institutions that are regular purchasers and/or sellers in the secondary market of residential whole Mortgage Loans.  The bid notice shall specify the Mortgage Loans and the REO Properties that are being sold, and identify the aggregate Clean-up Call REO Property Price required to be paid for the REO Properties and the other information necessary for the bidders to make bids.  The Master Servicer shall also be entitled to submit a bid for the Mortgage Loans and the REO Properties.  All bids must be submitted to the Master Servicer on a date determined by the Master Servicer, which date shall be set forth in the bid notice.  Only cash bids may be accepted.  With respect to the Mortgage Loans to be purchased, if one or more bids that exceed the aggregate Par Call Price are received, the Fair Market Value Call Price for the Mortgage Loans shall be equal to the price bid by the highest bidder, and such bidder shall complete the purchase of the Mortgage Loans and the REO Properties from the Trust Fund at the aggregate Clean-up Call Mortgage Loan Price for the Mortgage Loans and the aggregate Clean-up Call REO Property Price for the REO Properties before the final Distribution Date. With respect to the Mortgage Loans to be purchased, if fewer than three bids are received or no bid exceeds the aggregate of the Par Call Price for the Mortgage Loans, the Fair Market Value Call Price shall be zero and the Master Servicer shall complete the purchase of the Mortgage Loans and the REO Properties from the Trust Fund at the aggregate Clean-up Call Mortgage Loan Price for the Mortgage Loans and the aggregate Clean-up Call REO Property Price for the REO Properties before the final Distribution Date.

Section 10.02

Final Distribution on the Certificates.  

If on any Determination Date, the Master Servicer determines that there are no Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other than the funds in the Collection Account, the Master Servicer shall direct the Trust Administrator promptly to send a final distribution notice to each Certificateholder.  If the Master Servicer elects to exercise its termination rights pursuant to clause (a) of Section 10.01, at least 5 days prior to the date notice is to be mailed to the affected Certificateholders, the Master Servicer shall notify the Depositor and the Trust Administrator of the date the Master Servicer intends to exercise its termination rights.

Notice of any termination of the Trust Fund, or of the exercise of the Master Servicer’s termination rights, specifying the Distribution Date on which related Certificateholders may surrender their Certificates for payment of the final distribution and cancellation, shall be given promptly by the Trust Administrator by letter to related Certificateholders mailed not earlier than the 15th day of the month preceding the month of such final distribution and not later than the 5th day of the month of such final distribution.  Any such notice shall specify (a) the Distribution Date upon which final distribution on the related Certificates will be made upon presentation and surrender of such Certificates at the office therein designated, (b) the location of the office or agency at which such presentation and surrender must be made, and (c) that the Record Date otherwise applicable to such Distribution Date is not applicable, distributions being made only upon presentation and surrender of the related Certificates at the office therein specified.  The Trust Administrator will give such notice to each Rating Agency at the time such notice is given to related Certificateholders.

Upon presentation and surrender of the related Certificates, the Trust Administrator shall cause to be distributed to the Certificateholders of each related Class, in the order set forth in Section 4.02 hereof, all amounts required to be distributed to it pursuant to Section 4.02 and, in the case of the Certificateholders of the same Class, in proportion to their respective Percentage Interests, an amount equal to (i) as to each Class of Regular Certificates, the Certificate Principal Balance thereof plus (a) accrued interest thereon (or on their Notional Amount, if applicable) in the case of an interest bearing Certificate and (b) any applicable PO Deferred Amounts in the case of the Class PO Certificates, and (ii) as to the Residual Certificates, the amount, if any, which remains on deposit in the Distribution Account (other than the amounts retained to meet claims) after application pursuant to clause (i) above.

In the event that any affected Certificateholders shall not surrender Certificates for cancellation within six months after the date specified in the above-mentioned written notice, the Trust Administrator shall give a second written notice to the remaining Certificateholders to surrender their Certificates for cancellation and receive the final distribution with respect thereto.  If within six months after the second notice all the applicable Certificates shall not have been surrendered for cancellation, the Trust Administrator may take reasonable steps, or may appoint an agent to take reasonable steps, to contact the remaining Certificateholders concerning surrender of their Certificates, and the cost thereof shall be paid out of the funds and other assets of the Master REMIC which remain subject hereto, and then the Class A-LR and Class A-UR Certificateholders as the beneficial owner of the residual interest issued by the REMICs created under this Agreement shall be entitled to all unclaimed funds and other assets of each related REMIC created under this Agreement, which remain subject hereto, and Certificateholders who have not surrendered Certificates shall look only to such Class A-LR and Class A-UR Certificateholders with respect to any such unclaimed funds and other assets.

Section 10.03

Additional Termination Requirements.  

(a)

In the event of the purchase pursuant to Section 10.01, the Subsidiary REMIC shall be terminated in accordance with the following additional requirements, unless the Trust Administrator has been supplied with an Opinion of Counsel, at the expense of the Master Servicer, to the effect that the failure to comply with the requirements of this Section 10.03(a) will not (i) result in the imposition of taxes on “prohibited transactions” as defined in section 860F of the Code on any REMIC created under this Agreement, or (ii) cause any such REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding:

(i)

The notice given by the Master Servicer under Section 10.02 shall provide that such notice constitutes the adoption of a plan of complete liquidation of the Subsidiary REMIC as of the date of such notice (or, if earlier, the date on which the first such notice is mailed to Certificateholders).  The Master Servicer shall also specify such date in a statement attached to the final tax return of the Subsidiary REMIC created under this Agreement; and

(ii)

At or after the time of adoption of such a plan of complete liquidation and at or prior to the final Distribution Date, the Trust Administrator shall sell all of the assets of the Subsidiary REMIC to the purchaser specified in Section 10.01 for cash at the purchase price specified in Section 10.01 and shall distribute such cash within 90 days of such adoption in the manner specified in Section 10.02.

(b)

Upon the purchase pursuant to Section 10.01, if no other REMIC would remain outstanding following such purchase, each remaining REMIC shall be terminated in accordance with the following additional requirements, unless the Trust Administrator has been supplied with an Opinion of Counsel, at the expense of the Master Servicer, to the effect that the failure to comply with the requirements of this Section 10.03(b) will not (i) result in the imposition of taxes on “prohibited transactions” as defined in section 860F of the Code on any REMIC created under this Agreement, or (ii) cause any such REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding:

(i)

The notice given by the Master Servicer under Section 10.02 shall provide that such notice constitutes the adoption of a plan of complete liquidation of each remaining REMIC as of the date of such notice (or, if earlier, the date on which the first such notice is mailed to Certificateholders).  The Master Servicer shall also specify such date in a statement attached to the final tax return of each remaining REMIC; and

(ii)

At or after the time of adoption of any such plan of complete liquidation for each such remaining REMIC and at or prior to the final Distribution Date of the Subsidiary REMIC, the Trust Administrator shall sell all of the assets of each such remaining REMIC for cash.

(c)

By its acceptance of a Residual Certificate, the Holder thereof hereby agrees to adopt such a plan of complete liquidation and to take such other action in connection therewith as may be reasonably required to liquidate and otherwise terminate any REMIC created pursuant to this Agreement.

ARTICLE XI

MISCELLANEOUS PROVISIONS

Section 11.01

Amendment.  

This Agreement may be amended from time to time by the Depositor, the Transferor, the Master Servicer, the Custodian, the Trust Administrator and the Trustee, without the consent of any of the Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any defective provision herein or to supplement any provision herein which may be inconsistent with any other provision herein or in the Prospectus Supplement, (iii) to add to the duties of the Depositor, the Trustee, the Trust Administrator, the Transferor, the Custodian or the Master Servicer, (iv) to add any other provisions with respect to matters or questions arising hereunder or (v) to modify, alter, amend, add to or rescind any of the terms or provisions contained in this Agreement; provided that any action pursuant to clause (iv) or (v) above shall not, as evidenced by an Opinion of Counsel addressed to the Trust Administrator (which Opinion of Counsel shall be an expense of the party requesting the amendment, or if the Trust Administrator requests the amendment, the Trust Fund), adversely affect in any material respect the interests of any Certificateholder; provided, however, that the amendment shall not be deemed to adversely affect in any material respect the interests of the Certificateholders if the Person requesting the amendment obtains a letter from each Rating Agency stating that the amendment would not result in the downgrading or withdrawal of the respective ratings then assigned to the Certificates; it being understood and agreed that any such letter in and of itself will not represent a determination as to the materiality of any such amendment and will represent a determination only as to the credit issues affecting any such rating.  The Trust Administrator, the Trustee, the Depositor, the Transferor, the Custodian, the Master Servicer also may at any time and from time to time amend this Agreement without the consent of the Certificateholders to modify, eliminate or add to any of its provisions to such extent as shall be necessary or helpful to (i) maintain the qualification of any REMIC created under this Agreement as a REMIC under the Code, (ii) avoid or minimize the risk of the imposition of any tax on any REMIC pursuant to the Code that would be a claim at any time prior to the final redemption of the Certificates or (iii) comply with any other requirements of the Code, provided that the Trust Administrator has been provided an Opinion of Counsel addressed to the Trust Administrator and the Master Servicer, which opinion shall be an expense of the party requesting such opinion but in any case shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund, to the effect that such action is necessary or helpful to, as applicable, (i) maintain such qualification, (ii) avoid or minimize the risk of the imposition of such a tax or (iii) comply with any such requirements of the Code.  In addition, this Agreement may be amended from time to time by the Depositor, the Master Servicer, the Trust Administrator, the Transferor, the Custodian and the Trustee without the consent of the Certificateholders to comply with the provisions of Regulation AB.

Section 9.12 of this Agreement may also be amended by the Depositor, the Transferor, the Master Servicer, the Trust Administrator and the Trustee without the consent of any of the Certificateholders, and without the need for any Opinions of Counsel or Rating Agency confirmation, in the event that new guidelines or procedures are issued by the Securities and Exchange Commission with respect to the preparation and filing of the Form 10-K and the Certification required to be attached thereto as referenced in Section 9.12(d).

This Agreement may also be amended from time to time by the Depositor, the Transferor, the Master Servicer, the Custodian, the Trust Administrator and the Trustee, and with the consent of the Holders of a Majority in Interest of each Class of Certificates affected thereby for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Holders of Certificates; provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the timing of, payments required to be distributed on any Certificate without the consent of the Holder of such Certificate, (ii) adversely affect in any material respect the interests of the Holders of any Class of Certificates in a manner other than as described in the preceding clause (i), without the consent of the Holders of Certificates of such Class evidencing, as to such Class, Percentage Interests aggregating 66% or (iii) reduce the aforesaid percentages of Certificates the Holders of which are required to consent to any such amendment, without the consent of the Holders of all such Certificates then outstanding.

Notwithstanding any contrary provision of this Agreement, the Trustee and the Trust Administrator shall not consent to any amendment to this Agreement (other than pursuant to the second preceding paragraph) unless it shall have first received an Opinion of Counsel addressed to the Trustee and the Trust Administrator, which opinion shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund, to the effect that such amendment is permitted hereunder and will not cause the imposition of any tax under the REMIC Provisions on any REMIC or the Certificateholders or cause any REMIC created under this Agreement to fail to qualify as a REMIC at any time that any Certificates are outstanding.

Promptly after the execution of any amendment to this Agreement requiring the consent of Certificateholders, the Trust Administrator shall furnish written notification of the substance or a copy of such amendment to each Certificateholder and each Rating Agency.

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

Nothing in this Agreement shall require the Trustee or the Trust Administrator to enter into an amendment without receiving an Opinion of Counsel (which Opinion shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund), satisfactory to the Trust Administrator that (i) such amendment is permitted and is not prohibited by this Agreement and that all requirements for amending this Agreement have been complied with; and (ii) either (A) the amendment does not adversely affect in any material respect the interests of any Certificateholder or (B) the conclusion set forth in the immediately preceding clause (A) is not required to be reached pursuant to this Section 11.01.  Notwithstanding anything to the contrary in this Section 11.01, the Trustee, the Custodian, the Trust Administrator, the Master Servicer and the Transferor shall reasonably cooperate with the Depositor and its counsel to enter into such amendments or modifications to the Agreement as may be necessary to comply with Regulation AB and any interpretation thereof by the Commission; provided, that at all times the parties to this Agreement shall comply with Regulation AB.

Section 11.02

Recordation of Agreement; Counterparts.  

This Agreement (or an abstract hereof, if acceptable to the applicable recording office) is subject to recordation in all appropriate public offices for real property records in all the towns or other comparable jurisdictions in which any or all of the Mortgaged Properties are situated, and in any other appropriate public office or elsewhere, such recordation to be effected by the Master Servicer at the expense of the Trust on direction by the Trust Administrator (acting at the written direction of a Majority in Interest of the Certificateholders), but only upon direction accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Certificateholders.

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

Section 11.03

Governing Law.  

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 11.04

Intention of Parties.  

It is the express intent of the parties hereto that the conveyance of the Trust Fund by the Depositor to the Trustee be, and be construed as, an absolute sale thereof to the Trustee.  It is, further, not the intention of the parties that such conveyance be deemed a pledge thereof by the Depositor to the Trustee.  However, in the event that, notwithstanding the intent of the parties, such assets are held to be the property of the Depositor, or if for any other reason this Agreement is held or deemed to create a security interest in such assets, then (i) this Agreement shall be deemed to be a security agreement within the meaning of the Uniform Commercial Code of the State of New York and (ii) the conveyance provided for in this Agreement shall be deemed to be an assignment and a grant by the Depositor to the Trustee, for the benefit of the Certificateholders, of a security interest in all of the assets that constitute the Trust Fund, whether now owned or hereafter acquired.

The Depositor for the benefit of the Certificateholders shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Trust Fund, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of the Agreement.  The Depositor shall arrange for filing any Uniform Commercial Code continuation statements in connection with any security interest granted or assigned to the Trustee for the benefit of the Certificateholders.

Section 11.05

Notices.  

(a)

The Trust Administrator shall use its best efforts to promptly provide notice to each Rating Agency with respect to each of the following of which it has actual knowledge:

(i)

Any material change or amendment to this Agreement;

(ii)

The occurrence of any Master Servicer Event of Termination that has not been cured;

(iii)

The resignation or termination of the Master Servicer, the Custodian, the Trust Administrator or the Trustee and the appointment of any successor;

(iv)

The repurchase or substitution of Mortgage Loans pursuant to Section 2.03; and

(v)

The final payment to Certificateholders.

In addition, the Master Servicer shall promptly furnish to each Rating Agency copies of the following:

(i)

Each annual statement as to compliance described in Section 3.21;

(ii)

Each annual independent public accountants’ servicing report described in Section 3.22; and

(iii)

Any notice of a purchase of a Mortgage Loan pursuant to Section 2.02 or 2.03.

(b)

All directions, demands and notices hereunder shall be in writing and shall be deemed to have been duly given when delivered to (a) in the case of the Depositor, Mortgage Asset Securitization Transactions, Inc., 1285 Avenue of the Americas, New York, New York 10019, Attention:  General Counsel, (b) in the case of the Master Servicer, Wells Fargo Bank, N.A., 9062 Old Annapolis Road, Columbia, Maryland 21045, or such other address as the Master Servicer may hereafter furnish to each other party to this Agreement in writing, and in the case of Wells Fargo in its capacity as Custodian, Wells Fargo Bank, N.A., 1015 10th Avenue Southeast, Minneapolis, Minnesota 55414 (c) in the case of the Trustee, the Corporate Trust Office, or such other address as the Trustee may hereafter furnish to each other party to this Agreement in writing, (d) in the case of the Transferor, UBS Real Estate Securities Inc., 1285 Avenue of the Americas, New York, New York 10019, Attention:  General Counsel, (e) in the case of the Rating Agencies, the address specified therefor in the definition corresponding to the name of such Rating Agency, and (f) in the case of the Trust Administrator, the Corporate Trust Office, or such other address as the Trust Administrator may hereafter furnish to each other party to this Agreement in writing.  Notices to Certificateholders shall be deemed given when mailed, first class postage prepaid, to their respective addresses appearing in the Certificate Register.

Section 11.06

Severability of Provisions.  

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

Section 11.07

Assignment.  

Notwithstanding anything to the contrary contained herein, except as provided in Section 6.02 and this Section 11.07, this Agreement may not be assigned by the Master Servicer without the prior written consent of the Trustee and Depositor.  Pursuant to Section 6.05, the Master Servicer shall be permitted to pledge its rights as servicer hereunder to a lender, provided that no such pledge shall permit the termination of the Master Servicer as Master Servicer unless a successor servicer meeting the requirements of Sections 6.04 and 7.02 hereunder shall have assumed the rights and obligations of the Master Servicer hereunder.

Section 11.08

Limitation on Rights of Certificateholders.  

The death or incapacity of any Certificateholder shall not operate to terminate this Agreement or the trust created hereby, nor entitle such Certificateholder’s legal representative or heirs to claim an accounting or to take any action or commence any proceeding in any court for a petition or winding up of the trust created hereby, or otherwise affect the rights, obligations and liabilities of the parties hereto or any of them.

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

No Certificateholder shall have any right by virtue or by availing itself of any provisions of this Agreement to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Agreement, unless such Holder previously shall have given to the Trustee or the Trust Administrator a written notice of a Master Servicer Event of Termination and of the continuance thereof, as herein provided, and unless the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates shall also have made written request to the Trustee or the Trust Administrator to institute such action, suit or proceeding in its own name as Trustee or Trust Administrator hereunder and shall have offered to the Trust Administrator such reasonable indemnity as it may require against the costs, expenses, and liabilities to be incurred therein or thereby, and the Trustee or the Trust Administrator, for 60 days after its receipt of such notice, request and offer of indemnity shall have neglected or refused to institute any such action, suit or proceeding; it being understood and intended, and being expressly covenanted by each Certificateholder with every other Certificateholder and the Trustee or the Trust Administrator, that no one or more Holders of Certificates shall have any right in any manner whatever by virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of the Certificates, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Agreement, except in the manner herein provided and for the common benefit of all Certificateholders.  For the protection and enforcement of the provisions of this Section 11.08, each and every Certificateholder and the Trustee and the Trust Administrator shall be entitled to such relief as can be given either at law or in equity.

Section 11.09

Inspection and Audit Rights.  

The Master Servicer agrees that, on reasonable prior notice, it will permit and will cause each Servicer to permit any representative of the Depositor or the Trustee during the Master Servicer’s or Servicer’s, as the case may be, normal business hours, to examine all the books of account, records, reports and other papers of the Master Servicer or the Servicer, as the case may be, relating to the Mortgage Loans, to make copies and extracts therefrom, to cause such books to be audited by independent certified public accountants selected by the Depositor or the Trustee and to discuss its affairs, finances and accounts relating to the Mortgage Loans with its officers, employees and independent public accountants (and by this provision the Master Servicer or the Servicer, as the case may be, hereby authorize said accountants to discuss with such representative such affairs, finances and accounts), all at such reasonable times and as often as may be reasonably requested.  Any out-of-pocket expense incident to the exercise by the Depositor or the Trustee of any right under this Section 11.09 shall be borne by the party requesting such inspection; all other such expenses shall be borne by the Master Servicer or the related Servicer.

Section 11.10

Certificates Nonassessable and Fully Paid.  

It is the intention of the Depositor that Certificateholders shall not be personally liable for obligations of the Trust Fund, that the interests in the Trust Fund represented by the Certificates shall be nonassessable for any reason whatsoever, and that the Certificates, upon due authentication thereof by the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

Section 11.11

Compliance With Regulation AB.

Each of the parties hereto acknowledges and agrees that the purpose of Sections 3.21, 3.22 and 9.12 of this Agreement is to facilitate compliance by the Transferor and the Depositor with the provisions of Regulation AB, as such may be amended or clarified from time to time.  Therefore, each of the parties agrees that (a) the obligations of the parties hereunder shall be interpreted in such a manner as to accomplish compliance with Regulation AB, (b) the parties’ obligations hereunder will be supplemented and modified as necessary to be consistent with any such amendments, interpretive advice or guidance, convention or consensus among active participants in the asset-backed securities markets, advice of counsel, or otherwise in respect of the requirements of Regulation AB and (c) the parties shall comply, to the extent practicable from a timing and information systems perspective and at the expense of the Depositor, with requests made by the Transferor or the Depositor for delivery of additional or different information as the Transferor or the Depositor may determine in good faith is necessary to comply with the provisions of Regulation AB.

IN WITNESS WHEREOF, the Depositor, the Trustee, the Trust Administrator, the Transferor, the Master Servicer and the Custodian have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., as Depositor

By:

              /s/ Peter Slagowitz

Name:        Peter Slagowitz

Title:          Managing Director

By:

              /s/ Sameer Tikoo

Name:        Sameer Tikoo

Title:          Associate Director

UBS REAL ESTATE SECURITIES INC., as Transferor

By:

              /s/ Peter Slagowitz

Name:        Peter Slagowitz

Title:          Managing Director

By:

              /s/ Sameer Tikoo

Name:        Sameer Tikoo

Title:          Associate Director

U.S. BANK NATIONAL ASSOCIATION, as Trustee 

By:

              /s/ Toby Robillard

Name:        Toby Robillar

Title:          Assistant Vice President

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

By:

              /s/ Graham M. Oglesby

Name:        Graham M. Oglesby

Title:          Assistant Vice President

STATE OF NEW YORK

)

)

ss.:

COUNTY OF NEW YORK

)

On the 29th day of March, 2006 before me, a notary public in and for said State, personally appeared Peter Slagowitz known to me to be a Managing Director of Mortgage Asset Securitization Transactions, Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

_____/s/ Andrea Clisura_______________

Notary Public

[SEAL]

My commission expires:

___August 29, 2009___________________

STATE OF NEW YORK

)

)

ss.:

COUNTY OF NEW YORK

)

On the 29th day of March, 2006 before me, a notary public in and for said State, personally appeared Sameer Tikoo known to me to be an Associate Director of Mortgage Asset Securitization Transactions, Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

_____/s/ Andrea Clisura_______________

Notary Public

[SEAL]

My commission expires:

___August 29, 2009___________________

STATE OF NEW YORK

)

)

ss.:

COUNTY OF NEW YORK

)

On the 29th day of March, 2006 before me, a notary public in and for said State, personally appeared Peter Slagowitz known to me to be a Managing Director of UBS Real Estate Securities Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

_____/s/ Andrea Clisura_______________

Notary Public

[SEAL]

My commission expires:

___August 29, 2009___________________

STATE OF NEW YORK

)

)

ss.:

COUNTY OF NEW YORK

)

On the 29th day of March, 2006 before me, a notary public in and for said State, personally appeared Sameer Tikoo known to me to be an Associate Director of UBS Real Estate Securities Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

_____/s/ Andrea Clisura_______________

Notary Public

[SEAL]

My commission expires:

___August 29, 2009___________________

STATE OF MARYLAND

)

)

ss.:

COUNTY OF ANNE ARUNDEL)

On the 29th day of March, 2006 before me, a notary public in and for said State, personally appeared Graham M. Oglesby known to me to be an Assistant Vice President of Wells Fargo Bank, N.A., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

__/s/ Jennifer Richardson_____________

Notary Public

[SEAL]

My commission expires:

____April 11, 2006_______________

STATE OF MINNESOTA

)

)

ss.:

COUNTY OF RAMSEY

)

On the 29th day of March, 2006 before me, a notary public in and for said State, personally appeared Toby Robillard known to me to be a Assistant 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 such corporation, and acknowledged to me that such corporation executed the within instrument.

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

__/s/ Jennifer Richardson_____________

Notary Public

[SEAL]

My commission expires:

____January 31, 2009_______________

SCHEDULE I

Mortgage Loan Schedule

SCHEDULE II

MASTR Asset Securitization Trust 2006-1

Mortgage Pass-Through Certificates

Series 2006-1

Representations and Warranties as to the Mortgage Loans

UBS Real Estate Securities Inc. (the “Transferor”) hereby makes with respect to those Mortgage Loans sold by it to the Depositor pursuant to the Mortgage Loan Purchase Agreement, the following representations and warranties as of the Closing Date or, if so specified herein, as of the Cut-off Date.  

(i)

The information set forth in the Mortgage Loan Schedule was true and correct in all material respects at the date or dates respecting which such information is furnished as specified in the Mortgage Loan Schedule;

(ii)

Immediately prior to the transfer and assignment contemplated herein, the Transferor was the sole owner and holder of the Mortgage Loan free and clear of any and all liens, pledges, charges or security interests of any nature and has full right and authority to sell and assign the same;

(iii)

The Mortgage is a valid, subsisting and enforceable first lien on the property therein described, and the Mortgaged Property is free and clear of all encumbrances and liens having priority over the first lien of the Mortgage except for liens for real estate taxes and special assessments not yet due and payable and liens or interests arising under or as a result of any federal, state or local law, regulation or ordinance relating to hazardous wastes or hazardous substances, and, if the related Mortgaged Property is a condominium unit, any lien for common charges permitted by statute or homeowners association fees; and if the Mortgaged Property consists of shares of a cooperative housing corporation, any lien for amounts due to the cooperative housing corporation for unpaid assessments or charges or any lien of any assignment of rents or maintenance expenses secured by the real property owned by the cooperative housing corporation; and any security agreement, chattel mortgage or equivalent document related to, and delivered to the Trustee or to the Master Servicer with, any Mortgage establishes in the Transferor a valid and subsisting first lien on the property described therein and the Transferor has full right to sell and assign the same to the Trustee;

(iv)

Neither the Transferor nor any prior holder of the Mortgage or the related Mortgage Note has modified the Mortgage or the related Mortgage Note in any material respect, satisfied, canceled or subordinated the Mortgage in whole or in part, released the Mortgaged Property in whole or in part from the lien of the Mortgage, or executed any instrument of release, cancellation, modification or satisfaction, except in each case as is reflected in an agreement delivered to the Trustee or the Master Servicer pursuant to Section 2.01;

(v)

All taxes, governmental assessments, insurance premiums, and water, sewer and municipal charges, which previously became due and owing have been paid, or an escrow of funds has been established, to the extent permitted by law, in an amount sufficient to pay for every such item which remains unpaid; and the Transferor has not advanced funds, or received any advance of funds by a party other than the Mortgagor, directly or indirectly for the payment of any amount required by the Mortgage, except for interest accruing from the date of the Mortgage Note or date of disbursement of the Mortgage Loan proceeds, whichever is later, to the day which precedes by thirty days the first Due Date under the related Mortgage Note;

(vi)

The Mortgaged Property is undamaged by water, fire, earthquake, earth movement other than earthquake, windstorm, flood, tornado or similar casualty (excluding casualty from the presence of hazardous wastes or hazardous substances, as to which the Transferor makes no representations), so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended and to the best of the Transferor’s knowledge, there is no proceeding pending or threatened for the total or partial condemnation of the Mortgaged Property;

(vii)

The Mortgaged Property is free and clear of all mechanics’ and materialmen’s liens or liens in the nature thereof; provided, however, that this warranty shall be deemed not to have been made at the time of the initial issuance of the Certificates if a title policy affording, in substance, the same protection afforded by this warranty is furnished to the Trustee by the Transferor;

(viii)

Except for Mortgage Loans secured by co-op shares and Mortgage Loans secured by residential long term leases, the Mortgaged Property consists of a fee simple estate in real property; all of the improvements which are included for the purpose of determining the appraised value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of such property and no improvements on adjoining properties encroach upon the Mortgaged Property (unless insured against under the related title insurance policy); and to the best of the Transferor’s knowledge, the Mortgaged Property and all improvements thereon comply with all requirements of any applicable zoning and subdivision laws and ordinances;

(ix)

The Mortgage Loan meets, or is exempt from, applicable state or federal laws, regulations and other requirements, pertaining to usury, and the Mortgage Loan is not usurious;

(x)

To the best of the Transferor’s knowledge, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities;

(xi)

All payments required to be made up to but not including the Due Date immediately preceding the Cut-off Date for such Mortgage Loan under the terms of the related Mortgage Note have been made and no payment under any Mortgage Loan has been 30 days delinquent more than one time within twelve months prior to the Closing Date;

(xii)

The Mortgage Note, the related Mortgage and other agreements executed in connection therewith are genuine, and each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); and, to the best of the Transferor’s knowledge, all parties to the Mortgage Note and the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage and each Mortgage Note and Mortgage has been duly and properly executed by the Mortgagor;

(xiii)

Each Loan at the time it was made complied in all material respects with applicable federal, state and local laws, including, without limitation, all applicable anti-predatory and abusive lending laws;

(xiv)

The proceeds of the Mortgage Loans have been fully disbursed, there is no requirement for future advances thereunder and any and all requirements as to completion of any on site or off site improvements and as to disbursements of any escrow funds therefor have been complied with (except for escrow funds for exterior items which could not be completed due to weather and escrow funds for the completion of swimming pools); and all costs, fees and expenses incurred in making, closing or recording the Mortgage Loan have been paid, except recording fees with respect to Mortgages not recorded as of the Closing Date;

(xv)

The Mortgage Loan (except any Mortgage Loan secured by a Mortgaged Property located in any jurisdiction, as to which an opinion of counsel of the type customarily rendered in such jurisdiction in lieu of title insurance is instead received) is covered by an American Land Title Association mortgagee title insurance policy or other generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable to Fannie Mae or Freddie Mac insuring the originator, its successors and assigns, as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan and subject only to (A) the lien of current real property taxes and assessments not yet due and payable, (B) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage acceptable to mortgage lending institutions in the area in which the Mortgaged Property is located or specifically referred to in the appraisal performed in connection with the origination of the related Mortgage Loan, (C) liens created pursuant to any federal, state or local law, regulation or ordinance affording liens for the costs of clean up of hazardous substances or hazardous wastes or for other environmental protection purposes and (D) such other matters to which like properties are commonly subject which do not individually, or in the aggregate, materially interfere with the benefits of the security intended to be provided by the Mortgage; the Transferor is the sole insured of such mortgagee title insurance policy, the assignment to the Trustee of the Transferor’s interest in such mortgagee title insurance policy does not require any consent of or notification to the insurer which has not been obtained or made, such mortgagee title insurance policy is in full force and effect and will be in full force and effect and inure to the benefit of the Trustee, no claims have been made under such mortgagee title insurance policy, and no prior holder of the related Mortgage, including the Transferor, has done, by act or omission, anything which would impair the coverage of such mortgagee title insurance policy;

(xvi)

The Mortgaged Property securing each Mortgage Loan is insured by an insurer acceptable to Fannie Mae or Freddie Mac against loss by fire and such hazards as are covered under a standard extended coverage endorsement, in an amount which is not less than the lesser of 100% of the insurable value of the Mortgaged Property and the outstanding principal balance of the Mortgage Loan, but in no event less than the minimum amount necessary to fully compensate for any damage or loss on a replacement cost basis; if the Mortgaged Property is a condominium unit, it is included under the coverage afforded by a blanket policy for the project; if upon origination of the Mortgage Loan, the improvements on the Mortgaged Property were in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (A) the outstanding principal balance of the Mortgage Loan, (B) the full insurable value of the Mortgaged Property and (C) the maximum amount of insurance which was available under the National Flood Insurance Act of 1968, as amended; and each Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense;

(xvii)

To the best of the Transferor’s knowledge no foreclosure action has been commenced or is currently threatened, with respect to the Mortgage Loan and the Transferor has not waived any default, breach, violation or event of acceleration;

(xviii)

No Mortgage Note or Mortgage is subject to any right of rescission, set off, counterclaim or defense, including the defense of usury, nor will the operation of any of the terms of the Mortgage Note or Mortgage, or the exercise of any right thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject it to any right of rescission, set off, counterclaim or defense, including the defense of usury, and no such right of rescission, set off, counterclaim or defense has been asserted with respect thereto;

(xix)

Each Mortgage Note is payable in monthly payments, resulting in complete amortization of the Mortgage Loan over a term of not more than 360 months;

(xx)

Each Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security, including realization by judicial foreclosure (subject to any limitation arising from any bankruptcy, insolvency or other law for the relief of debtors), and there is no homestead or other exemption available to the Mortgagor which would interfere with such right of foreclosure;

(xxi)

To the best of the Transferor’s knowledge, no Mortgagor is a debtor in any state or federal bankruptcy or insolvency proceeding;

(xxii)

Each Mortgaged Property consists of a one to four unit residential property, which may include a detached home, townhouse, condominium unit or a unit in a planned unit development or, in the case of Mortgage Loans secured by co-op shares, leases or occupancy agreements;

(xxiii)

The Mortgage Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code;

(xxiv)

With respect to each Mortgage where a lost note affidavit has been delivered to the Trustee in place of the related Mortgage Note, the related Mortgage Note is no longer in existence;

(xxv)

In the event that the Mortgagor is an inter vivos “living” trust, (i) such trust is in compliance with Fannie Mae or Freddie Mac standards for inter vivos trusts and (ii) holding title to the Mortgaged Property in such trust will not diminish any rights as a creditor including the right to full title to the Mortgaged Property in the event foreclosure proceedings are initiated;

(xxvi)

If the Mortgage Loan is secured by a long-term residential lease, (1) the lessor under the lease holds a fee simple interest in the land; (2) the terms of such lease expressly permit the mortgaging of the leasehold estate, the assignment of the lease without the lessor’s consent and the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protections; (3) the terms of such lease do not (a) allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled to receive written notice of, and opportunity to cure, such default or (b) allow the termination of the lease in the event of damage or destruction as long as the Mortgage is in existence; (4) the term of such lease does not terminate earlier than five years after the maturity date of the Mortgage Note; and (5) the Mortgaged Property is located in a jurisdiction in which the use of leasehold estates in transferring ownership in residential properties is a widely accepted practice;

(xxvii)

The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, as amended, a savings and loan association, a savings bank, a commercial bank, credit union, insurance company or similar institution which is supervised and examined by a federal or state authority;

(xxviii)

The Mortgage Loan was underwritten in accordance with the underwriting guidelines of the related Loan Seller in effect at the time of origination with exceptions thereto exercised in a reasonable manner;

(xxix)

The Loan Seller used no adverse selection procedures in selecting the Mortgage Loan from among the outstanding first-lien, residential mortgage loans owned by it which were available for sale to the Transferor;

(xxx)

With respect to each Mortgage Loan, the Transferor is in possession of a complete Mortgage File except for the documents which have been delivered to the Trustee or which have been submitted for recording and not yet returned;

(xxxi)

As of the Cut-off Date, the range of original Loan-to-Value Ratios of the Mortgage Loans is 17.24% to 95.00% and 21 Mortgage Loans, representing 2.05% of the Cut-off Date Pool Balance, had Loan-to-Value Ratios at origination in excess of 80%.  Each such Mortgage Loan is subject to a Primary Insurance Policy;

(xxxii)

With respect to each Mortgage Loan that has a prepayment penalty feature, each such prepayment penalty is enforceable and, at the time such Mortgage Loan was originated, each prepayment penalty complied with applicable federal, state and local law, subject to federal preemption where applicable;

(xxxiii)

With respect to each Mortgage Loan, the related Servicing Agreement requires the related Servicer to deposit into the related Protected Account an amount equal to all payments of principal and interest on such Mortgage Loan that are delinquent at the close of business on the related Determination Date and not previously advanced by such Servicer.  The obligation of such Servicer to advance such payments as to such Mortgage Loan will continue through the final disposition or liquidation of the Mortgaged Property, unless such Servicer deems such advance to be nonrecoverable from liquidation proceeds, REO disposition proceeds, condemnation proceeds or insurance proceeds with respect to such Mortgage Loan; and

(xxxiv)

 No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable, and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending Act.  No Mortgage Loan is covered by the Home Ownership and Equity Protection Act of 1994 and no Mortgage Loan is in violation of any comparable state or local law.

(xxxv)

No loan is a High Cost Loan or Covered Loan, as applicable (as such terms are defined in the then current Standard & Poor’s LEVELS® Glossary which is now Version 5.6 (d) Revised, Appendix E).

SCHEDULE III

Class P Prepayment Charges Mortgage Loan Schedule

SCHEDULE IV

Aggregate Scheduled Class Balance Table – PACs

	Distribution Date

	Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4 and Class 1-A-5 Certificates

	Closing Date Balance

	$132,984,000.00

	April 2006

	132,590,166.60

	May 2006

	132,143,962.70

	June 2006

	131,645,640.70

	July 2006

	131,095,386.10

	August 2006

	130,493,418.10

	September 2006

	129,839,989.00

	October 2006

	129,135,384.60

	November 2006

	128,379,923.50

	December 2006

	127,573,957.10

	January 2007

	126,717,869.80

	February 2007

	125,812,077.90

	March 2007

	124,857,030.00

	April 2007

	123,853,206.40

	May 2007

	122,801,118.70

	June 2007

	121,701,309.50

	July 2007

	120,554,351.90

	August 2007

	119,360,848.90

	September 2007

	118,121,433.10

	October 2007

	116,836,766.30

	November 2007

	115,507,626.40

	December 2007

	114,134,729.40

	January 2008

	112,718,818.40

	February 2008

	111,260,663.00

	March 2008

	109,761,129.90

	April 2008

	108,221,222.70

	May 2008

	106,651,831.00

	June 2008

	105,062,593.80

	July 2008

	103,461,034.80

	August 2008

	101,870,160.60

	September 2008

	100,289,935.70

	October 2008

	98,720,291.05

	November 2008

	97,161,158.15

	December 2008

	95,612,468.94

	January 2009

	94,074,155.79

	February 2009

	92,546,151.53

	March 2009

	91,028,389.41

	April 2009

	89,520,803.13

	May 2009

	88,023,326.81

	June 2009

	86,535,895.00

	July 2009

	85,058,442.69

	August 2009

	83,590,905.27

	September 2009

	82,133,218.58

	October 2009

	80,685,318.85

	November 2009

	79,247,142.74

	December 2009

	77,818,627.33

	January 2010

	76,399,710.10

	February 2010

	74,990,328.94

	March 2010

	73,590,422.13

	April 2010

	72,199,928.39

	May 2010

	70,818,786.80

	June 2010

	69,446,936.86

	July 2010

	68,084,318.46

	August 2010

	66,730,871.88

	September 2010

	65,386,537.78

	October 2010

	64,051,257.24

	November 2010

	62,724,971.68

	December 2010

	61,407,622.93

	January 2011

	60,099,153.20

	February 2011

	58,799,505.07

	March 2011

	57,508,621.48

	April 2011

	56,317,958.56

	May 2011

	55,135,823.08

	June 2011

	53,962,159.39

	July 2011

	52,796,912.19

	August 2011

	51,640,026.56

	September 2011

	50,491,447.90

	October 2011

	49,351,122.02

	November 2011

	48,218,995.05

	December 2011

	47,095,013.48

	January 2012

	45,979,124.14

	February 2012

	44,871,274.24

	March 2012

	43,771,411.30

	April 2012

	42,700,019.90

	May 2012

	41,636,368.85

	June 2012

	40,580,406.99

	July 2012

	39,532,083.51

	August 2012

	38,491,347.90

	September 2012

	37,458,150.02

	October 2012

	36,432,440.02

	November 2012

	35,414,168.41

	December 2012

	34,403,286.01

	January 2013

	33,399,743.95

	February 2013

	32,403,493.71

	March 2013

	31,414,487.05

	April 2013

	30,504,218.77

	May 2013

	29,611,677.17

	June 2013

	28,736,540.03

	July 2013

	27,878,490.74

	August 2013

	27,037,218.22

	September 2013

	26,212,416.81

	October 2013

	25,403,786.21

	November 2013

	24,611,031.36

	December 2013

	23,833,862.36

	January 2014

	23,071,994.37

	February 2014

	22,325,147.55

	March 2014

	21,593,046.96

	April 2014

	20,951,137.89

	May 2014

	20,321,420.97

	June 2014

	19,703,673.35

	July 2014

	19,097,676.15

	August 2014

	18,503,214.37

	September 2014

	17,920,076.83

	October 2014

	17,348,056.12

	November 2014

	16,786,948.52

	December 2014

	16,236,553.93

	January 2015

	15,696,675.81

	February 2015

	15,167,121.14

	March 2015

	14,647,700.32

	April 2015

	14,199,199.89

	May 2015

	13,758,460.07

	June 2015

	13,325,348.97

	July 2015

	12,899,736.91

	August 2015

	12,481,496.40

	September 2015

	12,070,502.07

	October 2015

	11,666,630.67

	November 2015

	11,269,670.52

	December 2015

	10,879,490.13

	January 2016

	10,494,311.88

	February 2016

	10,104,903.67

	March 2016

	9,722,356.80

	April 2016

	9,346,584.16

	May 2016

	8,977,468.97

	June 2016

	8,614,896.43

	July 2016

	8,258,753.68

	August 2016

	7,908,929.79

	September 2016

	7,565,315.70

	October 2016

	7,227,804.20

	November 2016

	6,896,289.90

	December 2016

	6,570,669.20

	January 2017

	6,250,840.25

	February 2017

	5,936,702.96

	March 2017

	5,628,158.90

	April 2017

	5,325,111.33

	May 2017

	5,027,465.16

	June 2017

	4,735,126.90

	July 2017

	4,448,004.67

	August 2017

	4,166,008.13

	September 2017

	3,889,048.49

	October 2017

	3,617,038.47

	November 2017

	3,349,892.25

	December 2017

	3,087,525.51

	January 2018

	2,829,855.34

	February 2018

	2,576,800.24

	March 2018

	2,328,280.11

	April 2018

	2,084,216.20

	May 2018

	1,844,531.12

	June 2018

	1,609,148.78

	July 2018

	1,377,994.38

	August 2018

	1,150,994.43

	September 2018

	928,076.66

	October 2018

	709,170.04

	November 2018

	494,204.76

	December 2018

	283,112.18

	January 2019

	75,824.86

	February 2019

	0

SCHEDULE V

Aggregate Scheduled Class Balance Table - TACs

	Distribution Date

	Class 1-A-6, Class 1-A-7, Class 1-A-8 and Class 1-A-9 Certificates

	Closing Date Balance

	$66,622,000.00

	April 2006

	66,384,816.06

	May 2006

	66,095,553.94

	June 2006

	65,754,444.18

	July 2006

	65,361,816.88

	August 2006

	64,918,101.66

	September 2006

	64,423,827.64

	October 2006

	63,879,622.95

	November 2006

	63,286,214.15

	December 2006

	62,644,425.25

	January 2007

	61,955,176.68

	February 2007

	61,219,483.80

	March 2007

	60,438,455.36

	April 2007

	59,613,291.53

	May 2007

	58,745,281.84

	June 2007

	57,835,802.79

	July 2007

	56,886,315.29

	August 2007

	55,898,361.83

	September 2007

	54,873,563.44

	October 2007

	53,813,616.40

	November 2007

	52,720,374.81

	December 2007

	51,595,669.89

	January 2008

	50,441,397.19

	February 2008

	49,259,512.46

	March 2008

	48,052,095.92

	April 2008

	46,821,384.07

	May 2008

	45,579,069.35

	June 2008

	44,335,287.34

	July 2008

	43,097,838.08

	August 2008

	41,888,977.48

	September 2008

	40,708,265.72

	October 2008

	39,555,236.59

	November 2008

	38,429,430.77

	December 2008

	37,330,395.67

	January 2009

	36,257,685.36

	February 2009

	35,210,860.47

	March 2009

	34,189,488.09

	April 2009

	33,193,141.69

	May 2009

	32,221,401.04

	June 2009

	31,273,852.09

	July 2009

	30,350,086.90

	August 2009

	29,449,703.59

	September 2009

	28,572,306.17

	October 2009

	27,717,504.54

	November 2009

	26,884,914.38

	December 2009

	26,074,157.04

	January 2010

	25,284,859.49

	February 2010

	24,516,654.23

	March 2010

	23,769,179.25

	April 2010

	23,042,077.86

	May 2010

	22,334,998.72

	June 2010

	21,647,595.69

	July 2010

	20,979,527.80

	August 2010

	20,330,459.16

	September 2010

	19,700,058.89

	October 2010

	19,088,001.02

	November 2010

	18,493,964.50

	December 2010

	17,917,633.03

	January 2011

	17,358,695.07

	February 2011

	16,816,843.74

	March 2011

	16,291,776.77

	April 2011

	15,854,307.43

	May 2011

	15,432,480.05

	June 2011

	15,026,007.91

	July 2011

	14,634,608.63

	August 2011

	14,258,004.08

	September 2011

	13,895,920.39

	October 2011

	13,548,087.77

	November 2011

	13,214,240.57

	December 2011 

	12,894,117.16

	January 2012

	12,587,459.90

	February 2012

	12,294,015.02

	March 2012

	12,013,532.67

	April 2012

	11,767,020.84

	May 2012

	11,532,621.29

	June 2012

	11,310,098.54

	July 2012

	11,099,220.71

	August 2012

	10,899,759.52

	September 2012

	10,711,490.19

	October 2012

	10,534,191.43

	November 2012

	10,367,645.37

	December 2012

	10,211,637.49

	January 2013

	10,065,956.64

	February 2013

	9,930,394.89

	March 2013

	9,804,747.60

	April 2013

	9,693,036.73

	May 2013

	9,579,008.67

	June 2013

	9,462,756.44

	July 2013

	9,344,370.67

	August 2013

	9,223,939.65

	September 2013

	9,101,549.40

	October 2013

	8,977,283.68

	November 2013

	8,851,224.06

	December 2013

	8,723,449.97

	January 2014

	8,594,038.77

	February 2014

	8,463,065.74

	March 2014

	8,330,604.14

	April 2014

	8,186,712.71

	May 2014

	8,042,035.53

	June 2014

	7,896,624.55

	July 2014

	7,750,530.17

	August 2014

	7,603,801.35

	September 2014

	7,456,485.57

	October 2014

	7,308,628.89

	November 2014

	7,160,275.99

	December 2014

	7,011,470.19

	January 2015

	6,862,253.50

	February 2015

	6,712,666.62

	March 2015

	6,562,749.00

	April 2015

	6,406,534.15

	May 2015

	6,250,562.35

	June 2015

	6,094,851.11

	July 2015

	5,939,417.32

	August 2015

	5,784,277.18

	September 2015

	5,629,446.31

	October 2015

	5,474,939.69

	November 2015

	5,320,719.77

	December 2015

	5,166,792.40

	January 2016

	5,012,215.03

	February 2016

	4,851,737.54

	March 2016

	4,691,717.69

	April 2016

	4,532,185.19

	May 2016

	4,373,151.24

	June 2016

	4,214,626.51

	July 2016

	4,056,621.17

	August 2016

	3,899,144.85

	September 2016

	3,742,206.73

	October 2016

	3,585,815.46

	November 2016

	3,429,979.27

	December 2016 

	3,274,705.90

	January 2017

	3,120,002.67

	February 2017

	2,965,876.42

	March 2017

	2,812,333.62

	April 2017

	2,659,380.30

	May 2017

	2,507,022.11

	June 2017

	2,355,264.28

	July 2017

	2,204,111.68

	August 2017

	2,053,568.80

	September 2017

	1,903,639.79

	October 2017

	1,754,328.41

	November 2017

	1,605,638.13

	December 2017

	1,457,572.05

	January 2018

	1,310,132.95

	February 2018

	1,163,323.32

	March 2018

	1,017,145.32

	April 2018

	871,600.83

	May 2018

	726,691.41

	June 2018

	582,418.38

	July 2018

	438,782.77

	August 2018

	295,785.34

	September 2018

	153,426.58

	October 2018

	11,706.77

	November 2018

	0

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